Land Registry Report On UK House Prices

The BBC reports that house prices in England and Wales have drifted slightly lower in the past few months, according to the Land Registry.

Its latest survey of all completed sales shows the average price rose by 0.8% in April to £163,083.

However, the average sale price in the February to April period was 1% lower than in the previous three months – the best indicator of short-term trends.

Prices in April were 1.3% lower than a year ago, and monthly sales have also fallen, by 14% in the past year.

These figures reflect the general stagnation of the market, which has been due to severe rationing of mortgage funds by lenders, and fears of higher unemployment among would-be buyers.

The Land Registry survey recorded distinct regional variations in house price movements.

In London, house prices jumped 3% in April, to an average of £352,187.

“London’s annual change now stands at 5%, which is much stronger growth than that seen by any other region in England and Wales,” the Land Registry said.

“Only London and the South East experienced increases in their average property value over the last 12 months.”

London House Prices WIll Not Fall

A slump in London house prices is “very, very unlikely” this year, according to Assetz.Stuart Law, chief executive of the property investment advice firm, commented that 2011 is not set to see volatility in the housing market.

“All we are going to see is a mixed period which is not particularly going up or down. The lack of housing here in the UK will continue to support pricing as will rising rents, pushing people towards purchasing instead of renting,” he claimed.

However, first time property buyers will not see their conditions improve dramatically this year.

“We don’t expect any large improvements in first time buyer mortgages this year. There should be an improvement, but it won’t be a large improvement,” added Mr Law.
His comments come after the Fathom/Zoopla Auction Price Index forecast a double-digit fall in house prices in the coming 12 months when it was published earlier this month.

London House Price News

London House Prices Stabilise

London property reports may be showing mixed reviews at the moment, but there are indications that the level of completed house sales stabilised at the end of last year.

According to the latest Royal Institution of Chartered Surveyors’ UK Housing Market survey, the number of sales completed by each surveyor stood at an average of 15.2 in the three months to December 2010, compared with 14.8 for the previous quarter.

However, some buyers were affected by the inclement weather towards the end of the year, while the lack of UK mortgage funding options remained a problem for some.
Robert Lazarus, director of residential sales at Paramount, said the outlook was not all bad for the housing market.

“So far this year we’ve seen that people are able to get mortgages in principle, but there have also been around 30 per cent of our buyers with cash funds purchasing property in the area,” he pointed out.

“It is impossible to say what will happen over the next few months with mortgage lending but so far at Paramount we have had a successful January,” he added.

London Property Market News

London House Prices Experiencing Inertia

London house prices, as well as those in other parts of the country, are undergoing a “shallow correction” but mostly the property market is slowing down, an expert has stated.

Dr Colin Lizieri, professor of real estate finance at the University of Cambridge, commented: “Because of inertia in the housing market and because individuals with houses who don’t have to sell simply don’t put them on the market, what we are seeing is a much more shallow correction of house prices from their very high levels and rather a slowing up and stagnation of the market.”

As a result of this, there is a reduced level of sales, less demand of UK mortgage lending and much less movement in the market, “which has to be bad for the economy as a whole”, he explained.

On the upside, commercial property in London and other UK towns has seen a “very substantial” correction in prices, which has resulted in a “more sensible” pricing level, Prof Lizieri added.

London House Price News

London House Prices Fall in Final Three Months of 2010

House prices in London have fallen in the fourth quarter of the year, according to a new report.

Figures from the Nationwide House Price Index revealed that property values in the capital saw a “marked slowdown” between October and December.

Data from the survey showed that average house price growth dropped from 9.2 per cent in the third quarter to 2.7 per cent in the final three months of 2010.

This development comes after six consecutive quarters of price rises, Nationwide said.

Commenting on the latest figures, Martin Gahbauer, chief economist at the company noted: “The final quarter of 2010 saw house prices fall in ten out of 13 UK regions.

“For the UK as a whole, prices fell by 1.3 per cent in the quarter, leading to a fall in the annual growth rate from 4.5 per cent to 0.7 per cent.”

London continues to be the most expensive region in the country for real estate.

London House Prices Falling

London house prices along with the cost of properties in other parts of the UK have fallen further, according to the latest figures from the Royal Institution of Chartered Surveyors (RICS).

The organisation’s UK Housing Market survey revealed that lack of demand from buyers continues to “stifle” the market, while the preference for large deposits and limited availability of UK mortgage lending options is preventing first time property buyers from entering the market.

Some 44 per cent more chartered surveyors reported falling prices than rising ones in November, a slight improvement from October’s net balance of minus 49 per cent, while the average number of sales per surveyor fell to 14.8 over the last three months.

RICS spokesperson Ian Perry commented: “There was little change in the housing market in November; prices continued to edge lower and sales levels generally remained subdued.

“Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to ‘wait and see’ until the new year,” he added.

Meanwhile, Zoopla.co.uk research shows the value of the average home has risen by 2.36 per cent in the last year.

Modest downward trend in house prices continues in October

“October saw a continuation of the modest downward trend in house prices that began at the start of the summer,” said Nationwide chief economist Martin Gahbauer.

The annual pace of house price growth slowed to 1.4 percent from 3.1 percent. Nationwide said that if recent trend were to continue to the end of the year, it would leave prices flat to slightly lower over 2010 as a whole — a far cry from the rise of around 6 percent recorded in 2009.

• House prices fell by 0.7% in October
• Three month rate of decline accelerates
to 1.5%
• Further quantitative easing could boost
the housing market

London Property News: Overhauling Banks Could Improve Housing Market

Splitting the investment and retail functions of British banks would help improve London house prices, it has been suggested.

James Moss, director at Curzon, said overhauling banks would help improve mortgage lending and would provide a welcome boost to the housing market.

Speaking to the Financial Times, Mr Moss said core mortgage lending against strong, long-term asset class houses has always proved to be the foundation of solid lending with safe and long-term returns for banks.

“Combining responsible mortgage lending with the rather dull but essential business of traditional mortgage lending can only be positive for both the hard pressed British consumer and the recovery and stabilisation of the UK economy,” he said.

Darren Cook, head of press and PR at Moneyfacts.co.uk, recently advised property buyers to look beyond headline mortgage rates so they can work out the true cost of a home loan and make sure that it suits their particular needs.

London House Prices Fall, But RICS Remain Positive

A further increase in the supply of property in London pushed house prices down for the first time this year, but lower prices are keeping sales expectations positive.

This is according to the latest RICS UK Housing Market Survey.

14% more chartered surveyors in London reported prices falling rather than rising in August. This downward trend in prices continues to be driven by a combination of increased supply and a moderation in demand from buyers. Regionally, surveyors are now reporting prices slipping in all regions covered in the survey apart from Scotland.

Meanwhile, the balance of newly agreed sales also fell dramatically, from positive 24% to minus 7%. However, future expectations for sales continue to remain positive with 22% more London surveyors expecting sales to rise over the next three months. This positive sentiment may be attributed to the view that a dip in London house prices will begin to tempt more buyers back to the market over the coming months.

London Property Valuations and House Prices

Setting the right price for your home will effect how quickly you sell your home. If you price your home too low, it may sell quickly but for less than you could have received. On the other hand, if your list price is too high, your home could sit on the market for months. Coming up with just the right price for your home is no easy task.

That’is why you should use the services of a professional estate agent like Paramount Properties, who will help you set the proper list price.

Follow the link for more information on property valuations and house prices in London