Tag Archives: finance
Newly listed properties in UK hits eleven year low
There is no sign of the supply issues in the UK housing market abating with estate agents reporting that the number of new properties has dropped to an eleven year low. The data from the National Association of Estate Agents (NAEA) shows that the number of properties available to buy per estate agent branch fell by a third in the last month. There are now 38 houses available per branch in August, compared to 55 in July. This is the lowest level of supply seen since January 2004, when 38 properties were also available. The NAEA monthly data report also shows that August saw a dip in house hunters, with an average of 408 house hunters registered per member branch, compared to 462 in July, a 12% drop. The number of sales completed in August rose by one to an average of 10 properties per branch in August, however, sales made to first time buyers fell to the lowest level since July 2014. One in five sales, 20%, were made to first time buyers in August, compared to 23% in July and 24% in June, indicating movement in the market is taking place higher up the ladder and it’s second and third steppers pushing through sales. ‘We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying that there simply aren’t enough houses to match demand and we’re reaching crisis point,’ said Mark Hayward, NAEA managing director. ‘There are now 11 house hunters fighting after every available house which isn’t sustainable. First time buyers are finding themselves being squeezed out of the competition, which of course means it’s taking young buyers longer to get their foot on the first step of the ladder, which will in turn increase pressure on the rental market,’ he added. Continue reading
UK property sales exceed 100,000 for third month in a row
Residential property sales in the UK were at their highest in August for 18 months, according to the latest data published by HMRC. It means that more homes were sold in in August than in any month since February last year with the seasonally adjusted data showing 106,480 transaction during the month. It is the third month in a row that sales of more than 100,000 were recorded, however, sales are still well below the monthly sales of nearly 150,000 seen during the housing boom in 2006. The seasonally adjusted estimate of the number of residential property transactions increased by 3.1% between July 2015 and August 2015 and that is 5.7% higher compared with the same month last year. For August 2015 the number of non-adjusted residential transactions was 7.4% lower compared with July 2015. The number of non-adjusted residential transactions was 1.9% lower than in August 2014. Peter Rollings, chief executive officer of Marsh & Parsons, said that taking into account seasonal adjustment, property sales are going from strength to strength, and showing great improvement from this time last year. ‘With the spectre of higher interest rates being kept at bay, buyer demand is in full swing and summer sales have continued to blossom in August. After slightly fewer home sales than we would expect in a typical July, buyers last month were showing a new enthusiasm and readiness to enter the market,’ he pointed out. ‘The changes to stamp duty are still washing over London and cooling activity at the topmost tiers of the housing market. But overall demand for property in the capital hasn’t waned, as young professionals and first time buyers continue to seek out up and coming areas to put down roots,’ he explained. ‘The subsequent squeeze on available property for sale in the capital should keep pushing house price growth along well into the autumn,’ he added. Continue reading
Flats in the UK have seen the biggest average price rise in last decade
The average price of flats in the UK has risen by 60% since 2005, compared with an average of 38% for all properties, according to new research. The report from the Halifax, one of the UK’s leading home lenders, also shows that detached homes have seen the smallest increase at 21% while bungalow prices rose by 28%. The figures show that the increase for flats over the last decade is £87,550 or £730 per month from £145,874 in 2005 to £233,424 today, but a big proportion of this is due to the rapid increase in flat prices in London which are up by 67%. A typical flat currently costs less than £120,000 in the North, East Midlands, Wales and Yorkshire and the Humber, and between £120,000 and £145,000 in the North West, West Midlands, Scotland and East Anglia. At £370,281, a typical London flat is considerably more expensive than flats anywhere else in the UK. While flats have been the best performing property type over the past decade in Greater London, Scotland and the South West, there are regional differences. Semi-detached properties have risen most in value in the South East, East Anglia and the East Midlands, whereas terraced homes have been the best performing property type in five of the 11 regions, the North, North West, Yorkshire and the Humber, West Midlands and Wales. The average price of a terraced home is between £119,000 and £143,000 in all regions outside southern England, the data also shows. Semi-detached and terraced homes have remained the most popular types of property purchased over the past 10 years. Combined, these two types represent 59% of all home sales in 2015, up marginally from 58% in 2005. Semi-detached homes have risen in popularity among first time buyers, accounting for 28% of purchases in 2015 compared with 21% in 2005. However, flat sales have fallen from 20% of all property sales to 17% over the past decade. ‘Flats have recorded larger prices gains over the past ten years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales, substantially higher than for the country as a whole,’ said Martin Ellis, housing economist at the Halifax. ‘Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats, reflecting their large price increases, towards semi-detached homes over the last decade,’ he added. Continue reading
