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 Property News: London to outperform UK property market

Property in London will fare better than the rest of the country, an industry expert has said.

Jane Marr, company director at property advertising website Little House Company, predicted that the capital would see a rise in house prices.

“It seems to me that house prices will stay about the same without much movement nationally, however where it is hard to sell a property we will inevitably see house price falls,” she added.

“At the same time, desirable locations may suffer with a lack of housing inventory, generating small price rises. Central London in particular may see house price rises as demand increases – especially in the high-end luxury market fuelled by overseas money and the wealthy.”

The comments come after figures from Rightmove.co.uk suggested that an increasing number of people are searching for new properties on its website.

Properties for sale are now staying on the market for an average of 89 days, down from 98 days outlined in its previous report.

London Property Market News

First Time Property Buyers News: Recession has led to Inaccessible Property Ladder

The global financial downturn has resulted in many first time property buyers facing a “property mountain”, iammoving.com and utilitell.com have argued.

Jon Brown, partner relationship manager of the websites, said first time buyers are currently “unable to even negotiate the foothills” because banks are increasingly making their UK mortgage lending criteria more stringent.

The good news for off shore landlords with property in London and other parts of the UK is that more individuals will be turning to rented accommodation.

“The reality of this situation is that for the next year, and perhaps the foreseeable future, aspiring first-time buyers and home-movers will have to set up base camp and weather the storm in a rented property,” Mr Brown commented.

If the government is to help the London property market become more accessible, it could provide incentives for banks to lend or set aside more funding for affordable housing in London and other desirable locations, he added.

His comments follow a report from the BBC which found banks and building societies do not expect a significant recovery in mortgage lending next year.

First Time Property Buyers News

City Of London Residents ‘Least Interested in London Property Market’

London is the online curtain-twitching capital of Britain, where more residents monitor the value of their neighbour’s homes than anywhere else in the country.

Continued housing market uncertainty has increased British homeowners’ obsession with keeping tabs on the value of their biggest asset and comparing it to that of their neighbours.

The figures, based on over two million value estimates run by users of the Zoopla.co.uk website, show that London is home to the ‘nosiest neighbours’ in Britain, who regularly check the value of their neighbours’ properties online, followed closely by residents of Reading and Milton Keynes. At the other end of the scale, residents in Liverpool, Hull and Wolverhampton show the least interest in keeping up with the values of their neighbours’ homes.

Within London, the research revealed that the nosiest residents are to be found in Richmond-upon-Thames, Wandsworth and Hammersmith & Fulham, whilst those least interested in keeping up with the Joneses can be found in are Hackney, Barking and Dagenham and the City of London.

London Property Market: Shared Ownership Schemes ‘Might be Ideal for Prospective Buyers’

Shared ownership schemes might be a good way for young people who are unable to access the London housing market to secure their first home, but participants must take care to read the small print.

This is the view of David Amstell, founder of briffy.com, who said such schemes for affordable housing in London have been around for a long time and can be a good way for first time buyers to get into the market.

“It has become more difficult than ever before to get onto the market and if [shared ownership] is the only way of doing it, then I think they should go for it.
“If you can’t get into the market without that scheme then they are helping certain people,” he added.

His comments follow research by Halifax which found that 69 per cent of respondents would consider using a shared equity or ownership home as it would make property-buying more affordable for them.

Social Housing News

London Property News: Property Market Caution

There remains a level of caution in people’s approach to housing funding in the UK, it has been claimed.

Bernard Clarke, a spokesperson for the Council of Mortgage Lenders, said that borrowers continue to have a cautious approach when seeking funds for a new home.
The remortgaging market appears to be slightly more lively, however, Mr Clarke said.
A few more competitive deals are in place in this sector, he said, adding that the lowest risk options are available to those with more equity in their property.

“There has been the launch of some quite competitive and attractive remortgaging deals so we may begin to see some improvement in remortgaging in the coming months,” he said.

His comments follow recent research from the British Bankers’ Association which found there was a drop in new mortgage approvals in September when compared to the previous month.

Earlier this month, the Council of Mortgage Lenders revealed that remortgaging activity accounted for 25 per cent of home loans in August – the lowest proportion for ten years.

Mortgage Rate & Home Loan News

Rightmove Chairman Discusses Property Market

Miles Shipside, commercial director of Rightmove Plc, talks about the property Web site’s house price index.Shipside Says U.K. House Prices `Seemingly Illogical’in this you tube Video.

London Sellers Test the Market

September saw an influx of new instructions as homeowners tested the London property market, driven by concerns over the future of the economy, says the latest RICS UK Housing Market Survey.

33% more London chartered surveyors reported a rise rather than a fall in new instructions, up from 15% in August. The increase appears to come as homeowners test the market ahead of further public spending cuts, or try to sell before a possible deterioration in the economy. Regionally, the North saw the biggest leap in new instructions, while the South West and Yorkshire and The Humber also reported large increases in seller activity.

Meanwhile, demand for property in London increased, with 8% more surveyors reporting a rise rather than a fall in new buyer enquiries, up from a net balance of minus 6% in August. This increase reflects the return of some buyers to the London market, influenced by more choice and lower prices.

As a result of the continued imbalance between supply and demand, prices declined for the second month in a row. 26% more surveyors reported a fall rather than a rse in house prices in September, up from a net balance of minus 14% the month before. Surveyors’ future expectations for prices also fell, with 43% more surveyors expecting prices to fall rather than rise, the lowest level since February 2009.

More positively, 9% more surveyors reported a rise rather than a fall in newly agreed sales, up from a net balance of minus 7% in August. This suggests that if buyers can access mortgage finance, transactions are taking place. Looking ahead, surveyors’ future expectations are less positive, with just 1% more surveyors expecting sales to rise rather than fall, a decline from 22% more the previous month.

London Property Surveys, News & Reports

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London Residential Property Market Improvement

Residential property values declined through much of the United Kingdom for the first time in over a year, according to the Royal Institution of Chartered Surveyors (RICS). Ian Perry, representing RICS, noted that the reason behind the decline is related to an increase in the supply of properties for sale, as well as a much more cautious approach to buying, on the part of many Britons. Many potential buyers are fearful of the possibility of another economic slowdown this year and as such, property prices may continue to slip in the coming months.

But Trevor Kent, once the head of the National Association of Estate Agents, now points out that homeowners and landlords must be careful when examining national statistics on the residential property sector and avoid attaching too much importance to them. There are very significant discrepancies from one region to another. Kent added that just as how “all politics are local,” property values are also based on local realities.

Kent noted that many residential property owners in the UK must be bewildered to hear so much about the supposed recovery over the past year. While property prices in England’s south east, in much of London and even in the North’s Cheshire increased markedly, the improvement was far less pronounced and even non-existent in other parts of the country.

James Moss of Curzon Property Investment told The Independent that property prices in the Midlands and parts of Wales may be impacted by planned cuts to the public sector, which plays a key role in their economy. In contrast, London real estate may continue to benefit from last year’s drop on the pound’s value. Foreign investors often enjoyed around a 30 percent decrease in prices, due to changes in the value of Sterling, over the past year.