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UK asking prices reach new high, latest index shows
Asking prices in the UK have reached a new record of £286,133, pushed up by demand which has been exacerbated by a lack of sellers putting their homes on the market. The figures from the latest Rightmove monthly index also show that asking prices are up 1.6% month on month in April although the annual rate of growth has fallen to 4.7% compared to 5.4% in March. It also reveals that the property shortage experienced in many parts of the country has been exacerbated by a 2015 slump in the number of properties being put up for sale and by increased demand, with record spring search activity on Rightmove. Indeed, the number of new sellers is down 4% so far in 2015 compared to 2014 and March was the busiest ever month on Rightmove, up almost 20% year on year to 115 million. The supply issue is at its most extreme in the south of the country, with the price of property coming to market up by an average of nearly £85,000 or 27.5% since the last election in May 2010. ‘Record high housing demand and an under supply of homes have delivered a new all-time high in the price of property coming to market in the month before the election,’ said Miles Shipside, Rightmove director and housing market analyst. He believes that as the high cost of housing is a big concern for many home hunters, so the contents of the respective party manifestos and well thought out sustainable solutions to the lack of affordable housing supply will be high on many voters’ agendas too. ‘While the annual rate of price increases may be dropping back, down from 5.4% last month to 4.7% this month, it’s of little comfort to buyers as even more modest increases stretch buyers’ finances into new territory with prices at record average highs. Furthermore, the rapid fall in general inflation means that the inflation-adjusted rate of house price growth remains high,’ he explained. While the recovering housing market saw an 11% increase in new seller numbers from January to April 2014 compared to the same period in 2013, so far this year’s newly marketed property numbers have slumped and are down by 4% compared with 2014. Conversely, housing demand continues to burgeon, with Rightmove recording its busiest ever month in March. Website visits were up almost 20% year on year, to over 115 million. ‘Failure to meet house building targets since the eighties, nineties and noughties to match forecast housing demand has been a major factor in upwards price pressure both in the property sales and private rented sectors,’ said Shipside. ‘In spite of the distractions and uncertainty surrounding the upcoming election, demand for the right roof over your head seems unchecked. If you’re setting up home, moving jobs or your kids need to be in a new school, your personal housing agenda is perhaps higher than the bigger-picture political one,’ he added. ‘However, while demand is at record… Continue reading
General election garden city manifesto pledges welcomed
The Town and Country Planning Association (TCPA) has welcomed the manifesto pledges for a new generation of Garden Cities from the major political parties but raised questions about their commitment to delivering genuinely sustainable new homes. The TCPA has campaigned for a new generation of Garden Cities for over a century and believes they can provide a powerful and unique model of development, and are much more than just homes with gardens. ‘We need brave political leadership in order to bring forward new Garden Cities, and the TCPA is keen to work with the new government to ensure that the socially just, high quality Garden Cities that the nation deserves become a reality,’ said Kate Henderson, TCPA chief executive. She pointed out that while the manifestos all pledge support for Garden Cities, none of them set out how these Garden Cities will be delivered, or how a new government will ensure that the new communities adhere to the Garden City principles. The Labour manifesto states that the party wants to boost housing if it is in power after the May general election and pledged to build a new generation of garden cities but Henderson says it fails to include any commitment to ensuring if and how new Garden Cities will meet the Garden City principles. ‘The Lyons Review sets out a clear mandate for the delivery of Garden Cities, and referenced the need to make their delivery mechanism fit for purpose with the recommendation to update the New Towns Act,’ she explained. ‘The Review also recognised the need to consider the quality of new homes, particularly in regards to of the need for space standards, high quality design and zero carbon standards. To deliver genuine Garden Cities we should act on these recommendations,’ she added. The Conservative manifesto states the party will support locally led garden cities and towns in places where communities want them, such as Ebbsfleet and Bicester but Henderson says that another of its proposals to extend the Right to Buy scheme risks undermining the achievements of genuine mixed communities. The Liberal Democrat manifesto is the most detailed and sets out plans for at least 10 new Garden Cities in England, in areas where there is local support, providing tens of thousands of high quality new homes, with gardens and shared green space, jobs, schools and public transport. It has also pledged to encourage rural Local Authorities to follow these principles on a smaller scale, too, developing new garden villages or suburbs as part of their plans for growth along with the creation of up to five major new settlements along a Garden Cities Railway between Oxford and Cambridge. Henderson said the TCPA would have liked to have seen references as to how these Garden Cities or development will be brought forward. Continue reading
Property Ombudsman in England sees challenges rise
More people in the rented property sector in England are prepared to launch a challenge when they are not satisfied with their tenancy, according to the latest annual report from the Property Ombudsman. It comes at a time when legislation makes it a legal requirement for lettings agents and property managers in England to join a government approved redress scheme. Some 28% more signed up as members of the ombudsman at the end of 2014 compared with at the beginning of the year. Meanwhile the number of referrals were up 42% in 2014 compared to the previous year. The report says this is indicative of both the general trend in the consumer world to challenge when something does not give satisfaction. ‘Overall 2014 saw continued and significant growth in the private rented sector. With an estimated 1.6 million private landlords, many of whom have limited experience and understanding of their responsibilities, and large numbers of consumers seeking tenancies, the role of letting and managing agents in providing quality customer service based on a comprehensive knowledge of relevant legislation, is more important now than ever before,’ said the ombudsman Christopher Hamer. He repeated his call for a properly structured regulatory regime for the lettings sector. ‘Over the past year we have seen numerous pieces of legislation being passed which deal with aspects of the sector. Whilst any controls must be welcomed I feel an opportunity has been missed to bring all such legal obligations into a coherent and sensible single law to avoid the potential for inconsistency and misunderstanding of what is required,’ he pointed out. The report data shows there was a 19% increase in registered membership letting offices, a 40% rise in lettings cases received, a 33% increase in cases resolved via mediation, and a 10% increase in cases resolved via formal review. Some 11% of lettings issues reported to the ombudsman related to repair and maintenance, 54% of complainants were landlords versus 44% tenants and the average lettings award has risen 27% from £411.97 to £524.10. Some 23% of complainants were from the South East, followed by Greater London at 21% the South West at 9% and the North West also on 9%. The data also shows that there was a 14% increase in registered membership sales offices, a 43% rise in sales cases received, a 21% increase in cases resolved via mediation, and a 13% increase in cases resolved via formal review. Some 20% of sales issues reported to the ombudsman related to communication failure, 59% of complainants were sellers versus 39% buyers and 23% of complainants were from the South East, followed by Greater London at 13% and the South West and Eastern region both at 11%. Continue reading
