housing market
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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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Housing Market
Housing market picking up despite political uncertainty
The residential property market is showing signs of improving as “data points to a stronger pre-election housing market than we had anticipated,” according to a leading analyst. Concerns regarding a pre-election hit to the UK housing market appear to have been overemphasised, according to the investment bank, Jefferies, which has upgraded the residential property sector ahead of next month’s General Election following indications that the housing market is improving in spite of political uncertainty. The UK broking arm of the US bank estimated that residential property prices in London and the South East could fall sharply on the back of lower transaction levels. But despite a slowdown in the market, Jeffries has now changed its view on the sector, which includes listed estate agents and house builders. The reverse in views is largely thanks to a greater supply of mortgages, the Help to Buy scheme which has helped the new-build sector “punch above its weight”, and a strong lettings market which has offset the fact that fewer homes are changing hands on the sales market, helping to support estate agents in the process. Anthony Codling, property analyst at Jefferies, told the press, “The latest data points to a stronger pre-election…
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Housing Market
Scrapping non-doms could harm London’s housing market
Labour’s plans to close down what they call a loophole for the super-rich, by scrapping non-dom tax status in this country, would be a terrible mistake as it could have an adverse impact on the housing market in the capital, along with many other sectors, according to a leading estate agent. Nicholas Leeming (left), Chairman of national estate agents Jackson-Stops & Staff, which has 44 offices nationwide, believes that Labour Leader, Ed Miliband, is intent on “closing down London to international business” if he abolishes the non-dom tax status. Mr Leeming argues that Labour’s policy will effectively deter many wealthy foreigners from buying property in this country, particularly in the capital. He said, “The Labour party is out to target the wealth creators in this country and will effectively close down London to international businesses and investors if it continues to punish this sector. We have created a world-class city and we want to continue to encourage people to buy homes here and invest in the capital. The move to scrap the non-dom tax status will impact on every aspect of life in the capital – jobs, the property market, shops, restaurants and businesses. London needs to remain open for…
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Features
Regional round-up
Each month we visit three agents across the country to discover what is happening in their businesses and local markets. This month we visit Norfolk, Gwynedd and London.
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Features
What next for Scottish property?
Scottish independence may have failed but major changes still lie ahead for the country's property market.
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Features
Regional round-up
Each month we visit three agents across the country to discover what is happening in their businesses and local markets. This month we visit Kent, London and the Isle of Wight.
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Features
Home… and away
If you think the UK is lagging behind other countries with its new build programme... you are right, says Andrea Kirkby.
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Features
Is there any value in a mansion tax?
It has been more or less been killed off by the Chancellor's new Stamp Duty regime - but did the mansion tax ever have much currentcy?
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