Tag Archives: financial
House prices have increased strongly annually across the UK, says latest ONS index
UK house prices increased by 11.7% in the year to August 2014, unchanged from the year to July 2014, according to the latest index from the Office of National Statistics (ONS). House price annual inflation was 12.2% in England, 4.7% in Wales, 6.7% in Scotland and 9.6% in Northern Ireland. The index report says that house prices are increasing strongly across the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by an annual increase in London of 19.6% and to a lesser extent increases in the South East of 12.3% and the East of 11.6%. However, excluding London and the South East, UK house prices increased by 7.8% in the 12 months to August 2014. On a seasonally adjusted basis, average house prices increased by 0.6% between July and August 2014, the data also shows. In August 2014, prices paid by first time buyers were 12.9% higher on average than in August 2013. For existing owners prices increased by 11.2% for the same period. ‘While price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16% year on year in September. First time buyers have been bringing much of the vitality and optimism to the party,’ said David Newnes, director of Reeds Rains and Your Move estate agents. ‘While the market adapts to a mellower beat, schemes like Help to Buy and an accessible lending environment are essential to ensure that confidence isn’t silenced, and activity continues to sing,’ he added. He pointed out that a North/South divide remains evident in the race back from the debris of the financial crash. For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score. The North has the furthest ground to travel, with average prices still 8.3% or £13,400 below their housing boom high in March 2008. The London property scene is on a different scale to the rest of the country. ‘Overall, the capital has seen the strongest housing market recovery, with prices having now grown 47.3% from their previous peak in February 2008. However, the rate of annual house price inflation in the capital eased in August, as we see growth relaxing into a slower tempo from the heady pulse earlier this year,’ said Newnes. Continue reading
House valuations increase in the UK despite house price growth falling
House price growth in the UK may be falling but last month saw a rebound in valuations activity on a monthly basis, according to the latest research from Connells Survey & Valuation. The total number of valuations conducted in September increased by 42% compared to August. However, this was not enough of a seasonal rebound to take valuations volumes ahead of September 2013. On an annual basis, housing market activity has decreased by 12%, a steeper fall than the 4% annual drop seen in August 2014. ‘Sustainability is the new watchword for the housing market. Higher interest rates are getting closer and caps on mortgage to income ratios officially come into force in October, both closely following the Mortgage Market Review which has now become a settled feature of the landscape,’ said John Bagshaw. ‘In particular a base rate rise isn’t just a factor for the financial world. In the property market, buyers and sellers are increasingly factoring in slightly higher interest costs and a potential slowdown in house price growth,’ he added. He pointed out that steadier progress isn’t necessarily bad news. ‘Autumn last year was exceptionally good for housing market activity. Now, as the UK searches for a long lost measure of normality, the housing market is displaying sensible levels of caution, a healthy and often life-preserving characteristic. Stability will be important as activity keeps growing into 2015,’ he explained. Remortgaging was the strongest performing of all sections of the housing market in September. Compared to August remortgaging activity is up 57%, leaving remortgaging valuations down 9% since September 2013, the smallest annual fall. According to Bagshaw remortgaging levels appear to reflect the wisdom of crowds. ‘Most people don’t follow the detailed workings of monetary policy, and no-one can predict inflation or UK growth in six months’ time. And yet households are taking advantage of cheaper mortgage rates now, as the perception grows that locking in to that market will not be possible for ever,’ he added. First time buyers have seen the second fastest monthly pick up in activity since August, up 39% on a monthly basis. On an annual basis, this leaves first time buyer activity down 13% compared to September 2013. Activity was slightly more muted for those owner-occupiers moving home further up the property ladder, with such home mover activity up 32% compared to August. However on an annual basis the number of home mover valuations has seen the same 13% drop as first time buyers since September 2013. Bagshaw believes that first time buyers are proving unwavering and many are now ready and determined to buy their first home after putting off the move for many years due to the financial crisis. ‘Alongside this sheer number of potential home owners, lenders are increasingly playing their part and are even more willing to back new buyers, partly thanks to Help to Buy. The overall result is a consistent buoyancy… Continue reading
London prime rental market see strong demand, new research reveals
London’s prime rental markets of London saw annual growth of 1.4% on the back of strong demand for one and two bedroom flats over the past three months in particular, new research shows. Similar rental growth of 1.3% has been seen for prime properties in the commuter zone, however a significant value gap remains, with the average pound per square foot less than half of that in prime London, according to the report from Savills. In London, strong demand for smaller properties resulted in the highest quarterly rental growth in prime central London, prime North London and East of City locations, albeit from different tenant groups. ‘As is typical at this time of year, when the University year begins, wealthy international students drove the demand most evidently in prime central London due to the proximity of world class universities,’ said Lucian Cook, director of residential research as Savills. ‘In contrast, young professional sharers or couples are drawn to less expensive prime locations such as Canary Wharf, Wapping or Islington. This reflects the fact both areas provide easy access to the financial services centres of Canary Wharf and the City, as well as the emerging tech centres in East London,’ he pointed out. ‘As a result of a younger generation driving prime rental growth, landlords may have to be prepared to adapt to their changing requirements. Being able to compete with new build developments which provide on-site facilities such as a concierge will become increasingly important, particularly in PCL and in the East of City where our data shows the largest proportions of renters under the age of 29 choose to locate,’ he added. Among 30 to 60 year olds, Hampstead and St John's Wood in the North West and areas such as Fulham and Richmond in the South West have more appeal. Although rental growth here has been weaker over the past year than in the student/sharer markets, families continue to be attracted to the stock on offer and relative value for money achievable, particularly in the South West where the average pound per square foot is just £29, the lowest across all prime London. The research also shows that across London's commuter belt, the strongest annual growth was seen in the outer commuter zone, with average rents rising 2.5%. Cambridge, Farnham and Winchester, all particular favourites with families, saw the highest growth, due to their popularity for schooling and easy access to London. Regardless of location, since the peak of the prime rental market in 2008, three bed properties have seen the strongest growth with average rental values across the prime commuter zone 3% above their peak. However, over the past three months, one and two bed properties have seen the strongest growth, at 1.3%. This has been driven partly by young sharers unable to afford to buy, but the most significant factor is young professionals relocating for work as the economic recovery outside of London continues to strengthen. ‘As demand for rental properties continues to grow due to affordability… Continue reading
