Tag Archives: real estate
House prices in England and Wales see biggest monthly boost for 12 months
Average house prices in England and Wales increased by almost £2,000 in august, the biggest monthly boost for a year, the latest index data to be published shows. They increased by £1,900 or 0.7% compared with July which takes the average prices of a home to its eighth peak this year at £282,816, according to the LSL index. Year on year average prices rose 4.1%, the data also shows and East Anglia has seen the highest regional rise due to a shortage of properties coming onto the market. However, sales are down, recording a monthly drop of 14% in August and are now behind 2013 levels. The north of England recorded the strongest sales activity with transactions up 3% year on year. Richard Sexton, director of e.surv chartered surveyors, pointed out that so far in 2015, monthly price rises have struggled to break above the 0.5%, so this latest rise marks a step up in pace. He believes that a shortfall of summer sellers puts buyers in hot contention for properties. He also pointed out that compared to last year, average property prices have climbed £11,225 and all 10 regions of England and Wales are showing annual increases in house prices. Indeed, the last region to experience a year on year fall in property values was Wales in July 2013. He is not too worried about the dip in sales.'Home sales across England and Wales reached 76,700 in August, down 14% on July levels. This should be taken with a pinch a salt as July was an exceptionally strong month for transactions, and activity in August can be seen as balancing this out,' said Sexton. 'But August is also the first time in 2015 to date that property sales have fallen below their equivalent month in 2013. In the three months to July 2015, property sales have dropped 3% year on year. Across all of England and Wales, the North is the only region where activity has increased over the period, with home sales up 3% during May to July 2015 compared to the same three months in 2014,' he explained. The largest fall in activity has been in East Anglia, with total property sales down 9%, and sales of flats 15% lower year on year from May to July. At the same time, this region has experienced the highest house price growth of any region, at 5.9% in July 2015. 'This suggests it’s not demand that is the problem, but supply. The lack of properties coming onto the market here is intensifying competition and heating up price rises, above temperatures we’re seeing elsewhere, said Sexton. 'The nationwide mismatch between sellers putting homes up for sale and buyer demand should warm up measures of growth for the autumn. August represented the twelfth month in succession that the annual rate of growth declined, down steadily from 11.1% in August 2014, to 4.1% last… Continue reading
Easy mortgage access for home buyers in the US tightens
Access to mortgage credit in the United States tightened in the first quarter of 2015, marking a pause in easy accessibility for buyers. It had been getting progressively easier to obtain a mortgage since 2012, but the first several months of this year marked a change, according to according to the latest Zillow Mortgage Access Index (ZMAI). Mortgage credit availability is almost unchanged from a year ago, meaning despite fluctuations from quarter to quarter, there has been little progress toward making mortgages easier to obtain over the last year. In the long term, experts expect mortgage access to continue improving. In a survey earlier this summer of more than 100 economists and housing experts, more than 60% said they expect mortgage regulations to loosen further, with many expressing concern the market will become too lax over the next year. A high number in the Zillow Mortgage Access Index means credit is easier to obtain, while a lower number means credit is tighter. Mortgage credit was easiest to obtain in July 2004, when the ZMAI reached 136.4. But availability tightened over the next few years. In May 2007, both the housing and mortgage availability began a multi year plunge, leaving home values down more than 22% and credit the tightest in recent history. Mortgages were the toughest to obtain in September 2010, when the ZMAI was at 11.8. Today, access to mortgage credit has improved significantly, and is at 65, more than two thirds of the way back to 2002 pre-crisis levels. 'Recent market volatility is causing some lenders to be more cautious in their underwriting. Tighter mortgage access will make it harder for people with low credit scores to get a home loan, and even people who can get approved for a mortgage will have fewer options in terms of available mortgage products,' said Zillow chief economist Svenja Gudell. Continue reading
Apartments near Royal Parks in central London attract high price premium
The selling prices of apartments situation on roads surrounding the five central Royal Parks in London have increased by 172% in the last decade, new research has found. This is compared to prices for other prime properties in London that are not close to this prestigious group of green space that include Regent’s Park, Kensington Gardens, Hyde Park, Green Park and St James’ Park. Hyde Park, which stretches across central London, has seen the greatest rises. Between 2013 and 2014 alone, the premium commanded by properties in close proximity to the park was 23.8%, according to the Parkside premium Report by Dataloft. 'London as a city is rightly proud of its green spaces, which define the centre of London and provide more outside public space than New York, Paris or Tokyo. The Parkside Premium Report mirrors our experience of the market,' said Gary Hersham of Beauchamp Estates. He explained that living next to a park is increasingly a priority for many buyers in the prime London property market.'In 2012, for example, an influx of super luxury developments pushed the premium for living parkside to 32% over other prime central London areas,' he said, adding that close proximity to a Royal Park is a pre-requisite of many high net worth individuals purchasing in London. Hyde Park, in the borough of Westminster, is the most sought after park to live close to. The south side of Hyde Park, driven by key sales in developments such as One Hyde Park and 4-5 Princes Gate, has reportedly achieved sales values of up to £9,000 per square feet and in doing so set record prices in London. The report notes that the north side of Hyde Park has achieved values of around £3,500 per square feet. The north side of the park also has less of a gap between parkside properties and the surrounding areas when compared to the south, with a 43.2% premium to live parkside for the north versus a 67.7% premium for apartment properties on the south. Hersham pointed out that the rise in the premium for parkside properties boosted by UK domestic buyers. Some 26% of those living around Hyde Park also own another home and 38% are within the UK. The report also shows that apartments by the five central London Royal Parks have commanded a premium of 20% in the year 2014/2015, compared to just a 5% premium in 2005. The most marked jump in price premiums for living parkside was between 2006 and 2007, with an 11% rise in premiums. This can be explained by the myriad of luxury developments launched that year such as One Hyde Park, which reportedly set the world record for a penthouse selling price. The report also looks towards the future of this sector of the property market. 'The report shows beyond all doubt the difference that being situated next to a Royal Park can… Continue reading
