Tag Archives: housing
UK house price optimism rebounds, latest index suggests
House price optimism in the UK rebounded in February as inflation continued to fall and the expectation of an interest rate rise receded further. According to the Halifax Housing Market Confidence Tracker report last month saw a rallying of house price optimism among consumers, from an 18 month low of +52 at the start of the year to +60 in February. It was +62 December 2014. This optimism is reflected in the outlook for both buyers and sellers, with buying sentiment up to its highest level since the Confidence Tracker launched in 2011 at net +35. At the same time selling sentiment has reached an all-time high and now stands at +27. However, this still this doesn’t tell the whole story as the underlying picture is a cautious one, with 57% predicting flat or modest house price increases of less than 5% at best over the next 12 months. And despite inflation falling to 0% in February and various MPC members saying the next interest rate move is as likely to be down as it is up, 43% of consumers believe mortgage interest rates will be higher than they are now in a year’s time. ‘With inflation now at its lowest level since records began and the chances of the next interest rates change reportedly just as likely to be down as up, consumers are feeling more optimistic about the housing market again,’ said Craig McKinlay, mortgages director at the Halifax. ‘The traditional slow start to the year for the housing market has already begun to give way to increased activity, but consumers remain relatively cautious. For sustainable long term growth we need a period of stable growth and a more comprehensive house building programme,’ he added. Continue reading
Residential rents in Scotland rising at slowest pace for over two years
Scottish rents have increased by just 1.1% in the year to February 2015, their slowest pace for over two years, according to the latest buy to let index. But despite this slower and more affordable pace of rent growth in Scotland, the financial health of tenants has declined over the same period, and February saw the highest proportion of late rent since December 2012. The Scotland buy to let index from letting agent network Your Move, also shows that the average residential rent across the country has increased only £6 in the last year, reaching £537 per month in February. This represents a significant downtrend in annual rent rises, which peaked at 4.3% a year previously in February 2014 equal to a £21 annual boost in cash terms. On a monthly basis, Scottish rental prices have climbed a modest 0.2% since January, but this marks the first monthly rent rise witnessed since November 2014, as the market had slowed down. ‘Such an incremental rise in Scottish rents over the past year shows admirable stability in the private rented sector. Despite high demand for homes to let in the face of the current housing shortage, rent inflation in the lettings market has remained remarkably affordable for tenants,’ said Brian Moran, area lettings director at Your Move. ‘After cruising along on a pretty even keel until late 2012, we then saw steep rent rises stack up against tenants as the abolition of tenancy fees in Scotland knocked the market out of kilter. The Scottish private rented sector has subsequently been on quite a rollercoaster ride, but rent growth has its feet firmly on the ground once again, and is making steady strides forward,’ he explained. ‘But while improvements in the affordability of the lettings market mean that tenants are able to keep up with rent rises, other economic factors are holding them back from making solid financial progress and continuing to drag tenants into the red,’ he added. A breakdown of the figures shows that rents are now higher than a year ago in three out of five regions of Scotland. Edinburgh and the Lothians have experienced the strongest annual rent growth, with prices climbing 2.5% in the 12 months to February 2015. This is closely followed by Glasgow and Clyde where rents are up 2.3% year on year. The East of Scotland saw a 2.2% annual rise in average rents, setting a new record of £530 per month. However, rents have fallen in two regions in the past year. The Highlands and Islands experienced the biggest annual drop in average rents, falling 1.6% while monthly rents in the South of Scotland are 1.5% lower than in February 2014. On a monthly basis, rents have increased in just two out of five regions of Scotland. For the first time in eight months, rents in the South rose on a monthly basis, up 1.3% since January 2015 to £489. In the East of Scotland rents climbed… Continue reading
UK property prices up 8.4% year on year, but annual growth still slowing
UK house prices increased by 8.4% in the year to January 2015, down from 9.8% in the year to December 2014, according to the latest index. House price annual inflation was 8.5% in England, 4.9% in Wales, 7.8% in Scotland and 7.3% in Northern Ireland, the data from the Office of National Statistics show. Overall it means that annual house price growth is beginning to show signs of slowing across the majority of the UK. Annual house price increases in England were driven by an annual increase in London of 13% and to a lesser extent increases in the East at 9.9% and the South East at 7.6%. However, excluding London and the South East, UK house prices increased by 6.5% in the 12 months to January 2015. On a seasonally adjusted basis, average house prices fell by 0.2% between December 2014 and January 2015. The data also shows that in January 2015, prices paid by first time buyers were 9.7% higher on average than in January 2014 while for existing owners prices increased by 7.8% for the same period. Scotland is seeing strong recovery with house prices up by 7.8% in the year to January 2015, up from 5.5% in the year to December 2014. It means that the index for Scotland is just 0.9% below the record level witnessed in August 2014 and prices are 1% higher than the pre-economic downturn peak of June 2008. Adrian Gill, director of Your Move and Reeds Rains estate agents, believes that more needs to be done to keep the property market recovery on track as it is clear that rates of annual growth have slowed across the board in England and Wales. ‘After storming ahead of the rest of the country in the whirlwind of 2014, conditions have calmed in London and the South East. The capital has already had the first taste of added pressure placed on prime property in the form of revised Stamp Duty, and the £1.5 million to £5 million slice of the market has also been hit by cold feet in the run up to the general election with the threat of a potential mansion tax,’ he said. ‘This let up of high end activity has brought down the average London house price, but it is regions with the lowest average property prices which are dragging their feet. The housing shortage may be propping up property price growth, but more needs to be done,’ he explained. ‘Measures like the Help to Buy scheme and reforming Stamp Duty have airlifted support to the bottom end of the market, but unless more new homes are built, the government are practically playing a zero sum game,’ he added. Nicholas Leeming, chairman of national estate agents Jackson-Stops & Staff, said it shows that the popular Help to Buy schemes must continue. ‘The ONS figures show that, while there is still some pre-election nervousness amongst buyers of higher value properties, the majority of the UK housing market… Continue reading
