Statistics are proving exactly what we are all thinking – its getting more expensive to buy or rent compared with this time last year. But, how much have prices gone up?
Let’s look at properties for sale. The country’s leading property portal, Rightmove, offers some in depth analysis. Their house price index featured in the recent RightmoveBlog indicates that there have been record month on month increases in certain parts of the country.
Rightmove are reporting that property coming to the market in september hit a new national record of £294,834, up 0.9% on August figures.
In the East of England the average asking price in September was £312,600, up 1% on August, with an annual change of 8.8%. interestingly, London shows a 9.5% increase annually.
The general consensus causing these prices is limited stock of for sale properties and cheap mortgage deals.
Now, these figures are asking prices.
Let’s look at sold prices.
The Nationwide reported at the end of October that House prices have edged up by an average of 0.6% across the Uk in the last month, bringing a typical home’s cost to £196,807. Nationwide are saying that prices have risen just 3.9% over the last 12 months.
Land Registry figures for England and Wales showed prices up 5.3% over the past year – obviously a contradiction from those figures reported by Nationwide. Alarmingly, though, Land Registry report transactions are down by about 10% year on year for the same Autumn period in 2014. Does this mean the market is slowing down and prices will plateau out, or just less people looking?
Land Registry report that prices rose on average 1% in September nationally and 1.8% in the capital with the average price their being £499,997. Between April and July this year, completed transactions average 71,766 per month, down from the same period last year at 78,330.
Richard Donnell is one of Britain’s foremost housing market analysts
He is indicating that there are signs that the underlying rate of growth in the Housing market has peaked. Although one months figures don’t show a complete trend and should not be taken as whole of market situation, trends in mortgage lending, abortive sales and completed sales, there is evidence to show price rises are now slowing.
Eddie Goldsmith comments that we have reached an interesting point in a very interesting and unusual year in the property sector. Eddie Goldsmith is Chairman of the Conveyancing Association and Senior Partner at Goldsmith Williams – https://www.goldsmithwilliams.co.uk
The latest figures from the ONS house price index highlight is still outstripping supply across the country. Land Registry figures also show a bumpy ride this year with key factors slowing the market for temporary periods, ie The General Election affecting the key spring market and the Rugby World Cup slowing the busy Autumn period.
Looking at lending figures much of the growth in demand seems to be driven by the Buy To Let market. Lending to first time buyers, home owner re-mortgage have all dipped.
So, is it time to sell at the peak and downsize?
This question then leads me to think of the consequence of more property coming to the market. Will agents start selling more houses as there is a greater stock? Will prices tumble if the market becomes over-stocked? I firmly believe that there will a small increase in transaction levels and NO FALL IN PRICES. If vendors cannot achieve the right price, they simply won’t sell.
The country overall is in need of hundreds of thousands of more homes. So, more supply from the second hand market will help the country and give buyers more choice. We all demand a good choice of product, whatever we are buying. From clothes to cars, electrical equipment to DIY material, suppliers of services to utilities companies.
In the run up to Christmas, if you want to know the value of your home with a view to marketing in 2016, simply contact us for a FREE Moving Meeting. There is no pressure or hard sell, just honest professional advice.