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UK prices up almost 10% year on year, latest index data shows
UK house prices increased by 1.1% between September and October and re up 2.8% quarter on quarter and 9.7% year on year, the latest property index shows. This means that the average house price is now over £200,000 at £205,240, according to the Halifax index data and the report says that house price optimism remains high. The 1.1% monthly rise followed a previous month’s fall of 0.9% and the market is up and down with the quarterly figures being more reliable in terms of indicating overall trends, according to Martin Ellis, the Halifax’s housing economist. He pointed out that house prices over the three months from August to October with growth of 2.8% were higher than in the preceding three months and the quarterly rate of change increased from September’s 2% and was a little above the 2.5% average over the first nine months of the year. Some 68% of Britons expect average property prices to be higher in 12 months’ time with just 5% expecting it to be lower, according to the latest quarterly Halifax Housing Market Confidence Tracker. The Halifax report also points out that figures from HMRC show that home sales increased again in September. UK home sales increased by 1% between August and September, to 106,030. This was the second successive monthly rise. Sales in the three months to September were 4.4% higher than in the preceding three months. Mortgage approvals are also on an upward trend despite falling in September. The volume of mortgage approvals for house purchases, a leading indicator of completed house sales, increased by 4% between the second and third quarter of the year despite a 2.5% decline in September. Approvals in the three months to September were 10% higher than in the same three months last year. However, supply remains at a record low. New instructions by home sellers declined in September for the eighth successive month. This contributed to the stock of homes available for sale remaining at record low levels. ‘Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015. Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity,’ said Ellis. ‘The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices,’ he added. Rishi Passi, chief executive officer of Oblix Capital, believes growth on this scale isn't sustainable. ‘Wage increases and low inflation are bolstering household finances, helping to take some of the sting out of these increases,’ he said. ‘The diminishing prospect of an interest rate rise also means lenders are continuing to offer historically attractive rates to the market, which is good news for first time buyers and developers alike,’ he added. Continue reading
Mayor of London approves planning of major new homes development
A planning framework which will deliver more than 25,500 new homes and create up to 65,000 jobs at Old Oak and Park Royal has been approved and adopted by the Mayor of London. Old Oak in West London is set to become a new home to a world class High Speed 2 (HS2) and Crossrail Station by 2026, handling 250,000 passengers a day and acting as a super hub between London and the rest of the UK, Europe and the world. The Mayor believes this presents the opportunity to create tens of thousands of new homes and could provide almost 14% of Greater London's employment needs up to 2031, with early estimates of a £7 billion annual contribution to the UK economy. The Old Oak and Park Royal Development Corporation was launched by the Mayor in April and will drive the planning and regeneration of the site that straddles the London boroughs of Hammersmith and Fulham, Brent and Ealing. Earlier this year, the Mayor published an Opportunity Area Planning Framework for consultation, which sets out his long term vision for the area. Following the conclusion of that consultation, the Mayor has now approved the document which sets the strategic planning direction for the area. ‘London urgently needs new homes and commercial space to meet its ever growing population and there can be no doubt that the regeneration of Old Oak represents a real opportunity to meet those needs,’ said Sir Edward Lister, Deputy Mayor for planning and chairman of the Old Oak and Park Royal Development Corporation,. ‘This strategy will mean we can plan for the future of this vast site as we work to create a new, thriving and sustainable part of the capital, where people will love to live, work, play and visit,’ he added. The planning framework aims to create a new urban neighbourhood at Old Oak, supporting a minimum of 24,000 new homes with an additional 1,500 in non-industrial locations in Park Royal. It will see the creation of the new High Speed 2/Crossrail and National Rail interchange to regenerate the area and contribute significantly to London's competitiveness and protect and enhance Park Royal as a strategic industrial location. The Mayor has identified 38 Opportunity Areas across the capital. Opportunity Areas are London's major source of brownfield land with significant capacity for new housing, commercial and other development linked to existing or potential improvements to public transport accessibility. By establishing Opportunity Areas, and working closely with London boroughs and partner agencies, the Mayor will be best able to deliver significant social and economic regeneration. Continue reading
Research shows average fixed rate mortgage deals in the UK are at lowest since 2012
Average fixed rates for two, three and five year mortgages in the UK are at their lowest level since 2012, new research shows, and the number of 10 year fixed deals is beginning to grow. Home owners looking to get the best possible deal should consider fixing their mortgage now whilst providers are cutting rates, says the research report from comparison website MoneySuperMarket. The research looked at average fixed term mortgage rates and found they have crept down to some of their lowest ever levels again, despite speculation of a base rate rise next year. The average rate for a five year fixed deal currently stands at 3.45% while last year it was 4.06% and in 2012 it was 4.67%. Shorter term mortgage deals also follow the same pattern, with the average three year fixed rate coming in at 3.21% today, compared to a rate of 4.8% in 2012. Similarly, the average two year fixed mortgage rate is now 2.9% whereas it was 4.48% in 2012. The research also shows that those looking to secure their mortgage rate for a more substantial amount of time will find that there are now more deals to choose from. There are currently 41 10 year fixed rate products on the market while just last month the total number stood at 35. ‘Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates,’ said Dan Plant, consumer expert at MoneySuperMarket. ‘Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit. However, you should never rush into decisions to do with mortgages,’ he pointed out. ‘Before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account. Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal. The good news is that we’ve seen fees decrease over the last four years, especially for five year fixed deals, meaning it’s a cheap time overall to be looking around,’ he added. Continue reading
