The UK property market is seeing a modest pick-up in activity, latest figures indicate.The Department for Communities and Local Government (DCLG) said house prices across the UK rose on average by 0.7% in January, to leave them just 0.2% up on a year ago.
Mortgage lenders granted 22% more home loans in January than a year ago.Sales edged up slightly in February, according to the Royal Institution of Chartered Surveyors (Rics). Anecdotal evidence suggests that a few more first-timers have been buying ahead of the reintroduction of 1% stamp duty on 24 March for homes under £250,000. As a result, Rics members said that average sales per estate agency branch rose from 15.7 to 16 last month.
RICS added that its members were no longer expecting prices to fall further."This is the first time since May 2010 that respondents have not been predicting further price declines," Rics spokesman Alan Collett said."Given the recent upturn in interest from first-time buyers looking to beat the stamp duty exemption deadline, it would appear that surveyors are slowly becoming less pessimistic over prices."
London Property Market News
Tuesday, 13 March 2012
Tuesday, 28 February 2012
National House Building Council Report
A report from the National House Building Council (NHBC) revealed the number of new houses being built in the UK has remained broadly flat over the past year, despite a severe shortage of housing stock and a number of government-backed initiatives to increase supply. Experts have warned that a lack of new affordable housing could add upward pressure to house prices, making it more difficult for people to the get on the housing ladder.
Richard Tamayo, commercial director of NHBC, said, ‘A variety of economic headwinds such as consumer uncertainty and restricted access to both development and mortgage finance have combined to restrain the growth in new home production that the country desperately needs. Government has targeted measures at stimulating and supporting both private and public housing supply; the next few months should begin to give us an indication of how effective those measures will be.’
UK House News
Richard Tamayo, commercial director of NHBC, said, ‘A variety of economic headwinds such as consumer uncertainty and restricted access to both development and mortgage finance have combined to restrain the growth in new home production that the country desperately needs. Government has targeted measures at stimulating and supporting both private and public housing supply; the next few months should begin to give us an indication of how effective those measures will be.’
UK House News
Thursday, 9 February 2012
Home Movers are Positive about Property Prices
Rightmove’s first Consumer Confidence Survey of 2012 was released today and finds that the public believes the property market balance of power currently lays firmly with buyers.
Over 60% of respondents are of the view that it is a ‘buyers’ market’ and just 13% a ‘sellers’ market’. There is also evidence of increased price confidence in the property market with the proportion of those forecasting prices to be the same or higher in 12 months’ time edging up to 66% from 62% a year ago. However, deeper analysis shows that both findings mask some significant regional and local variations which provide further evidence of an acute north-south divide and a property market pock-marked with localised micro-markets.
Shipside adds:
“On the surface it looks as though potential home movers are feeling a bit more positive about the outlook for property prices. However, hidden beneath is the real story that different market segments are performing very differently and that in all probability your price predictions will depend on your own local micro-market. While parts of the stock-starved south, and London in particular, are feeling relatively bullish about prices, the turmoil of the last few years has wreaked havoc in parts of the buyer-blocked north.”
It is worth considering the variations in national, regional and local price outlooks in the context of confidence. Rightmove’s survey asked respondents to indicate whether they believed that current market conditions favour buyers, sellers or whether the balance was about equal. 60% indicated that they felt that the ‘balance of power’ lay with buyers, and just 13% with sellers, giving a ‘market balance ratio’ of 5.4:1 – or 5.4 people who believe it is a buyers’ market for every one person who believes it is a sellers’ market.
Shipside comments:
“There is a clear north-south divide in both house price expectations and an even more acute contrast of opinion in where the balance of power lies. A shortage of stock and greater numbers of proceedable buyers lead those in the south to anticipate upwards pressure on prices and so a more tricky market for buyers to negotiate a price reduction in.”
Over 60% of respondents are of the view that it is a ‘buyers’ market’ and just 13% a ‘sellers’ market’. There is also evidence of increased price confidence in the property market with the proportion of those forecasting prices to be the same or higher in 12 months’ time edging up to 66% from 62% a year ago. However, deeper analysis shows that both findings mask some significant regional and local variations which provide further evidence of an acute north-south divide and a property market pock-marked with localised micro-markets.
Shipside adds:
“On the surface it looks as though potential home movers are feeling a bit more positive about the outlook for property prices. However, hidden beneath is the real story that different market segments are performing very differently and that in all probability your price predictions will depend on your own local micro-market. While parts of the stock-starved south, and London in particular, are feeling relatively bullish about prices, the turmoil of the last few years has wreaked havoc in parts of the buyer-blocked north.”
It is worth considering the variations in national, regional and local price outlooks in the context of confidence. Rightmove’s survey asked respondents to indicate whether they believed that current market conditions favour buyers, sellers or whether the balance was about equal. 60% indicated that they felt that the ‘balance of power’ lay with buyers, and just 13% with sellers, giving a ‘market balance ratio’ of 5.4:1 – or 5.4 people who believe it is a buyers’ market for every one person who believes it is a sellers’ market.
Shipside comments:
“There is a clear north-south divide in both house price expectations and an even more acute contrast of opinion in where the balance of power lies. A shortage of stock and greater numbers of proceedable buyers lead those in the south to anticipate upwards pressure on prices and so a more tricky market for buyers to negotiate a price reduction in.”
Thursday, 2 February 2012
London Homeowners Optimistic
New figures released by the Halifax show that confidence in house prices is soaring, with Londoners feeling the most optimistic.
According to the bank's Halifax Housing Market Confidence Tracker, almost a third of Brits feel that house prices will rise rather than fall this year.
Some 29 per cent now feel home values are on the up, compared to 22 per cent who feel a fall is on the way.
But in London the number of people predicting a rise is far greater. Indeed the percentage of those who feel an increase in values is likely dwarfs the pessimists by a whopping 21 per cent.
Half (50 per cent) of those questioned said that they feel now is a good time to buy, while just ten per cent said that they feel it is a seller's market a present.
Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies.
"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."
Another key finding of the research is the fact that 61 per cent expect rental prices to rise in the next 12 months, while just three per cent foresee a drop.
While both house prices and rental values are seemingly on the increase, another study conducted by the Halifax recently found that for many people owning a home has never been cheaper.
On average first time buyers are paying 27 per cent of their monthly income towards their mortgage, making it the lowest level since 1997 and some 20 per cent lower than the figure stood in late 2007
London Property News
According to the bank's Halifax Housing Market Confidence Tracker, almost a third of Brits feel that house prices will rise rather than fall this year.
Some 29 per cent now feel home values are on the up, compared to 22 per cent who feel a fall is on the way.
But in London the number of people predicting a rise is far greater. Indeed the percentage of those who feel an increase in values is likely dwarfs the pessimists by a whopping 21 per cent.
Half (50 per cent) of those questioned said that they feel now is a good time to buy, while just ten per cent said that they feel it is a seller's market a present.
Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies.
"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."
Another key finding of the research is the fact that 61 per cent expect rental prices to rise in the next 12 months, while just three per cent foresee a drop.
While both house prices and rental values are seemingly on the increase, another study conducted by the Halifax recently found that for many people owning a home has never been cheaper.
On average first time buyers are paying 27 per cent of their monthly income towards their mortgage, making it the lowest level since 1997 and some 20 per cent lower than the figure stood in late 2007
London Property News
Wednesday, 18 January 2012
London Rental Yields Start To Rise Steeply
Reports in last weekend’s Financial Times have highlighted the surge in new buy-to-let purchases,with many areas in London likely to be the first to benefit, according to property search consultant Expatfindaproperty.com.
According to the Financial Times report, landlords are taking advantage of weaker house prices to snap up bargain rental prospects in premier locations. While some are cash purchasers, others are using cheap borrowing costs to expand their portfolios.
Expatfindaproperty.com’s own research suggests that rental yields in many parts of London, in particular, are starting to rise steeply, following many years of static, or only gently-rising, prices. In particular, demand for rental homes near to prime commuting transport links, such as those in the Clapham, Earlsfield, Wimbledon and Raynes Park areas of South West London, has seen agents arranging block viewings, with would-be tenants forced to bid against each other to secure a property.
Emboldened by the strength of the demand, says Expatfindaproperty, agents and landlords are now pushing rents higher, which means that new landlords can expect enhanced returns, as well as realistic prospects of capital growth, when capital prices eventually start to recover. Prospective tenants, however, will find this news less welcome.
Erica Evans, of Expatfindaproperty.com, comments, “Our straw poll of agents in South West London has revealed high levels of optimism for landlords. For those thinking of entering the market from abroad, providing they have a 30% deposit for an expatriate or international mortgage, now is an excellent time to be looking at the market, but location is absolutely critical.
“Strong rental yields are only available in quite specific areas around commuter infrastructure hotspots.”
According to the Financial Times report, landlords are taking advantage of weaker house prices to snap up bargain rental prospects in premier locations. While some are cash purchasers, others are using cheap borrowing costs to expand their portfolios.
Expatfindaproperty.com’s own research suggests that rental yields in many parts of London, in particular, are starting to rise steeply, following many years of static, or only gently-rising, prices. In particular, demand for rental homes near to prime commuting transport links, such as those in the Clapham, Earlsfield, Wimbledon and Raynes Park areas of South West London, has seen agents arranging block viewings, with would-be tenants forced to bid against each other to secure a property.
Emboldened by the strength of the demand, says Expatfindaproperty, agents and landlords are now pushing rents higher, which means that new landlords can expect enhanced returns, as well as realistic prospects of capital growth, when capital prices eventually start to recover. Prospective tenants, however, will find this news less welcome.
Erica Evans, of Expatfindaproperty.com, comments, “Our straw poll of agents in South West London has revealed high levels of optimism for landlords. For those thinking of entering the market from abroad, providing they have a 30% deposit for an expatriate or international mortgage, now is an excellent time to be looking at the market, but location is absolutely critical.
“Strong rental yields are only available in quite specific areas around commuter infrastructure hotspots.”
Monday, 2 January 2012
London and The South East Saw Strongest Price Rises in 2011
Woking in Surrey recorded the biggest rise in house prices among major UK towns and cities in 2011, according to new research by the Halifax.
Based on the Halifax’s own house price data, the average selling price in Woking, a commuter town within easy reach of central London by rail, was 16% higher than in the previous year. Prices increased from £257,590 in 2010 to £299,654 in 2011.
Falkirk in Scotland experienced the second biggest rise in house prices with a 12% gain. Like Woking, Falkirk is within easy commuting distance of major commercial centres, lying almost equidistant between Edinburgh and Glasgow. The town also has relatively low average property prices, making it more affordable than many other areas close to Scotland’s two largest cities.
Towns in London and the South East accounted for nine of the 20 towns recording the strongest price rises in 2011. Overall, 28% of the towns surveyed saw some increase in prices over the year.
The majority of worst performers were outside southern England. Kettering in Northamptonshire and Dunfermline in Scotland experienced the largest falls in average selling prices in 2011, both recording declines of 15%.
Nine of the ten towns that saw the biggest declines in property values are outside southern England, reflecting the generally weaker performance of the housing market outside the south.
Based on the Halifax’s own house price data, the average selling price in Woking, a commuter town within easy reach of central London by rail, was 16% higher than in the previous year. Prices increased from £257,590 in 2010 to £299,654 in 2011.
Falkirk in Scotland experienced the second biggest rise in house prices with a 12% gain. Like Woking, Falkirk is within easy commuting distance of major commercial centres, lying almost equidistant between Edinburgh and Glasgow. The town also has relatively low average property prices, making it more affordable than many other areas close to Scotland’s two largest cities.
Towns in London and the South East accounted for nine of the 20 towns recording the strongest price rises in 2011. Overall, 28% of the towns surveyed saw some increase in prices over the year.
The majority of worst performers were outside southern England. Kettering in Northamptonshire and Dunfermline in Scotland experienced the largest falls in average selling prices in 2011, both recording declines of 15%.
Nine of the ten towns that saw the biggest declines in property values are outside southern England, reflecting the generally weaker performance of the housing market outside the south.
Monday, 12 December 2011
RLA Reports on Private Rental Sector
The RLA report that the report on the private rented sector warns that current returns for landlords are very low once costs and inflation are taken into account, despite headline reports of rising rents. This is restricting the amount of new accommodation available to meet increasing demand.
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
Prepared by Michael Ball, Professor of Urban and Property Economics at the University of Reading, the Report highlights that rents remain significantly below their early 2008 levels, when adjusted for inflation. The Report used a new economic model fed with financial data from over 200 landlords.
Following a survey of landlords' costs and returns, the Report found that present rent levels do not cover landlords' expenses when all factors are taking into account, including refurbishment and borrowing costs, agents' and legal fees, voids and arrears, energy and safety certificates, repairs, depreciation and regulatory compliance.
Additionally the tax burden on the private rented sector is much more than on other types of tenure, averaging £1,000 a dwelling. Sharp real falls in the value of their properties over the past four years have pushed total annual returns for many landlords into negative territory.
Currently, almost 90% of English landlords are private individuals and couples and many residential investors would have been better-off if they had invested their money elsewhere.
The Report warns that the consequences for tenants will be "grim" as they face increasing rents and a chronic shortage of properties. Economic recovery will also be significantly held back by a lack of affordable rental housing. It calls for Government reforms to the taxation and regulatory treatment of the sector to alleviate pressures on rents.
Commenting ahead of the formal launch of his Report today (November 22nd) at the House of Commons at a meeting of the All Party Parliamentary Group for the Private Rented Sector, Professor Ball said:
"There is much hype about the private rented sector at present, but the reality is that landlord returns are generally poor and with a weak economy are likely to stay that way. Investment in the past was driven by rising house prices, now there is a need to rethink taxation and regulation so that rental returns come to the fore at rent levels that are affordable for tenants."
Responding to the report, Alan Ward, Chairman of the Residential Landlords Association commented:
"Professor Ball's report demonstrates clearly that the private rented sector is taken for granted - the returns are only superficially rewarding because few landlords account for the cost of regulation and taxation. Only the lack of an alternative secure investment, and the curse of capital gains tax, prevents many landlords from dis-investing just when more people need private renting because of lack of access to the owner occupied and social rented sectors."
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