Tag Archives: house
House price growth continued across the UK in November, latest ONS data shows
House prices in the UK increased by 7.7% in the year to November 2015, up from 7% the previous month, according to figures from the Office of National Statistics. House price annual inflation was 8.3% in England, 1.3% in Wales, 0.4% in Scotland and 4.6% in Northern Ireland. The ONS data also shows that house price growth in England were driven by an annual increase in the East of 10.2%, the South East at 9.8% and London also at 9.8%. Excluding London and the South East, UK house prices increased by 5.8% in the 12 months to November 2015. On a seasonally adjusted basis, average house prices increased by 0.8% between October and November 2015 and prices paid by first time buyers were 7.4% higher on average than in November 2014. The continued upward trend is likely to exacerbate affordability issues for first time buyers, according to Steve Bolton, founder of Platinum Property Partners who added that it is a result of the current dearth in property supply. ‘Recent initiatives aimed at addressing the challenges faced by first time buyers show little signs of reversing this trend. The Chancellor’s decision to levy a 3% surcharge on stamp duty for landlords and second home owners may be with first time buyers’ interests at heart, but in reality this is likely to drive up house prices further in the short term as buyers rush to compete purchases before spring,’ he explained. ‘The stamp duty changes and restriction on buy to let tax relief gives the impression that a strong private rental is a barrier to popular home ownership. However, the reality is that by attacking private landlords and increasing buy to let costs, tenants are likely to face rising rents which is a huge barrier to future home ownership,’ he pointed out. ‘The tax grab is targeted purely at landlords with mortgages, excluding the wealthiest landlords. This is unfair and undemocratic, which is why we’re currently co-heading a legal challenge to fight these changes. Having received considerable industry support, as well as raising funding for the initial stage in a matter of days, its clear many landlords agree the tax changes pose a serious threat to the future of the buy to let market,’ he added. Rishi Passi, chief executive of Oblix Capital believes that the lack of supply is unlikely to change in the short term. ‘Better job prospects, wage improvement and recurring delays in interest rate rises mean that it’s likely this surge in house sales and price inflation will continue, for the meantime at least,’ he said. ‘Further investment is needed to encourage house building, stem the supply imbalance in crowded markets, and ensure that small and medium sized developers have access to the finance they need,’ he added. Jonathan Hopper, managing director of buying agents Garrington Property Partners, pointed out that overall first time buyer prices are rising more… Continue reading
UK house market showed no end of year let up as prices rose 1.7%
House prices in the UK increased by 1.7% in December, showing none of the traditional end of year slowdown, the latest index figures show, prices now set to keep rising in 2016. The data from UK lender the Halifax, also shows that year on year prices have risen by 9.5% and were up 1.6% quarter on quarter, taking the average price to £208,286. However, the quarterly rate of change remained below 2% for the second successive month and was at its lowest values during 2015. But the annual rate of change remained in the 8% to 10% range throughout the year. The Halifax report also points out that the monthly house price pattern seen during the second half of 2015 has fluctuated and the quarter on quarter change is a more reliable indicator of the underlying trend. Newham in London recorded the biggest rise in house prices among major UK towns and cities over the past year, according to separate recent research by the Halifax. The average house price in the London borough was 22% higher than in the previous year and nearly double the 12% increase in London as a whole. Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. ‘There remains, however, a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale,’ said Martin Ellis, Halifax housing economist. ‘This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices,’ he added. According to Rob Weaver, director of Investments at property crowdfunding platform Property Partner, the fact that house price growth was 1.7% in the traditionally quiet month of December underlines the upward pressure on prices caused by the supply and demand imbalance. ‘With such extreme supply side issues, prices look set to move in only one direction throughout 2016. December may well have set a precedent for the year ahead. There will naturally be regional variations throughout the year but overall the trajectory of the UK property market will be upwards,’ he said. ‘As ever, London and the South East are likely to outperform due to the exaggerated supply issue and overall demographic in that corner of the country. The significant house price growth seen in Newham reinforces how the balance of power in the capital has moved from the centre to the peripheries, where gentrification, regeneration and infrastructure improvements are driving price rises,’ he explained. Jonathan Hopper, managing director of Garrington Property Finders, said that overall 2015 ended much as it began with demand outstripping supply in many areas and the resulting tension driving up prices. But he also pointed out that the start of 2015 was hampered by caution as some sectors of the market paused to see what would happened with the general election, for example, but there are no such… Continue reading
Downsizing is seen as too expensive for many retired home owners in UK
Downsizing is not an option for many home owners in the UK, with stamp duty, legal costs and move costs discouraging people from moving to a smaller property, new research shows. The average equity release customer has lived in their home for 21.8 years before cashing in on their property wealth, says the analysis from over 55s retirement specialist Key Retirement. But pensioners in London own their homes for nearly 26 years before accessing the wealth and the report also reveals that nearly one in three who release equity have lived in their homes for 30 years or more. The firm believes this illustrates why, for many, downsizing is simply not an option. Indeed, home owners who bought in early 1993 have seen average UK prices rise from £60,850 to around £203,800, a rise of nearly £143,000, while Londoners buying in 1989 will have seen average prices rocket from £96,130 to around £408,000 giving them gains of around £312,000. Retired home owners trying to downsize to release wealth typically face stamp duty of 2% on the proportion of a home’s value over £125,000, rising to 5% for the proportion over £250,000. ‘Stamp duty, legal and removal fees and the cost of turning their next house into a home make downsizing an expensive option for many,’ said Dean Mirfin, technical director at Key Retirement. ‘The upheaval and risks of losing touch with friends and family as well as local services, including healthcare, can all impact negatively on the decision to move, as well as the fact that these homeowners are very attached to their homes, which they have invested in for many years,’ he added. Cost and other issues aside, the difficulty of finding a suitable home to move to is cited by many as a key driver in them wanting to stay put and reinvest in their current property, many choosing to future proof their home to be suitable for them as they age, the research also suggests. Market analysis shows the number of homes for sale has slumped to a record low in November adding to the struggle for older homeowners to find a suitable home to move to. ‘Downsizing is logical and sensible and should work in theory for many but turning the theory into practice is tougher than it seems and the theory overlooks a wide range of issues that are important to retired home owners,’ said Mirfin. ‘Equity release customers are accessing an average of nearly £75,000 from their property wealth without having to tackle the financial and emotional issues involved in moving home. The average customer has owned their home for nearly 22 years and has clearly benefited from house price growth but prefers to stay in their house rather than going through the upheaval and costs of moving,’ he explained. ‘Until we are building the right sort of properties and in the right quantities both the math and availability to facilitate downsizing remain a huge challenge,’ he added. Continue reading
