Uk
Property prices in Ireland still rising but growth has slowed compared to a year ago
Residential property prices in Ireland increased by 7.4% in the 12 months to March 2016, down slightly from the 8% recorded in February. The latest data from the Central Statistics Office also show that while house prices are still rising the growth has slowed. In March 2015 the annual rise was 16.8%. Month on month property prices increased by 0.3% compared with no change recorded in February and an increase of 0.9% recorded in March of last year. In Dublin residential property prices increased by 0.9% in March and were 3.9% higher than a year ago. Dublin house prices increased by 1.2% in the month and were 4.1% higher compared to a year earlier. Dublin apartment prices were 1.6% higher when compared with the same month of 2015. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland decreased by 0.2% in March compared with an increase of 0.7% in March of last year. Prices were 10.5% higher than in March 2015. It means that house prices in Dublin are now 34.3% lower than at their highest level in early 2007. Apartments in Dublin are 41.2% lower than they were in February 2007. Residential property prices in Dublin are 36.3% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 35.4% lower than their highest level in September 2007. Overall, the national index is 33.6% lower than its highest level in 2007. Continue reading
UK house prices increase almost five time more in areas with low unemployment
Houses prices in the UK have increased by an average of almost £90,000 in the past decade in areas with lowest unemployment rate, the latest research data shows. This is almost five times more than in those area with high unemployment and the 10 areas with largest drop in unemployment saw house prices increase by 76%, according to the research report from Lloyds Bank. It means that the gap in house prices between areas with the highest and lowest levels of unemployment has widened significantly over the past 10 years. Average house prices in the 20 local authorities with the lowest rate of unemployment have risen by £89,446 since 2006, nearly five times the rise for those with highest unemployment, which increased by just £18,657 over the same period. The average house price for those high unemployment areas is £139,520 which is £102,655 or 42% below the national average price of £242,175. By contrast, areas with the lowest unemployment rates have an average price of £352,224 to £110,049, some 45% higher than the national average. ‘Employment boosts consumer confidence, helps put more cash into customers’ pockets and makes it easier to secure a mortgage, all of which drives increased housing activity,’ said Lloyds Bank mortgage products director Andrew Mason. ‘Unfortunately, in areas where more people find themselves out of work, house prices can stall as people are financially less able to progress up the property ladder, reducing demand. There are, however, other factors which affect house prices such as lower mortgage rates, improved affordability and low housing supply which will have contributed to rising prices in the past decade,’ he added. The 10 areas which have seen the largest falls in unemployment since 2006 recorded an average price increase of £200,155 or 76% to £464,373. Nine of these local authorities are in London, with Haringey, Hackney, Southwark and Waltham Forest seeing average home values almost doubling in the past decade. Over the same period these 10 areas recorded an average decline in unemployment claimants of 2.4% from 4.7% to 2.3%, four times the national decline of 0.6% from 2.5% to 1.9%.This is in marked contrast to the 10 areas with the poorest unemployment performance where unemployment claimants increased by an average of 0.5% since 2006, with average house prices growing by only £24,587 or 18%. Seven of these 10 areas are in the North West. In the UK as a whole over the past 10 years, average house prices grew by 34% or £61,575, whilst the average unemployment rate was 3%. Excluding London, the average price growth for Great Britain fell to £47,920 or 29%. The Lloyds Bank report also reveals that: The 10 areas with the lowest unemployment rates show an average house price rise of £107,000 or 36% since 2006. The four areas with the lowest average unemployment rate of 1% over the decade, Hart, West Oxfordshire, Mole Valley and North Dorset, recorded house price gains of between 33% and 44%… Continue reading
Home numbers in England up by less than 1% in a year
There were 23.5 million homes in England at the end of March 2015, an increase of 171,000 dwellings or just 0.73% on the same point the previous year, according to official figures. Some 14.7 million were owner occupied, 4.7 million rented in the private sector and four million social and affordable rented homes, the data from the Department for Communities and Local Government shows. The figures could be regarded as a disappointment at a time when the UK government has highlighted a number of flagship policies aimed at building more homes. But an increase of 171,000 in a year is well below targets set by the government. Between March 2014 and March 2015, the private rented stock increased by 125,000 and the owner occupied stock increased by 37,000. The social and affordable rented stock increased by 19,000 and the other public sector stock decreased by 9,000. There were 600,179 empty homes in England on 05 October 2015, a decrease of 9,944 or 1.6% from October 2014 while long term empty homes numbered 203,596 on 05 October 2015, a fall of 2,225 or 1.1% from October 2014. Stephen Wasserman, director of West One Loans, pointed out that the government pledges do not seem to be having much of an impact on the number of homes in the country. ‘Despite the Government’s pledge to address England’s housing shortage by committing to a number of large-scale projects including building starter homes, these policies aren’t improving the housing situation here and now,’ he pointed out. ‘These disappointing DCLG statistics represent the current shortage of places to live in England which is why we are seeing hikes in house prices and rising rents. While the number of dwellings has increased by 0.73% year on year, it’s important to remember we have a growing population which overshadows this progress,’ he said. ‘If we are going this fix this worsening problem, more will need to be done to bring empty homes back into circulation. Banks often won’t lend against these properties due to their state of disrepair, so developers should consider short term finance as a way to fund the renovation of these potential homes. Bringing these properties back into the housing supply would be a major step in conquering the crisis,’ he added. However, Housing and Planning Minister Brandon Lewis said that the government has got the country building again and pointed out that the number of new homes being built is up by a quarter in the last year alone, the highest annual percentage increase in net additional homes for 28 years. ‘We are turning around the housing market and making sure the best use is made of all housing including empty homes. We are very clear that a house should be a home which is why we have taken action to stop homes being bought up and left as an empty investment,’ he explained. ‘And we’ve taking forward the boldest ambition for housing in… Continue reading
