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UK property prices up 6.8% year on year, latest ONS data shows
UK house prices increased by 6.8% in January compared with a year earlier, taking the average home price to £254,000, according to the latest data from the Office of National Statistics (ONS). This is a monthly increase of 5.5% compared to December 2013 and the price growth was seen across all parts of the UK. House prices grew by 7.1% in England, 6.9% in Wales, 1.4% in Scotland and 2.7% in Northern Ireland. London is again showing the highest growth at 13.2%, followed by the South East at 7.1% and the West Midlands at 5.3%. Excluding London and the South East, UK house prices increased by 3.8% in the 12 months to January 2014. The data also shows that on a seasonally adjusted basis, average house prices increased by 0.6% between December 2013 and January 2014. It means that first time buyers, regarded as an essential part of the property market recovery, are paying more. The ONS figures show that in January prices paid by first time buyers were 7.6% higher on average than in January 2013. For existing owners prices increased by 6.5% for the same period. According to Peter Rollings, chief executive officer of Marsh & Parsons, with the average UK house price now over £250,000, it means that the bulk of transactions are within the 3% stamp duty tax band and this will provide yet more ammunition for critics who believe the Chancellor played a bad hand by not reforming stamp duty thresholds in last week’s budget. ‘The London property market is still soaring ahead, with a 13.2% annual house price increase which dwarfs that in the rest of the UK. The average property price in the capital is now over three times that in the North East. Unwavering demand from UK and overseas buyers is a key ingredient behind this rate of growth, and Prime London property continues to be a Mecca for property investment,’ he explained. ‘And with pensioners now freed from the shackles of annuity, the buy to let market could become a Holy Grail for retirement, offering unrivalled tax efficient investment,’ he added. David Newnes, director of Your Move and Reeds Rains, part of LSL Property Services, pointed out that momentum is growing as lending has increased substantially in the last yea. ‘This is largely thanks to the combination of consumer confidence, an array of attractive mortgage deals and a real willingness on the part of banks to lend to borrowers with smaller deposits,’ he said. ‘Pricing is being driven by greater lending availability, positive consumer sentiment as the jobs market continues to improve along with the wider economy. Cheaper rates and increased high LTV lending has encouraged more first time buyers to invest in property,’ he added. But he warned that rising demand for housing must be matched with rising supply if the government is to bring the cost of housing within the reach of first time buyers. In the context of the cost of living crisis which has been central in the… Continue reading
Detailed figures reveal the success of UK’s Help to Buy scheme
Prime Minister David Cameron has hailed his government’s flagship Help to Buy scheme which aids people buying a new home, as a great success after figures show over 17,000 benefitted in the months since its launch. Figures shows that it is overwhelmingly benefiting first time buyers and contrary to critics it is not benefitting people in London and the South East with the vast majority of buyers outside these areas. The newly published figures reveal that 17,395 people have already bought a home through Help to Buy and the number of aspiring homeowners using the scheme continues to grow. Over 80% of sales were to people taking their first step onto the housing ladder with 89% part of the equity loan scheme and 82% the mortgage guarantee scheme. The highest number of people buying a home through the mortgage guarantee scheme is in the Scotland and the North West, while the equity loan part for new build properties, was at its highest in the South East. But overall some 77% of those supported by Help to Buy were from outside London and the South East, 85% for Help to Buy Mortgage Guarantee completions. ‘Help to Buy is a key part of our long term economic plan, giving thousands more people the security and independence that comes from owning their own home,’ said Cameron. His officials pointed out that Help to Buy continues to support responsible lending, with the average cost of a house bought under the mortgage guarantee at £148,048 and the average cost of a house bought under the equity loan scheme at £203,137, both of which remains below the UK average house price. An average house price bought under Help to Buy as a whole costs £194,992. The data also shows that the mortgage guarantee continues to be a success with home buyers, with completions tripling from 750 to over 2,500 in just over one month and mortgage lenders from both ends of the scale continuing to see strong demand. Two of the largest lenders, Lloyds and RBS have received 9,569 applications, and one of the smallest lenders in the scheme, Aldermore has received 2,313. The figures were published after the announcement confirmed in last week’s Budget that the equity loan part of the scheme has been extended to 2020. That means a further £6 billion to help 120,000 more households buy a new build home. There are currently 10,424 reservations already in the pipeline. Continue reading
Over half wanting to move home in the UK can’t see it happening this year
Over 50% of people in Britain ay they are considering a house move but most can’t see themselves being in a position to do so in the next 12 months, according to new research The survey by home insurance company Gocompare also found that those hoping to move have been waiting 3.6 years on average and 21% are worried that they may never afford to buy a house or move. It is the costs associated with buying and moving home, together with high house prices, which are cited as the main barriers to moving. Overall, the biggest obstacles to the nation’s housing hopes are the cost of buying and moving with 16% concerned, followed by 16% concerned about high house prices in the area they want to buy and 15% worried about the cost of running a house. Also, 14% raised concerns about saving a deposit, 10% about job security or income and 9% said they perceive there is a lack of availability of the type of house they want to buy and this is putting them off. Of those considering a move or buying a house some 15% think that they are unlikely to get moving with their house plans within the next five years. Most, 77%, are aged 25 to 34 years. Just under a quarter, 24%, of this age group say that getting a deposit together is the main thing holding them back. The research shows that 28% of 18 to 24 year olds and 28% of 25 to 34 are the most worried that they will never be able to afford to buy a house or move. A quarter of 35 to 44 year olds also fear that they will never be able to buy or move home. Some 39% of 55 to 64 year olds and a quarter of those aged 65 or over are considering moving. In addition to the costs involved with buying and selling a house, a key factor preventing these people from moving is a lack of availability of the type of housing they want to buy. Of the regions, London has the most residents considering a house move at 62%, followed by the South East at 57% and the North West at 51%. People living in the North East have been waiting, thinking about, or wanting to move the longest, with an average waiting period of 4.3 years, closely followed by those living in the North West it is 4.2 years and in the South West it is four years. Londoners top the list of those who say they are likely to get moving in the next 12 months at 44%, followed by people living in Yorkshire and The Humber at 42% and Scotland at 40%. ‘Low interest rates and improved confidence in the economy are creating potentially ideal conditions for the housing market,’ said Ben Wilson from Gocompare. ‘However, our survey suggests the high costs associated with buying and moving home, together with the requirement to put down… Continue reading
