Tag Archives: real estate
House prices in Scotland fall for first time in a year
Average house prices in Scotland fell by 0.2% in August, the first fall in a year as over half the country saw declines, the latest index shows. On an annual basis prices increased by 5.7%, taking the average house price to £164,210, the data from the LSL Property Services/Acadata index. But it was the strongest August in seven years for house sales, despite a monthly dip ahead of the independence referendum. The data also shows that new peak prices were achieved in East Lothian and Aberdeen City, while values drop in Edinburgh. ‘The powerful spell of growth cast over the Scottish property market was broken in August, as house prices fell for first time in a year,’ said Gordon Fowlis, regional managing director of Your Move. ‘At a time when property values across the rest of the UK were continuing to grow, Scotland moved against the grain and average house prices dropped across more than half the country including Edinburgh, Aberdeenshire, South Lanarkshire, East Dunbartonshire and Fife,’ he explained. He pointed out that it has been an unpredictable and momentous few months in Scotland’s history. In August, uncertainty was still rife over the outcome of the independence referendum, and this hindered the pace of activity in the housing market. Sales in August were 8% below the typical seasonal trend, as sellers shirked the market and buyers postponed purchase decisions until the dust settled. ‘This trend appears more acute at the top tiers of the market, where there were bigger investments at stake, and there was an 11% drop in the number of homes sold across Scotland for over £1 million between July and August,’ said Fowlis. ‘But this didn’t poison the longer term health of the market, and this was the strongest August for house sales since 2007. In the first eight months of the year, there have been 60,000 properties sold in Scotland, up 17% on the same period in 2013,’ he added. He explained that first time buyers have been the key unlocking this growth with sales to this group up by a quarter on last year. Flats are changing hands more furiously than any other property type on the market, as a wave of new buyers with more modest budgets clamber onto the housing ladder. ‘Annual price growth is holding fast, and Scotland’s average home is worth £9,000 more than a year ago. This 5.7% annual rise is hardier than the growth currently being witnessed in regions outside of the south east sphere of the UK, as Scotland continues to sail on course through the recovery,’ Fowlis explained. ‘More and more parts of the map are being swept up in the stream, and house prices in East Lothian and Aberdeen City reached new record highs in August, with values rising 9.3% and 10.1% respectively in the last year,’ he said. ‘In Aberdeen especially, new developments and investment in house building projects are nourishing supply of available stock on the market, and feeding the appetite of activity. But it… Continue reading
House prices have increased strongly annually across the UK, says latest ONS index
UK house prices increased by 11.7% in the year to August 2014, unchanged from the year to July 2014, according to the latest index from the Office of National Statistics (ONS). House price annual inflation was 12.2% in England, 4.7% in Wales, 6.7% in Scotland and 9.6% in Northern Ireland. The index report says that house prices are increasing strongly across the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by an annual increase in London of 19.6% and to a lesser extent increases in the South East of 12.3% and the East of 11.6%. However, excluding London and the South East, UK house prices increased by 7.8% in the 12 months to August 2014. On a seasonally adjusted basis, average house prices increased by 0.6% between July and August 2014, the data also shows. In August 2014, prices paid by first time buyers were 12.9% higher on average than in August 2013. For existing owners prices increased by 11.2% for the same period. ‘While price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16% year on year in September. First time buyers have been bringing much of the vitality and optimism to the party,’ said David Newnes, director of Reeds Rains and Your Move estate agents. ‘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. He pointed out that a North/South divide remains evident in the race back from the debris of the financial crash. For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score. 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. 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 in August, as we see growth relaxing into a slower tempo from the heady pulse earlier this year,’ said Newnes. Continue reading
Third of new homes in London in next five years set to be in the east
Almost a third of all new homes planned for London over the next five years will be concentrated east of the city’s financial district, a new analysis shows. A total of over 55,000 homes will be built in just four boroughs, according to the report from international property adviser, Savills, which identifies a shift in the capital’s centre of gravity towards the east. It says that the boroughs of Newham, Tower Hamlets, Greenwich and Barking and Dagenham will account for 29% of all new homes planned for London in the five years to the end of 2018. ‘The Olympics played a hugely important role in opening up the area to investment and transport improvements are now driving occupier, investor and developer demand in previously overlooked east London postcodes,’ said Susan Emmett, Savills residential research director. ‘This is changing the shape of London and its property market, with a discernible pattern of emerging development hugging the East London Line portion of the new London Overground. The network extension to Barking Riverside and the completion of Crossrail with give a further boost,’ she added. The analysis report points out that lower average capital values in the east of London have provided developers with the opportunity to build much needed homes that are affordable for those living and working in London. However, while central boroughs such as Westminster and Kensington and Chelsea remain the most expensive, the biggest increases in value have been seen away from London’s core over the past year, particularly in cheaper locations to the east. But, not only have prices increased ahead of the Greater London average, transaction volumes have also received a dramatic boost. In Tower Hamlets, the number of homes changing hands is now double the pre-peak norm, while deals in Newham are up almost 50% year on year. Key emerging residential areas include Stratford with 6,500 new homes, including 2,800 in East Village, Canning Town and Royal Docks with 8,000 homes, Canary Wharf with 4,500 homes at Wood Wharf and 850 at Asda Crossharbour and Greenwich Peninsula with 10,000 new homes. Average prices currently range from £500 to £700 per square foot in Canning Town and Royal Docks and £550 to £750 in Stratford, accessible to households with an average income of over £70,000. In Canary Wharf, popular with financial sector employees both as owners and tenants, values range from £700 to £1,200 per square foot. Greenwich Peninsula is expected to achieve values in the £550 to £850 range. ‘It is this dynamic of rapidly rising prices, albeit from a low base, and the strength of demand that will present developers with their biggest challenge. Market strength has pushed the value of new build in Canary Wharf, the most established East of City location, to £700 to £1,200 per square foot, out of the reach of the… Continue reading
