Tag Archives: real estate
UK asking prices up 2.1% in February
Average price of property coming to the market in the UK increased by 2.1% or over £5,000 this month with all regions reporting growth, according to the latest index report from Rightmove. This takes the average asking price to £279,004 and the annual price growth to 6.6% but this is down from 8.2% in January. The report says that there is an increasing demand for property and overall there has been a 31% increase in housing transactions in last two years in England and Wales, outstripping the 11% rise in the number of properties coming to the market in same period. The result is that demand is outstripping supply and some agents are reporting their lowest ever stock of quality property for sale. Indeed, there has been a 4% fall in new seller numbers compared to same period in 2014. ‘We’re now over a month into 2015, and despite predictions that the upcoming May election could slow home mover interest, Rightmove has recorded its busiest ever month for traffic and leads to agents,’ said Miles Shipside, Rightmove director and housing market analyst. He pointed out that decades of inadequate provision of homes to satisfy growth in demand are having an increasing effect, with a tight stock market resulting in a shortage of quality property for sale to trade up to. ‘For the right property at the right price, demand is outstripping supply and leading to some further upwards price pressure. However there is a limit to what the majority are willing or can afford to pay, especially with the tighter lending criteria,’ he explained. ‘In locations where there is a tight stock market some different tactics are required for a successful move as competition gets fiercer for quality homes as demand increases,’ he added. Housing demand is at a record high with visits to Rightmove hitting over 100 million in January for the first time ever and home hunters looking through a record 1.5 billion pages of property. New record busiest ever days were set on Sunday 25th and Monday 26th of January. The report also says that email and phone enquiries by home hunters to agents on Rightmove hit 4.3 million for the first time, equating to around 100 enquiries every minute. ‘Quality stock is in short supply in some locations, which is unsurprising given the structural under supply of homes and the recovery from the economic downturn,’ said Shipside. Indeed, Rightmove statistics show that the average available stock for sale per estate agency branch for the last two months at 57 and 58 properties has never been lower at the beginning of a year. New seller numbers this month are also 4% below those recorded in the same period in 2014. ‘Many who are contemplating moving will have noticed a lack of suitable property for sale in their area, and may be hoping that it’s a temporary shortage. What they may not fully appreciate is that this is the new norm, and… Continue reading
Asking prices already rising in some parts of the UK
Encouraged by last year's positive property market performance, sellers' asking prices are already rising quickly in London and the South East of England, according to the latest index report. Asking prices are up 0.8% overall in England in Wales in the last month. But the average annual growth fell to 7.1%. Prices are continuing to fall in the prime property market in London. The February asking price index from Home.co.uk also shows that price rises are on the up in East Anglia and the West Midlands and optimism also abounds post referendum in Scotland, where prices have jumped 1.9% in just one month. Not all regions, however, share the same upbeat sentiment. Prices are essentially static in the East Midlands, Wales and the North West, whilst in the North East, they dropped by 0.9% over the last month. Elsewhere, small price rises were observed in the West Midlands, Yorkshire and the South West at 0.7%, 0.2% and 0.2% respectively. The typical time on market for England and Wales is now 125 days, which is 18 days less than this time last year and the data also shows that supply of property for sale nationwide shows a significant uptick. Some 19% more properties were placed on the market this January than in January 2014. Greater London leads the way with a 51% increase in supply, ahead of the South East with growth of 28%, Scotland up 19% and East Anglia up 18%. According to Doug Shephard the firm’s director, high prices are encouraging potential vendors to commit. ‘Although there are clear signs that supply is beginning to outpace demand in London, as indicated by a rising median time on the market. Londoners may be attempting to cash in, but further supply will only serve to ensure a deeper correction in prices in the capital,’ he said. He pointed out that this year rising supply will make its presence felt in London and the South East, thereby placing downward pressure on prices. ‘These regions are much further on in the economic cycle than the northern regions, where price recovery remains as yet elusive. It is conceivable that we will witness a reversal of fortunes in the latter half of 2015 or beginning of 2016, wherein prices fall in Greater London at the same time as they finally rise in the North, as investors target better value regional markets,’ he explained. He believes that the best prospects for growth this year probably lie in Middle England in regions such as East Anglia, East Midlands, the South West, West Midlands and perhaps Yorkshire. ‘It may be argued that these regions are still in the throes of the recovery phase, as supply remains low and prices have not yet risen too far,’ he said. The worst growth prospects are most likely to be in prime central London, where an abundance of unsold stock is whittling away at property values. ‘For the time being, the mmminvestment outlook for… Continue reading
Annual savings of £742 for those getting on the UK housing ladder
First time buyers in the UK are £742 or 9% a year better off with their own home compared to those who rent, according to new research by the Halifax. The average monthly buying cost, including mortgage payments, associated with a first time buyer buying a three bedroom house stood at £658 in December 2014, some £62 lower than the typical monthly rent of £720 paid on the same property type. With the price of a typical first time buyer home rising by 8% in 2014, the difference has narrowed from £80 or 12% to £62 since 2013 as the average monthly buying costs grew by £46 while average monthly rents increased by £28. However, at the same time, the number of first-time buyers increased by an estimated 22% in 2014, with 326,500 first time buyers getting on the ladder, the highest annual total since 2007 when it was 359,900. In 2014, first time buyers in London had, in cash terms, experienced the largest benefit from buying rather than renting a home. The average monthly cost of £1,275 for those who have bought compares to an average monthly rental price of £1,387, a saving of £112 a month or £1,338 over the year. The second largest difference is found in the North West where first time buyers were paying 17% less a month, £109 a month or £1,304 annually, than the typical private tenant in the region. The smallest differences between the monthly cost of buying and renting are in the East Midlands at £6 or 1%, and the South East at £15 or 2%. The research shows that the gap between cost of buying and renting still substantially higher than in 2009. Five years ago the average monthly cost of buying was £15 higher than the typical rent paid at £576 versus £561. Since 2009 the substantial improvement in the affordability of buying relative to renting largely reflects a 28% or £159 rise in average monthly rental costs over the past five years. This increase was twice as fast as the 14% or £83 rise in average monthly buying costs. ‘Average home buying costs are significantly lower than average rental costs, providing first-time buyers with a large financial saving if they can get on the housing ladder,’ said Craig McKinlay, Halifax mortgage director. ‘While the timescales associated with raising a sufficient deposit to buy a home present a hurdle to many potential first time buyers, the significant difference in costs between buying and renting, combined with still low mortgage rates, increased consumer confidence and the Help to Buy scheme, have all been factors driving the substantial rise in first-time buyers over the past two years,’ he added. Continue reading
