housing market
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Housing Market
First-time buyer home prices soar
Home prices for first-time buyers are continuing to rise because of high demand from buy-to-let investors for properties typically acquired by those purchasing their first home, says Rightmove. New data supplied from the property portal reveals that the average asking price for residential properties currently coming on to the market has increased by 5.6 per cent over the past year to a new high of £296,549, but sellers of typical first-time-buyer homes are now asking 9.6 per cent more than this time last year. The average asking price of houses and flats with up to two bedrooms has increased by over £8,000 to £184,676, Rightmove said, making it harder for first-time buyers to save up enough money for a deposit. The report states that home prices are being driven higher by growing demand from buyers, particularly buy-to-let investors, and that a lack of properties coming onto the market was creating greater competition for purchasers, particularly first-time buyers. Rightmove added that the volume of first-time homes coming up for sale had dropped by 8 per cent on October 2014. The buy-to-let market has gone from strength to strength in recent years, reflecting the fact that a growing number of people are…
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Housing Market
UK property sales hit 16-month high
Residential property sales have improved across the UK, reaching a 16-month high in September, the latest index report from RICS has revealed. It was the fifth month in a row that agreed sales rose, with the greatest increases over the month witnessed in the North, East Anglia and Scotland. According to RICS, this was the sixth consecutive month that the number of new buyer enquiries has increased, supported in part by less stringent mortgage lending conditions, with 18 per cent more chartered surveyors reporting a rise in demand. Despite the increase in activity levels, the report also identified a lack of new instructions, which has fallen in 13 of the past 14 months, for continuing to hold back sales growth. “Activity is now picking up which is encouraging, but unless the stock being sold is replenished there is a limit to how sustainable this modest improvement in market turnover will prove to be. And, unfortunately, the indications are that we are locked in a cycle where the lack of available properties on agents’ books is itself deterring some potential vendors from thinking about putting their own property on the market,” said Simon Rubinsohn (left), RICS Chief Economist. RICS forecast that…
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Housing Market
Osborne vows to build more new homes
George Osborne used his party conference speech in Manchester this week to reaffirm the Conservative policy toward housing. The Chancellor George Osborne during his speech to Conservative Party conference in Manchester described the Tories as “the builders” with a plan for a prosperous future for working people. The Chancellor announced plans to sweep away planning rules delaying house building on brownfield sites this autumn in a bid to boost the number of new build homes being delivered by developers across the UK. The Government has also pledged to spend an extra £5 building on housing schemes, as well as other projects, and has set up a new independent national board to review spending priorities across various sectors, including house building. Mr Osborne told the conference in Manchester, “Building doesn’t come easy and especially when it comes to new homes and infrastructure that the country needs. “We are going to get many more homes built for families to buy, we’re sweeping away planning rules on brownfield sites, this autumn we will direct our housing budget towards new homes for sale. “We will give housing association tenants the right to buy. We’ve had enough of people who own their own home lecturing…
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Housing Market
Housing market is at ‘crisis point’
The supply of residential properties for sale has slumped to its lowest level for 11 years, stoking fears that the growing housing shortage will continue to dive up home prices. Fresh data released by the National Association of Estate Agents (NAEA) reveals that the volume of properties available to buy per estate agent branch fell to 38 in August, down 31 per cent on July’s 55. This is the lowest level of supply recorded since January 2004, when 38 properties were also available. August also saw a dip in the number of house-hunters registering with agents, with an average of 408 applicants registered per member branch, compared to 462 in July, owed in part to the fact that many people were away on their summer holidays. Mark Hayward (left), Managing Director of the NAEA, said, “We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying – there simply aren’t enough houses to match demand and we’re reaching crisis point. “There are now eleven house hunters fighting after every available house which isn’t sustainable.” The data also shows that the number of sales completed in August rose by…
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Housing Market
First-time buyer activity hits pre-recession high
There was a sharp increase in the volume of first-time buyers in the UK in July, as the prospect of a rise in mortgage borrowing costs encouraged more young purchasers to acquire their first home. The latest First Time Buyer Tracker index from Your Move and Reeds Rains reveals that the number of first-time buyers reached their highest level in July since the recession, paying £161,985, on average, which is 8.9 per cent higher than in the corresponding month in 2014. Overall, there were 29,700 sales of residential properties to first-time purchasers in July, up 4.9 per cent month-on-month. This is in spite of the fact that the average first-time buyer now requires a deposit of £27,975, which is up 10 per cent compared with July 2014’s figure of £25,429. While rising deposit costs may have deterred some prospective purchasers in recent months, increasing real wages have enabled some first-time buyers “to shoulder the short term burden of a slightly higher deposit” to spare the risk of losing out on a good mortgage deal, according to Adrian Gill (left), Director of estate agents Your Move and Reeds Rains. He added, “This month’s particularly high transaction rate is also partially due…
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Housing Market
Housing demand soars to 11-year high
The UK housing market continues to be propped up by growing demand from buyers, which the National Association of Estate Agents (NAEA) says is now an 11-year high, fuelled by greater political stability, a strengthening domestic economy, record-low mortgage borrowing rates, rising employment levels and Government housing schemes such as Help to Buy. The NAEA’s latest monthly report found 439 house hunters were registered on average per NAEA member branch in June, 15 per cent more than in May when 383 house hunters were registered per branch and the highest since August 2004 when 582 were recorded. “What we’re seeing is a market that lulled over the general election period, coming back to life in full force,” said the NAEA’s Mark Hayward (left). “There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates.” But while demand increases, the supply of housing coming onto the market continues to plummet, with the NAEA reporting that housing stock had fallen to just 44 houses available per branch, widening the growing gap between supply and demand. “The fact that demand is at an eleven year high without the housing…
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Housing Market
Residential property transactions hit 18-month high
The volume of residential property transactions reached an 18 month high last month, the latest figures from HM Revenue and Customs has revealed, with 104,590 transactions recorded in June, up 3.2 per cent compared to the corresponding month in 2014. HMRC’s seasonally adjusted estimate shows that the number of home transactions rose by 4.7 per cent between May and June to 104,590, which was the highest number of UK residential transactions since February 2014 when 109,080 took place.There were also 10,460 non-residential transactions. Reflecting on the fact that the level of transactions reached an 18-month high last month, Andy Sommerville (left), Director of Search Acumen, said that the data suggested that the housing market is “bouncing back” after a shaky start to the year. He commented, “Having announced extra measures this month to improve the planning process and increase housing supply in the long term, the government will be relieved to see signs of renewed life in the property market so soon after the election.” Sommerville believes that positive indicators “such as a 3.2 per cent annual rise in wages” should help to build momentum in the second half of the year. “There is a renewed sense of optimism in…
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Housing Market
Annual property price growth set to hit 10%
With demand from buyers continuing to heavily outweigh the supply of homes coming on to the market, residential property prices in Britain’s 20 biggest cities is expected to be increasing by 10 per cent by the end of this year, according to a new report. The latest research by property analysts Hometrack revealed that annual home price inflation is currently running at 8.4 per cent but it estimates that this rate of growth will rise in the coming months, fuelled by high demand and low supply, as well as a strengthening domestic economy, which is fuelling optimism in the market. The report also found that the average price of a residential property rose by 4.3 per cent in the last quarter to reach £226,200, with quarter-on-quarter gains led by Oxford, up 8 per cent, followed by London (6.6 per cent) and Glasgow (6.4 per cent). In contrast, Aberdeen was found to be the weakest performer with no real movement in home prices during the first half of 2015. “Rising demand for property against a backdrop of low supply continues push city level house prices higher,” said Richard Donnell, Director of Research at Hometrack (left). “It looks increasingly likely that city…
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Housing Market
Property demand continues to soar
With uncertainty regarding the outcome of the general election over, demand to buy and rent property rose sharply in May, according to the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA), but property supply is not keeping pace. The NAEA report that demand from buyers hit an eight-month high last month, with 383 house hunters registered on average per branch in May, up from 344 in April, and the highest number recorded since September 2014, when 406 house hunters were registered. The supply of properties coming onto the sales market also rose in May with 46 houses up for sale per NAEA member branch, compared to 43 in April, but remains well below the level needed to help meet rising demand levels. Nevertheless, this led to a marginal rise in the number of sales per member branch, with nine sales agreed in May, compared to eight in April. Mark Hayward (left), Managing Director at NAEA, said that the increase in the volume of house-hunters searching for homes was owed to a rise in confidence following the certainty that the outcome of the General Election delivered. He commented, “The housing shortage will not be solved…
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Housing Market
Post-Election housing market activity set to improve
House hunters faced with restricted choice could soon find that they have significantly more homes to choose from as the result of a post-Election surge in homes for sale, according to Righmove. The property portal is forecasting a sharp rise in the volume of residential properties set to come onto the market in the coming weeks, now that the Election uncertainty is over. In the three months after the May 2010 Election, the number of properties coming to market rose by 17 per cent compared to the previous three-month period, Rightmove said. “This is an election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage, and many estate agents are now reporting a resurgence in interest following the surprise election result,” said Miles Shipside (left), Rightmove Director and Housing Market Analyst. He pointed out that the threat of Labour’s proposed mansion tax on homes valued at £2million-plus had “put a brake on the market”, but believes that “their removal gives a reason for a rebound in activity and prices.” Mr Shipside added, “Buyers should note that there is often a surge of property supply after an Election, as those who have held…
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