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UK prices up almost 10% year on year, latest index data shows
UK house prices increased by 1.1% between September and October and re up 2.8% quarter on quarter and 9.7% year on year, the latest property index shows. This means that the average house price is now over £200,000 at £205,240, according to the Halifax index data and the report says that house price optimism remains high. The 1.1% monthly rise followed a previous month’s fall of 0.9% and the market is up and down with the quarterly figures being more reliable in terms of indicating overall trends, according to Martin Ellis, the Halifax’s housing economist. He pointed out that house prices over the three months from August to October with growth of 2.8% were higher than in the preceding three months and the quarterly rate of change increased from September’s 2% and was a little above the 2.5% average over the first nine months of the year. Some 68% of Britons expect average property prices to be higher in 12 months’ time with just 5% expecting it to be lower, according to the latest quarterly Halifax Housing Market Confidence Tracker. The Halifax report also points out that figures from HMRC show that home sales increased again in September. UK home sales increased by 1% between August and September, to 106,030. This was the second successive monthly rise. Sales in the three months to September were 4.4% higher than in the preceding three months. Mortgage approvals are also on an upward trend despite falling in September. The volume of mortgage approvals for house purchases, a leading indicator of completed house sales, increased by 4% between the second and third quarter of the year despite a 2.5% decline in September. Approvals in the three months to September were 10% higher than in the same three months last year. However, supply remains at a record low. New instructions by home sellers declined in September for the eighth successive month. This contributed to the stock of homes available for sale remaining at record low levels. ‘Improving economic conditions and household finances, together with sustained low mortgage rates, have boosted housing demand during 2015. Strengthening demand is filtering through in to higher sales levels although the ongoing shortage of supply is acting as a significant constraint on activity,’ said Ellis. ‘The imbalance between supply and demand is likely to persist over the coming months, maintaining upward pressure on house prices,’ he added. Rishi Passi, chief executive officer of Oblix Capital, believes growth on this scale isn't sustainable. ‘Wage increases and low inflation are bolstering household finances, helping to take some of the sting out of these increases,’ he said. ‘The diminishing prospect of an interest rate rise also means lenders are continuing to offer historically attractive rates to the market, which is good news for first time buyers and developers alike,’ he added. Continue reading
Research shows average fixed rate mortgage deals in the UK are at lowest since 2012
Average fixed rates for two, three and five year mortgages in the UK are at their lowest level since 2012, new research shows, and the number of 10 year fixed deals is beginning to grow. Home owners looking to get the best possible deal should consider fixing their mortgage now whilst providers are cutting rates, says the research report from comparison website MoneySuperMarket. The research looked at average fixed term mortgage rates and found they have crept down to some of their lowest ever levels again, despite speculation of a base rate rise next year. The average rate for a five year fixed deal currently stands at 3.45% while last year it was 4.06% and in 2012 it was 4.67%. Shorter term mortgage deals also follow the same pattern, with the average three year fixed rate coming in at 3.21% today, compared to a rate of 4.8% in 2012. Similarly, the average two year fixed mortgage rate is now 2.9% whereas it was 4.48% in 2012. The research also shows that those looking to secure their mortgage rate for a more substantial amount of time will find that there are now more deals to choose from. There are currently 41 10 year fixed rate products on the market while just last month the total number stood at 35. ‘Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates,’ said Dan Plant, consumer expert at MoneySuperMarket. ‘Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit. However, you should never rush into decisions to do with mortgages,’ he pointed out. ‘Before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account. Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal. The good news is that we’ve seen fees decrease over the last four years, especially for five year fixed deals, meaning it’s a cheap time overall to be looking around,’ he added. Continue reading
England and Wales property prices up again, with average in London reaching half a million
Property prices in England and Wales increased by 1% in September, taking the average house price to £186,553, according to the latest Land Registry data. Year on year prices have increased by 5.3% but in London it is much higher at 9.6% year on year and 1.8% month on month and the average price in the capital city is now a record £499,997. The North East saw the only annual price decrease of 0.3% and also saw the only monthly price decrease with a fall of 0.3% as well. But sales are down. From April 2014 to July 2014 there was an average of 78,330 sales per month but in the same months a year later, the figure was 71,766. The data also shows that the number of properties sold in England and Wales for over £1 million in July 2015 was down 9% year on year and in London it was down 16%. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, said it was inevitable that the average property price in London would reach half a million pounds. ‘Prices in the capital have been marching relentlessly upward in all but the top tiers of the market, as strong demand collides with a sustained shortage of supply. But the average London property price won't stay at £500,000 for long. Bullish sentiment has driven annual price inflation in the capital close to double digits again, and the half million mark could soon be forgotten,’ he explained. He pointed out that the price gains are steadily rippling outwards from London, with both the South East and East of England posting annual rates of growth of over 8%, but England's North-South divide remains as strong as ever. ‘Even though the North West has reversed the sudden month on month drop in prices it saw in August, prices in the North East of England have slipped back into negative territory. By contrast much of the South and East looks like one giant hotspot, as the national picture returns firmly to type,’ he said, But he believes that rising prices should not be confused with sound health in the property market. ‘The shortage of supply is endemic in several areas, and the current rate of demand can never be completely met. Yet for all the competition among buyers, most remain astute in their offering behaviour and sellers shouldn't be tempted into thinking it's an exclusively sellers' market,’ he added. A sense of balance is appearing in the market, according to Nicholas Leeming, chairman of high end national estate agents Jackson-Stops & Staff. ‘London continues to drive forward but we’re now seeing emerging boroughs such as Newham and Hounslow enjoy strong growth, while traditional performers such as Hammersmith and Fulham begin to wane,’ he said. ‘There still remains a stand-off between buyers and sellers at the top end of the market, with neither party prepared to accept the higher cost of stamp duty. Outside of the capital, it… Continue reading
