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
Tuesday, 28 February 2012
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
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