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UK continues to see average property prices grow, but biggest rise still in London
Average UK property price growth remains strong across the country, up 8.9% annually to £206,578, according to the latest monthly index. House price growth in London continues to storm ahead, up 23.6% on August 2013 and 2.4% on last month, the data from independent estate agent haart also shows. The number of new buyer registrations has fallen by 5.5% annually across the UK but there are 9.5 buyers on average chasing every property. Overall the report says that the UK market remains buoyant with sales transactions also up 8.9% on last year although in London the supply of homes is up by much more, with the city seeing growth of 26.6% annually and 15.7 buyers registering for every new property for sale. ‘The property market is currently recalibrating. Our data shows an easing of demand as new buyer registrations across the UK decrease 5.5% annually, in contrast to the uplift in homeowners looking to sell which is up 4.1%,’ said Paul Smith, chief executive officer of haart which has a network of over 200 branches. ‘Despite this influx of stock the market remains competitive with an average 9.5 buyers registering interest in every new home that comes to market, which is the driver behind property price growth. This gradual return to normality should now dispel fears about property bubbles which we have always dismissed as hype,’ he explained. ‘People now see the reality that interest rates will rise early next year but are keen to take advantage of current market conditions. Our message to people thinking about selling is that autumn is crunch time,’ he pointed out. ‘Good mortgage deals are still plentiful but won’t last forever. Buyers do have increased choice right now but the strong competition that remains in the market will ensure that those selling now have the best chance at the best price,’ he added. The index also shows that the average first time buyer property price dipped marginally by 1.1% on the month to £153,967 but increased 6.7% annually. First time-buyers now make up 45.9% of all mortgages written which is up from 42.2% in August last year. The average mortgage extended to a first time buyer is now £120,933 which represents an increase of 9.5% on last year and the average loan to value is now 80.2%, which is up from 78.6% last year. The average property price in London is now £494,026, an increase of 23.6% annually and 2.4% on the month. The firm says that the reason behind this growth is the high ratio of demand to the supply of homes with an average 15.7 prospective buyers registering for every available property. The west London postcode is the most expensive area in which to buy with the average price now at £551,711, an increase of 13.3% annually. The east of the city remains the cheapest postcode with the average property price currently at £421,166. The number of properties for sale in London is… Continue reading
Survey reveals opposition to big housing developments in UK
With general agreement that a major uplift in new home building is crucial to resolution of the UK's housing crisis, half of the population would oppose a major house building programme if it was in their immediate neighbourhood, a survey has found. Some 49% of Britons would be opposed to building more than 300 properties in their neighbourhood and 53% are anti-developments of 100 and 299 properties, according to the Property Tracker survey from the Building Societies Association (BSA). But when asked how much of the UK they believe should be ‘urban’, which is defined as housing, gardens, train lines and parks, nine out of 10 said more than 10% of the country should be developed when currently just 7% of the country is. The majority of Britons are only willing to support developments of one to 10 properties being built in their local area. Against that, the research also shows that Britons are increasingly open to the types of properties they want to live in and want greater diversity in the types of properties and tenures available to them. One in five people say they would be open to buying a shared ownership property, living in an off the shelf kit home, living in a converted retail or office space and even renting long term. And despite the fact that less than 10% of properties built in the UK are custom build, more than a third of Britons are open to building their own home. The research also shows that access to mortgage finance is now the single biggest barrier to owning a home among first time buyers, rising above raising a deposit for the first time since 2012. Now 57% of these buyers say that getting a mortgage is the most difficult hurdle to overcome, compared to 41% in June 2014 and 33% in September last year. Difficulty in accessing finance for home movers has been marginally less striking, rising from 42% in September 2013 to 51% in September 2014. Substantial press coverage around the changes to mortgage regulation implemented in April may be one of the reasons why first-time buyers are especially concerned about getting a mortgage. Recommendations from the Financial Policy Committee (FPC) to bring in a cap of 15% on the total number of mortgages available at or above 4.5 times a borrowers' income may also have affected confidence, especially to those buying for the first time in London and the South East. ‘These consumer views results illustrate the major barrier that governments has to overcome when it comes to boosting housing supply in the UK. People are open to new developments and even different types of housing and tenure, but the message is clear: not in my backyard,’ said Paul Broadhead, head of Mortgage Policy at the BSA. ‘Local opposition is a major barrier to any government building its way out of the current housing crisis and is why we need the position of Housing Minister to be a full Cabinet position… Continue reading
Property industry says Scotland No vote will bring renewed enthusiasm
Scotland’s property market is likely to see renewed enthusiasm and a rise in prices in sales after the historic referendum vote which saw independence rejected. The residential real estate industry welcomed the No vote and said that the market, which has been stalled to a certain extent, can now not only return to normality but is also likely to see growth as those who put buying or selling on hold are now reassured. ‘With the outcome now certain and Scotland voting to remain part of the United Kingdom, we can expect to see some positive movement in the Scottish housing market. It is good news for Scottish estate agents and their customers who can now look forward to a less frenetic housing discussion and market,’ said Mark Hayward, managing director of the National a Association of Estate Agents (NAEA). ‘Although the outcome does not necessarily guarantee clarity for the market, the mist of ambiguity will clear much earlier than if the outcome to Scottish independence was Yes. Therefore, there is likely to be a substantial increase in market activity in the coming months, with an increase seen in the volume of sales and investments,’ he explained. But he warned that this could disrupt house prices in the short term, although not significantly. ‘The existing concerns around increases in interest rates and a significant hike in stamp duty will undoubtedly have a bigger impact over the next 12 months,’ added Hayward. According to Ran Morgan, head of Knight Frank Scotland, the certainty provided by the No vote will allow the property market to return to more normal trading conditions. ‘The fundamentals are in place to ensure a full recovery, led by the key cities of Edinburgh, Aberdeen, Glasgow and rural counties within commuting distance of large employment hubs. Improving economic activity levels in the UK, better consumer sentiment and higher bank lending will all help to kick-start the market,’ he said. ‘We expect we will be very busy in the coming months as vendors and buyers, many of whom have put off making a decision to buy or sell a property in Scotland due to the referendum, return to the market. This will lead to an increase in the number of transactions at all levels of the market,’ he pointed out. ‘We believe that the outlook for the prime property market in Scotland is positive. Our forecast is that prime values will rise by 3% by the end of this year and by a further 3% to 6% in 2015,’ he added. Andrew Rettie, head of agency for Strutt & Parker in Scotland, also believes that the No vote will inject confidence, optimism and stability into the market which will experience a renewed vigour in the latter months of 2014. ‘We all hope this will be a shot in the arm for the Scottish housing market and that the momentum seen earlier in the year returns to the sector. Buyers and sellers who have stalled in… Continue reading
