Tag Archives: london
Property prices in England and Wales up 0.5% month on month, latest index shows
Residential property prices in England and Wales are £34,000 above their pre-crisis high of February 2008, according to the latest house price index to be published. With a monthly rise of 0.5% the average prices stands at £273,528 with the annual rate of growth at 6.8% but sales have fallen, down 9% compared to a year ago, the data from Your Move and Reeds Rains shows. When London and the South East are excluded from the calculation then the average annual change is 4.6% with London still boosting overall averages, the data also shows. Adrian Gill, director of Reeds Rains and Your Move estate agents, pointed out that while average house prices are currently 6.8% or £17,340 higher than they were last year, this is the smallest annual increase witnessed for 14 months. He also said that while home sales are down 9% year on year, there is still plenty of demand and February still marks a 4% improvement on January activity levels, and in recent weeks agreed sales have climbed above 2014 levels. He also explained that market conditions have calmed in London and the South East. Their combined lead on the rest of the UK hit a summer peak in July 2014 when these areas increased the wider England and Wales annual change to 5.4% higher than it would have been otherwise. But in February this growth gap has fallen to less than half at 2.2%. ‘London 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 sector 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,’ said Gill. ‘This let up of high end activity has brought down the average London house price, but beneath the surface, the lower rungs of the ladder are thriving. For instance, the borough of Newham, where the typical property value currently stands at £273,727, saw an enviable 2.1% monthly price rise, more than double the overall 1% average London price jump,’ he explained. He also pointed out that in terms of annual growth, more affordable areas like Barking and Dagenham with growth of 16.5%, Bexley up 15.6% and Waltham Forest up 16.8%, are doing well, coming in ahead of the year on year improvements seen in high end areas like Kensington and Chelsea, where prices have fallen 7.4% in the past 12 months. ‘In the south of the country overall we’re seeing a very orderly market, with buyers and sellers on more of an even keel. Rates of annual growth have slowed across the board in England and Wales, but it is regions with the lowest average property prices which are dragging their feet,’ Gill added. The North saw the smallest annual uplift in January, with home values just 1.9% higher year on year, while in Yorkshire and The… Continue reading
UK property valuations up 50% month on month
Valuations in the UK property market last month increased across all sectors with the total number 50% higher than in January, according to the latest research. There was a strong surge in activity across the housing market but home movers led the way with a 59% rise in activity on a monthly basis, the data from Connells Survey and Valuation shows. However, despite the strength of this upsurge, this leaves home mover valuations in February 8% lower than 12 months before. ‘After an extended period of fairly subdued activity it is encouraging to see the market rebound. It is especially positive that all the sectors posted big gains. The first quarter is normally a strong one so after a relatively weak January it is reassuring to see February come back so strongly,’ said John Bagshaw, the firm’s corporate services director. ‘Previously activity among home movers was sluggish, reporting weak growth throughout the final quarter of 2014 and at the beginning of this year. However, supported by a sunny economic outlook and record low mortgage rates we are beginning to see a shift in consumer behaviour,’ he added. The data also shows that first time buyer activity reached an eight month high in February with the sector posting the second highest monthly growth after home movers. The number of valuations rose by 52% compared to the previous month, while on an annual basis it saw the smallest fall of just 3%. Bagshaw pointed out that the last time the sector saw such a boost in activity was in the rush before the Funding for Lending Scheme (FLS) stopped mortgage funding at the end of January 2014 and he added that the recently announced Starter Homes project should provide more additional support to the sector. ‘Although the scheme is fairly moderate in size the 20% discount being offered to first time buyers under the age of 40 provides a welcome sign that the government is keen not to be seen to turn its back on first time buyers,’ he said. The number of buy to let valuations followed up on January’s climb of 37% with a further monthly rise of 41% in February. Spurred by these monthly increases the sector posted an 8% year on year gain making it the only sector to post an annual increase. Bagshaw explained that continued weak inflation has further dampened fears of an upcoming hike in interest rates. ‘As a result we’re seeing increasing confidence among both lenders and borrowers alike as low mortgage rates carry on posing attractive deals. Whilst inflation remains low we expect the sector to continue to thrive,’ he pointed out. Remortgage activity followed the overall positive market trend with growth of just under 50% but year on year it was the weakest sector with a 10% drop in the number of valuations. Bagshaw said that remortgaging has… Continue reading
Home loans fall in Australia month on month
Home loans to owner occupiers in Australia fell 7.3% in January but those approved to investors increased by 1.6%, according to the latest data from the Australian Bureau of Statistics. The number of loans to owner occupiers for the construction and purchase of new homes declined by 5.3% and the number of loans to owner occupiers buying established homes, excluding refinancing, fell by 7.9%. ‘Lending figures indicate that the investor market performed a little stronger. Lending to investors building or constructing new homes, however, was slightly weaker during the month but remained markedly stronger than this time a year ago,’ said Housing Industry Association economist, Geordan Murray. He pointed out that these results follow the Australian Prudential Regulatory Authority’s December letter to lending institutions outlining their intention to increase the level of supervisory oversight of mortgage lending. The letter detailed some specific areas of concern noting high LVR loans, fast growth in lending to investors, and mortgage affordability in a (future) higher interest rate environment. ‘It is too early to determine whether APRA’s communication has had an impact in January. It will be interesting to observe the lending figures over the next few months to see how lenders respond,’ explained Murray. ‘It is important that the new home building sector is not pushed back into a credit squeeze whereby a lack of readily available finance becomes an industry wide problem,’ he added. A breakdown of the figures show that on an annual basis the total number of owner occupier loans for new housing in January 2015 increased only in Tasmania which saw a 67.3% year on year rise. In New South Wales the number of loans fell by 3%, in Queensland by 6.9T, in the Australian Capital Territory by 9.9%, in Western Australia by 12.3%, in Victoria by 12.4%, in the Northern Territory by 17.6% and in South Australia by 23.5%. Continue reading
