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Property prices in England and Wales up over 7% year on year
Residential property prices in England and Wales increased by 2.5% in January and are not 7.1% higher than a year ago, the latest index shows. This takes the average house price in England and Wales to £191,812 but the average price in London is much higher at £530,409, according to the data from the Land Registry. The house price index also shows that the number of property transactions has decreased over the last year. From August 2014 to November 2014 there was an average of 81,656 sales per month. In the same months a year later the figure was 78,652. The January data for London shows a monthly increase of 2.8% and year on year growth of 13.9% the North East saw the smallest annual price increase of 0.2% while Wales recorded the greatest monthly price rise of 3.7% and the North East also saw the most significant monthly price decrease with a fall of 1.6%. Within London the borough with the highest annual price rise was Hillingdon with a ise of 15.5% and Hillingdon also experienced the highest monthly price increase at 2.4%. Camden saw the smallest annual increase of 3% and Camden and Islington both recorded the only monthly fall, each seeing prices down by 0.4%. The number of properties sold in England and Wales for over £1 million in November 2015 increased by 14% to 1,091 from 953 in November 2014. The number of properties sold in London for over £1 million in November 2015 increased by 9% to 657 from 601 in November 2014. In the months August 2015 to November 2015, repossession volumes averaged 409 per month. This is a fall compared to the same period a year earlier, when volumes averaged 801 per month and the report says that repossession volumes appear to be exhibiting a downward trend. The region with the greatest fall in repossession sales was the South West with a decrease of 78% from November 2014. All regions experienced a decrease in the number of repossession sales in November when compared with the same period a year earlier. Continue reading
UK would be less attractive to property investor if it left the EU, new poll suggests
Property investors have warned that the UK would be a less attractive place to invest were it to leave the European Union, according to findings of a new survey. The survey of investor clients by global property advisor CBRE reveals that sentiment has hardened against leaving the EU in the three years that the poll has been taken. This year’s results show a reduction in those who think exiting the EU would make no difference to investment from 33% in 2014 to 21%. The proportion of respondents who think the UK would be a slightly worse place to invest has risen from 32% in 2014 to 46% in the latest poll, bringing the total that think the UK would be a worse place to invest to 73%, up from 69% last year. The UK will hold a referendum on whether to remain in the EU on 23 June and CBRE believes investors and occupiers are likely to behave during the referendum campaign in the same way as they did in Scotland during its 2014 independence referendum by delaying decisions until after the vote. However, after Scotland voted to stay in the UK there was a ‘catch up’ effect and CBRE expects the same for the UK, assuming that it decides to remain in the EU. ‘Property investors have, over the past three years, become increasingly gloomy about the impact of the UK leaving the EU. The UK has experienced record property investment in the last few years and the property investors we surveyed fear that a Brexit would adversely affect the attractiveness of the UK as an inward investment destination,’ said Miles Gibson, head of UK research at CBRE. ‘David Cameron’s reforms are likely to be useful, but not decisive, in affecting public sentiment. The most important concession that the Prime Minister has secured is to ensure that non-Eurozone countries are not discriminated against within the EU’s single market. This aims to ensure that key parts of the UK economy, particularly financial services, can continue to operate from the UK rather than having to move to the Eurozone,’ he added. The report shows that the majority of experts feel that the UK would suffer economically from exit, but estimates of the impact on growth vary substantially. The majority view is that the UK property market would suffer an adverse ‘demand shock’ were it to vote to leave the EU. Finally, the report argues that reductions in labour availability arising from migration controls will vary substantially because some sectors are more dependent on migrant labour than other. The food and hospitality sectors, for example, could be very exposed to labour market restrictions. The financial services sector is also exposed because of the potential change in the regulatory environment, and in terms of trade with the EU. Continue reading
Existing home sales in the United States are 11% higher than a year ago
Existing home sales in the United States crept up in January to the highest annual rate in six months, and sales are now 11% higher than a year ago. The data from the National Association of Realtors shows that the West was the only region to see a decline in sales in January after a nationwide rise of 0.4% compared to December. The median existing home price for all housing types in January was $213,800, up 8.2% from January 2015, the largest rise since April 2015 and the 47th consecutive month of year on year gains. Lawrence Yun, NAR chief economist, said it was the largest year on year gain since July 2013. ‘The housing market has shown promising resilience in recent months, but home prices are still rising too fast because of ongoing supply constraints,’ he pointed out. ‘Despite the global economic slowdown, the housing sector continues to recover and will likely help the US economy avoid a recession,’ he added. Total housing inventory at the end of January increased 3.4% to 1.82 million existing homes available for sale, but is still 2.2% lower than a year ago. Unsold inventory is at a four month supply at the current sales pace, up slightly from 3.9 months in December 2015. ‘The spring buying season is right around the corner and current supply levels aren't even close to what's needed to accommodate the subsequent growth in housing demand. Home prices ascending near or above double digit appreciation aren't healthy, especially considering the fact that household income and wages are barely rising,’ Yun explained. The share of first time buyers remained at 32% in January for the second consecutive month and is up from 28% a year ago. First time buyers in all of 2015 represented an average of 30%, up from 29% in both 2014 and 2013. All cash sales were 26% of transactions in January, up from 24% in December 2015 but down from 27% a year ago. Individual investors, who account for many cash sales, purchased 17% of homes in January compared to 15% in December 2015, matching the highest share since last January. Some 67% of investors paid cash in January. Properties typically stayed on the market for 64 days in January, an increase from 58 days in December but below the 69 days in January 2015. Short sales were on the market the longest at a median of 77 days in January, while foreclosures sold in 57 days and non-distressed homes took 61 days and 32% of homes sold in January were on the market for less than a month. Distressed sales, that is foreclosures and short sales, rose slightly to 9% in January, up from 8% in December but down from 11 a year ago. Some 7% of January sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 13% below market value in January compared to 16% in December, while short… Continue reading
