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UK house market showed no end of year let up as prices rose 1.7%
House prices in the UK increased by 1.7% in December, showing none of the traditional end of year slowdown, the latest index figures show, prices now set to keep rising in 2016. The data from UK lender the Halifax, also shows that year on year prices have risen by 9.5% and were up 1.6% quarter on quarter, taking the average price to £208,286. However, the quarterly rate of change remained below 2% for the second successive month and was at its lowest values during 2015. But the annual rate of change remained in the 8% to 10% range throughout the year. The Halifax report also points out that the monthly house price pattern seen during the second half of 2015 has fluctuated and the quarter on quarter change is a more reliable indicator of the underlying trend. Newham in London recorded the biggest rise in house prices among major UK towns and cities over the past year, according to separate recent research by the Halifax. The average house price in the London borough was 22% higher than in the previous year and nearly double the 12% increase in London as a whole. Those areas that have seen the biggest house price increases over the past year are either in outer London or within close commuting distance of the capital. ‘There remains, however, a substantial gap between demand and supply with the latest figures showing a further decline in the number of properties available for sale,’ said Martin Ellis, Halifax housing economist. ‘This situation is unlikely to change significantly in the short-term, resulting in continuing upward pressure on prices,’ he added. According to Rob Weaver, director of Investments at property crowdfunding platform Property Partner, the fact that house price growth was 1.7% in the traditionally quiet month of December underlines the upward pressure on prices caused by the supply and demand imbalance. ‘With such extreme supply side issues, prices look set to move in only one direction throughout 2016. December may well have set a precedent for the year ahead. There will naturally be regional variations throughout the year but overall the trajectory of the UK property market will be upwards,’ he said. ‘As ever, London and the South East are likely to outperform due to the exaggerated supply issue and overall demographic in that corner of the country. The significant house price growth seen in Newham reinforces how the balance of power in the capital has moved from the centre to the peripheries, where gentrification, regeneration and infrastructure improvements are driving price rises,’ he explained. Jonathan Hopper, managing director of Garrington Property Finders, said that overall 2015 ended much as it began with demand outstripping supply in many areas and the resulting tension driving up prices. But he also pointed out that the start of 2015 was hampered by caution as some sectors of the market paused to see what would happened with the general election, for example, but there are no such… Continue reading
Index shows Spanish property prices rose by 1% in 2015
Nationally residential property prices in Spain increased by 1% last year with the market having bottomed out and now on the way to recovery, new index figures suggest. The data from appraisal company Tinsa shows that the overall rise in prices was boosted by an increase of 2% in the regions of Catalonia, Madrid, and the Balearics. It is the first time since 2007 the Tinsa index has end the year higher than it started. The index, based on the firm’s own figures relating to new and resale properties, shows that prices rose the most in Catalonia with growth of 5.3%, followed by Madrid up 3.3% and the Balearic Islands up 2.7%. But not all regions did well. Prices fell by 8.5% in Navarre and by 4.3% in Murcia. The Tinsa report pointed out that there are considerable regional variations. ‘It’s important to remember the market is tremendously heterogeneous and evolves at different speeds according to area. Prices are rising in some areas, but still falling in others,’ the index report says. Some 21 provinces and 15 provincial capitals saw price increases in the final quarter of 2015 compared to the same quarter in 2014 but there were falls of more than 5% in nine provinces and 10 capitals. The firm expects 2016 to be a year of stabilising prices rather than a sudden recovery. ‘Prudence invites us to interpret rising prices in terms of stabilisation. The incipient change in the trend is based on market values currently at minimums, so a progressive normalisation of the market can mean large percentage change increases, which can be expected to moderate in the coming months,’ the report adds. Mark Stucklin of Spanish Property Insight believes this will be the case. He forecasts prices to rise by a fraction but showing no signs of taking off. He also pointed out that figures from another appraisal company, Sociedad de Tasación (ST), show that new property prices rose 2.9% in the course of last year, the first time that has happened since 2007, and up from a fall of 2.2% a year ago. The data also shows that new home prices rose 6.2% in Madrid and 4.8% in Catalonia and the firm reports rising sales, especially demand from overseas buyers. Meanwhile, the latest data from property portal Idealista shows that the fall in prices in the second hand homes market moderated in 2015 with values down 0.7% in the final quarter of the year. The Balearic Islands led the way with year on year price growth of 3.3%, followed by the Canary Islands up 1.9% and Madrid prices up 1.6%. However prices fell 6.4% in Extremadura, 6.6% in Castilla La Mancha and 6% in Asturias. Continue reading
Call for owners of British estates to release land for new homes in the countryside
Local authorities should work with rural estate owners to create new affordable homes, according to a new report into issues affecting the UK’s land and countryside communities. Major estates should be encouraged to release land for eight or more affordable homes and the Government should extend its city devolution agenda to include rural market towns, says the report from the Royal Institution of Chartered Surveyors (RICS). It is urging landowners behind England’s 5,000 largest rural estates to release land for affordable housing and the report sets out a number of recommendations as to how central and local Government could better manage rural land and support countryside communities. These include offering measures to encourage large landowners to release space on their estates for eight or more affordable houses and that this might include partial inheritance tax exemptions, allowing heirs to avoid paying taxes on any affordable properties within the estate. It points out that at the turn of the last century, owners of Britain’s largest estates took a more patriarchal approach to the provision of affordable housing. This wasn’t entirely philanthropic as there was a common sense business motive as it resulted in a settled and readily available workforce. But affordable rural housing is fast becoming a thing of the past, the report explains, pointing out that there is a reported 76% shortfall in rural affordable housing. It argues that if rural towns and villages are to thrive, there needs to be action to ensure that workers are available to drive local economies. ‘Without becoming rose tinted, there are elements to the philanthropic approach to estate management that could benefit future generations of workers and apprentices,’ the report says. It also points out that there are some countryside communities where the average cost of a house can outstrip average annual wages 11 times over and rural poverty is a serious issue that threatens to hamper regional growth. ‘We would like to see local authorities work sympathetically with estate owners to encourage the release of land for eight or more affordable houses, based on long leaseholds, which would allow estates to retain long term interests,’ said Jeremy Blackburn, RICS head of UK policy. He explained that a similar scheme has been pioneered this year in East Devon, where Lord Clinton, the largest private landowner in the county, worked with Cornerstone Housing Association to develop 19 affordable homes in the town of Budleigh Salterton, made up of both rental and shared ownership properties. ‘To provide affordable housing for local people is an important step towards building sustainable communities. From the outset we worked with the Exeter based housing association, Cornerstone to provide the right mix of affordable homes for rent and shared ownership to enable young families to stay in Budleigh Salterton and allow this seaside town to thrive for generations to come,’ said Leigh Rix, head of property and land for Clinton Devon Estates. Blackburn added that the report also calls for a further boost for… Continue reading
