Tag Archives: christmas
England and Wales house prices break new record, even as monthly growth falters
House prices in England and Wales increase £16,446 annually to £290,640, a 6% increase on November last year, according to the latest index figures. But the monthly rate of house price growth fell to 0.6%, slower than the 0.9% monthly uplift seen in October, the data from the Your Move index also shows. Excluding London and the South East, the annual rate of change drops to 4.4% but the capital is not seeing the strongest growth. While the South East overtook East Anglia as the region with the fastest growth in house prices, London dropped to fourth. The index also shows that home sales fell 15% in November, with completed sales for the year still 3.4% behind the same point in 2014. It is predicted that the Stamp Duty 3% surcharge on second homes and buy to let buyers may cause a late winter surge as these kind of buyers hurry to beat the April 2016 deadline for the new higher rate. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that despite being within grasping distance of the £300,000 mark, it may be a few months yet before average prices reach this symbolic level. He also pointed out that house prices in the South East have risen by an average of 7.1% this month, with values increasing in every local authority in the area. ‘It appears that the double digit price rises first seen in the prime London market, then the other London boroughs, are now rippling out even further to London’s commuter towns, with house prices in Reading rising by 18.3% and Luton increasing 17.3%,’ he explained. He believes that the housing market will need a Christmas boost to sales to beat last year’s figures. And the Chancellor’s changes could be the gift required. ‘House prices soared in the five months following Nigel Lawson’s withdrawal of the multiple mortgage tax relief in 1988,’ said Gill. ‘More recently in Scotland, after the Land and Buildings Transaction Tax was announced there was also a surge in the sales of high end properties to beat the deadline. England and Wales may now feel the same forces, as there will be a growth in demand from both first time buyers with extra financial support and buy to let landlords hoping to invest before the tax changes come into force,’ he explained. ‘While the Chancellor has planned to increase the number of houses being built, none of these will be completed in the next few months. As the number of houses on the market is at an historically low level, those rushing for the April deadline will be fighting for a decreasing number of properties. So we could see a spike in both house prices and sales over the normally frosty winter period,’ he added. He said that this potential surge in demand could be most obvious in places like Salcombe, Devon. The town has the highest percentage of second homes in England. In… Continue reading
Sales to first time buyers up in the UK, latest estate agent data shows
The number of sales made to first time buyers in the UK rose for the second month running, to the highest level in six years, according to the latest housing market report from the National Association of Estate Agents (NAEA). The October report show that there was an average of nine sales made per estate agent branch in total and 31% of these sales were to first time buyers. Last month, the group accounted for 29% of all sales, and in August just 20%, showing an 11% jump in just two months. ‘It’s really promising that, for the second month running, the number of sales being made to first time buyers has risen. Competitive mortgage products and the increasing pressure of an interest rate rise could be encouraging first steppers to take the plunge, as well as the dwindling supply of rental housing stock, putting pressure on renters to buy,’ said Mark Hayward, NAEA managing director. The report also points out that the supply of available housing increased in October, ahead of the Christmas slowdown. The number of properties available to buy per branch increased by 16% from 37 in September to 43 in October. On the other hand, demand for property dropped slightly from an average 342 house hunters per branch in September, to 336 in October. ‘Although it is great to see supply growing and demand falling, albeit by just 2%, we cannot rest in the knowledge that the housing market is on the ‘road to recovery’. What we’re seeing is a seasonal uplift,’ said Hayward. ‘Those selling their homes are keen to push through sales before Christmas, hence the uplift in properties entering the market but with the average sale taking between nine and 12 weeks, it’s unlikely transactions will be pushed through before Christmas now. Buyers are holding off until January to kick off the New Year with a house hunt,’ he explained. ‘The only way we can attempt to repair the market is simply by building more houses. Osborne’s pledge last week to build 200,000 new and affordable starter homes, with a discount for those under the age of 40, and his promises to offer loans to small builders, reform the planning system and re-designate commercial land to build new homes are all a step in the right direction. But until it’s all put into motion and we see the walls of new properties going up, we’re not holding our breath,’ he added. Continue reading
Asking prices down 1.3% in England and Wales, but seasonal dip lower than usual
Asking prices in England and Wales fell 1.3% month on month but are still up 6.2% year on year, taking the average to £292,572, according to the latest index data. It is the smallest drop in new seller asking prices during the seasonal November slowdown since 2011, according to the Rightmove report and the online portal says that it is indicative of even higher prices next year. Prices fell in all regions with Wales seeing the biggest monthly fall of 3.7%, taking the average asking price to £196,471 and both the South West and the North East saw a fall of 2.3% taking the averages to £279,643 and £142,917 respectively. Yorkshire and Humber saw a monthly fall of 2.2% to an average of £167,343, in the North West there was a fall of 1.9% to £171,709, while the South East and the West Midlands recorded a decline of 1.1% to £384,001 and £196,471 respectively. There was a 1.6% fall in asking prices in Greater London taking the average to £619,866, a fall of 0.6% in the East Midlands to £187,148 and a decline of 0.3% in the East of England to £315,568. The report points out that sellers who come to market in the run-up to Christmas typically set lower asking prices as buyers are harder to attract at this time of year. However, this November’s price dip of 1.3% or £3,977 is much less marked than usual, and is the smallest seen at this time of year since 2011. According to Rightmove director and housing market analyst Miles Shipside this indicates a positive underlying outlook for the year ahead among home owners, with research by Rightmove showing them to be in a confident mood and largely unfazed by the risk of higher interest rates in 2016. Given these findings, and the likelihood that demand will continue to outstrip supply, prices look set to increase again in many locations in 2016. Shipside expects it to be a short lived dip in asking prices. High home owner confidence is demonstrated by Rightmove research, with a sample size of over 23,000, which reveals that the majority, 85%, don’t think their financial situation will worsen in the next year. Despite the possibility of a 2016 rate rise that could increase mortgage repayments for many, 41% of home owners said they thought their household’s financial situation would get better over the next 12 months. Another 44% said things would stay the same, with only 15% forecasting they would get worse. Some 69% were also of the opinion that property would continue to rise in price over the next 12 months, with only 7% expecting prices to be lower. ‘Home owners have had a smooth ride over the past six or so years with a 0.5% base rate, so you would think that more might have concerns about the extra drain on their financial resources when the base rate inevitably goes up. Whether in 2016 or early… Continue reading
