Halifax reveals faster property market growth

Halifax reveals faster property market growth

Posted Posted in House Prices

  UK property prices grew by 3.3 per cent year-on-year in the three months to July, according to new data published by Halifax. This represented a significant jump from the three months to June, when the year-on-year increase was only 1.8 per cent.   A key reason for this increase was a 1.4 per cent month-on-month jump in prices in July.   The bank’s latest House Price Index showed that the typical UK home now costs a record £230,280.   As well as the year-on-year increase picking up, the quarter-on-quarter price rise also grew by 1.3 per cent on the February to April period.   Halifax managing director Russell Galley said: “While the quarterly and annual rates of house price growth have improved, housing activity remains soft.   “Despite the recent modest improvement in mortgage approvals, the latest survey data for new buyer enquiries and agreed sales suggest that approvals will remain broadly flat until the end of the year.”   He added that one factor that should help underpin sales and prices is the jobs market, with employment numbers at a record high and the number out of work at its lowest rate since 1975. This means job security is particularly high at present, notwithstanding fears of what might elapse after Brexit.   Another factor Mr Galley considered is that of the recent Bank of England base rate rise. It might be suggested that this would impact on the market by deterring those who will have to pay more for their mortgages. However, he said: “We do not anticipate that this will have a significant effect on either mortgage affordability or transaction volumes.”   If the base rate rise has little impact, this may be due to the slow speed of change. While the Bank of England’s Monetary Policy […]

House prices continue to grow despite Brexit

Posted Posted in House Prices

The latest UK Cities House Price Index from Hometrack has shown that average house prices continue to grow despite Brexit. The index, which analyses the property market trends across 20 UK cities, has revealed that demand for property in UK cities has remained strong, reporting that values increased by 10.2% in the year to June. The report shows that house prices continue to rise despite the uncertainty surrounding Brexit. House prices continue to grow despite Brexit Edinburgh, Oxford, Glasgow, Nottingham, Southampton, Liverpool, Manchester, Leeds, Birmingham and London are just some of the cities which have recorded positive price growth over the last year. The supply chain in London has somewhat slowed in recent months which could cause price increases to slow in the months ahead. Overall, the 20 City Average in June was 10.2%, slightly higher than the average 8.6% recorded in the rest of the UK. Private rents increase also increase Property investors in the private rental sector will also be pleased with the news that rents have continued to rise in the UK. Data from the June HomeLet Rental Index has found that average rents in the UK have continued to rise over the three months to June, albeit at a slower pace when compared to earlier in the year. The average rent in the UK now stands up £773 per month (excluding Greater London). When compared to the previous year, this marks a 3.5% rise. In London, the average cost of renting now sits at £1,575 per month – up 3.9% on last year. Commenting on the report, Martin Totty, Barbon Insurance Group’s Chief Executive Officer, said: “The June HomeLet Rental Index shows that the rental market remains resilient in the face of the various economic and political headwinds the sector has faced recently. Landlords are continuing to […]

Homebuyers Benefit from the Stamp Duty Change: Experience Invest

UK House Price Sentiment Hits Highest Point Since 2014

Posted Posted in Experience Invest, House Prices

You’re reached the Experience Invest blog. Here, we bring you regular updates on the latest British residential and commercial property market news. Recent figures have shown us that UK house price sentiment hit its highest point since 2014 in February this year. Demand and supply The Telegraph reports that figures from Halifax bank suggest that average UK house prices hit a 17-month high in the year to January 2016. During this period, average British residential property values increased by 9.7% – the highest rate of annual growth since July 2014, when they rose by over 10%. Explaining these figures, Halifax housing economist Martin Ellis said: “The imbalance between supply and demand continues to exert significant upward pressure on house prices… This situation looks set to persist over the coming months.” In other words, demand is increasing for a low supply of UK residential properties and the latest House Price Sentiment Index (HPSI) from Knight Frank and Markit Economics, shows that this has lifted UK house price sentiment to an 18-month high. Rising sentiment A recent report shows that 23.2% of the 1,500 British households surveyed for the latest HPSI said they believe that the value of their home increased in the past month. This resulted in a HPSI reading of 59.6 points; any reading above 50 points indicates that UK households think British residential property prices are increasing. This is the 35th consecutive HPSI that read above 50 points, suggesting that continually rising average UK house prices have fuelled positive sentiment in the country’s property market. Furthermore, the February Index’s reading was the highest since October 2014, indicating that British households perceive that the value of their home has risen to its strongest point in over a year. Commenting on the release of the February 2016 HPSI, Head of UK […]

House and Rent Prices Expected to Soar in UK Over the Next Decade: Experience Invest

Average House Prices Approach £300,000

Posted Posted in Experience Invest, House Prices

Welcome, you’re arrived at the Experience Invest blog. We work hard to keep you abreast of the latest UK residential and commercial property market news and analysis. New figures have indicated to us that average English and Welsh house prices are fast approaching £300,000. Renters market  Figures from the Office for National Statistics suggest that the current average UK house price is £290,000. Meanwhile, the Town and Country Planning Association has stated that Britain needs to build 240,000 new homes every year until 2031 to meet current demand for residential property. High demand, coupled with low supply, has forced many first time buyers in the UK to rent while waiting to get onto the property ladder. Newspaper The Independent reports that research from the Association of Residential Letting Agents shows first time UK buyers have already spent an average of £52,900 on rent, as of 2016. On average, London buyers now spend £68,300 on rent before purchasing a residential property and 20% of UK tenants don’t believe they’ll ever get onto the property ladder. Rising house prices A new study from online real estate firm Rightmove suggests that average house prices will soon hit £300,000. According to the research, the average price of a house in England and Wales rose by 2.9% to £299,287 in February 2016 – the highest increase since October 2015. Commenting on these figures Rightmove director Miles Shipside said: “The new year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high.” However, the research found that there was a 5% rise in the number of new residential properties on the market when compared to the same period last year and the supply of units for first time […]

House and Rent Prices Expected to Soar in UK Over the Next Decade: Experience Invest

House and Rent Prices Expected to Soar in UK Over the Next Decade

Posted Posted in Experience Invest, House Prices

Welcome back to the Experience Invest blog, your one-stop-shop for UK residential property news. Continuing with the theme of UK house prices that we tackled in our last post, now we’re looking at new figures which suggest that along with rental values, they are set to soar over the next decade. 2016 outlook The Experience Invest team recently reported that Halifax Bank expects UK residential property values to grow at a moderate pace in 2016. They found that average house prices expanded 9.7% year-on-year to October 2015, but said that they’d only grow by around 4% to 6% next year. House prices UK property industry trade bodies the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) are optimistic about the long-term prospects of the nation’s housing market. The BBC reported that both Associations recently forecast that the nation’s average house price would increase 50%, from £280,000 to £419,000 by 2025. Meanwhile, they estimated that the average price for a property in London would double to £931,000 within the next decade. This predicted house price increase assumes that the rises witnessed in the past decade or so will continue throughout the course of the next ten years. To meet NAEA and ARLA expectations, UK house prices would need to shoot up by 4.1% every year. Average London residential property values would have to increase even further – by 6.3% per year. Rental values Commenting on the report, Mark Hayward of NAEA said: “House prices are only going to go one way, and unfortunately that is up. For so many already priced out of the market, this is news aspiring house buyers will not want to hear. Ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and a shortage of affordable housing, means […]

Experience Invest: Prime Central London Lettings Market

UK House Price Growth to Slow in 2016

Posted Posted in Experience Invest, House Prices

Hello, and welcome back to the Experience Invest blog, where we provide you with the latest UK residential property news. This week we look at new figures from Halifax Bank which suggest that British house prices will grow at a more moderate rate in 2016, compared to this year. Sustained house price growth Data from the Office for National Statistics (ONS) indicates that average UK house prices grew by 7.0% in the year to October 2015, up from 6.1% the month before. However Halifax were even more optimistic; they found that average UK property values shot up by 9.7% year-on-year to October 2015, the highest annual growth since August last year. This defies the bank’s original expectations that average UK house prices would grow by between 3% and 5% this year. Outlook for 2016 The International Business Times reported that the mortgage provider recently released its residential property market outlook for next year. Halifax wrote that expectations that interest rates will go up in the next few months, combined with an increasingly difficult to enter property ladder, will “put the brakes” on UK house value growth in 2016. The bank predicted that average UK house prices would grow by between 4% and 6% in the next 12 months. They expected residential property market activity to be restrained because of a continued lack of supply. The Telegraph reported last month that UK housing supply is now at its lowest level since the 1970s. Halifax suggested that even Chancellor George Osborne’s plans to build around 400,000 new homes next year won’t be enough to boost supply. Contributing factors Speaking about the outlook report Martin Ellis, Halifax’s housing economist, argued that it’s unlikely that the key drivers that aided house price growth this year will change. The economist insisted that the “substantial imbalance” […]

Experience Invest: Property Prices

Property Prices in the UK to Grow by an Average of 17% in the Next Five Years

Posted Posted in House Prices

Welcome back to the Experience Invest, where we discuss the latest trends in residential property, student accommodation and care home investments. Today’s blog focuses on some new research that predicts UK property prices will grow by an average of 17% in the next five years. The research, which has been compiled by Savills – the international real estate agents, suggests that economic recovery in the UK housing market will vary geographically. The figures are based on interest rate rises, regional economic growth, and mortgage regulations. Five year forecast Savills’ report forecasts that by the end of 2020, we will see prices rise by varying degrees, depending on location. On average, however, we can expect a 17% increase in the cost of a homes across the country. The firm believes property prices in the South East will rise the most, and predicts growth of 21.6%. In comparison, prices in the North East will rise by only 12%. The figures are reliant on mortgage rates not exceeding 4.5%. Dependent on interest rate rises Lucian Cook, Head of Savills Research says growth will be largely dependent on the speed that interest rates rise. “If rates rise too quickly mainstream house price growth will be quickly curtailed. On the flipside, if rates remain low for too long, there is a risk that prices will rise too far, creating affordability issues further down the line when they do eventually rise,’ explains Cook. Growth will vary geographically Mortgage regulations mean the amount people can borrow is relative to their income, which Cook believes will ‘cap price rises’, especially in London. Growth in London is likely to be in the region of 15%. If this is the case, we’ll see London underperforming compared to the overall UK market. Interestingly it seems we’re likely to see more growth […]

Experience Invest: London House Prices

London House Prices Could Rise to £1 Million by 2020.

Posted Posted in Experience Invest, House Prices, property investment

Hello, and welcome back to the Experience Invest blog, a chance for you to catch up on some of the latest residential investment stories in the news. A recent report revealing the average cost of a London home could reach £1 million within the next five years is a potential wake-up call for many aspiring investors and home buyers. House price increases are traditional in the autumn, as the holiday season comes to an end and people resume their plans to move or relocate. However, London, it appears, has seen an unusually sharp rise in the price of a newly-marketed home this year. Rightmove Report According to the UK’s largest property portal, Rightmove, the average price of a residential property in London has risen by 2.2%, or by a dramatic £13,177. With the average price of a London home now estimated to be £620,003, and the annual rate of price growth in the capital currently 9.5%, the online real estate agent is predicting the average price of a London home could reach £1 million by 2020. Commenting on the Property Wire website, Miles Shipside, director and housing market analyst at Rightmove, said: “The average price tag on a newly-marketed property is £53,923 higher in September this year than last and if this trend were to continue it would hit £1 million in just over five years. While we are not suggesting that this level of growth can or will be maintained, this extrapolation illustrates the desperate need for more building and more affordable housing in and around the capital.” External influences such as the recent UK election results may have distorted supply and demand, attracting an upsurge in sales. However, Rightmove’s predictions are interesting, and if the current desire for residential property London continues, we are likely to see year-on-year […]