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Largest monthly rise for England and Wales house prices for a year
Property prices in England and Wales increased by 4.6% in July year on year, taking the average property value to £183,861, according to the latest data from the Land Registry. Month on month they increased by 1.7% with the East of England seeing the largest monthly rise of 2.8% and the biggest annual price increase with a rise of 8.9%, the data also shows. The North East saw the lowest annual price increase of 0.4% and Wales saw the only monthly price decrease with a fall of 0.3%. But transactions are down. The number of completed house sales in England and Wales decreased by 15% to 65,619 compared with 77,488 in May 2014. From February 2014 to May 2014 there was an average of 70,029 sales per month. In the same months a year later, the figure was 61,283. The Land Registry figures also shows that the number of properties sold in England and Wales for over £1 million decreased by 21% to 878 from 1,113 a year earlier. John Eastgate, sales and marketing director of OneSavings Bank, pointed out that it is the biggest monthly rise in house prices for a year and he believes it is driven by positive sentiment continuing after the general election and also by the lack of houses on the market for sale. ‘The simple fact that demand exceeds supply will continue to push house prices upwards and as long as that is the case, it’s hard to see prices moderating. The mortgage market remains supportive, and low rates aren’t going anywhere,’ he explained. ‘If economic turbulence from China pushes back a base rate rise until late 2016, as it appears to be doing, we may well see even more people capitalise on low mortgage rates to take their first step on the ladder,’ he added. Adrian Gill, director of Your Move and Reeds Rains estate agents, pointed out that there is still a considerable gulf between the rates of growth in the East, South East and London and other regions, but this hasn’t knocked confidence nationwide. What happens in London is being affected by outside factors, according to Peter Rollings, chief executive officer of Marsh & Parsons. ‘As the first port of call for international investors and prime property purchases, the housing market in London is more exposed to regulatory and stock market turbulence than the rest of the country,’ he said. ‘We’re still experiencing tremors from the new Stamp Duty banding, and as demand for million pound homes has eased, the harsher taxes at the top end may continue to rock the boat in London for the coming months. But this all needs to be kept in perspective. London is still achieving significantly above average house price growth, and retains its position at the top table,’ he explained. ‘In addition, the Chinese stock market slump may present more of an opportunity than a threat to the London property market as while it’s made property more… Continue reading
Home sales still rising in Auckland, but prices stall
Auckland house sales activity was at its highest in more than 15 years during July, but price increases have stalled, according to the latest real estate data. Indeed, the average sales price at $827,359 has remained much the same as for the past two months, the figures from real estate agent Barfoot Thompson show. In July the average sales price was within $1,000 of that for June, and only $5,000 ahead of that for May and managing director Peter Thompson pointed out that a stable average price over a three month period is a trend not witnessed for some time. ‘The combination of high turnover and stable price, points to buyer confidence in the strength of the market at current prices but also recognition that property is fully priced. The last three months of trading also demonstrates that high sales numbers can be sustained without prices increasing,’ he said. ‘The first signs that price increases were slowing could be seen in last month's sales figures, and this month's results confirm that prices are no longer racing ahead. In fact, the median price in July at $757,000 is down $29,000 on that for June, but up $7,000 on that for May,’ he explained. But property turnover is rising and in July the firm sold 1,388 homes, some 18.9% higher than the number in June and 41.2% higher than in July last year. It is the highest sales figure for a July going back to 1999, and 4.5% higher than in July 2003, the year normally regarded as the most active on record. The firm’s data also shows that new listings at 1,777 were the second highest for any month this year, the highest being in March at 1997, and were 27.3% higher than in July last year. Meanwhile, total listings at month end at 2,802 were at their lowest since December last year, and Thompson said this will contribute to choice remaining tight during August. Sales of properties in the million dollar plus category at 411 during the month were the second highest on record. There was also strong interest in property in the under $500,000 category, with sales numbers reaching 200 and representing 14.4% of all sales. In June sales of properties under $500,000 fell to 13.6% of sales. ‘With Spring approaching comparing market activity in the next few months with 2014 trading could be challenging, as in 2014 trading was significantly impacted by a 'wait and see' attitude that developed as we moved towards the general election. In the lead up to the election sales numbers slowed and prices did not recover until November,’ said Thompson. Continue reading
Retirees appetite for assured tenancy rental growing, research suggests
Home owners’ appetite in the UK for downsizing and renting a retirement property when they get older continues to grow, according to new research. There has been a 7% rise in enquiries from people looking for a smaller home to rent once their working life is over in the first seven months of this year compared to the same period in 2014, says retirement firm Girlings. The firm also reports a 34% rise in visits to its website and says that there is a severe lack of purpose built retirement property, either to rent or buy and many people who want to downsize are unable to do so. The research says that less than 3% of housing in the pipeline is aimed at older people and yet, in 20 years’ time, those aged 65 or over will make up 23% of the population. ‘Our continuing message to government is that the UK desperately needs more purpose built retirement property so that older people have the option to downsize,’ said Peter Girling, chair of Girlings Retirement Rentals. ‘Many older people are stuck in homes that are too big for them, have little choice of a suitable alternative and perceive the obstacles to enjoying a better quality of life in their later years are insurmountable,’ he added. He also pointed out that retired people in the UK currently own a third of the nation’s housing stock and enabling them to downsize would free up much needed family houses and give them the opportunity to release their capital, invest in their future and enjoy their retirement, living in housing that meets all their future needs. ‘We believe there is a simple answer to the current housing shortage and that is for older people to consider downsizing to a purpose built retirement property and renting on an assured tenancy. Choosing to rent in later life is a sensible solution and one which thousands of Girlings’ tenants can recommend,’ said Girling. ‘Equally, if older people downsize it will free up much needed family housing for people further down the ladder. The latest statistics from the Home Builders Federation state that we are still some way off of the 220,000 to 250,000 new houses that are needed to be built per year to satisfy current demand,’ he explained. The firm believes that there are many positive reasons for renting in retirement but those opting for such a move should make sure they are fully informed. For example, the provision of an assured ‘lifetime’ tenancy should be considered as this removes any obstacle to renting by providing the peace of mind that people can live in their new home for as long as they wish. Furthermore, should circumstances alter in the future there is not the frustration of trying to sell a retirement property in an uncertain market and the ensuing worry for family and friends. An example is Olive Young who sold her home in Ilford, Essex in 2006 and rented… Continue reading
