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Average UK prices up 1.4% in May, latest data shows
Average UK house price increased 5.6% annually and 1.4% on a monthly basis in May, taking the average home price to £212,495, according to the latest data to be released. In London the market is seeing significant growth again following reservations around the general election with prices up 16.7% year on year and 3.4% month on month to an average of £536,286. Sales in London have recorded their biggest monthly uplift since August 2014 and the monthly data report from haart estate agents also shows that in May there were 11 buyers chasing each available property across the country but this rises to 20 in London. Overall data from the firm has now shown a steady upward trajectory for UK property prices since November 2014, which has been driven by high levels of demand in relation to supply. Average first time buyer property prices across the UK are also on the increase, up 4.3% annually and 1.7% on the month. The number of new buyers registering has increased marginally on the month in May, up by 0.3% since April. However, the number of new buyer registrations is down 12.7% annually. But the firm says that given the particularly high levels of buyer activity in 2014, a fall in the number of new buyers is to be expected. The volume of new property instructions coming to the market has increased 2.6% on the month and haart says that this emphasises that sellers are feeling confident when it comes to putting their home on the market. There are now 11 buyers chasing each property for sale across the UK, which is a slight fall in activity levels on an annual and monthly basis but still shows that the market is busy, with consumer confidence high. The average loan advanced to a first-time buyer has increased 4.2% annually to just shy of £130,000 which the report says reflects strong institutional confidence in lending. As with the number of new buyer registrations, first time buyer registrations have fallen annually, which is a reflection of the strength of last year’s market. The data also shows that the North of London is the most expensive postcode area in which to buy with prices up 36% annually to an average £667,944. The North West is the only postcode area where the average property price is still less than £400,000. Paul Smith, chief executive officer of haart pointed out that with all this positivity in the air and continued low mortgage rates more people will aspire to buy, and without accompanying fresh supply property will become more unaffordable. ‘First time buyer activity in London is down significantly with 30% fewer first time buyer registrations in May 2015 compared to May 2014. The result will be that young professionals are driven from key areas as they can’t afford to live there,’ he said. ‘This is bad news for local economies and the UK as a whole and we need at least… Continue reading
Rise in people looking to rent their property on a short term let
Just over a quarter of letting agents in the UK have seen a rise in the number of inquiries for short term lets, according to new research from the Association of Residential Letting Agents. The latest report from ARLA reveals that 26% of letting agent members have reported a rise in this sector where lets are classed as under 90 days. Such a tenancy is regarded as having many perks such as offering landlords a quick income and providing people with an alternative to hotels. However, there are legal requirements involved in the process and ARLA says it is easy to get it wrong. Homeowners, who are looking to let their property out short term should ensure they’re complying with the law, ensuring best practice and making the most of their property. ARLA advises landlords to check mortgage or tenancy agreement to ensure you are permitted to rent out your property and to use a reputable agent. For example, an ARLA Licensed agent will not only help with marketing and finding tenants for your property, but also ensure that all legislation is being met, whilst you happily benefit from the income. If you go through an agent, using them to manage the property as well means you don’t have to worry about maintenance on the property as the agent will do that for you. For landlords who are letting their property out because they’ve had to move away or are abroad, this will be invaluable in making the process as pain free as possible. Landlords also need to ensure the property is in a decent condition including being clean and tidy with little clutter. Also, all of the furniture in the property needs to comply with the relevant safety legislation and vital safety checks will need to be carried out before you make the property available for a short let. If you are only letting your property for a couple of weeks, for example during Wimbledon or whilst you go on holiday, ARLA’s advice is to make sure someone visits it regularly. Consider having someone come in every day to clean and change the bed sheets. This will mean your property is kept in a good condition for when you return and also ensure that a short term license does not become a full statutory tenancy. ‘Short term lets can be hugely beneficial for both tenants and landlords, offering freedom and convenience for both parties. A short let can also be a more profitable option as you may be able to charge a higher rent than you would if you were letting a property out full time,’ said David Cox, ARLA managing director. ‘We’ve already seen a massive rise in the number of enquiries for short term lets and with the rising popularity of websites like Airbnb this is only going to continue. Landlords looking to let their property out short term should follow our simple tips to ensure they’re… Continue reading
Average house prices static in England and Wales
Average house prices in England and Wales remained static in May but were 4.6% higher than a year ago, according to the latest Land Registry figures. This takes the average property value to £179,696, just under what it was at the peak of the housing market in November 2007. The data also shows that London and the South East experienced the greatest increase in their average property value over the last 12 months, both with a rise of 9.1% while the East and North East experienced the greatest monthly rise at 1.6%. Wales saw the only annual price fall with a decrease of 0.6% and also saw the largest monthly price decrease with a fall of 1.7%. The number of completed house sales in England and Wales decreased by 12% to 59,311 compared with 67,321 in March 2014. The number of properties sold in England and Wales for over £1 million decreased by 6% to 842 from 893 a year earlier. Peter Rollings, chief executive officer of Marsh & Parsons, said that while the monthly house price change was static, it is positive that annual improvements across the UK means prices are almost back to the November 2007 peak. ‘The post-election feel good factor will soon serve up higher prices or transaction levels, and the market is set for future growth given the improved buyer confidence and increased supply of properties we’ve seen throughout June. High end buyers continue to court prestigious London properties and, as a result, prices will continue to rise sustainably in central areas,’ he pointed out. According to John Goodall, chief executive of lender Landbay, it is good news that repossessions are retreating, household earnings are gathering pace, house price growth is positive yet sustainable and behind the scenes, mortgage lending is responding to all these factors with a growing sense of confidence. 'To keep this progress rolling, confidence must be backed by caution. Mortgage underwriting matters in the good times as much as the bad and risks need to be properly controlled. Strong fundamentals combined with high quality underwriting will bring new investment into the mortgage market from traditional sources of funding to retail investment through new peer to peer models,' he said. 'With time, a steady expansion of mortgage lending will be good for everyone. Rather than an unsustainable charge, the supply of new homes will feed on this solidity of demand from first time buyers and landlords. In short, there are no easy answers but the tide is turning for the better,' he added. However, Steve Bolton, chairman of Platinum Property Partners (PPP), said there should be concern that prices for many people are racing ahead of wages for most people. ‘This has stretched affordability, pushing a home purchase further out of reach for many,’ he added. He pointed out that the rental sector is likely to come under increased pressure as growing numbers of people look to it for longer term solutions… Continue reading
