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UK asking prices up 1.4% this month, latest index shows
The price of property coming to the market in the UK increased by 1.4% in January at a time of year when prices usually fall, according to the latest index from Rightmove. It takes the average national asking price to £273,275 and means prices have increased by 8.2% in the last 12 months. But it points out that even although the number of properties on sale has increased by 2% this if failing to replenish agents’ historically low stock and currently levels are 10% below the same period last year. Sales activity has been boosted by Stamp Duty savings of up to £1,250 for some first time buyers and average property prices in this sector are down by £1,132 this month. However the firm reckons that despite continued low mortgage and inflation rates, sellers will have to work harder in 2015 than in 2014 due to election jitters and mortgage restrictions. It believes that lenders are selecting buyers who are good risks to lend to, and in turn buyers are very selective with the properties they choose. A closer look at the figures show that prices and activity both cooled in the second half of 2014, though there are signs of a New Year bounce back. More people are looking for property than last year, and more sellers are putting their property up for sale. ‘Early 2015 statistics currently point in the right direction for home movers, with the Chancellor’s Stamp Duty reform perhaps being the spur for people to get on with moving. There are more positive signs of early bird activity rather than pre-election jitters or economic worries deterring prospective movers,’ said Miles Shipside, Rightmove director and housing market analyst. ‘The unseasonably high 1.4% jump in new sellers’ asking prices suggests that there are more rises in the pipeline for the next few months. Early-bird buyers, including trader-uppers, can potentially catch a good deal by getting off the mark quickly in 2015, and get a better pick of the housing crop,’ he explained. Rightmove’s updated House Price Index now tracks typical property prices and supply for the main market sectors, including first time buyers, second steppers and the top of the housing ladder. It says that with the average first time buyer property coming to the market at £163,251, the reform to Stamp Duty announced in the Autumn Statement could mean potential savings of up to £1,250. ‘Should prices rise, as they look set to over the next few months, potential Stamp Duty savings will diminish, but they will still be helpful to first time buyers struggling to save enough to cover the Stamp Duty bill as well as the mortgage deposit,’ said Shipside. ‘First time buyers are in a potential win-win savings window this month with the price of property coming to market in this sector being over £1,100 cheaper, coupled with up to £1,250 in Stamp Duty savings. This is a welcome boost given that the price of property coming to market… Continue reading
Rents in England and Wales up by 3% in 2014, latest index shows
Rents in England and Wales increased by 3% over the course of 2014, despite falling on a monthly basis between November and December, the latest index data shows. The average residential rent across England and Wales now stands at £767 compared to the £745 recorded in December 2013, according to the buy to let index from Your Move and Reeds Rains. The firm said that this ‘strong annual growth’ comes despite falls on a monthly basis, with average rents 0.1% lower than they were in November 2014. ‘Recent months have shown a divergence from usual seasonal norms. Historically, there is a tendency for rents to ease in the winter, particularly December. With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month that happened and rents fell compared to November but by much less than the usual extent,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘In particular a jobs boom across the eastern regions of England has seen a larger than usual number of people relocating in the winter months. This has pushed up rental prices in these regions even further,’ he added. Indeed, rents are higher than a year ago in eight out of 10 regions of England and Wales. This is led by the East of England, with a 7.6% annual increase. The East Midlands has seen rents rise by 6.2% on an annual basis, followed by London where rents are up 4.1% over the last 12 months, and Yorkshire and the Humber with a 3.4% annual increase. As a result, these four regions have seen a new record for rents in December. By contrast rents in two regions are lower than a year ago. Average rents in the North East fell by 2.1% over the course of 2014, while rents in the South West are 1% lower on an annual basis. Most recently, three regions have seen rents continue to rise between November and December, despite an overall drop on a monthly basis across England and Wales. This is led by London with rents 0.9% higher in December than in November, followed by a 0.7% rise in Yorkshire and the Humber and a 0.2% month on month increase for the East of England. By contrast the South East has seen the sharpest month on month fall in the cost of renting, down 1.5% between November and December. This is followed by a 1.3% monthly drop in the North West and rents in Wales which are now 1.1% lower than in November. The monthly index report also shows that tenant finances deteriorated in December, as is often seen over the festive period. The proportion of all rent in arrears stands at 8.9% as of December… Continue reading
British buyers returning to the French property market
British buyers returned to the French property market in 2014, buying homes for holidays and investment, according to a leading overseas estate agency. Last year Leggett Immobilier says it saw a 43% increase in French properties sold with buyers from 33 different nations. It believes that this diversity demonstrates the global appeal of the property market in France. British buyers top the sales table for 2014 followed by buyers from Belgium, the United States, Australia, and then the Netherlands. ‘British buyers came back to the French market with a bang and our sales pipeline shows that 2015 will see more of the same. We have seen a 43% increase in transaction numbers over the last 12 months, fuelled mainly by confidence levels in the UK and continued low interest rates,’ said Trevor Leggett, chairman of Leggett Immobilier. ‘We have been making sales throughout France and Middle England is buying again. In 2013 the average purchase price for a British buyer was €269,000, we think that in 2014 this will have risen to around €300,000 and that in 2015 it will rise further still,’ he added. The firm has seen a lot of activity in the Alps and Cote d'Azur and pointed out that buyers tend to want properties that are finished to a reasonably high standard and that are in good locations. ‘We're still selling plenty of renovation projects but there is a definite trend towards just furnish to your own taste style properties,’ added Leggett. He also pointed out that the UK general election in May hasn't yet had any effect on enquiry levels. ‘Traditionally buyers of second homes tend to be cautious in the run up to an election but we currently have over twice as many ongoing sales, between exchange and completion, as we did at the start of the year, the bulk of these to buyers from across the channel,’ said Leggett. Continue reading
