Table Of Content
- Home prices see biggest drop in 9 years, thanks to higher mortgage rates
- House Prices: Rightmove Reports Increases Led By ‘Top-Of-Market’ Property Sales
- Zoopla: Average UK Property Price Hits Record Level
- November: Zoopla Reports 7.8% Price Rise, But Growth Continues To Slow
- June: Rightmove Reports Record Average Property Price
House prices increased by 15% for detached properties, compared to 8% for flats. According to Halifax analysis, homes in London remain the least affordable in the UK, costing 9.7 times what the average Londoner earns in a year. Homes in the South East of England were only slightly more affordable, at a price-to-earnings ratio of 9.3. It says demand for homes is 40% higher than the UK’s five-year average, but is beginning to fall to typical levels. Halifax said that price gains for larger properties are noticeably outpacing those for lower homes. The price of a detached house has jumped by 15.1%, the equivalent of £60,860, over the past year, compared to a rise of just 7.7% (£11,962) for flats.
Home prices see biggest drop in 9 years, thanks to higher mortgage rates
HMRC estimated the provisional non-seasonally adjusted figure for UK residential transactions in June 2021 at 213,120. Hamptons said this was the highest half-year figure since its records began in 2006. Putting the figure into context, the estate agency said it was only 10,030 homes fewer than those sold in London during the whole of 2020.
House prices – Forbes Advisor UK - Forbes
House prices – Forbes Advisor UK.
Posted: Mon, 22 Apr 2024 14:17:00 GMT [source]
House Prices: Rightmove Reports Increases Led By ‘Top-Of-Market’ Property Sales
House prices ticked up by 0.4% in February, according to Halifax, taking annual property price inflation to 1.7%, writes Jo Thornhill. “Despite the above average price increases in the opening three months of the year, asking prices are still £4,776 below their peak in May 2023. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market. Asking prices rose on average by 0.6% in London this month (they are up 0.9% year on year), showing a tentative return of confidence for the capital.
Zoopla: Average UK Property Price Hits Record Level
Regionally Northern Ireland is the strongest performing part of the UK, with house prices increasing by 5% on an annual basis. Properties here now cost an average £195,956, £9,359 more than in February 2023. This in turn would feed into mortgage borrowing rates, with improved affordability stoking demand and stimulating price growth further. Prices are up 4.1% in the year to February in Northern Ireland (average house price is now £167,600), while they are up 2.1% in Scotland (£162,900) and up a more modest 0.6% annually in Wales (£203,500). Estate agents had an average of almost 30 homes for sale in the first three months of 2024, a return to the pre-pandemic situation. This means buyers have more choice and room to negotiate, especially where homes are failing to attract buyer interest.
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In England, the North West was once again the strongest performing region, up 12% compared to last January, while London remains the weakest performing region with annual price growth of 4.5%. It said the continued buoyancy of the housing market was surprising, given the mounting pressure on household budgets caused by rising inflation, currently standing at 5.5%, and in light of increased borrowing costs. Rightmove’s house price index shows average asking prices grew by 1.7% month-on-month, or £5,760, to stand at £354,564 in March 2022. In Wales and Scotland, rising house prices mean a further 360,000 homes have also breached the initial threshold where stamp duty becomes payable – £145,000 in Scotland and £180,000 in Wales. Rightmove says average properties jumped in price by £55,551 over the past two years, a period dominated by Covid-19.
November: Halifax Says Prices Down 3.4% In 12 Months
Mr Bannister added that, for the vast majority of sellers, a drop in asking price is not an actual loss compared to what they paid for their home – only a failure to live up to aspirations. In contrast, the share of demand for three-bed houses has fallen 5% to 39%, although they are still the most in-demand homes nationally. The first-time buyer sector is demonstrating the strongest signs of recovery, said Rightmove, with numbers down by just 7% in February compared to the same month in 2019.
November: Zoopla Reports 7.8% Price Rise, But Growth Continues To Slow
It estimated the provisional, non-seasonally adjusted figure for UK residential transactions in August 2021 at 106,150. Having removed a full-blown stamp duty holiday from England and Northern Ireland at the end of June, the UK government withdraws its remaining framework of tapered stamp duty reliefs at the end of this month. The ONS also said that hospitality workers were the most likely to be furloughed during the pandemic. As a result, tourist hotspots were among the areas with the highest average furlough rates during this period. The ONS said the average price of a UK property stood at £264,244 in August this year.
The Bank will reveal its latest decision on the Bank rate, which largely determines the cost of mortgage borrowing, on 3 November. It currently stands at 2.25%, with some economists expecting another rise to 2.5% or 2.75%. Only 3.1% of sales agreed have fallen through in the two weeks following the government’s catastrophic so-called mini-Budget on 23 September – broadly in line with the 3% during the same two weeks in 2019. Rightmove said it was ‘very likely’ that asking prices will fall in November and December as they usually do – but it will be important to distinguish between a regular seasonal slowdown and wider factors.
“The market has retained a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs. The number of mortgages approved for house purchase remained high in February at around 71,000, nearly 10% above pre-pandemic levels. A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices.
But earlier in March, Rightmove, the online property portal, said the average price of properties coming to market was up by 0.8% compared with the previous month. Higher mortgage rates and the increased cost of living are putting downward pressure on house prices, with buyers driving a harder bargain compared to recent years. But the online property portal says market activity remains subdued as higher mortgage costs continue to bite. Annual house price inflation has dropped by 0.4%, the biggest fall since March 2019.
Not only have record Boise house prices priced out many locals, but flatlining tech stocks could put cold water on the market's exuberance. Global investment firm Goldman Sachs downgraded its forecast for US home prices in a note from October and now projects them to fall between 5% to 10% from the peak prices seen earlier this year. The firm had previously predicted a less severe drop in housing prices but says that it had updated its projection due to increased interest rates. The Goldman note also adds that further declines will be attributed to higher housing costs as "unsustainable levels of housing affordability" will continue to weigh on housing demand.
Housing market experts don’t expect things to change significantly anytime soon. “Currently, the majority of mortgages [held by current owners] have rates below 5%, with many in the 3% range, so sellers are reluctant to pay double the interest rate for a change in the neighborhood. Lower prices can signal a shift in the market, but they’re not doing much to help sell homes right now. Owners unwilling to take a loss aren’t listing, leaving both sellers and buyers stuck.
House prices rose for the third consecutive month in December, according to the latest data from Halifax, the UK’s largest mortgage lender. Average prices were up by 1.1% last month and up by 1.7% over 2023 as a whole, writes Jo Thornhill. The number of properties coming onto the market for sale was 15% higher in the first week of 2024 compared to last year, with buyer demand 5% higher.
“As an example, the latest 0.25 percentage point rise will add around £25 onto the monthly cost of a £200,000 mortgage priced at a variable 2.5%. But for these borrowers, it’s the fourth blow of its kind since December last year – when the Bank rate stood at a much leaner 0.1%. The average UK house price grew by 10.8% in the year to April 2022, taking it to a record high of £286,079, according to the latest house price index from Halifax. In Scotland, growth was also slower relative to the rest of the UK, with annual inflation at 8.3%. It found that every region in the UK has seen annual rental growth, while every region with the exception of the North East (where rents fell in May by 0.7%) has seen monthly rental growth.
In terms of rising values over a five-year period, Zoopla said that the South East of England had outstripped all other regions. In September, the government brought to an end the temporary Stamp Duty Land Tax holiday in England and Northern Ireland that had been in place since July 2020. The measures incentivised buyers as they looked for properties with greater indoor and outdoor space on the back of the coronavirus pandemic. Monthly growth was recorded at 0.7%, taking seasonality into account, compared to 0.2% in September.
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