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Irish property prices up 0.5% month on month, but fall in Dublin
Residential property prices in Ireland increased by 6.6% in 2015 with home values outside of Dublin recovering well, the latest data shows. The figures from the Central Statistics Office show that overall the strong growth experienced in 2014 slowed considerably last year. Prices increased by 16.3% year on year in December 2014. Month on month prices were up by 0.5% in the month of December compared to a decrease of 0.5% recorded in November. However, in Dublin residential property prices decreased by 0.5% in December but were 2.6% higher than a year ago. However, a breakdown of the figures show that house prices in the city decreased by 0.5% in December. But they are 2.1% higher compared to a year ago. Dublin apartment prices were 7.8% higher when compared with the same month of 2014. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. Prices in the rest of Ireland rose by 1.2% in December compared with a rise of 0.7% in December of last year. Prices were 10.2% higher than in December 2014. The slowdown in price growth towards the end of 2015 means that prices are still some way down from their peaks in 2007. House prices in Dublin are 34.2% lower than at their highest level and apartment prices are 40.6% lower, while overall prices are 36.1% lower. In the rest of Ireland pries are 35.4% lower than their highest level in September 2007 and overall, the national index is 33.5% lower than its highest level in 2007. Meanwhile, IPD/SCSI quarterly property index shows that total return for Irish property was 25% in 2015, down considerably from the record breaking 40% achieved in 2014. MSCI, a provider of indexes, portfolio risk and performance analytics, also revealed that total returns from investment property hit 25% year on year in the fourth quarter of 2015, and described it as another strong year for the Irish market. This outpaced the UK market return of 13.8% as per the IPD UK Monthly Property Index with the Irish index now including residential properties for the first time since the third quarter of 2015. The office sector continued to lead the market, returning 5.6% in the last quarter to close out 2015 with a 27.1% year on year total return. The retail sector returned 20.9% and the industrial sector 21.2% for the year. Rental value growth was the key driver in the Irish market during 2015 as market rents grew by 14.4%. The index report says that strong rental value growth indicates a clear sign of business confidence in the Irish economy but also endemic of the limited supply of office space in Dublin city centre. 2015 also proved to be the year in which the Irish recovery spread nationwide, with obvious improvements in the regional retail sector and a growing demand for modern… Continue reading
Average prices in England and Wales up over 6% year on year
Average property prices in England and Wales increased year on year by 6.4% in December, taking the average property value to £188,270, the latest index shows. Month on month house prices rose by 1.2% since November 2015, according to the monthly index report from the Land Registry. London recorded the greatest increase in its average property values with annual growth of 12.4% and the biggest month on month rise at 2.1%, taking the average price to £514,097. The North East saw the lowest annual price growth with an increase of 0.8%, taking the average price to £99,069, a considerable difference to the average price in London. Wales saw the most significant monthly price fall with a decrease of 0.8% to take the average price to £121,780. The most up to date figures available, show that the number of completed house sales in England and Wales fell by 8% to 79,960 compared with 86,452 in in October 2014 while the number of properties sold for more than £1 million fell by 2% to 1,231 from 1,258 a year earlier. Repossessions in England and Wales fell by 51% to 431 compared with 888 in October 2014 and the region with the greatest fall in the number of repossession sales was London with a fall of 71% from October 2014. Mark Posniak, managing director at Dragonfly Property Finance, pointed out that with demand strong and supply weak, prices in December defied the usual seasonal slowdown, adding that this is even more pronounced in London. He believes that the construction lag is having a significant impact on the market. ‘On a more positive note, we are seeing noticeably more construction activity at the moment, particularly by smaller developers. But this will take time to trickle through into the market,’ he said. ‘Looking into 2016, it's hard to see anything other than a continuation of the current trend of steadily rising prices, especially with interest rates unlikely to rise in the near future and a robust jobs market,’ he added. According to John Eastgate, sales and marketing director of OneSavings Bank, prolific buyer demand is fanning the house price growth. ‘A strengthening labour market, robust consumer sentiment and a supportive mortgage market all played their part, despite the obstacles provided by the festive period. This strength of demand has been compounded by the record low levels of property on the market at present,’ he said. ‘Uncertainty around economic growth in 2016 provides a reason for caution. The good news however, is that house building starts appear to be at their highest level since 2007. It is not yet strong enough to counterbalance demand. However if this trend of improvement is maintained, it should lead to a healthier property market for investors and buyers alike,’ he added. The lack of supply is also the explanation of what is currently happening with unseasonal growth in the market, said Jonathan Hopper, managing director of the buying agents Garrington Property Finders. ‘Even… Continue reading
Housing market confidence remains strong in the UK, latest sentiment index shows
Confidence in the UK housing market remains strong and the majority believe that property prices will be higher rather than lower in 12 months’ time. There has also been a small rise in positive selling sentiment in the final quarter of 2015 and a fall in the number who expect it to be a bad time to sell, according to the latest quarterly Halifax Housing Market Confidence Tracker index report. Despite declining steadily since last May, house price optimism in the final quarter of 2015 continued to show that a majority, +61 compared to +68 in May, think prices will keep rising with 13% believing they will be at least 10% higher. ‘Solid economic growth, rising real earnings and falls in already very low mortgage rates are all stimulating housing. At the same time, there is an increasingly acute imbalance between supply and demand, which is causing property prices to rise at a robust pace,’ said Craig McKinlay, Halifax mortgages director. ‘This situation, which is unlikely to reverse significantly in the short term, is reflected in the public’s continuing high levels of optimism regarding house price growth over the coming 12 months,’ he added. There has been a small rise in positive selling sentiment since last quarter, with 55% (+3) of people thinking the next 12 months will be a good time to sell. By contrast, there has been a drop in the proportion who expect it to be a bad time to sell, down three points in the same period, to 29% now. Positive buying sentiment has increased marginally, at 54% (+1), with negativity down two points to 31% while the proportion who think it would be a good time to buy and to sell property has risen to 39%, up three points on the previous quarter, while 15% of people think the next 12 months would be a bad time to do both. The proportion identifying rising property prices as a barrier to buying a property has risen to 37%, up six points on the previous quarter and the highest this figure has been since the survey’s inception, with average UK house prices now standing at £208,286 following a 10% increase during 2015. However, raising a deposit is still believed to be the main barrier to buying property, with 58% of people choosing this as a reason, up one point from last quarter). Job security is the number two reason, at 42%. Concerns about interest rate rises as a barrier have fallen, with only 11% of respondents mentioning this, down five points from last quarter. ‘Difficulties in raising a deposit, concerns about job security and high property prices remain the main barriers to people buying a home. The proportion identifying rising prices has risen to the highest in the survey’s history. The decline in affordability that this highlights is expected to dampen housing demand and property price growth over the medium term,’ said McKinlay. Half think mortgage interest rates will be higher in 12… Continue reading
