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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
Prime property markets in key UK towns set to see continued demand
Price growth for prime properties in key urban markets in the UK is likely to continue this year, driven by growing demand among buyers, new research suggests. In particular demand for properties in key town and city locations such as Oxford, Bath, Bristol and Cheltenham with access to good schools, transport links and amenities is expected to be high. They are attractive to buyers from London, including commuters, as infrastructure improvements make them and their amenities more accessible, according to the research from real estate firm Knight Frank. These include the electrification of the Great Western rail line to London from Bristol and Bath and the new Oxford Parkway railway station just opened to the north of the city. Annual price growth for prime properties in the Oxford city market eased to 1.3% in 2015, but the research suggests that as Oxford’s economy is diverse, led by IT, high tech manufacturing and publishing and the city’s hospitals and two universities are major employers, demand from local buyers is ever present. ‘Activity is expected to remain strong in early 2016, especially as some buyers look to complete purchases ahead of the introduction of new stamp duty rules which have the potential to impact a small section of the market,’ the report says. The report points out that annual price growth for prime properties in the Bath city market was 4.5% in 2015, compared to a 3.1% rise across the wider prime country market and this outperformance reflects the continued demand among buyers for prime properties in city centre locations. Bath is an international tourist destination home to a wealth of museums, Georgian streets and other attractions that mark it out as a desirable place to live and visit, including a compact city centre with a good retail offering. This was underlined by a 6% rise in the number of potential buyers registering their interest in purchasing a home in Bath through Knight Frank year on year, a 15% jump in sales volumes over the same period and a 43% increase in the number of people searching for homes in Bath on Knight Frank’s website. A number of these individuals were relocating or looking to relocate from the capital. Knight Frank data shows that outside of the Home Counties, Bath along with Oxford was the most popular location for Londoners looking to move in 2015. ‘The prospect of more regular services between Bath and London from 2017 as a result of improvements being made to both the track and the trains will make commuting an even more viable option,’ the report explains. Property prices in Bristol rose by 6.6% in 2015 driven by the growing trend among buyers for properties in key town and city markets with access to good schools, transport links and amenities and a lack of available properties for sale has been the biggest driver of the market in Bristol over the last year, according to the report. Stock levels were at… Continue reading
UK govt puts public land up for sale for new home building
The UK Government has published details of 600 acres of surplus public sector land for sale as part of its drive to see tens of thousands of new homes built across the country. Housing Minister Brandon Lewis urged developers to seize the opportunity and look at the sites via the Homes and Communities Agency (HCA). Some 80 public land sites are now for sale and there will be 40 more over the next 18 months. It is estimated these sites will support more than 5,000 homes as well as land for industry and business. Over 20% of the sites already have outline or detailed planning permission. Lewis pointed out that the Government has embarked on the largest house building programme since the 1970s and said that some 160,000 new homes should be built through the sale of surplus public sector land. ‘Using surplus public sector land for housing has helped us get the country building again with the number of new homes up by 25%. Selling off these sites will allow us to go even further, delivering on our ambition to support a further 160,000 homes, while providing a significant boost to local economies and the taxpayer,’ he said. ‘I now want to see developers getting shovels in the ground as quick as possible and build the homes hard working people want and deserve,’ he added. The HCA is the government’s disposal agency for surplus public land, and using its local market knowledge, commercial expertise and experience of managing large portfolios of land, exceeded its contribution to the government’s last land programme by more than 3,000 homes. In total, Whitehall departments released enough public sector land to support more than 109,000 homes during the last parliament, Lewis also pointed out. ‘The sale of surplus public land helps to meet government priorities to build more homes and business premises, while delivering a financial return to the taxpayer,’ said HCA chief executive Andy Rose. ‘We will use our commercial expertise and local market knowledge to make land attractive to house builders, to help get homes built more quickly and meet local priorities. As the government’s disposal agency for surplus public land, we are well placed to support other departments and agencies in meeting their contribution to the government’s land programme,’ he added. A new Land Development and Disposal Plan sets out some key principles of land disposal, which followed a review of the HCA’s processes and were developed in cooperation with the Home Builders Federation and its members. These include clearer objectives for each site prior to sale, early and meaningful market engagement with a transparent pipeline of sites and clearer commercial terms. ‘Public sector land accounts for a significant proportion of potential residential land and can play an important part in helping the country to boost housing numbers,’ said David O’Leary, policy director at the Home Builders Federation. ‘The role of the HCA is critical in helping the government to meet its ambitious targets for releasing public land for… Continue reading
