Tag Archives: crisis
UK property prices up 3% month on month with record highs across the country
UK residential property prices have risen to a new record as buyers act but sellers hold back with six out of 10 regions posting price highs, the latest real estate index shows. Prices were up 3% or £8,460 to an average of £294,351 and the clear cut general election result is regarded as having boosted the market, according to the May index from online portal Rightmove. It also reveals tighter supply in the market with number of properties coming to market down 8.5% on same period a year ago, though £2 million plus properties buck this trend with and 86% month on month leap in new listings. The firm says that such high demand and low supply highlights the urgency for the delivery of more new build homes. ‘Some buyers had been holding back in the weeks before the election, leading to some sellers suffering an unseasonal price standstill in the late spring. In particular, sentiment and prices got hit in the mooted mansion tax price brackets. Now the unexpected election outcome has caused a strong rebound, prompting an upturn in buyer demand and helping new seller asking prices to hit their highest ever levels,’ said Miles Shipside, Rightmove director and housing market analyst. ‘Agents report that the election surprise has given a boost to market sentiment, driven by more certainty about future economic and taxation policies. While would be buyers have been able to respond quickly to these events, many potential sellers have so far failed to come to market. This has pushed up some of the asking prices of those properties that have been marketed, meaning that buyers are faced with paying a new average record price high for the more limited choice available. It could be said that this is the price of political certainty,’ he added. But he pointed out that pre-election jitters contributed to a small fall of 0.1% in Rightmove’s May index, which has made the size of the rebound in June appear somewhat more dramatic. However, while June’s 3% rise is partly catching up on lost ground from last month’s fall, it is also a reflection of strong housing demand not being matched by suitable supply in many parts of the country. He says that evidence of this is that six out of 10 regions have set new record price highs this month as the supply/demand imbalance and consequent upwards price pressure continue to head further north. As well as the four southern regions, both the East Midlands and West Midlands reached all-time price highs this month. London has seen the strongest monthly price performance, up by 5.7%, aided by the higher priced boroughs seeing more top end owners willing to come to market now that the threat of the mansion tax has been removed. Continue reading
UK asking prices see strong rise in last month, latest index shows
Confidence has returned to the UK property market after the election and is so high that asking prices in London increased by more than £10,000 in the last month. The latest Home.co.uk index from shows that average prices rose in all English regions and Wales for a fourth consecutive month and momentum is on the rise even in the formerly stagnant North East property market with a 13% improvement in the average marketing time. The report also points out that the supply of property for sale remains behind buyer demand in all regions except Greater London, where marketing times have increased considerably over the last year. Asking prices increased 2% over the last month in the London region and by 1.1% overall in England and Wales during the last month. The growth takes the average annual home price appreciation for England and Wales to 5.9% and further price rises are predicted this year. The Prime central London market may have been freed from the political uncertainty regarding a mansion tax and non-dom legislation but has yet to regain the momentum lost over the last 18 months. Pricing remains stagnant and flats in locations such as Belgravia are typically spending around 50% more time on the market than they were in June 2014. Time on market data for the rest of the UK shows that the northern regional markets, Scotland and Wales have all increased their momentum over the last 12 months. However, the southern regions such as the South East, East of England and South West are indicating slight increases in marketing times as higher prices have lessened demand. ‘Whilst 2015 is looking like a much better year for the northern regions, Scotland and Wales, hopes that the market in London and surrounding southern regions might slow to a more sustainable pace have been swept aside by further relentless price rises,’ said Doug Shephard, Home.co.uk director. ‘This will create significant cause for concern at the Bank of England. For the time being the key economic drivers of ultra low interest rates and low supply of property for sale remain. Buy-to-let landlords and first-time buyers alike are able to borrow very large sums to purchase property at very low rates of interest. And this situation looks set to drive prices higher in the near term,’ he added. Continue reading
Call for new housing to match demand for homes in Wales
The Building Societies Association (BSA) has called on all parts of the Welsh housing market to work together to ensure the supply of new housing in Wales keeps up with rising demand. The trade body, which represents all 44 building societies in the UK including the Principality, Swansea and Monmouthshire, made the call as part of its Housing for All conference in Cardiff. Delegates to the conference included local authority representatives, estate agents, developers, housing associations and building societies to discuss the problems and opportunities facing the Welsh housing market. The opening speech at the conference was given by Paul Broadhead, head of mortgage policy at the BSA, who called on the different parts of the market to identify the barriers and opportunities to ensure sufficient housing was provided for future generations within Wales. ‘In Wales there are encouraging signs but the ultimate goal has to be a significant increase in the number of new homes completed each year,’ he said. ‘As mortgage lenders, building societies play their part in fulfilling borrowers’ housing aspirations and as the Help to Buy Wales scheme shows can have a positive effect. But we need action to be taken now to ensure we have sufficient homes for the population of tomorrow,’ he added. The headline speech of the event was made by Lesley Griffiths, Minister for Communities and Tackling Poverty, who pointed out that the government is committed to increasing the supply of homes of all tenures across Wales. ‘We are on track to meet our target of providing 10,000 additional affordable homes, while good progress is also being made on our ambition of supporting the construction and sale of 5,000 homes through Help to Buy Wales,’ Griffiths explained. ‘The sector plays a key role in helping us fulfil our vision for housing in Wales. Through continued partnership working between private, public and third sectors organisations, I am confident we can meet the challenges we face and deliver the additional,’ added Griffiths. Continue reading
