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Average new asking prices in UK up 1% in March
The average price of property coming onto the market in the UK increased by 1% or £2,748 this month compared with February but it is a more muted rise than normal, the latest index shows. However, the rise means that the average new seller asking price is just £30 below the June 2014, according to the index from Rightmove. According to Rightmove the upcoming general election could be to blame for the lower than expected rise which was down from 2.1% growth in February. It says that agents are reporting an increase from buy to let investors and this may be due to the forthcoming changes to pensions which means they can cash in their pension pots and there is a lot of interest in using this to buy property. The data also shows that the year on year rate of increase has fallen from 6.6% in February to 5.4% in March and the report points out that high demand and larger buyer deposits are reducing the impact of the new restrictions on mortgage lending introduced in the Mortgage Market Review last year. ‘The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived. The MMR introduced in April 2014 laid out a much needed longer term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations, and by buyers putting down larger deposits,’ said Miles Shipside, Rightmove director and housing market analyst . ‘The price of property coming to market is now just £30 off the record set nine months ago. The MMR has been a positive restraint on what buyers can afford to pay and has assisted in lessening the price rise pace. However, with new build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied,’ he explained. The index report also shows that interest in searching is at an all-time high, with a record eight million enquiries sent to Rightmove agents in the first two months of 2015, and Rightmove’s busiest ever day for activity being recorded towards the end of February. ‘There is still high demand for the right property at the right price with agents reporting that quality stock is selling well despite some election jitters. Rightmove recording nearly 59 million page views in one day suggests that home movers have a confident outlook, while remaining choosy about what they will buy. Attractive long fixed term mortgage rates are obviously another great boost to positive sentiment,’ Shipside said. ‘While some of the heat has been taken out of the market by limiting loan criteria and size through the MMR and the subsequent actions of the Bank of England’s Prudential Regulation Authority, controls limiting buyer affordability appear not to be restraining… Continue reading
Property price growth in some rural areas catching up with cities
Property price growth in the English countryside is almost neck and neck with price rises in cities, according to the latest research. Overall home values in towns and cities across the UK have increased by 5.7% over the last year, but rural England has seen 5.1% annual property price growth in countryside areas over the same period. The research from Zoopla also shows that the average value of a rural home in England now stands at £264,338, some £51,737 or 24% higher than the typical urban property outside of London. Rural homes in the East of England have seen the biggest uplift in value over the past year, with prices up 6.5% or £17,098. This is closely followed by country properties in the South East, which have climbed in value by 6% or £22,157 in the last 12 months, meaning that home buyers in the region can expect to pay £66,100 more to live in a rural part of the South East, as opposed to a bustling town or city. The premium buyers pay to live in a rural location is highest in the West Midlands, with countryside properties costing £73,982 more than homes in a town or city while Gerrards Cross in Buckinghamshire is the most expensive rural area in England, with average homes currently worth £817,376, up from £773,726 a year ago. City properties ads in the East of England and South East experienced the strongest annual growth of 7.5% and 6.7% respectively, outpacing rises in London. But the most expensive urban location across the country is Kensington and Chelsea, with the typical pied-a-terre in W8 now valued at £2,654,512. ‘Urban areas had a head start in the housing recovery with demand propped up predominantly by employment opportunities. This drove price growth in these economic hubs and left countryside markets by the wayside,’ said Lawrence Hall of Zoopla. ‘Over the past year house price growth has spread and rural retreats which are commutable to the amenities and jobs of urban centres have become highly sought after. But they come with a significant premium to have the best of both worlds, with the extra outdoor space and seclusion that rural living gives you. Those looking for the good life in the country might want to escape the rat race sooner rather than later,’ he added. Continue reading
UK home owners waiting longer than expected to move up housing ladder
Some 33% of home owners in the UK expected to be further along the housing ladder than they are now, according to new research, rising to 44% for first time buyers. The survey from Lloyds Bank also found that 83% believe home owners have to wait a lot longer to reach their long term family home than a decade ago while 36% of first time buyers hope to achieve their housing aspirations by the time they are 45. Despite recent improvements in the housing market, 40% still consider the housing market to be having an impact on aspirations, although this figure has fallen since 2013 when it was 47% and 2012 when it was 53%. Almost half, 48%, of first time buyers think that the housing market will have an impact on how long it takes them to reach their family home. Even with anticipated delays in moving up the housing ladder, 44% expect not to make any compromises and believe their long term home is a realistic achievement and 18% expect it to be a better property than their childhood home. ‘Many current home owners clearly still feel that they are not progressing up the ladder as quickly as they would like, with higher house prices in some regions meaning people are waiting longer to move into to their long term family home,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘Despite this, almost two thirds still believe they’ll be in their long term home in less than five years, with the vast majority thinking this will only require one more move,’ he added. The research also shows that despite an increase in the number of people feeling they need a bigger property, the house that the majority of home owners in the UK aspire to own has three bedrooms with 43% seeking this kind of property. Some 24% want four bedrooms, with many people aspiring to have nice gardens, conservatories and high quality kitchens and bathrooms. Some 63% of home owners believe they will reach their long term family home in less than five years while 64% of those who are still waiting to be in their long term home think they will only have to make one more move to achieve their housing aspirations. Applicants for three bed properties, which are seen by many as long term homes, are on average 35 years old in London and the South East. This is a year older than the national average. These regions remain the least affordable in the UK for three bed houses, as a result of the high house prices. In contrast, long term family homes in the North and Wales are more affordable with the average three bed property costing £129,447 in the North and £135,070 in Wales. Average incomes of the applicants are lower at £38,606 and £36,390 respectively, but long term homes are still more affordable in both regions. Continue reading
