Property News Round-up: House Prices Rise Over 5% in England
House Prices In England Rise 5.6% – ONS
Stories detailing the north south divide are nothing new but what about the country divide? The latest Office for National Statistics (ONS) figures for house price rises show that not only do prices rise faster overall in England than Scotland, Wales and Northern Ireland, but the rise is greater in every part of England compared to the other countries. The only exception being the north east of England which level-pegged with Northern Ireland on 2.9%. The statistics, which cover the 12 months to August this year, show an average price rise in England of 5.6%, with the East of England and South East of England outstripping all other regions on 8.8% and 7.4% respectively. The ONS also indicated that property prices are rising faster for owner occupiers than they are for first time buyers. Click here to download all the house price index tables from the ONS. See the BBC’s report on the changes:-http://www.bbc.com/news/business-34514642
Seasonal Drop in Mortgage Market
Mortgage lending fell back in August compared to July, according to the latest figures from the Council of Mortgage Lenders (CML) but was still up compared to August 2014. There was a drop across the board in home loans – first time buyers, buy to let, home movers and remortgages – compared to the previous month, but the CML is attributing this to the usual seasonal drop-off in the peak summer month. ”Seasonal factors pushed all categories of lending lower in August compared to July,” said Bob Pannell, chief economist of the CML. “However, the mortgage market continues to see year-on-year growth, and we expect this to continue over the coming months. “ As the chart below indicates the year on year figures for lending remain robust despite the seasonal drop, especially for buy to let mortgages – up 40% tear on year.
Another indication of the drop in August compared to July being seasonal is illustrated by the lending in August still being the highest for that month since 2007. Interestingly, 44% of all lending came from people taking their first step on the property ladder. For the full breakdown on August’s home loans market, visit: –
The Cost of London’s Housing Crisis
A new report claims the cost of buying and renting homes in London will lose the economy £2.7bn in consumer spending this year.
The research by the Centre for Economics and Business Research (CEBR) points the finger at escalating house prices in the capital and crippling rents as costing the economy 1.65% of overall consumer spending. They also claim the cost to business in having to pay higher wages due to inflated housing costs will be £5.4bn. The CEBR study was carried out on behalf of Fifty Thousand Homes – a business backed campaign to create new housing.For more, see:
Rent Rise Growth Slows Down
Oh dear this is the end. Quick, quick, sell everything that’s not nailed own. We jest. It is a mere reduction in rate of growth. After year on year rental increases of over 10% in the last two quarters, the quarterly figures for September saw a year on year increase of ‘only’ 8.5%, according to the HomeLet Rental Index.
The report accompanying the latest figures says the overall average rent for new tenancies in the UK for the last quarter was £995. London tops the average, unsurprisingly at £1,555 while the North East brings up the rear at £541. And the cause of this negative growth rate? “Affordability is an important factor in determining rents,” said Martin Totty, Barbon Insurance Group’s Chief Executive Officer. “ Depending on what happens with inflation and real incomes over the coming months, could have a bearing on future rental price trends especially where, in certain areas of the country, the supply of rental properties is not keeping pace with demand from those wishing to be private sector renters.”
The House of the Spirits
Ever been invited to someone’s house for a Halloween party and it’s been about as scary as Orville the Duck dressed as Dracula. Some pumpkin heads aglow, bobbing apples for show, and faint hearted forays into fancy dress. We have. Often. But imagine if the party was held in a house where people were buried in the back garden. Imbibe a few spirits, let your imagination kick in and you’d be certain you’d seen a few spirits. Such is the prospect for one home that featured in the week’s most shared property story on social media. For £450,000 you can own your own gothic church located in the Lincolnshire countryside complete with adjoining… graveyard. The estate agent dealing with it describes the church, rightly, as a stunning home – stained glass windows in the kitchen – but believes people have been put off because of the graveyard. Not because of the thought that while relaxing in the conservatory people would be laying wreaths and wailing in the garden – the last people were buried over 150 years ago –but more for reasons of mawkishness. That it just doesn’t feel right. See whether a graveyard would be enough to deter you from such a property.