Tag Archives: london
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
More new residential lets in the UK being agreed before tenants move out
An increasing number of landlords in the UK are able to re-let their property before their existing tenant moves out with the average property being let in 32 days, the lowest figure on record. So far in 2015 some 33% of all new lets were agreed while the property is still occupied, up from 27% last year, according to new research from Countrywide. The average let agreed while tenants are in place is equal to 105% of the asking rent, or an average of £35 a month more than the asking rent. With landlords still receiving rent from the vacating tenant, they are under less pressure to negotiate. In comparison tenants moving into an empty property have more room to negotiate on the rent, knocking an average of £21 a month off what the landlord was looking for. The research also shows that in London 51% of new lets are agreed while there is still a sitting tenant in the property, up from 41% in 2014. The level of demand from tenants in markets where the level of demand is highest and the time to find a tenant is shortest, means landlords are able to reduce the time a home is empty. Where a deal is agreed before the existing tenant leaves the property, there is an average of just six days between the existing tenant moving out and a new one moving in. 10% of the time a new tenant moves in on the same day that the existing tenant moves out. Where a property hasn’t been let prior to a tenant leaving the property, the first week of marketing is when landlords are most likely to achieve the highest rent. During the first seven days, the average let is agreed at full asking price, a figure which falls the longer a rental property is on the market. The first weekend after coming onto the market is when the majority of the most motivated would-be tenants view the property. In London’s fast paced rental market, fewer landlords need to wait until the weekend to find a tenant. Twice as many lets are agreed on a weekday in London than in any other part of the country. Every day a rental property is on the market without a tenant, the landlord is losing rent. If a deal is not agreed during the first week of marketing, landlords become increasingly receptive to offers. 98% of the cases where a landlord accepts an offer below the asking rent are after the property has been on the market for more than a week. In slower rental markets, generally outside of cities, the average landlord has to wait an extra 15 days to find a tenant willing to pay the full asking price compared to those letting a property in the city centre. ‘In larger rental markets, more new lets are being agreed well… Continue reading
Southern cities leading house price growth in the UK, latest index data suggests
UK house prices have increased by an average of £11,500 over the12 months to May 2015 with seven cities in the South of England significantly outperforming this level, the latest index shows. The average house in a city now costs £189,400 with London more than double this figure at £425,700, according to the data from residential property analyst Hometrack. The data also shows that on a month on month basis prices increased by 0.8% in May which is 3.8% above the peak of the market in 2007. Oxford has recorded the highest rise in the last 12 months with growth of £41,700, nearly quadruple the UK average of £11,500, followed by London at £38,900, Cambridge at £23,900, Bristol at £22,400, Southampton at £15,300, Bournemouth at £15,300 and Portsmouth at £15,000. Hometrack said that these house prices gains are a result of robust demand underpinned by the strength of these cities’ local economies and all 20 cities covered by the index recorded annual price rises. Those that saw the smallest rises were all in the north. In Liverpool prices increased by £4,200, Newcastle by £4,700 and Sheffield by £5,300 and these cities are still 14%, 8.5% and 3.8% respectively below their 2007. They are part of a group of nine cities in the north of England, Scotland and North Ireland that are recovering at a much slower pace due to weaker demand from house buyers. All cities except Aberdeen with a fall of 0.4%, recorded month on month price rises and Hometrack said that this could be partly due to a post-election bounce. Bristol led the way with a 1.3% increase followed by Cambridge, Leicester, Liverpool and Belfast all at 1.2%. ‘House prices have picked up momentum post-election. An increasing proportion of households are feeling the benefits of the improving economy, which means that house price growth is set to continue in the coming months. The greatest risk is an earlier than expected increase in interest rates which would knock market sentiment,’ said Richard Donnell, director of research at Hometrack. ‘The strong demand side recovery seen in southern England has yet to spread to other cities revealing the diverse nature of the housing market. All cities are making gains at different rates of growth, but the cities with the biggest increases all have something in common and that is strong local economies,’ he explained. He predicted that affordability pressures will bite at some point in the high value, high growth markets. ‘The double digit price growth registered in cities such as London, Oxford and Cambridge is being sustained by a lack of supply and below average transaction volumes with a third of sales funded by cash or buy to let mortgages,’ he pointed out. ‘London has the highest price to earnings ratio, but it covers a wide range of sub-markets. Over the last three years, the impetus for house price growth has shifted… Continue reading
