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Annual house price growth varies across the UK, latest ONS index shows
Annual house price growth in the UK is going up and down according to region, varying between a fall of 0.6% to a rise of 9% year on year, according to the latest property index. Overall UK house prices increased by 5.7% in the year to June 2015, up from 5.6% in the year to May 2015, the data from the Office of National Statistics (ONS) shows. A breakdown of the figures shows the strongest annual growth was in Northern Ireland at 9% while the weakest was on Scotland with a dip of 0.6%. In England growth was 6.1% and in Wales it was 0.8%. It is the first annual fall in prices in Scotland since September 2013, down from 2.2%, and prices were also down from 2.7% in Wales, and down from 11% in Northern Ireland while in England the annual rise was up from 5.8%. Annual house price increases in England were driven by a 9.2% increase in the East and a 7.7% increase in the South East. But excluding London and the South East, UK house prices increased by 5.2% in the 12 months to June 2015. The ONS data also shows that on a seasonally adjusted basis, average house prices increased by 0.4% between May and June 2015. In June 2015, prices paid by first time buyers were 5.1% higher on average than in June 2014 while for existing owners, prices increased by 6% for the same period. Peter Rollings, chief executive officer of Marsh & Parsons, pointed out that price rises in London continue to be overpowered by the East and South East for the moment. ‘Costlier property taxes at the highest rungs of the market have forced London off the boil, and dampened the appetite in the market momentarily,’ he said. But he pointed out that there are signs that London buyers are starting to take on board increased stamp duty costs, and during the second quarter of the year the firm saw buyer registrations increase by 17% up against a supply boost of just 10%. ‘This fundamental imbalance will ensure price growth simmers on into the autumn, and in the Prime market we’ve already seen property values start to solidify again, recording the first quarterly rise since September 2014,’ he added. Rob Weaver, director of property for residential investment platform Property Partner, believes that prices will keep going upward due to the imbalance in the market. ‘Demand continues to outstrip supply and this, with the odd blip or dip aside, can only mean one thing for property values,’ he said. He also pointed out that average price growth on new builds has been almost double that of pre-owned properties over the past year. ‘It’s a worry as this implies people are paying more of a premium on new builds, which could be a symptom of foreign investors tending to do less market research. It’s rather like buying a new car, once you put the keys in and drive… Continue reading
Quarter of UK house hunters take less than a week to find the right property
It seems that the old adage love at first sight applies to the UK property market with new research showing that almost a quarter of home seekers take less than a week to find a new place to live. Some 17% visit only one property when looking for a new house, 25% need to see their future home only once and over two thirds know instantly or by the end of the first visit that they want to move in. The research from mortgage provider Ocean Finance also shows that a third of house hunters spend almost three months browsing the property market, looking at online services such as Zoopla or Rightmove, contacting estate agents and organising viewings. When asked how many times they visited the property they liked best, some 60% of home owners to be admitted they need to see their future homes two to three times before moving in, although over a quarter visit their chosen property only once. Over two thirds of home buyers know instantly or by the end of the first viewing that they want to move in but the research also shows that small things can put buyers off with the biggest one traffic noise. The majority of those questioned won’t buy a house on a main road. A lack of natural light or an electricity pylon around the corner can also make a house unattractive for many people. No local shops or supermarkets can let the property down, as well as little or no storage in the house. Home seekers are also put off by a property that is too far from public transport or with an untidy or small garden. People rarely enjoy living above a take away or chip shop, as strong food smells are another reason for turning down a house however, people can live with coloured bathroom suites and without local restaurants and pubs. Continue reading
Home sales fall slightly in Canada, latest monthly index shows
National home sales activity edged slightly lower on a month on month in July with prices up 8.9% on average nationwide, according to the latest real estate index. The data from the Canadian Real Estate Association (CREA) shows that sales were down 0.4% from June to July while actual, not seasonally adjusted activity is up 3.4% compared to a year ago. While the national sales price is strong, when Greater Vancouver and Greater Toronto are removed from the calculation then annual price growth drops to 4.1%. It is the second consecutive monthly decline in sales activity but CREA pointed out that transactions in May, June and July reached their highest monthly levels in more than five years. July sales were down from the previous month in about half of all local markets, led by declines in Hamilton-Burlington and in the Durham Region of the Greater Toronto Area (GTA). The monthly decline in sales for these two markets represents a pullback from record levels in June and CREA says it likely reflects an insufficient supply of listings. By contrast, sales in Newfoundland and Labrador were up the most on a month on month basis, marking a rebound from a quiet month of June for the province. ‘National sales activity remains solid, fuelled by strength in British Columbia and the Greater Toronto Area, where listings are in short supply or trending that way,’ said CREA president Pauline Aunger. According to Gregory Klump, CREA chief economist, markets elsewhere across Canada are largely well balanced and in some cases have an ample supply of listings. ‘It’s fair to say that the strength of national sales is still a story about two cities, but it’s equally about how trends there are spreading out in their respective provinces,’ he explained. ‘Trends in British Columbia and Ontario have a big influence on the national figures, since they account for about 60 per cent of national housing activity. As a result, the national picture reflects how demand is running high for the short supply of single family homes in and around the GTA while the balance between supply and demand is tightening in B.C.’s Lower Mainland. These remain the only places in Canada where home prices are growing strongly,’ he added. Actual, not seasonally adjusted, sales were up from year-ago levels in just over half of all local markets, led by the Lower Mainland region of British Columbia and the GTA. While Calgary continued to post the largest year on year declines in sales compared to last year’s record levels, activity there is nonetheless running roughly in line with five and 10 year averages for sales during the month of July. The number of newly listed homes was little changed, up 0.2% in July compared to June, marking the fourth consecutive month in which new listings have held steady. New supply was up in a little more than half of all local… Continue reading
