Tag Archives: finance
Prime property markets in key UK towns set to see continued demand
Price growth for prime properties in key urban markets in the UK is likely to continue this year, driven by growing demand among buyers, new research suggests. In particular demand for properties in key town and city locations such as Oxford, Bath, Bristol and Cheltenham with access to good schools, transport links and amenities is expected to be high. They are attractive to buyers from London, including commuters, as infrastructure improvements make them and their amenities more accessible, according to the research from real estate firm Knight Frank. These include the electrification of the Great Western rail line to London from Bristol and Bath and the new Oxford Parkway railway station just opened to the north of the city. Annual price growth for prime properties in the Oxford city market eased to 1.3% in 2015, but the research suggests that as Oxford’s economy is diverse, led by IT, high tech manufacturing and publishing and the city’s hospitals and two universities are major employers, demand from local buyers is ever present. ‘Activity is expected to remain strong in early 2016, especially as some buyers look to complete purchases ahead of the introduction of new stamp duty rules which have the potential to impact a small section of the market,’ the report says. The report points out that annual price growth for prime properties in the Bath city market was 4.5% in 2015, compared to a 3.1% rise across the wider prime country market and this outperformance reflects the continued demand among buyers for prime properties in city centre locations. Bath is an international tourist destination home to a wealth of museums, Georgian streets and other attractions that mark it out as a desirable place to live and visit, including a compact city centre with a good retail offering. This was underlined by a 6% rise in the number of potential buyers registering their interest in purchasing a home in Bath through Knight Frank year on year, a 15% jump in sales volumes over the same period and a 43% increase in the number of people searching for homes in Bath on Knight Frank’s website. A number of these individuals were relocating or looking to relocate from the capital. Knight Frank data shows that outside of the Home Counties, Bath along with Oxford was the most popular location for Londoners looking to move in 2015. ‘The prospect of more regular services between Bath and London from 2017 as a result of improvements being made to both the track and the trains will make commuting an even more viable option,’ the report explains. Property prices in Bristol rose by 6.6% in 2015 driven by the growing trend among buyers for properties in key town and city markets with access to good schools, transport links and amenities and a lack of available properties for sale has been the biggest driver of the market in Bristol over the last year, according to the report. Stock levels were at… Continue reading
Modest house price growth expected in UK in first months of 2016
UK house prices increased by 0.3% in January and annual growth is broadly stable at 4.4%, according to the latest residential index to be published. This takes the average price to £196,829 but the monthly rate of increase slowed from 0.8% in December which was unseasonally high, the report from the Nationwide Building Society says. Robert Gardner, Nationwide's chief economist, pointed out that annual house price growth has remained in a fairly narrow range between 3% and 5% since the summer of 2015. This annual trend was maintained in January, with house prices up 4.4% over the year, broadly in line with the 4.5% increase recorded in December. ‘As we look ahead, the risks are skewed towards a modest acceleration in house price growth, at least at the national level. The labour market appears to have significant forward momentum,’ said Gardner. ‘Employment has continued to rise at a robust rate in recent months and, while the pace of earnings growth has slowed somewhat, in inflation adjusted terms regular wages continue to rise at a healthy pace,’ he added. He also pointed out that this trend expected to continue and with interest rates also likely to stay on hold for longer than previously anticipated, the demand for homes is likely to strengthen in the months ahead. ‘The concern remains that construction activity will lag behind strengthening demand, putting upward pressure on house prices and eventually reducing affordability. Indeed, the market is already characterised by a shortage of stock, with the Royal Institute of Chartered Surveyors reporting that the number of properties on estate agents’ books remains close to all-time lows,’ Gardner added. Continue reading
House prices in UK cities reach 15 month high
House prices in key UK cities increased by 11.4% in December, a 15 month high due to unseasonal strong market activity, according to the latest index report. Cambridge and London lead growth although sales volumes in these cities are lower over 2015 and the impetus for growth continues to come from regional cities, like Liverpool and Glasgow. Demand is increasing in the face of short supply and while there is some increased interest from buy to let buyers, eight out of 10 sales are still to owner occupiers, the Hometrack index also shows. Cambridge saw the highest annual rate of growth at 14.4% followed by London at 13.8% and then Bristol at 12.8%. All these high growth markets are growing at a broadly similar rate to the levels seen a year ago. The report points out that while residential values may be rising, overall sales volumes across Cambridge and London look on track to be lower over 2015, bucking the national trend of flat volumes, as scarcity of homes for sale and affordability pressures limit overall volumes. It also shows that the falling oil price continues to affect the housing market in Aberdeen. House price growth in the city is down 1.4% compared to a rise of 13.5% and looks set to remain weak over 2016. Newcastle and Sheffield are recording the next lowest growth rates of 3.7%, still higher than average earnings, and in cities where the housing recovery is at a much earlier stage. Overall the impetus for growth continues to come from regional cities where prices are rising off a low base as household confidence improves and home owners utilise record low mortgage rates to access the market. Glasgow and Liverpool have recorded a significant increase in house price growth over the last 12 months in cities where the recovery has been running for just two to three years. A year ago Glasgow price inflation was running at 0.1% but this has risen to 8.5%, similarly Liverpool price growth is up to 5.7% from 1.3% a year ago. A quarter of homes in the 20 cities covered by the index is private rented property and strong private investor demand will explain some of the additional growth in city level house prices relative to the UK rate of growth, the report says. Much has been made of the impact of tax changes for buy to let investors with mortgaged property and the proposed new 3% stamp duty levy from April 2016. Indeed, the latest Bank of England Credit Conditions Survey for the fourth quarter of 2015 points to expected strong demand for mortgages from buy to let landlords in the first three months of 2016. ‘Demand for buying property as an investment is far from dead and 2016 looks set to be a year of consolidation for investors, especially those who are mortgage reliant. A portion of investors are likely to accelerate purchases before April but we should not read… Continue reading
