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UK annual house price growth falls again
Annual house price growth in the UK slowed to 5.1% in March from 5.7% in February and prices were up just 0.1% month on month, according to the latest index figures. It means that annual house price growth has now slowed for seven months in a row, taking the average price of a property to £189,454, the data from the Nationwide Building Society shows. UK house prices are currently around 2% above their pre-crisis levels. However, the pace of housing market activity has remained subdued, with the number of mortgages approved for house purchase in January around 20% below the level prevailing a year ago. ‘Economic conditions have remained supportive, with labour market conditions continuing to improve and mortgage interest rates close to all-time lows,’ said Robert Gardner, Nationwide's chief economist. While house price growth has moderated across the UK, there is still significant regional variation. Prices in London and the South of England continued to see the strongest rates of annual growth, though there was a noticeable softening this quarter, particularly in London Price growth also continued to cool in the North West of England, Scotland and Wales, even though prices in these regions remain some way below their 2007 peak. Indeed, in annual terms, prices in Wales declined by 0.5% in the first quarter of 2015. A breakdown of the figures show that all regions except the North of England saw a further slowing in annual price growth in the first three months of 2015. Across the UK as a whole, prices rose by 0.6% over the quarter, after allowing for seasonal effects. Prices were up 5.9% compared with the first quarter of 2014. London remained the strongest performing region, with average prices up 12.7% year on year, although annual house price growth has slowed noticeably compared with recent quarters, with growth down from 17.8% in the fourth quarter of 2014. Amongst the other English regions, the Outer Metropolitan area continued to outperform, with annual price growth not far behind London at 12%. Yorkshire and Humberside was the weakest performing English region, with prices up 1.3% over the last 12 months. Northern Ireland saw a slowing in annual price growth to 5.7%, while annual price growth in Scotland moderated to 1.3%. Wales remained the weakest performing region and was also the only region to see a fall in average prices, which were down 0.5% compared with the first quarter of 2014. There was a further slowing in annual house price growth in Scotland, from 4.2% last quarter to 1.3% this quarter. Edinburgh was the best performing area, with prices up 11% on the previous year. The Highlands and Islands saw the weakest growth, with prices up 2%. The Land and Buildings Transaction Tax (LBTT) is set to be introduced in Scotland on 01 April. Under LBTT, those purchasing properties above £333,000 will pay more tax compared with marginal stamp duty land tax (SDLT) system now in use in the rest of the… Continue reading
UK property market cooling in run up to general election in May
Almost a third of house sales in the UK are going to first time buyers but overall the market is cooling in the run up to the general election, according to estate agents. Some 30% of total house sales in February were to people getting on the housing ladder for the first time, the highest number since September 2014, says the latest monthly survey from the National Association of Estate Agents (NAEA). The data also shows that 46% of NAEA members have seen a cooling in the property market as the May general election approaches and 27% think the election will have the biggest impact on the housing market this year. Findings in February also show that demand for property is up, with 366 house hunter’s registered per NAEA member branch, up from 353 in January. With supply marginally down from 44 houses per branch last month, to 43 this month, there’s still a significantly higher demand than supply of housing, a problem that is unlikely to be solved anytime soon. The total number of sales agreed in February remained the same as previous months, with eight house sales going through per NAEA member branch. ‘It’s clear from the findings in the report that things are starting to ease for first time buyers, which could be down to reduced property prices or more accessible funding, especially following December’s stamp duty reforms,’ said Mark Hayward, NAEA managing director. ‘We will all be waiting with bated breath to see if the first time buyer figures increase following the new Help to Buy ISA, and whether we see real momentum in the market. It still remains notoriously hard to get cut through in the property market, especially for first time buyers, so any green shoots are encouraging,’ he added. When it comes to policy proposals in the run up to the election some 45% of agents think that the Conservatives’ pledge to build 200,000 more homes will have the best impact on the housing market. On the downside, 57% of agents think Labour’s proposed Mansion Tax will have a negative impact on the housing market. ‘Demand is still vastly outweighing supply in this country, so it is clear something needs to be done to aid this growing problem. It will be interesting to see the outcome of this year’s General Election, but whoever wins it is vital that building more affordable homes is top of their agenda,’ Hayward concluded. Continue reading
Property prices up 0.5% in England and Wales last month says Land Registry
Average property prices in England and Wales increased by 0.5% in February and are up 6.5% year on year, according to the latest index from the Land Registry. This takes the average house price in England and Wales to £180,252 but sales have slowed. From September 2013 to December 2013 there was an average of 77,174 sales per month. In the same months a year later, the figure was 75,553. In London prices increased 0.6% and are up 13.1% year on year. The average price of property in the capital is £463,872, the data also shows. The North West saw the lowest annual price growth 0.7% and the North East experienced the greatest monthly price rise with a movement of 6.2%. The North West also saw the largest monthly decrease with a fall of 1.7%. On a local authority basis Bracknell Forest experienced the greatest annual price increase in February with a rise of 14.5% and Gwynedd saw the greatest annual price fall with a fall of 3.6%. County by county Ceredigion experienced the strongest monthly growth with an increase of 4.6% and Torfaen saw the most significant monthly price fall with a fall of 2.6%. Four counties and unitary authorities saw no monthly price change. The metropolitan district with the largest annual price increase is Salford rising by 11.7% while Newcastle upon Tyne experienced the highest monthly price rise, with an increase of 2.7%. Bolton saw the greatest annual price fall with a movement of 2% and Sandwell saw the greatest monthly price fall with a decline of 2.6%. In London the borough with the highest annual price rise is Newham with an increase of 21.4% and Brent experienced the highest monthly increase with a rise of 1.9%. Kensington and Chelsea saw the lowest annual growth of 7.8% and Hackney had the greatest monthly fall with a decline of 1.5%. The index also shows that price index volatility is greater in areas where recorded sales volumes are low. Index volatility leads to erratic and high changes in reported price. Some of the areas that typically have very low transaction volumes include City of London, Rutland, the Isle of Anglesey, Merthyr Tydfil, Blaenau Gwent, Ceredigion and Torfaen. The number of properties sold in England and Wales for over £1 million in December 2014 decreased by 4% to 929 from 967 in December 2013 and the number of properties sold in London for over £1 million in December 2014 decreased by 6% to 621 from 622 in December 2013. David Whittaker, managing director of Mortgages for Business, believes that the index shows that there is a serious lack of supply. ‘That raises the continual spectre of many households being priced out of homeownership, and puts the spotlight clearly on the private rented sector,’ he said. ‘The longer the housing shortage continues, the more it will be left up to Britain’s landlords to fill the gap. As we approach a general election it will be particularly interesting… Continue reading
