TSI
Asking prices till rising across most of the UK, latest data shows
Asking prices in England and Wales increased by 1% in September, led by the East of England, according to the latest index figures, while in Scotland they increased by 0.8%. Prices increased the most in the East of the country, up 2.3% month on month, but the South East continues to be the UK's fastest moving regional market with prices up 7% over the last six months. The data from the Home.co,uk index also shows that year on year asking prices in England and Wales have increased by 6.9% overall. While in Scotland asking prices are up 0.8% month on month and 3.8% year on year. Pries rises are being fuelled by lack of supply in many parts and this index shows that overall the supply of property for sale fell to a new record low in September, down 65% compared to the same month in 2007 before the economic downturn. ‘Surging demand coupled with lack of supply is driving home prices to new extremes in the East of England and the South East. Indeed, the uplift from these regions continues to drive the national average higher, thereby obscuring the poorer performance of several northern regions,’ said Doug Shephard, the firm’s director. He pointed out that the London and South East centred supply crisis is worsening, and September recorded the lowest number of properties entering these markets for that month since the onset of the financial crisis. Indeed, the data shows that the number of properties coming on to the market in Greater London, the East of England and the South East is down by 74%, 74% and 67% respectively vs. September 2007. However, home prices in the northern regions continue to stagnate. Annualised price changes for the North East, North West and Yorkshire of just 0.0%, 0.8% and 1.3% respectively indicate that the long awaited market recovery is still not apparent, according to Shephard. The Welsh property market also shows a distinct lack of vigour. Home prices there have risen by a mere 1.9% over the last year, a long way behind the mix-adjusted average price rise for England and Wales of 6.9%. Overall, the current mix-adjusted average asking price for England and Wales is now 20% higher than it was in September 2008. ‘We expect further upward pressure on this headline figure to be applied by London and its surrounding regions,’ said Shephard. The index also shows that the South East has been the fastest moving property market in the UK since February with the typical time on market for unsold property just 63 days, the same as it was towards the end of the last property boom in December 2007. This is much less than the national median of 96 days and the typical time on market in the North East of 136 days. In December 2007, the typical time on market in the North East was just 93 days. Continue reading
Swimming pool is top extra for prime properties, research suggests
People buying prime property in the UK want top notch sport and home leisure facilities with a swimming pool the most popular of such facilities, new research shows. Overall some 17% of high end estate agents have seen an increase in demand for swimming pools that can add up to 15% to a property’s sale price, according to the study from Direct Line’s Select Premier Insurance. In joint second place is tennis courts and home gyms with 9% of agents reporting demand for these kind of facilities, followed by 8% for a home spa, 6% for land, 5% for a home cinema, 4% for stables, and 3% for a luxury kitchen, a wine cellar and secure parking facilities. But the down side to a swimming pool is that potential buyers either love them or hate them and the upkeep and cost of maintenance can put them off even although they add 15% to the potential sale price. Designer kitchens can also add up to 15% to the purchase price, while dedicated home gyms and games rooms can add around 5% to the value of a home, the research also shows. However, some 17% of those surveyed said these sporting and home leisure facilities do not add value to a home, but they do increase its saleability, or attractiveness to potential buyers. Land was reported as a key selling point by estate agents, who stated customers would often prefer to have the space to build their own chosen facilities. The view from a property can have huge implications for the sale price, with one estate agent estimating when combined with a good location and road reputation, a beautiful view could double the value of a property. According to Nick Brabham, head of Select Premier Insurance, more home owners now want to embrace their favourite pastimes in the comfort of their own properties, including golf greens, squash courts and fully equipped gyms. ‘However, these high end facilities can be costly to install and maintain, so property owners should ensure they have sufficient cover in their home insurance policies to protect the items they value most,’ he said. Continue reading
UK house prices up 5.2% year on year, says latest ONS index
UK house prices increased by 5.2% in the year to August 2015, unchanged from the previous month but excluding London and the South East the increase was 4.8%, the latest official figures show. House prices increased by 5.6% in England, 0.8% in Wales, 2.9% in Northern Ireland and fell 0.9% in Scotland, according to the figures from the Office of National Statistics (ONS). The data also shows that annual house price increases in England were driven by an annual increase in the East of 8.8% and the South East at 7.4% while month on month they increased by 0.7% nationwide. In August 2015, prices paid by first time buyers were 3.8% higher on average than in August 2014 and for existing owners prices increased by 5.8% for the same period. The North East recovered from an annual fall in house prices in the year to July 2015 of 0.7% to show annual growth of 2.9% in the year to August and London prices increased by 4.2% over the year to August 2015, down from 5.5% in the year to July 2015. Average mix-adjusted house prices in August 2015 stood at £298,000 in England, £174,000 in Wales, £151,000 in Northern Ireland and £198,000 in Scotland. Excluding London and the South East, the average UK mix-adjusted house price was £217,000. London continued to be the English region with the highest average house price at £522,000 and the North East had the lowest average house price at £160,000. London, the South East and the East all had prices higher than the UK average price of £284,000. According to Adrian Gill, director of Reeds Rains and Your Move estate agents, growth is primarily being underpinned by sturdy demand and solid activity at the bottom of the property ladder. ‘The cheaper northern regions are experiencing the fastest growth in property sales, while a shortage of property stock on the market in the south is slowing activity,’ he said. ‘The most frequently paid property price across England and Wales is just £125,000, mirroring the level at which stamp duty becomes payable, and reflecting the impetus that has been injected in the first-time buyer market recently,’ he pointed out. ‘It is also the lower to mid-range properties priced between £180,000 and £360,000 which are seeing the fastest increases in value, while the shift in stamp duty bands continues to slow growth at the higher end of the market, and prices above £600,000 are largely stationary,’ he explained. ‘Despite this, London is firmly back in the driving seat of property price rises, following a slight pit stop, and is having a much greater influence on national measures of price growth on an annual basis. As in the rest of the country, it’s the more affordably priced London boroughs which are behind this renaissance, as the strengthening of sterling, rising stamp duty rates and moves against non-doms take their toll on the high end market,’ he added. Lora Roberts, portfolio manager at estate agent Ascend… Continue reading
