April 29, 2010

House Price Inflation Reaches Double Digits

Filed under: House Prices — Gary Howe @ 9:21 am

House prices increased by 1.0% month-on-month in April, annual rate of price inflation moves into double digits for first time since June 2007, house prices are 10.0% below the October 2007 peak, reveals the latest Nationwide House Price Index. “The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month (m/m) in April, leaving house prices 10.5% higher than a year earlier. Over the lifetime of the last Parliament (May 2005 to April 2010), house prices have risen by 6.7%. This compares to a 13.5% increase in the consumer price index, the official target measure of inflation. April’s figures show the first double-digit annual growth in UK house prices since June 2007. The year-on-year rate in this month’s figures, however, received an additional boost from the fact that April 2009 was one of the weaker months last year. “Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward. “The smoother three month on three month rate of inflation edged down further from 1.5% in March to 1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices. April’s figures leave UK house prices exactly 10% below the October 2007 peak.

April 26, 2010

House Prices Rise Slightly

Filed under: House Prices — Gary Howe @ 1:35 pm
Average prices in the UK rose by a mere 0.2% in April, research conducted by Hometrack shows. Key to the rise was a 0.6% increase of house prices in London. The report said that the general election is being cited as a common factor behind increasing buyer uncertainty. The proportion of the asking price being achieved remained unchanged at 94% in April. Richard Donnel, director of research, said: “The supply of homes for sale continues to outstrip demand. This is a trend that has been evident for the last quarter, but lies in stark contrast to the final months of 2009 when buyers far outnumbered the supply of properties for sale.”

UK Economic Growth Slows To 0.2%

Filed under: Financial News — Gary Howe @ 1:34 pm
The economic recovery slowed slightly during the first three months of 2010, the first official estimates have reported. Gross domestic product (GDP) increased by 0.2% in the first quarter of the year, figures from the Office for National Statistics (ONS) show. The final quarter of last year saw GDP increase by 0.4%, but the final figure was revised upwards from an original estimate of just 0.1%. The cold snap was cited as one of the reasons for the weak growth, which could yet be revised up or down as more relevant data is released. A figure of 0.4% for the first quarter of the year had been predicted by experts and analysts. The ONS said that business services and finance was the largest contributor to the positive growth, while total production, transport, storage and communication also had a positive effect. This was partially offset by a decrease in output from distribution, hotels and restaurants, and construction. “Although still weak, GDP has now recovered for two quarters in a row, so it is important for policy-makers to focus on ensuring that the recovery continues and a double-dip recession is avoided,” said David Kern, Chief Economist at the British Chambers of Commerce. “As soon as the election is out of the way, it is critical for a new government to put in place a credible deficit-reduction plan that allows business to lead a sustainable recovery. Without a credible plan, there are serious risks that the fragile economic upturn will fizzle out.”

April 20, 2010

UK Inflation Climbs To 3.4%

Filed under: Financial News — Gary Howe @ 12:23 pm

The Consumer Prices Index, the government’s target measure of inflation, rose from 3% in February to 3.4% in March. Data from the Office for National Statistics shows housing and household services were slightly higher in February and March but fell a year ago. Gas bills were one of the main drivers for higher costs, as although average bills were unchanged between February and March this year but were lower a year ago. Inflation was also driven by movements in petrol and diesel prices, air fares, food and non-alcoholic drinks and clothing and footwear. But prices for furniture, household equipment and maintenance rose by less than a year ago. The Retail Prices Index, which includes mortgage payments, stood at 4.4% in the year to March, up form 3.7% in February. Mortgage payments rose by 0.7% this year but fell 6.3% a year ago.

April 19, 2010

Gross Mortgage Lending Rises 24% In March

Filed under: Mortgages — Gary Howe @ 12:36 pm

Gross mortgage lending was an estimated £11.5bn in March, a 24% rise from £9.3bn in February, according to the Council of Mortgage Lenders (CML). However, gross lending for Q1 2010 was an estimated £29.5bn, a 24% decline from the Q4 2009 (£38.9bn) and a 9% decline from £32.4bn in the first three months of 2009. This is the lowest quarterly lending total since the first three months of 2000, but is in line with the CML’s forecast of a gross lending total of £150bn this year.

Home Sellers Raising Prices

Filed under: House Prices — Gary Howe @ 12:32 pm

Home sellers have ignored pre-election uncertainty and economic woes to increase their average asking price by almost £6K over the past month. According to Rightmove, there was a 2.6% rise in the price of homes new to the market in April, a stark contrast with the rise of just 0.1% witnessed in the previous month. Meanwhile, the number of properties being put up for sale has recovered to levels not seen since before the collapse of Lehman Brothers in September 2008. “With weather disruptions out of the way, more sellers are coming to market and they appear to be ignoring the uncertainties facing potential buyers,” said Miles Shipside, commercial director of the property website. “Prices are up, but so is choice, and the two are not happy bedfellows in the longer term.”

April 14, 2010

UK Facing Severe Housing Shortage

Filed under: Rental — Gary Howe @ 1:07 pm

There is not enough rental property to meet consumer demand in the UK – and the situation is worsening, according to Q1 research from the Association of Residential Lettings Agents (ARLA). Insufficient supply of good quality property means that the private rented sector (PRS) is struggling to meet demand.  With the PRS picking up the slack from the housing market, ARLA believes that the next Government must focus on averting the sector from crisis. “More than two thirds of our agents have seen demand outstrip supply across the country – there simply isn’t enough housing stock coming onto the rental market. The Government’s move to help first-time buyers by raising the Stamp Duty threshold was a step in the right direction. Now we need to see tangible measures to support the PRS.” “Investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties.  This will improve standards, help the environment with improving insulation, and encourage much-needed investment to help get the market back on its feet. “Banks need to be told to be more flexible about the provision of finance for the Buy-to-Let sector which has fuelled the supply of good quality homes, and saved this government from an even greater housing shortage. Without these kinds of measures there is a serious risk that a shortage or rentals will create another form of housing crisis.” The research, conducted among UK letting agents and landlords, shows that during Q1 2010, two thirds (59%) of ARLA member agents reported more tenants than properties available.  This is a 50% rise on the last quarter (41%) and in Q3 2009 the figure was just 24%.
The speed with which tenants are snapping up homes to rent is also telling – properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks at the same point last year.

Modest Recovery In Mortgage Market

Filed under: Mortgages — Gary Howe @ 1:03 pm
The mortgage market witnessed a modest recovery in February, according to the latest data from the Council of Mortgage Lenders (CML). The number of loans advanced for house purchase increased by 12% during the month, but came off the back of extremely weak figures seen in January brought about by the end of the stamp duty exemption in December and the severe winter weather. As a result, the CML said the 35,000 loans advanced during the month represented only a modest recovery, despite being up by 49% from a year earlier. The dearth of first time buyers in January meant their numbers rose slightly faster than the rest of the market in February, with 12,600 loans advanced, up 13% compared with the first month of the year. Home mover activity, being less affected by the stamp duty holiday, saw a smaller rebound, with 22,600 loans advanced, 11% higher than the previous month. Remortgaging activity remained weak, although a 2% rise in loans advanced was the first increase witnessed in five months. With interest rates pegged at their historic low, fixed rate mortgages continued to be less popular than in the recent past, accounting for just 47% of the market, the lowest share in around five years. “With the supply of credit still tight and the upcoming election causing political uncertainty, we are unlikely to see much change in the near future,” said CML head of research, Bob Pannell.

April 13, 2010

UK House Prices Up 7.4%

Filed under: House Prices — Gary Howe @ 3:29 pm

The UK average house price rose by 7.4 per cent in the year to February 2010, compared with a rise of 6.2 per cent in the year to January, reveals the latest UK house price index statistics produced by Communities and Local Government. Between January and February there was a fall of 0.1 per cent in house prices compared with a fall of 1.1 per cent over the same period last year. Despite a small fall in the UK house price index in February 2010, there is still strong annual growth in prices. Annual house prices rose in all UK countries except Northern Ireland in the year to February 2010. Annual house price growth was 7.9 per cent in England, 4.7 per cent in Wales and 4.2 per cent in Scotland in February whereas in Northern Ireland house prices fell by 8.3 per cent on average in the year to February. Average mix-adjusted house prices rose between January and February in the North East region only, and fell in the remaining eight regions (non-seasonally adjusted). The annual house price rates of change in England ranged from 3.5 per cent in the North East to 10.6 per cent in London. The annual growth rates in the other regions were 3.9 per cent in the West Midlands, 5.1 per cent in both Yorkshire and the Humber and the East Midlands, 5.3 per cent in the North West, 7.5 per cent in the South West, 8.5 per cent in the East and 10.0 per cent in the South East.

April 9, 2010

House Prices Rise

Filed under: House Prices — Gary Howe @ 2:13 pm
House prices regained their momentum last month, with an eighth rise in nine months. Values had fallen by 1.6% in February, but last month’s 1.1% rise has partly negated the drop. The average house price in the UK ended March at £168,521, according to the Halifax house price index. Annually, house prices are 5.2% higher, which is the largest increase in the annual rate of change – measured by the average for the last three months against the same period a year earlier – since December 2007. However, the rate at which prices are increasing has slowed; values in the first three months of 2010 were 0.6% higher than in the final quarter of 2009. By contrast, the rise between the third and fourth quarters of last year was 3.6%.
Older Posts »