Tag Archives: crisis
UK property sales exceed 100,000 for third month in a row
Residential property sales in the UK were at their highest in August for 18 months, according to the latest data published by HMRC. It means that more homes were sold in in August than in any month since February last year with the seasonally adjusted data showing 106,480 transaction during the month. It is the third month in a row that sales of more than 100,000 were recorded, however, sales are still well below the monthly sales of nearly 150,000 seen during the housing boom in 2006. The seasonally adjusted estimate of the number of residential property transactions increased by 3.1% between July 2015 and August 2015 and that is 5.7% higher compared with the same month last year. For August 2015 the number of non-adjusted residential transactions was 7.4% lower compared with July 2015. The number of non-adjusted residential transactions was 1.9% lower than in August 2014. Peter Rollings, chief executive officer of Marsh & Parsons, said that taking into account seasonal adjustment, property sales are going from strength to strength, and showing great improvement from this time last year. ‘With the spectre of higher interest rates being kept at bay, buyer demand is in full swing and summer sales have continued to blossom in August. After slightly fewer home sales than we would expect in a typical July, buyers last month were showing a new enthusiasm and readiness to enter the market,’ he pointed out. ‘The changes to stamp duty are still washing over London and cooling activity at the topmost tiers of the housing market. But overall demand for property in the capital hasn’t waned, as young professionals and first time buyers continue to seek out up and coming areas to put down roots,’ he explained. ‘The subsequent squeeze on available property for sale in the capital should keep pushing house price growth along well into the autumn,’ he added. Continue reading
Scottish rents fall nationally for first time since start of 2015
Residential rents in Scotland have fallen month on month for the first time since the start of the year with a 0.5% drop in August, according to the latest buy to let index. This means the average monthly rent in Scotland has dropped £3 from its summer peak of £549 in July to stand at £546 in August 2015, the data from Your Move, one of Scotland’s largest lettings agent networks, shows. Rent growth has also seen an about turn on an annual basis. After an acceleration of annual rent rises throughout the first half of 2015, Scottish rents are now just 1.7% higher than a year ago, marking a downturn since July, when the annual change stood at 2.8%. Brian Moran, lettings director at Your Move Scotland, explained that rents have retreated back from record levels, after an acceleration of rent rises in 2015. ‘This should provide a welcome let up for tenants, after only last month rents hit a new record level. This adjustment has also broken up the forward march of annual rent growth that’s been gathering speed recently,’ he said. ‘But peak lettings season is only around the corner, and this breather may not last for long. The vast discrepancy between demand and supply of available homes to let has not disappeared and this gap will only widen if landlords are scared out of the market by the government’s proposed regulatory changes and draconian rent controls,’ he added. A breakdown of the figures shows that rents are higher than a year ago across four of the five regions of Scotland. The Highlands and Islands continue to show the strongest annual rent rise, up from 5.4% in the year to July 2015 to 6% as of August. As a result, rents in this region have risen £32 over the past 12 months to a new record of £570 per month. Average monthly rents in the South have increased at the second fastest rate over the past year, jumping 4.5% since August 2014. Compared to a year ago, rents in Edinburgh and the Lothians and the East of Scotland have risen a milder 2.6% and 2.5% respectively. Meanwhile, Glasgow and Clyde was the only region to experience a year on year drop in rents in August. Average rents are now 3.6% lower than in August 2014, equivalent to £21 cheaper. On a monthly basis, there has been a more widespread slowdown. Average monthly rents have fallen in three out of the five regions of Scotland in August, up from only one region last month. The biggest monthly drop was in Glasgow and Clyde, where average rents have fallen 1.3% since July. The typical rent in Glasgow now stands at £554 per month, and has fallen considerably from its peak of £575. In the East of Scotland, the typical monthly rent is now… Continue reading
Flats in the UK have seen the biggest average price rise in last decade
The average price of flats in the UK has risen by 60% since 2005, compared with an average of 38% for all properties, according to new research. The report from the Halifax, one of the UK’s leading home lenders, also shows that detached homes have seen the smallest increase at 21% while bungalow prices rose by 28%. The figures show that the increase for flats over the last decade is £87,550 or £730 per month from £145,874 in 2005 to £233,424 today, but a big proportion of this is due to the rapid increase in flat prices in London which are up by 67%. A typical flat currently costs less than £120,000 in the North, East Midlands, Wales and Yorkshire and the Humber, and between £120,000 and £145,000 in the North West, West Midlands, Scotland and East Anglia. At £370,281, a typical London flat is considerably more expensive than flats anywhere else in the UK. While flats have been the best performing property type over the past decade in Greater London, Scotland and the South West, there are regional differences. Semi-detached properties have risen most in value in the South East, East Anglia and the East Midlands, whereas terraced homes have been the best performing property type in five of the 11 regions, the North, North West, Yorkshire and the Humber, West Midlands and Wales. The average price of a terraced home is between £119,000 and £143,000 in all regions outside southern England, the data also shows. Semi-detached and terraced homes have remained the most popular types of property purchased over the past 10 years. Combined, these two types represent 59% of all home sales in 2015, up marginally from 58% in 2005. Semi-detached homes have risen in popularity among first time buyers, accounting for 28% of purchases in 2015 compared with 21% in 2005. However, flat sales have fallen from 20% of all property sales to 17% over the past decade. ‘Flats have recorded larger prices gains over the past ten years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales, substantially higher than for the country as a whole,’ said Martin Ellis, housing economist at the Halifax. ‘Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats, reflecting their large price increases, towards semi-detached homes over the last decade,’ he added. Continue reading
