Tag Archives: house
Confidence in property market reaches three year high in UK
Confidence in the UK property market has reached a three year high, according to new research from Clydesdale and Yorkshire Banks. Almost a quarter of people plan to change their current property either by extending or carrying out home improvements, the research found. A further 14% said they want to sell their house in the coming year. Finances are also high on the agenda with 11% planning to either pay off their mortgage, make overpayments or re-mortgage in the coming 12 months. The results, which show a consistently improving picture in the three years since homeowners were first asked about confidence levels, were revealed in the latest Annual Housebuyers Survey by the Banks. The survey supports the latest findings from the Council of Mortgage Lenders which reported that 2014 lending levels were the highest since 2007. Among those surveyed by the Banks in 2013, 62% of people said they planned to simply stay in their current home. The figure dropped to 58% a year later and dipped by a further 17% to 41% in 2015. Of those planning a move in the next 12 months, Londoners are most likely to move with 22% putting up a For Sale sign. Within that group, some 8% of Londoners plan to move up the property ladder, a further 8% have aspirations to relocate and 6% hope to downsize. In contrast only 10% in Scotland and 8% of those in Yorkshire plan to move in 2015. The optimism can also be seen with 44% expecting the value of their home to increase, while 54% think it will remain the same. Men are more optimistic about an increase with half of those surveyed anticipating an increase in value compared to 38% of women. Of those who believe the value of their home will increase the main reason is the increase in property prices in their local area, as well as an upturn in demand. Confidence is at its highest in London where 64% believe their property will increase in value in 2015 in sharp contrast to Wales where just less than a quarter, 24%, share a similar view. ‘We have seen optimism returning to the property market over the last few years and this seems to be growing with more people planning house changes whether it is to move, make home improvements, pay off their mortgage or even help a family member to get onto the property ladder,’ said Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network. ‘Whatever the circumstances Clydesdale and Yorkshire Banks have a range of products to suit different needs and budgets and to help make the UK's property aspirations for 2015 a reality,’ he added. Continue reading
Rents in England and Wales up almost 3% in last 12 months
Residential rents in England and Wales increased by 2.8% in the last year to an average of £763 and are now 16% higher than in 2010, according to the latest rental index to be published. The data also shows that over last five years rents have grown by an average 3% per year but after inflation is taken into account this amounts to just 0.6% annually, the buy to let index from Your Move and Reeds Rains shows. In absolute terms, the average residential rent across England and Wales has grown by £107 since January 2010, to reach £763 as of January 2015. This amounts to an average annual rent rise of 3.0% over the last half decade. However, this represents a real terms increase of 0.6% per annum when adjusted for inflation over the same period. Most recently, rents have fallen on a monthly basis, down 0.6% between December 2014 and January 2015. On an annual basis, rents are 2.8% higher than was seen last January. ‘The nature and affordability of UK housing is transforming before our eyes. In the last five years the private rented sector has successfully absorbed an unprecedented influx of tenants, while rental prices have broadly tracked inflation,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘As ever, the devil is in the detail but as this growth accelerates, even more investment will be necessary for the industry to keep up. So we need more buy to let landlords to help solve the crisis in demand for homes to rent,’ he explained. He pointed out that it is also important to recognise that these figures don’t float in a hermetically sealed chamber. ‘Many other aspects of finance and the housing market feed into this sector. Rents represent a landlord’s attempt to recoup investment at a reasonable market rate dictated by consumer prices, inflation, and basic principles of supply and demand. Over the long term, rents also tend to reflect higher house prices,’ he said. ‘In real terms, rents have risen only incrementally. But any real and sustained growth in rents should offer a clear lesson. As with the purchase market, the only clear way to make rented housing dramatically more affordable is to build far more homes, far more quickly than is currently the case. And until this happens, landlords are likely to continue to earn double digit returns on their investments,’ he added. Eight out of 10 regions saw lower rents in January 2015 than in December 2014. Only the East of England and the North East defied this downward trend, with 1.3% and 0.7% monthly increases in market rents, respectively. The dominant movement towards lower rents in January was led by a 2% month on month drop in the South West, closely followed by the North West with a 1.7% drop, and the East… Continue reading
Good start to the New Year for property markets in England and Wales
House price growth in England and Wales has slowed to a 10 month low but there are signs of prices climbing in January. Prices are up 0.3% compared to December 2014, taking the average house price to £277,857, according to the latest LSL house price index. On an annual basis average prices are up 7.5% but when London and the South East is excluding from the figures the year on year price growth for the rest of the country is 4.5%. Property prices in the North are experiencing the biggest boost at the start of the year and the strongest sales growth is in the North and Yorkshire which seems to be due to a surge in demand from first time buyers. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that January’s 7.5% annual growth is the smallest yearly improvement for 10 months and represents a deceleration from 8.9% in December as house price inflation continues to flag. ‘After some recent price falls, average property values haven’t taken any steps forward from where they stood in November and what we’re seeing is a far cry from the marathon of monthly increases that set off this time last year,’ he said. ‘In a reversal of fortune, London is leading this slowdown. The capital has long been the propeller driving forward growth, but after cruising ahead at full speed in 2014, the London property market has run aground momentarily,’ he added. Indeed, average London house prices experienced the biggest drop during December at 1.1%, but Gill said this is just a symptom of the unsustainable rate of growth that the market stretched to last year, as the capital now takes a pause. He also pointed out that while a prospective mansion tax and the higher rate of Stamp Duty on million pound homes may be a blot on the buying landscape at the top end, everyday buyers are simply able to take their time to deliberate and get their finances in order now that market conditions have rationalised again. ‘With a greater supply of available homes on the market, we are striking a better balance between sellers and buyers, and at the bottom rungs of the ladder in particular, demand remains vibrant. The lowest priced London borough, Barking and Dagenham, has seen the biggest boost in home sales during the fourth quarter of 2014, up 33% on the same period a year previously, helping to drive annual house price growth of 14.4%,’ he explained. ‘The London story acts as a miniature model of what’s happening in the rest of the UK housing market. The market is temporarily treading water at the higher end, but fast moving in areas where price growth has been more modest, and where cheaper properties are within reach of new buyers and borrowers who can access Help to Buy,’ said Gill. ‘For instance, when you London and the South East from the equation the slowdown in annual… Continue reading
