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UK house prices up 5.2% year on year, says latest ONS index
UK house prices increased by 5.2% in the year to August 2015, unchanged from the previous month but excluding London and the South East the increase was 4.8%, the latest official figures show. House prices increased by 5.6% in England, 0.8% in Wales, 2.9% in Northern Ireland and fell 0.9% in Scotland, according to the figures from the Office of National Statistics (ONS). The data also shows that annual house price increases in England were driven by an annual increase in the East of 8.8% and the South East at 7.4% while month on month they increased by 0.7% nationwide. In August 2015, prices paid by first time buyers were 3.8% higher on average than in August 2014 and for existing owners prices increased by 5.8% for the same period. The North East recovered from an annual fall in house prices in the year to July 2015 of 0.7% to show annual growth of 2.9% in the year to August and London prices increased by 4.2% over the year to August 2015, down from 5.5% in the year to July 2015. Average mix-adjusted house prices in August 2015 stood at £298,000 in England, £174,000 in Wales, £151,000 in Northern Ireland and £198,000 in Scotland. Excluding London and the South East, the average UK mix-adjusted house price was £217,000. London continued to be the English region with the highest average house price at £522,000 and the North East had the lowest average house price at £160,000. London, the South East and the East all had prices higher than the UK average price of £284,000. According to Adrian Gill, director of Reeds Rains and Your Move estate agents, growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder. ‘The cheaper northern regions are experiencing the fastest growth in property sales, while a shortage of property stock on the market in the south is slowing activity,’ he said. ‘The most frequently paid property price across England and Wales is just £125,000, mirroring the level at which stamp duty becomes payable, and reflecting the impetus that has been injected in the first-time buyer market recently,’ he pointed out. ‘It is also the lower to mid-range properties priced between £180,000 and £360,000 which are seeing the fastest increases in value, while the shift in stamp duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are largely stationary,’ he explained. ‘Despite this, London is firmly back in the driving seat of property price rises, following a slight pit stop, and is having a much greater influence on national measures of price growth on an annual basis. As in the rest of the country, it’s the more affordably priced London boroughs which are behind this renaissance, as the strengthening of sterling, rising stamp duty rates and moves against non-doms take their toll on the high end market,’ he added. Lora Roberts, portfolio manager at estate agent Ascend… Continue reading
UK residential housing market sees highest activity for six months
UK housing market activity has climbed to its highest level in six months and the second highest monthly level on record, new data shows. September saw just 0.5% fewer valuations carried out than in March 2015 which was the highest on record, according to the latest research from Connells Survey & Valuation. On an annual basis, total valuation activity is up 29% compared to September 2014, after a 23% month on month rebound since August 2015. ‘Britain’s housing market is going from strength to strength. Against a brightening economic background, players in all parts of the market are feeling more confident about their prospects. Valuation activity is growing beyond the seasonal pick-up at the end of August, with year-on-year growth gathering momentum,’ said John Bagshaw, the firm’s corporate services director. The data also shows that the number of valuations carried out specifically for first time buyers rose by 25% in September compared to the previous month and an 18% increase compared to September 2014. Valuation activity among established home movers performed even better. The number of valuations carried out for those moving house rose 26% when compared to last month and 23% since September 2014. ‘First time buyers aren’t just feeling more confident, they are now following this up with real action and contributing a good portion of growth in the UK housing market. There are no signs yet that schemes such as Help to Buy are going to be phased out, helping to suppress the barriers to setting a first foot on the ladder,’ Bagshaw explained. 'Meanwhile, wages are growing faster than inflation and purchase prices have cooled a little in recent months, all contributing to an acceleration in numbers of first time buyers. Moreover, the latest focus from the government on starter homes is a promising sign there is at least a strong intention to maintain support at the bottom of the ladder,’ he pointed out. ‘Home movers have also been buoyed by the same trends. Rising real term wages combined with steadily increasing property values mean that many of those who are already fortunate enough to have a place of their own feel it’s a great time to buy,’ he added. The data also shows that remortgaging experienced another stand out month. The number of valuations for those thinking of taking a fresh mortgage out against the value of their current home rose 16% on August of this year and 49% since September 2014. Meanwhile the buy to let sector has seen steadier growth, with the number of valuations growing 13% since September last year. On a monthly basis, valuations activity carried out on behalf of buy to let investors grew by 21% compared to August. ‘The remortgaging sector is continuing to power ahead with plenty of people still opting to improve rather than move. High demand in this sector is still being driven by the large number of good mortgage deals out there, as homeowners rush to capitalise on the value of… Continue reading
Cheaper to buy than rent in over a third of cities in the UK
It is cheaper to buy than rent in more than a third of cities in the UK with buying most effective in the north of the country, new research shows. Mortgage payments are less expensive than monthly rent in 36% of British cities and home owners in Glasgow are more than £100 per month better off than their renting counterparts. However, in the south renting still beats buying, with buyers in London, Reading and Cambridge forking out hundreds more to own property there, according to the research from property search firm Zoopla. But overall the analysis of the cost of renting a two bedroom home compared to servicing a mortgage shows that nationwide, renters still pay £58 less per month than buyers. Buyers did particularly well compared to their renting counterparts in Scotland and the North of England. In Glasgow, rental payments amount to an average of £596 per month, whereas monthly mortgage payments only totaled £447. This means Glaswegian buyers are paying 25% or £149 a month less to own property than rent it. The research also shows that in Hull, buyers who pay on average £397 a month are £55 better off than renters in the city who pay an average of £452 per month to rent. Conversely, the south eastern corner of the UK represents the best value for money for renters. The average London tenant pays rent of £2,218 per month, whereas the capital’s home owners pay an average of £3,302 on servicing their mortgages, meaning buyers there are paying 49% or £1,084 a month more than the city’s renters. Buyers in Reading and Cambridge can also expect to pay more. On average, owners in Reading typically pay £3,600 a year more than tenants, while servicing a mortgage in Cambridge costs £3,700 more a year on average. Nationwide, the current average asking rent for a two bedroom home is £666 per month, compared to an average asking price of £145,840. As a result, servicing a 90% LTV mortgage typically costs £58 more per month than the average tenant would pay for renting such a property. Aside from the initial deposit, and all the fees associated with the actual house purchase, the financial strain of buying can be overstated. In addition to the peace of mind that home buying brings, many owners enjoy more disposable income at the end of every month than their renting counterparts, said Lawrence Hall of Zoopla. ‘If they can make the leap, and are willing to relinquish the flexibility that comes with renting, tenants up north in particular would be much better off buying and paying off a mortgage every month,’ he explained. He pointed out that Scotland and the North of England are cementing their standing as international university hubs with top universities in York, Edinburgh and Durham. ‘This means increasingly high numbers of students are flock to these areas, all looking for places to stay and… Continue reading
