Mike Smuts November 11, 2017 Uncategorized no responses

Since Brexit, the number of residential property sales completed in England and Wales has reached 901,129 – a decline of 22% compared to the total number of sales completed over the same period leading up to the Brexit vote, with a drop of 18% in the average monthly number of completions across both periods.

New research by eMoov.co.uk, has shown the average price of the total number of properties sold has increased in the 15 months since Brexit, up 7% from £213,444 to £228,968.

Key findings

  • In the 15 months leading up to the Brexit vote, there was an average of 77,260 property transactions a month across England and Wales with an average sold price of £213,444.
  • Between Britain voting to leave the EU and the triggering of Article 50, this dropped to 63,159 transactions a month on average – a drop of 18%.
  • During the same period, the average sold price for a property completing increased by 6% to £226,408, despite slower market conditions.
  • Britain triggering Article 50 restored a brief air of stability to the property market in England and Wales, with the average monthly volume of residential property sales completed increasing by 6% in April and May of 2017, to 66,939 a month on average, with the average sold prices also increasing by 2%.
  • The call of a snap election and the disastrous outcome for the Conservatives once again caused the market to stall, with the average monthly volume of residential property sales having since plummeted 26% to just 49,706. Despite this, the average price of properties sold at this time again increased by 2%.

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Mike Smuts November 8, 2017 Uncategorized no responses

Figures released from Halifax have shown that between August and October house prices were 2.3% higher than in the previous three months (May-July). This is the fastest price growth, on this measure, since January.

Other figures released

  • Prices in the three months to October were 4.5% higher than in the same three months a year earlier.
  • The annual rate in October is higher than in September (4.0%) and at its highest growth rate since February.
  • House prices rose by 0.3% between September and October, following a 0.8% increase in September. The average price of £225,826 is the highest on record and 2.8% higher than in January (£219,741).

Russell Galley, Managing Director, Halifax Community Bank, said: “The annual rate of growth has continued to rise for the third month in succession, rising from 4.0% in September to 4.5% in October. The average house price is now £225,826 – exceeding last month’s previous high. House prices in the three months to October were 2.3% higher than in the previous quarter, the fastest quarterly increase since January.

The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months. Increasing pressure on household finances and continuing affordability concerns are some of the factors likely to dampen buyer demand. That said we do not anticipate the Base Rate rise will be a barrier to buying a house.”

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Mike Smuts November 2, 2017 Uncategorized no responses

The Bank of England has voted to increase interest rates for the first time in more than a decade. The rise means the rate has moved from its historic low of 0.25pc to 0.5pc.

BoE Govenor Mark Carney and six other members of the Monetary Policy Committee voted for the rise, with two members voting to keep rates on hold.

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Mike Smuts November 2, 2017 Uncategorized no responses

The latest data released from Nationwide has shown that, during October, the annual rate of house price growth rose slightly to 2.5%.

Robert Gardner, Nationwide’s Chief Economist, had this to say: “Nevertheless, annual house price growth remains within the 2-4% range that has prevailing since March. Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence. The lack of homes on the market is providing support to house prices.

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Mike Smuts November 1, 2017 Uncategorized no responses

The latest data from Nationwide, annual house price growth remained stable in November at 2.5%

Robert Gardner, Nationwide’s Chief Economist, said: “The annual rate of house price growth remained stable in November at 2.5%. Nevertheless, annual growth remains within the 2-4% range that has prevailed since March. Low mortgage rates and healthy rates of employment growth are providing support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence. The lack of homes on the market is providing support to house prices.

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Mike Smuts October 21, 2017 Uncategorized no responses

A newly released report written by the former policy chairman of the City of London Corporation, Sir Mark Boleat, report has called for a radical planning shake-up to solve London’s housing crisis.

In his paper for The Housing & Finance Institute, Sir Mark demands action to force local authorities, central government departments, the health service and transport bodies to stop hanging on to surplus space, or face financial penalties.

For the first time, Sir Mark also dispels many of the myths for why there are shortages of housing in London. He cites evidence to dispel the myth that foreign buyers are to blame for the housing shortage in London, the myth that there is brownfield land alone is sufficient to meet demand in the capital and he counters the notion that with more housing must necessarily also come the provision of extra funding for all other public services if what is urgently needed is the housing in order to house the existing population.

The report identifies six inter-related factors that are restricting the supply of new housing:

1.     Policies on land use, particularly in respect of the Green Belt.

2.     The imposition of a high tax on house builders through planning obligations, and a planning system geared to the “haves” not the “have nots”, which adds considerably to costs of building housing, including through the imposition of conditions that have to be complied with before building can commence.

3.     The reluctance of public sector bodies to release surplus land.

4.     The complex nature of sites that have the potential to be used for house building.

5.     Inadequate infrastructure provision.

6.     The nature of the house building industry, which has become increasingly dominated by a small group of large developers, partly in response to the five previous points.

The paper sets out a ten-point plan to get London building again. There needs to be:

1.     An evidence-based debate and recognition that there are trade-offs.

2.     Recognition that the problem will not be solved by building on brownfield land alone.

3.     Recognition that the higher the tax on house building through planning obligations the fewer houses will be built. 30 per cent of a large number can be much higher than 50 per cent of a small number.

4.     A change of policy towards land use, including the Green Belt, and permitting higher densities.

5.     Strong penalties on public sector bodies that fail to release surplus land.

6.     Planning conditions to be reduced significantly, costed and deemed to be discharged within seven days of certification by the developer, unless the local authority has clear evidence that the conditions have not been complied with.

7.     Ensuring that planning decisions in local authorities are joined-up with wider policy objectives.

8.     Planning decisions should be taken by relatively small panels, who have received appropriate training, and representatives of an area in which a development would take place should be excluded from voting on that decision.

9.     Simplification of the Community Infrastructure Levy and S.106 requirements particularly for social housing.

10.  Political leadership in individual local authorities, without which the problem will never be solved and which is a pre-requisite for addressing the other issues.

Sir Mark continued: “For too long people influential in the debate have been allowed to get away with inaccurate assertions.

 The full paper can be viewed here https://www.boleat.com/materials/housing_2017.pdf

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Mike Smuts October 19, 2017 Uncategorized no responses

Recent data and analysis from ONS has shown that across the UK during August average house prices rose by 5% – a 0.5% increase from July.

Other Key Findings

  • According to ONS, this is above the average annual growth rate, which the organisation suggests has “remained broadly under 5%” during 2017 so far.
  • The main contribution to the increase in UK house prices came from England, where house prices increased by 5.3% over the year to August 2017
  • Average house price in England now £244,000.
  • Wales saw house prices increase by 3.4%. In Scotland, the average price increased by 3.9% o
  • The North West showed the highest annual growth, with prices increasing by 6.5% in the year to August 2017.
  • East of England, East Midlands and South West, where prices increased by 6.4% in each. The lowest annual growth was in London, where prices increased by 2.6% over the year, followed by the North East at 3.7%

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Mike Smuts October 18, 2017 Uncategorized no responses

Recent analysis from Rightmove has revealed that, during October, house prices in the UK saw a monthly increase of 1.1% – the largest increase since the 1.4% rise seen in October 2014.

Other key findings

  • Average time from first advertising on Rightmove to being marked as sale agreed by an estate agent is 63 days.
  • The properties that are moving the quickest are in the second stepper property sector, where the average time taken to find a buyer is 60 days.
  • Typical first-time-buyer type properties, with two bedrooms or fewer, also just undercut the average with time to sell being 62 days.
  • Properties with five bedrooms or more with four bedrooms detached, with this “top of the ladder” category taking a current average marketing time of 76 days. The extra challenge to sell these larger properties is especially noticeable in London, where the average time to find a buyer is now 86 days.
  • 2017 still remains ahead of 2016 on sales agreed numbers, with the year to date being 1.1% ahead of the previous year.

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Mike Smuts October 12, 2017 Uncategorized no responses

Recent data from Homelet has revealed that rents in the UK rose by an average of 2.1% during September

Other Key findings

  • The highest increases in rents were seen in Northern Ireland 4.3% followed by the West Midlands  3.9% and the East Midlands (3.7%).
  • Rents in the capital were 1.9% higher last month than in September 2016.
  • Average tenancy agreed in London last month costing £1,593.

Martin Totty, HomeLet’s Chief Executive Officer, said:

“In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants. This may prove to be the start of that upward movement, especially if tenants are left competing for fewer rental properties because some landlords decide the returns from property investment are being eroded by factors beyond their control.”

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Mike Smuts October 11, 2017 Uncategorized no responses

The latest analysis from Knight Frank has shown that the Prime Central London housing market is moving towards recovery mode.

Growth in higher price brackets continued to outperform lower price brackets, indicating how higher rates of stamp duty that initially affected demand at the top end of the market are becoming assimilated.

Key findings from the year to September

  • Between £5 million and £10 million prices declined 2.3% in the year to September, which compared to a 5.3% decline between £1 million and £2 million.
  • A key demand indicators show there was a 4.9% rise in the number of new prospective buyers
  • Viewing levels were up by 8.9% over the same period.
  • Transaction volumes rose 9.8% between January and August
  • There was more restraint on the supply side, with stock levels coming to the market declining. There was an 18.2% drop in the number of new listings above £1 million across the whole market in prime central London

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