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HMRC figures shows UK property sales cooling
Sales of properties in the UK fell by 4.8% between August and September but are still 5% higher compared to the same period in 2013, the latest data shows. The figures from HMRC show that the provisional seasonally adjusted sales count reached 97,450 residential sales and 7,880 non-residential. The pattern since the beginning of the 2013/2014 financial year has been of a general month on -month increase in transactions for the seasonally adjusted data until February 2014, then a gradual decrease followed by a flattening out of transaction numbers. According to David Newnes, director of Your Move and Reeds Rains estate agents, the figures show that the property market is settling back into a period of steadier growth after toning down the temperature in the last few months. ‘Price growth has cooled, with September seeing the lowest monthly increase in property prices so far this year and transactions have also dipped on a monthly basis. Some of that energy loss is a consequence of lower lending levels, which dipped in July and August,’ he explained. ‘Some is down to a drop off in demand at the higher end of the market, as foreign investors rein back their purchases while sterling stays strong. Uncertainty over rate rises completes a trio of hesitation, although it has been made clear that eventual rate rises will be brought in gradually,’ he added. He also pointed out that while the market may appear to rebalancing, demand at the lower end remains positive, with sales of typical first-time buyer properties like flats stable. ‘Greater availability of higher LTV loans enables more new buyers to get onto the housing ladder,’ said Newnes. ‘Help to Buy has played a vital role in this regard, and has inspired much more confidence in the lower end of the market, confidence which is now being translated into a sustained demand for first time buyer property,’ he added. Continue reading
UK property prices expected to rise 9% this year and 5% in 2015
Property prices across the UK are set to finish 2014 up by 9% and rise another 5% in 2015, according to the latest outlook report. Real estate firm Strutt & Parker expects good growth despite prices cooling and the looming general election next year in a report compiles with its retained economic advisors Volterra. But the outlook for the prime central London market is more subdued with Strutt & Parker predicting growth of 3% in 2014, and a further 2% in 2015. These forecasts are a stark contrast to 2010 and 2011 when prime central London prices surged by over 13% year on year. The firm believes that whilst improved economic foundations would certainly suggest that prices will continue to rise over the next few years, the biggest perceived uncertainty surrounding the property markets over the remainder of 2014 and 2015 will continue to be the looming election. ‘Agents are reporting a continued slowdown in some areas as buyers and sellers nervously await news on the upcoming general election and the potential for a mansion tax. This is beginning to feed through into transaction levels. As is often the case in uncertain times, it may also be that transaction levels will decrease in the run up to May 2015, but values could hold up better than expected,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Above and beyond the general election there are a number of other potential headwinds slowing the property market, including talk of interest rate changes and the Mortgage Market Review (MMR) and the slowdown it is causing,’ she explained. She pointed out that it is important to remember that the property market is all about supply and demand. ‘On the supply side, the government is continuing to boost house building across the country, and recent output figures from the construction sector reflect this. House prices tend to rise when stock is low and with more houses being built, particularly in the lower end of the housing market, this could also have an effect on UK house prices over the next few months,’ said McMahon. ‘The main driver for price market price growth in recent years has indeed been the consistent shortage of good quality housing stock in highly sought after prime locations. Any future increase of supply to the market in central London would therefore put downward pressure on prime central London house prices and we have taken this into consideration in our London predictions,’ she added. ‘In short, we expect that price growth during the remainder of 2014, and even more so in 2015, will be sensitive to prevailing political press and expectations,’ she concluded. Continue reading
Non home owners in the UK despair at lack of affordable housing to buy
British house hunters feel increasingly disenfranchised by the lack of affordable housing, new research has found. The latest official figures show that population growth in the UK has exceeded 400,000 and with only 134,460 new properties completed over the same one year period there aren’t enough new homes being built to meet that demand, let alone tackle the backlog of years of underdevelopment. Against this backdrop, research from Gocompare.com Mortgages has revealed the effect that the gap between housing supply and buyer demand is having on people’s attitudes to home ownership. It has found that the lack of affordable housing in the UK has resulted in people taking a dim-view of their prospects of getting onto the property ladder. Of those looking to buy a home some 26% feel that the UK is becoming a two tier society of property haves and have nots and 23% expect only be able to buy a home if they buy with someone else. Though 18% say that the government is responsible for the shortage of affordable homes, 14% think that buy to let landlords are to blame, and 17% don’t think that they will ever own their own home. Some 12% said that it angers them that they can’t afford to buy a house in the neighbourhood where they grew up and 10% think that the only way they’ll end up owning a property is if they’re left one in a will. It also appears that people could be forced to move around the country to put down roots. Over a quarter, 29%, of would be home buyers said that they’d have to stretch themselves financially or borrow money from friends or family to find properties in the areas where they want to live. As such 20% say that they have had to expand their search to towns and cities outside of their preferred area, while 14% have come to the realisation that if they want to live in their chosen region they’ll have to rent. And 6% are so fed up that they have completely given up looking for a home to buy. Those surveyed said they would consider moving, on average, up to 26 miles away from their preferred location to find an affordable home and 21% would expand their search to between 26 and 50 miles, while 5% would look for housing more than 101 miles away. ‘It’s easy to see why people feel so frustrated with the UK’s housing market. Not only are there not enough houses being built, but people face having to move away from their friends, families and home towns if they want to buy a home of their own,’ said Matt Sanders, spokesperson for Gocompare.com Mortgages. ‘It’s clear that the government needs to do more to help address the lack of affordable housing if people are to take part in that most British of pursuits, owning a home. Everyone has a right to buy, but not everyone has the ability to do so. Schemes like… Continue reading
