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UK buyers taking longer to make up their minds than a year ago
Property buyers in the UK are taking longer to make up their mind about a home with many taking a second or even a third viewing before making an offer, new research has found. On average it now takes 53 minutes of viewing a property, up from 38 minutes a year ago, according to the research from online estate agent eMoov. Indeed, just 6% make an offer after the first viewing. The majority of buyers, 53%, return for a second viewing, with a further 41% feeling the need to view a property more than twice. Buyers in London are more likely to seek a third viewing. The research also suggests that buyers undertake a considerable amount of research before they view a property. Some 67% read the full property description before arranging to view and 59% look at other properties listed in the area. It also found that 56% check out the road where the property is on Google street view, 53% take a detailed look at the floor plan and room sizes, 49% research the local amenities, 44% research the historic value of a property or surrounding properties and 25% check out schools. ‘UK buyers are taking that extra bit of time viewing a property, before submitting an offer. Although demand is still high in a number of areas, particularly London and the surrounding areas, the market isn’t quite as competitive as it has been in previous years, so many potential buyers are opting for a second or third viewing before committing to a property,’ said the firm’s chief executive officer Russell Quirk. ‘It makes sense given the enormity of such a decision and with buyers not feeling as pressured, there is no need to rush to submit an offer and secure a property after the first viewing,’ he added. But he pointed out that the data shows that there are still those 6% of buyers that will view a property for less than 10 minutes, before deciding to buy it. ‘This still amazes me but highlights the speed the market can move at, in the areas where demand is still outstripping supply,’ said Quirk. Continue reading
Annual rent growth in UK outside of London up almost 5% in final quarter of 2015
Average annual rent growth across the UK, excluding London, was 4.9% for new tenancies signed during the final three months of 2015 than in same period of 2014, the latest index data shows. It means that the average monthly rent outside of London now stands at £739 while in the capital rents increased by a much larger 8% year on year in the final quarter of 2015, taking the average to £1,523. The HomeLet rental index shows that after London the biggest annual rise was in the South East at 7%, followed by 6.4% in the East Midlands, 5.7% in East Anglia and 5.5% in the South West. In Scotland annual rental growth was 3.2%, in Yorkshire and the Humber it was 3.1%, in Wales it was 2.3%, in the North East it was 1.9%, and in the West Midlands 1.7%. The biggest annual fall in monthly rental prices was in the North West with a decrease of 5.1% while Northern Ireland recorded a fall of 0.6%. The data also reveals that Brighton, Bristol, Edinburgh and Newcastle recorded the largest increase in rents last year amongst the country’s largest towns and cities. Rents in Brighton and Bristol were, on average, 18% higher than on new tenancies agreed in 2014, taking them to £1,078 and £904 respectively, while rents were up by 16% in Edinburgh and Newcastle to £891 and £518 respectively. Martin Totty, chief executive officer of HomeLet parent company Barbon Insurance, pointed out that 2015 was a year in which rents on new tenancies were up compared with 2014 in almost every area of the country. ‘While we saw a moderation in the rate at which rents increased during the final months of the year, and even some falls in a number of regions, the sector overall has continued to see strong demand,’ he said. He also explained that rents in London have continued to rise more quickly than in most areas of the country, but not at quite the pace of 2014, while average rents outside of the capital rose more quickly last year than in 2014. ‘As a result, we saw a narrowing of the rent inflation gap between London and the regions last year,’ he added. Continue reading
Asking prices in UK still going upwards, latest index shows
The average asking price England and Wales has increased by 8.2% year on year while the total stock of property had dropped to a new record low, according to the latest residential index. Month on month prices increased by 0.3%, the highest such rise observed for January since the onset of the financial crisis and is at odds with the normal seasonal trend, the data from Home.co.uk shows. The index report says that growth in the property market is due to a lack of supply and low mortgage rates and the typical time on market is 117 days across England and Wales, nine days less than in January 2015. Despite a small uptick in supply, the total number of properties on the market has fallen to a new low. Just over 386,000 properties are currently for sale, some 47% less than in 2008. This trend looks set to dominate the UK property market in 2016, the report says. ‘Sellers know full well that there is a shortage of supply and therefore see no need for cautious pricing. Consequently, prices jumped nearly a percentage point over the last month in Greater London, which corresponds with an additional £15,000 on the average home value,’ said Doug Shephard, director at Home.co.uk. All the regional property markets have shown significant improvements in marketing times over the last year. The biggest improvements were in the South East and East of England where competition is fierce and these two regions also experienced the largest price hikes outside of Greater London in 2015. ‘We expect that home values in these regions will rise further this year before cooling as prices become out of reach of most buyers, thereby subduing demand. Perhaps surprisingly, the next best improved markets in terms of reductions in median time on market were the formerly lacklustre North East and Yorkshire regions,’ Shephard explained. ‘This serves as a strong indication that a recovery, until now notably absent, is beginning to take place in these regions as properties begin to move through the market more quickly and the supply demand balance tips in favour of the vendor,’ he pointed out. ‘We expect the first significant price rises post-crisis to be observed in these regions in 2016. The recovery in home values in the West and East Midlands is already well underway and their marketing times continue to improve. We expect increased price rises in these regions this year due to a combination of increased scarcity and buyer demand,’ he added. Shephard also pointed out that the North West property market is also showing signs of incremental improvement and is expected to see price rises in 2016 higher than last year. ‘It is interesting to note that Greater London heads up the four regions which have the least improved marketing times over the last year. Overall, the London market appears to be in a mature post-recovery phase where the breath taking price hikes of the last six years have… Continue reading
