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UK house prices dipped slightly in December, say latest ONS figures
UK house prices increased by 6.7% in the year to December 2015, down from 7.7% in the year to November 2015, according to the latest figures from the Office of National Statistics (ONS). Prices were up year on year by 7.3% in England, by 1% in Wales, and by 1.5% in Northern Ireland but fell by 0.2% in Scotland. The annual growth in England were driven by an annual increase in the East of 9.7%, in London by 9.4% and in the South East by 8.8%. Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to December 2015 but on a seasonally adjusted basis, average house prices decreased by 0.2% between November 2015 and December 2015. The data also shows that in December 2015 prices paid by first time buyers were 6.4% higher on average than in December 2014 while for owner occupiers (existing owners), prices increased by 6.9% for the same period. Average mix-adjusted house prices in December 2015 stood at £301,000 in England, £175,000 in Wales, £193,000 in Scotland and £148,000 in Northern Ireland. According to Peter Rollings, chief executive officer of Marsh & Parsons, existing home owners have every reason to be in high spirits after the tenacious house price growth experienced in 2015 which saw average values break through the £300,000 barrier. He also believes that buyers climbing onto or up the property ladder are hitting the ground running, on the back of favourable mortgage deals and support schemes from the government. ‘In London, we’ve seen new buyer registrations in January increase 24% on last year, which bodes well for purchase activity in the opening months of 2016. Landlords and investors in particular will be in a hurry to secure their preferred property before the additional 3% Stamp Duty becomes liable on second homes in April,’ he said. ‘But with annual house price growth in London just shy of double digits, first time buyers and those trading up also can’t afford to hang about either. The prime central London market has been challenged and unsettled by steeper Stamp Duty, but in lower priced boroughs further out of the centre, high demand and low supply of properties coming up for sale are sustaining strong price rises,’ he added. Adrian Gill, director of Reeds Rains and Your Move estate agents, believes that the property market is developing into the strongest sellers’ market since the recession. ‘December may have weathered the first month on month stumble in house price growth for eight months, but on average, property prices are still increasing at more than twice the pace of earnings, which is certainly jubilant news for existing home owners,’ he said. ‘Potential sellers would be advised to get their property on the market now to take advantage of the spring surge that is already following these figures for December. But rising prices make it tougher for those still hoping to climb onto the… Continue reading
A south facing garden doesn’t push up a property’s price, study shows
Despite estate agents and property experts in the UK espousing the benefits of a south facing garden, this is not reflected in the asking price, new research has found. An analysis of property asking prices reveals homes with south facing gardens carry a mere 0.37% premium compared to properties with north facing gardens. South facing gardens have long been touted as desirable because they typically get the sun for most of the day and are therefore thought to be warmer and brighter, but it appears this isn’t reflected in property prices. River views however do carry a higher cost, averaging 9% compared to identical properties located on the same development without this sought after outlook, according to the study commissioned by Direct Line Home Insurance. In one North London development, a three bedroom property with a river view has an asking price of £850,000, some 42% more than an identically proportioned and designed property elsewhere in the development that costs £600,000. The research also reveals that in many cities if you live higher in a new development, you pay a significant premium for the privilege. One developer informed researchers they added a £15,000 premium to the asking price for every floor, bringing new meaning to the phrase ‘sky high’ prices. An apartment on the fourteenth floor of a new London development five minutes from Angel tube station is on the market for £850,000, which is 31% more expensive than an identical property on the third floor. In a new development near London’s Colindale station a one bedroom flat on the fourth floor costs £438,950 while an identical property on the eighth floor is on the market for £475,000. ‘The research highlights that south facing premiums may well be a myth, but a room with a view comes with a hefty price tag. People are prepared to pay thousands more for the same amenities and layout because a property is located higher in a building, has a more scenic vista, or because it overlooks water,’ said Katie Lomas, head of Direct Line Home Insurance. ‘However, while picturesque river views are much admired it is worth noting properties built near water may cost more to insure because of increased flood risk. Purchasers should check the likely cost of insurance before they commit to buy,’ she added. Continue reading
Scotland sees strongest house price growth for seven months
Property prices in Scotland increased 0.8% in December month on month and 2.5% year on year, according to the latest index figures. It is the strongest year on year increase since May 2015, taking the average house price to £170,641, with the typical property up by £4,000, according to the index from Your Move. But Aberdeen recorded a steep fall in house prices, down 6.8% year on year as demand fell due to the falling oil price. Overall sales were strong with transactions up 21% in December 2015 compared to the same month in 2014 and the top end of the market is recovering, with 11 million pound home typically sold each month by the end of 2015. But Christine Campbell, Your Move managing director in Scotland, pointed out that the increase over the year to December is still below the 4.4% rise in 2014, as growth was skewed by the introduction of the Land and Buildings Transaction Tax (LBTT). She also pointed out that the average house price has now broken through the £170,000 barrier again for the first time since May and 2015 was a turbulent one for some parts of Scotland. Aberdeen experienced the biggest dip in house prices with property values in the area falling 6.8% or £15,551. ‘This decline has been driven by the drop in demand for homes in the area, as the tumbling oil price reduces employment and investment into the city,’ said Campbell. ‘Aberdeen has also felt the negative affect of the introduction of the LBTT, as it’s home to a large number of higher value properties which the tax hit hardest. The city has now slipped to sixth in the house price rankings, down from third at the end of 2014,’ she explained. Total sales for the year were 6% higher than in 2014, in stark contrast to England and Wales where sales are down 2.6% year on year. In Scotland, the type of homes selling swiftest were flats, up 18.4% in the last quarter of 2015 compared to the same period in 2014. The smallest increase was in pricier detached properties, but sales still rose 8.8% over the same time period. ‘As typically the cheapest type of property on the market, flats have benefited most from the switch to LBTT which removed tax paid on purchases under £145,000. With an extra 3% surcharge on second homes coming into force in April, we can expect another jump in sales during the first quarter of 2016, as sellers hurry to beat the tax hike,’ Campbell said. The million pound property market has seen the most extreme changes this year. Overall, there has been a 30% annual increase in the sale of high value homes in 2015. Half of these sales came in March, as owners rushed to beat the introduction of the LBTT. This was followed by a short term drought which saw the average number of million pound… Continue reading
