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Property prices in England and Wales down 0.8%, latest official figures show
Property prices in England and Wales fell by 0.8% in March, taking the average house price to £178,007, according to the latest data from the Land Registry. It means that the annual price change now stands at 5.3% and the data also shows that sales have fallen. From October 2013 to January 2014 there was an average of 76,056 sales per month. In the same months a year later, the figure was 71,090. But in London property prices are still going up with a monthly increase of 0.2%. At 11.3% the annual change for London is considerably higher than most other regions. The average price of property in the capital is £462,799 in comparison with the average for England and Wales of £178,007. The London borough with the highest annual price rise is Newham, with a rise of 19.8% and Hackney experienced the highest monthly increase, up 1.6%. Kensington and Chelsea saw the lowest annual growth of 5.2% also experienced the greatest monthly fall with a drop of 1.6%. On a regional basis the North East saw the only annual price fall with a drop of 2.9%, the South East experienced the greatest monthly price rise of 0.8% and the North East also saw the largest monthly decrease with a fall of 4%. Bracknell Forest and Hertfordshire experienced the greatest annual price increase in March with a rise of 13.6% and Darlington saw the greatest annual price fall with a drop of 6.2%. The index report shows that price index volatility is greater in areas where recorded sales volumes are low. Index volatility leads to erratic and high changes in reported price. Some of the areas that typically have very low transaction volumes include, but are not limited to, the City of London, Rutland, the Isle of Anglesey, Merthyr , Blaenau Gwent, Ceredigion and Torfaen. The number of properties sold in England and Wales for over £1 million in January 2015 decreased by 19% to 851 from 1,049 in January 2014 while the number of properties sold in London for over £1 million in January 2015 decreased by 23% to 571 from 746 in January 2014. However, Edward Heaton, of Heaton and Partners search agency, pointed out that the headline figures only tell part of the story. ‘In London, for example, there may indeed have been an 11.3% increase in greater London over the last year, but in prime central London prices have actually dropped,’ he said. ‘The biggest increases have been in second tier areas such as Wandsworth, Battersea, Clapham and some of the up and coming areas to the East of London. In the South East, most of the activity and increases in price have been in the mainstream market below £1 million,’ he explained. ‘Certainly above £2 million prices have remained pretty stable, although there is an expectation that prices will start rising rapidly after the election, almost regardless of its result,’ he added. Nicholas Leeming, chairman of national estate agents Jackson-Stops &… Continue reading
Research reveals how home moving costs have soared in a decade
The additional costs of moving home in the UK have increased by more than half over the last 10 years and are now £11,844, according to new research. However, prospective home buyers expect to spend only £6,895 and some 84% underestimate the cost of moving, which included agent fees and conveyancing costs, the study from Post Office Money shows. It also reveals that estate agency fees have increased by 61% over the last decade while house prices have risen by 39% on average and all these extras are on top of the £90,889 the average buyer needs to find for a deposit. The figures, by the Centre for Economics and Business Research (Cebr) for the Post Office, shows that costs were just £7,475 in 2004 and increased by 20% in the last year alone. People hoping to buy in the next three years expect to spend just £6,895 on moving costs, just 58% of what they should actually be budgeting. ‘With prospective home buyers' attention firmly fixed on saving for a deposit, the additional costs of moving can often come as an afterthought, particularly for first time buyers,’ said John Willcock, head of mortgages at Post Office Money. ‘Although house prices may continue to rise there are steps buyers and movers can take to reduce the amount they pay on top of this. Planning ahead is essential and potential homebuyers should be setting aside savings specifically for these costs. These extras should be considered as part of the overall cost of buying or moving home,’ he added. One of the most significant moving costs to increase over the past 10 years is the fee charged by estate agents. This cost has jumped by 61% since the end of 2004 from £3,229 to £5,214 in 2014 compared with a 39% increase in house prices over the same period as estate agents seek to keep up with changing house prices. Other fees to consider when moving to a new home include conveyancing costs and surveyors' fees which have increased by 37% from £1,039 in 2004 to £1,419 in 2014, and 51% from £402 in 2004 to £607 in 2014, respectively over the last decade. Even renters who move between properties are not exempt from moving costs. The amount charged by the average removals service has increased by 21% over the past 10 years from £855 in 2004 to £1,034 in 2014. Those hoping to move in the South East have been hardest hit by these increases with costs jumping by 97% in the last 10 years from £8,907 in 2004 to £16,510 in 2014. However, London remains the most expensive place to move home with an average cost of £27,946. Continue reading
UK agency predicts a million tenants could lose out under rental plans
A million tenants in the UK could lose their rental properties as a result of one of the major party's policies on the private rented sector, it is claimed. Belvoir, one of the UK’s largest property management agencies, predicts that Labour’s pledge to introduce new anti-landlord rental policies could result in landlords leaving the sector. ‘I am shocked at Ed Miliband’s proposals and his decision to ignore industry experts who have issued dire warnings about the unprecedented suffering that his party’s policies are likely to cause to tenants,’ said Dorian Gonsalves, Belvoir’s director of commercial and franchising. ‘Under a Labour Government, landlords will be forced to commit to three-year tenancies and banned from raising rents above inflation. You don’t have to be a mathematician or property expert to work out how deeply flawed these policies are,’ he explained. He pointed out that there are currently 11 million people renting property in the UK, which amounts to about 20% of the population and includes 1.5 million families with children. ‘There are around four million rental properties available and if just 10 to 15% of landlords decide to withdraw from the rental market because they are uncomfortable with Labour’s proposals and feel unable to manage their risks, particularly when mortgage rates rise, these homes will no longer be available,’ he said. ‘These tenants will either become homeless or face the appalling consequences of having to move in with family and friends on a long term basis,’ he added. Gonsalves also pointed out that when you look at the promises made on new homes from all the main parties, the most that any party has pledged is 300,000 properties in the next five years. ‘Clearly this figure will not even begin to satisfy current demand, which is the reason that we’re facing a housing shortage,’ he said. ‘We should not forget that it was the Labour Government’s incompetence that contributed to the financial crisis of 2007 and 2008, which resulted in a credit crunch that has left millions of people unable to obtain mortgages or save for a deposit to buy their own home. It is therefore very short sighted and totally irresponsible of Labour to introduce policies that will drastically reduce the number of available rental properties,’ he commented. ‘Landlords are very tired of being made to look like criminals who are constantly looking to rip off tenants and provide low quality housing. In our experience, 99.9% of landlords are decent people that provide decent housing for tenants on a long term basis,’ he added. The Belvoir rental index shows that in most parts of the country there has not been the major rental increases that Ed Miliband speaks of. ‘However, if we look back over the past five to 10 years and apply Labour’s proposed inflation rule for rental increases to many parts of the… Continue reading
