Tag Archives: london
Property prices in England and Wales up just 0.5% in September
In many regions in England and Wales average property prices have yet to reach levels before the economic downturn and price growth is slowing, the latest index shows. House prices increased by just 0.5% in September, taking the average price to £275,820, the smallest monthly increase this year, according to the LSL house price index. On an annual basis prices are up 10.6% but when London and the South East is excluded from the calculation prices are up just 4.5% and overall prices are up just 2% a year since the crisis. For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score and a North/South divide in the remains evident. The North has the furthest ground to travel, with average prices still 8.3%, or £13,400, below their housing boom high in March 2008. However, average house prices on sales completion in the South West set a new record in August, surpassing their October 2007 peak for the first time. This makes it the fourth region after London, the South East and East Anglia to scramble out from under the shadow of the financial crisis. Areas further afield like Warwickshire, Northamptonshire, and York are breaking cover too, with prices also towering to new heights. David Newnes, director of Reeds Rains and Your Move estate agents, pointed out that the London property scene is on a different scale to the rest of the country. Overall, the capital has seen the strongest housing market recovery, with prices having now grown 47.3% from their previous peak in February 2008. However, the rate of annual house price inflation in the capital eased off by 0.1% in August, as we see growth relaxing into a slower tempo from the heady pulse earlier this year. ‘Across all of England and Wales, house prices have risen on average by 2% every year in the aftermath of 2007/2008 housing boom and bust. But this growth falls short of the 2.8% annual increase in CPIH over the same period meaning it is only home owners in London who have seen their properties climb in value in real tangible terms,’ said Newnes. ‘September saw the lowest monthly increase in property prices in 2014 so far, as a new spell of market adjustment sets in for the autumn. But while price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16% year on year in September,’ he explained. ‘First time buyers have been bringing much of the vitality and optimism to the party. Over the three months from June to August, the sale of flats, typically the preserve of new buyers making their inaugural property purchase, has risen 26% when compared to the same period in 2013,’ he pointed out. ‘While the market adapts to a mellower beat, schemes like Help to Buy and an accessible lending environment are essential to ensure that confidence isn’t silenced, and activity continues to sing,’ he added. Continue reading
Consultation launched in Scotland on tenancy reform
The Scottish Government has launched its consultation on tenancy reform, the first major overhaul of tenancy legislation in the private rented sector for 25 years. The New Tenancy for the Private Sector consultation aims to give tenants a greater sense of security, and provides appropriate safeguards for landlords, lenders and investors. Through the proposals landlords must offer a minimum tenancy of six months and the Notice to Quit will be linked to how long the tenant has lived in the property. It is part of the Scottish Government’s commitment to reform the private rented sector tenancy by enabling more effective regulation, applying tougher enforcement and attracting new investment. The document will consult on proposals to modernise the reasons a landlord can use to get back possession of their property; to enable tenants to stay in their home at the end of their lease unless one of the new reasons above occur; and introduce longer notice periods for landlords and tenants. It will also explore issues relating to rent levels. ‘If tenants have more security in their tenure, they may feel more confident in asserting their rights and flagging any concerns about their rented property without fear of eviction. In addition to this if tenants know they can only be asked to leave their home on certain specified grounds they will have a greater feeling of security,’ said Housing Minister Margaret Burgess. ‘But equally a new tenancy system provides an opportunity to improve the private rented sector for landlords. We can tackle some of the long standing issues they face, like problems around recovering the possession of their property and rent arrears. These changes could give landlords more reassurance in the system,’ she explained. ‘Housing is a priority for this Government which is why we are consulting on these proposals to make sure our private rented sector is a strong as it can be. Our vision is for Scotland’s private rented sector to be an attractive and affordable housing option for anyone who wishes to live in it,’ she pointed out. ‘Reforming the tenancy system is an important part of achieving this vision. By creating a new and simplified system we will have better property management, while tenants and landlords will be provided with more clarity and understanding of what the tenancy agreement means for them,’ she added. However the National Landlords Association (NLA) is questioning the viability of some of the proposals. The NLA is concerned that if implemented as proposed, there is a significant risk of undermining the private rented sector, and of exacerbating the housing crisis Scotland is currently facing. As the proposals will affect all landlords, letting agents and tenants in Scotland the NLA urges all involved to submit their views to the Scottish Government. ‘The consultation raises some interesting ideas for reform, but the Scottish Government seems to be considering worrying changes that would only undermine the private rented sector at a time when its role in housing provision has never been more important,’ said Richard Lambert, NLA… Continue reading
RICS latest monthly survey confirms house price growth is slowing in the UK
House price growth in the UK has slowed back to levels last seen over a year ago as demand slips for the third month in a row, according to the latest monthly report from surveyors. The Royal Institution of Chartered Surveyors (RICS) says that house price momentum has slowed to June 2013 levels and greater caution appears to be being exercised across the UK housing market. Just a day ago the Halifax signalled a similar trend as its monthly index showed that UK house prices fell 0.6% in September and quarterly grow rates have also slowed. Nationally, according to RICS, new buyer demand slipped for the third consecutive month and in London, caution took a particular toll with prospective new buyer demand seeing its fifth consecutive monthly decline, a trend not seen since April 2012. In Scotland, the effects of the referendum on independence appeared particularly significant, with a net balance of 6% more surveyors reporting a drop in the number of interested buyers compared to a net balance of 49% seeing more interest in August. Meanwhile, stock coming onto the market remained virtually unchanged in September at a net balance of -1%, which led to a number of surveyors reporting a 'return to more sensible prices', as properties staying on the market for longer were now beginning to receive offers below asking price. Probably in response to political rhetoric around Mansion Tax, the survey showed a drop in 12 month member price expectations for larger properties of three and four or more bedrooms, which have fallen since the start of the year to 2.2% and is down from 3.8% at the start of the year for three bedroom properties and 2% for four or more bedroom properties, down from 3.5% at the start of the year. At a national level, the slowdown in buyer activity stands in contrast to the lettings market, where demand has continued to grow solidly across the majority of the UK, despite new instructions to let not keeping pace with the rise in tenant demand. However, despite market conditions, surveyor expectations for price growth over the coming three months remain positive with only surveyors in London expecting to see values decrease and prices across the rest of the UK still expected to rise by on average 2.1% over the year. ‘Demand and supply are looking a little more balanced, which is removing some of the upward pressure in prices, particularly in London,’ said Simon Rubinsohn, RICS chief economist. ‘This is a healthy development. Part of this is down to the Bank of England becoming more vocal about the risks, part of this is down to affordability, part of this is down to the new mortgage rules and part of this is down to expectations of higher interest rates,’ he explained. ‘However ideally, more supply should be coming onto the market, but with interest rates still at historically low levels and long term house price expectations positive, households are not under any real… Continue reading
