Tag Archives: election
Pre-election jitters saw UK asking prices fall by 0.1% in May
There was an unseasonal drop in new seller asking prices in the UK in May, down by 0.1%, and the first fall in the month of May for five years, the latest index shows. This means that the average price of a home fell to £285,891 but prices are still up 2.5% compared to a year ago, although this annual rise is down from 4.7% in April, according to the latest date from Rightmove. The firm suggests that some sellers coming to market were forced to price more aggressively due to buyer uncertainty over the general election outcome so the fall was very much a short term one and asking prices are expected to bounce back again. ‘The unexpected outcome of a majority government has released the brakes on buyer confidence and activity, and will exert some upwards price pressure in the coming months,’ said Miles Shipside, Rightmove director and housing market analyst. He explained that the new government faces the long term challenge of delivering on an election promise to build 275,000 new affordable homes in the term of the current parliament. And he pointed out that the current shortage of suitable property for sale, meant that even the election uncertainty only caused prices to drop in three out of the 10 regions, London, which would have been hit hardest by mansion tax, the North East and Yorkshire and the Humber. He also warned that sellers who think they have the upper hand due to the lack of property for sale should be aware that a surge of new competition could be on the way, giving buyers some extra negotiating power. In the three months after the May 2010 election there was a 17% jump in the number of properties coming to market compared to the previous quarter. With a majority government in power and record spring traffic on Rightmove, early indications from estate agents suggest that the next quarter could see another surge in property coming to market. ‘Buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. Many potential sellers may have held back expecting a period of hung parliament uncertainty, but they could now decide to catch the late spring market,’ said Shipside. ‘ In a traditional tight stock market an increase in supply of available property and greater competition among sellers to attract buyers may moderate their price expectations and make them more open to an offer,’ he explained. ‘The previous election saw jumps in new seller numbers in all regions of the country, with London and Wales leading the way with over 20% more properties coming to market. There may be a window for buyers to act now in this late spring market before prices rise in the next few months,’ he added. Continue reading
Lending to first time buyers in the UK falling, latest CML data shows
First time buyer and house purchase lending in the UK has slowed, according to the latest figures from the Council of Mortgage Lenders. The figures show the full impact of new mortgage rules introduced a year ago and suggests that people are staying put for longer with mortgage pricing at record lows. The total number of loans advanced to first time buyers in March was up 20% compared to February but 5% down compared to March 2014. First time buyers borrowed £3.4 billion, which was up 21% on February and 3% up on March last year. Loans to home movers increased by 14% compared to February but was down 3% year on ear. These loans were worth £4.9 billion, up 17% on February and 7% compared to March 2014. Remortgage lending increased 19% month on month and 6% year on year. The value of these loans at £4.2 billion also increased month on month by 24% and was up 14% year on year compared to March 2014. Buy to let loans also increased month on month and year on year, up 12 compared to February and up 21% compared to March 2014. These loans were worth £2.7 billion, up 13% compared to February and up 35% on March 2014. The quarterly figures show how much lending has slowed. First time buyers took out 61,300 loans in the first quarter 2015, down 24% on the fourth quarter of 2014 and 11% down on the first quarter of 2014. They borrowed £9 billion, down 23% on the fourth quarter of 2014 and a year on year decrease of 5% compared to the first quarter of 2014. Home movers took out 70,400 loans, a decrease of 25% compared to the fourth quarter 2014 and a decrease of 11% year on year. These loans totalled £13.5 billion, down 22% on the previous quarter and 5% down year on year on the first quarter of 2014. Remortgage lending increased quarter on quarter with 75,400 loans advanced, up 3% on the fourth quarter 2014 but down 5% on the same quarter last year. The value of these loans at £11.8 billion also increased quarter on quarter by 6% and was up 2% year on year compared to quarter one of 2014. There were 52,300 buy to let loans advanced in the first quarter of 2015, down 3% on the previous quarter but up 15% on the same period in 2014. These loans were worth £7.8 billion in value, up 1% compared to the first quarter and up 28% on the first quarter of 2014. ‘It was a slow start to activity in the first couple of months of 2015 but the market started to get out of the dip in March, a trend that we think will continue as the year goes on,’ said Paul Smee, director general of the CML. ‘We will have to wait and see how the housing market reacts to the general election result and the… Continue reading
UK property market sees lowest annual price growth since 2013
Annual UK property price growth was 3.7% in April, taking the average price of a home to £208,717, the lowest level of annual growth since July 2013, the latest index shows. Month on month prices were up 0.5%, according to the latest monitor report from haart estate agents. In London prices were up 1.9% month on month and 6.8% year on year to an average of £513,154. The data also shows that in April new buyer registrations fell by 1.6% compared with March, the first monthly fall this year, as buyers adopted a pre-election ‘wait and see’ attitude. Seller activity also slowed in April with new property instructions up just 1.5% month on month. The report also shows that house sales were up 3.3% in April compared to March but down 17.1% from April 2014. But there has been a post-election pick up in seller activity with the weekend after polling day seeing a 34% surge in new property instructions compared with the previous weekend. The average price of a first time buyer home increased 3.5% annually and 0.8% on the month. The report says that the new Help to Buy ISA, when the product is designed and implemented, will provide further assistance to first time buyers seeking to buy a home. First time buyers now make up 42.9% of all mortgages written, which is up slightly on March but still falls below 46.1% in April 2014. The average mortgage granted to first-time buyers is up 1.2% on the month in April and 2.5% annually. ‘The pre-election property market held its breath in April but the election uncertainty did not have an overall stifling effect on the market average property price growth for the UK slowed but did not come off the boil,’ said Paul Smith, chief executive officer haart, which has a network of over 200 branches across the country. ‘However, there was a drop in activity from sellers and prospective buyers in the run up as a wait and see attitude took hold of the market. We are already seeing the reversal of this with a flurry of activity from prospective sellers in the weekend immediately following the election,’ he explained. ‘Continuity of government, no mansion tax and supportive policies like the Help to Buy ISA should keep the property market on its upward trajectory for the rest of 2015,’ he added. Continue reading
