Real Estate & Property Investment News in United Kingdom from Propertyshowrooms.com

Quiet summer forecast for UK property market

Fri, 17 Jun 2011 00:00:00 GMT

The UK property market is forecast to have a quiet summer, as bank lending remains subdued and the country's economic forecast is uncertain.

According to the Council of Mortgage Lenders (CML), there was a slight increase in mortgage lending in April, although this was twinned with a decline in property purchase approvals.

The firm explained that there were 40,900 loans, worth £5.9 billion, advanced for house purchase in April, up from 37,900, worth £5.5 billion, in March and down from 41,900, worth £6 billion, a year earlier.

Michael Coogan, CML director general, commented on the news, stating that overall the market continues on a stable footing and the increase in house purchase lending is a good sign that the stability will continue throughout 2011.

"The economic outlook, coupled with Bank of England subdued approvals data for April, suggests a muted summer for mortgage completions so we do not expect further increases in lending over the coming months," he added.

Spring boost fails to materialise in UK property market

Wed, 15 Jun 2011 00:00:00 GMT

Fears over the health of the UK economy and a lack of available mortgage finance meant that the expected spring boost in the residential market failed to materialise, it has been suggested.

The latest report from the Royal Institution of Chartered Surveyors (Rics) found that transaction and activity levels in the country remained depressed in May, with only five per cent of surveyors reporting an increase in sales compared to the previous month.

Completed sales per surveyor also fell by 3.4 per cent in the three months to May, to just 14.7, the lowest level since January.

House prices, meanwhile, 28 per cent more surveyors reported price falls rather than rises, the lowest reading since the beginning of the year. However, of those respondents seeing falling prices, the vast proportion, 82 per cent, reported declines within the zero to two per cent margin.

"Buyer interest in purchasing property remains flat across much of the country and there is little sign of this changing any time soon," said Rics housing spokesperson, Ian Perry.

"Uncertainty over the economic outlook remains as important as the availability of mortgage finance in depressing demand."

High demand pushes UK rental prices up

Fri, 10 Jun 2011 00:00:00 GMT

An increase in tenant demand and a low level of new rental property coming onto the market means that now is a good time for buy-to-let investors in the UK, it has been claimed.

The factors have helped to push rents higher in the three months to April, the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors (Rics) revealed.

In total, 42 per cent more surveyors reported that rents rose rather than fell in the past three months. This is up from 40 per cent in the previous quarter's survey.

Rics spokesperson James Scott-Lee explained that the imbalance between supply and demand means that rents are only expected to rise further still.

"Although we are beginning to see more mortgages aimed at first-time buyers, many potential homeowners are still restricted from getting a foot on the property ladder, leading to increased demand in an already oversubscribed rental market," he added.

Short-term UK property investments 'no longer viable'

Thu, 9 Jun 2011 00:00:00 GMT

Average house prices in the UK have fallen by around 4.2 per cent over the past year, figures from Halifax have revealed.

The decrease forms part of a growing trend in which investors can no longer simply purchase a property, sit back and watch it rise in value.

As such, Peter Mindenhall, researcher at IPINGlobal.com, noted that buying a UK property without a long-term plan is no longer viable due to variations between localised markets.

"Short-term investors attempting to 'flip' property will obviously be having a tough time," he explained.

Mr Mindenhall added that although some investors with high loan-to-value mortgages will currently be fearful of experiencing negative equity, others will feel more comfortable about their situation.

"Long-term investors with low loan-to-value mortgages or that have paid cash are likely to be less concerned, [because] even if and when interest rates rise they will still have a reasonable comfort zone," he said.

Seaside towns enjoy exponential property price growth in the UK

Mon, 6 Jun 2011 00:00:00 GMT

Seaside towns in England and Wales have enjoyed massive growth in property values over the past ten years, with many seeing prices more than double over the period.

The latest research from Halifax noted that average house prices rose by 128 per cent in many coastal areas.

Southern seaside towns were found to be the most expensive, with a significant North-South divide in house prices emerging, the firm said.

Indeed, all ten of the most expensive seaside towns are on the south coast with Sandbanks in Dorset coming out on top with an average house price of £532,652

This is followed by Padstow (£381,916), Wadebridge (£370,902) and Fowey (£363,494).

Nitesh Patel, housing economist at Halifax, commented: "Seaside towns have always been popular places to live, but they have perhaps become even more so in recent years. This is certainly true if we take house prices as an indicator of desirability.

"Over the past decade, the average house price in seaside towns has risen at a faster rate than for all properties in England and Wales generally."

UK landlords expect tenant demand to rise

Thu, 2 Jun 2011 00:00:00 GMT

Some 49 per cent of UK-based landlords believe that now is a good time to invest in new property.

In comparison, just 19 per cent of those questioned by LSL Property Services plc are looking to reduce their portfolios.

Demand for buy-to-let property is forecast to grow in the coming 12 months, with figures showing that 185,600 fewer first-time buyers entered the property in the last year compared to the level before the downturn.

As a result, many are staying in the private rental sector.

Indeed, in the past three months, 52 per cent of landlords have reported a rise in tenant demand and 68 per cent expect demand to grow further in the next twelve months.

David Newnes, estate agency managing director for LSL Property Services plc, said: "Optimism among landlords is not only buoyant, but increasing.

"Soaring rents and climbing demand from frustrated first-time buyers are not only making buy-to-let an attractive proposition for new property investors - but are encouraging existing landlords to grow their holdings before property prices increase once more."

UK house prices fall but analysts remain confident

Wed, 1 Jun 2011 00:00:00 GMT

Despite new research suggesting that house prices in the UK are falling at their fastest annual rate in 18 months, market analysts remain confident about future prospects.

Property search company Hometrack's research has found that values are around 3.7 per cent lower in May when compared to a year previous, with the late Easter break and bank holiday weekends impacting demand.

The survey also showed that the number of new buyers registered with estate agents fell by 0.5 per cent over the month, the first decline since January.

However, analysts remain more optimistic, with some forecasting that the UK market will hit rock bottom this year and begin the road to recovery.

According to the Centre for Economics and Business Research (CEBR), the recovery will be gradual.

"We think the market is currently close to the bottom for the UK as a whole and there are signs prices will stabilise over the second half of the year. The main factor driving up prices is the shortage of available housing which has already pushed up rents," said Douglas McWilliams, CEBR chief executive.

Rents climb in London yet again

Tue, 24 May 2011 00:00:00 GMT

Investors with exposure to the London property market will be encouraged by news that rents in the capital increased for the 20th consecutive month in April.

The price of leasing a home in the buoyant capital went up by 0.4 per cent over the course of the month, research by Knight Frank revealed.

It will come as no surprise to investors that have been following recent UK market conditions, with the city clearly outperforming the rest of the UK property market in terms of real estate values and demand.

The annual growth rate now stands at 16.3 per cent, the consultancy noted.

Knight Frank's head of lettings, Tim Hyatt, said: "With strong rental growth outpacing improvements in capital value for the last year, yields have begun to edge higher, much to the relief of landlords."

It is a trend that has not gone unnoticed by investors. The Council of Mortgage Lenders last week released figures showing that buy-to-let purchases were up in Q1 2011 compared to the same period a year earlier.

Deadline set for landlords to improve energy ratings

Mon, 16 May 2011 00:00:00 GMT

Landlords must improve the energy efficiency rating of their property by 2018, following the establishment of the deadline.

From April 2018, it will be unlawful to rent out a house or a business premises with less than an 'E' energy efficiency rating.

As such, around 682,000 properties will have to be improved or taken off the market.

While the big changes come in 2018, from 2016, landlords will not be able to refuse reasonable requests from tenants or local authorities regarding improvements to the property.

Ian Potter, operations manager of the Association of Residential Letting Agents, commented: "We remain concerned about the lack of detail on greening rental stock.

"So far, there is no clarity on how energy improvements will be assessed or enforced or, importantly, how this assessment will be funded."

Meanwhile, Ian Fletcher, director of policy at the British Property Federation, said that the decision "seems reasonable for the private rented sector".

"But if the capacity does not come on stream or the Green Deal fails there will be significant consequences in terms of reducing housing supply and potentially poor works if there is a last minute rush."

UK mortgage lending increases in March

Wed, 27 Apr 2011 00:00:00 GMT

UK mortgage lending increased by 21 per cent in March, reaching £11.3 billion compared to the £9.3 billion seen in February, the Council of Mortgage Lenders (CML) has revealed.

However, despite the rise last month, the level of lending was down two per cent on March 2010.

"The housing market has emerged hesitantly from hibernation. Household finances are under a lot of pressure," said CML chief economist Bob Pannell.

"Lenders expect mortgage credit availability to improve this quarter, and this should help to underpin house purchase activity albeit at pretty low levels."

Meanwhile, the latest mortgage index from brokers John Charcol has revealed that the trend of more borrowers choosing a fixed rate to buy property in the UK has been reversed.

The firm noted that there is now virtually a 50-50 split between fixed and variable rates. It follows news that estate agents in the UK have reported a surge in demand for new property ahead of the Easter Holidays.

UK estate agents report increased demand

Fri, 22 Apr 2011 00:00:00 GMT

Estate agents in the UK have reported a surge in demand for new property ahead of the Easter Holidays.

According to the National Association of Estate Agents (NAEA), there has been a sharp increase in the number of house-hunters searching for a bargain ahead of the religious celebration.

"The significant growth in demand for homes reported by our agents suggests that house hunters are searching for a good deal on property before the traditional spike in activity over the Easter holidays," NAEA president Michael Jones said.

However, despite the increase interest from UK property buyers, the number of houses available for sale decreased slightly from 70 per branch in February to 68 in March.

The positive news comes in the wake of a recent report from Rightmove which said that the number of sellers currently active in the market far exceeds the number of buyers.

A weekly average of 28,390 properties entered the market in April - up nine per cent on 2009 figures, Rightmove said.

Sellers exceed buyers in UK property market

Tue, 19 Apr 2011 00:00:00 GMT

The number of properties for sales in the UK market far exceeds the amount of buyers in the majority of regions, a new report has found.

This is according to figures published by Rightmove, which noted that London is the only market in which buyers are in plentiful demand.

A weekly average of 28,390 properties entered the market in April - up nine per cent on 2009 figures. The increased seller numbers has resulted in the biggest monthly jump in agents' unsold stock since May 2007, Rightmove added.

"This is a clear indication that the number of properties available to buy is not being matched by the number of buyers able to proceed," said Miles Shipside, director of Rightmove.

"With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents' books that we have recorded in nearly four years."

The news follows recent comments from Jon Brown, partnership manager at iammoving.com, who suggested that a lack of demand from domestic property buyers in the UK means that house prices in the country are likely to remain at the same level as they are currently at until 2012.

Lack of demand impacting UK property market

Fri, 15 Apr 2011 00:00:00 GMT

A lack of demand from domestic property buyers in the UK means that house prices in the country are likely to remain at the same level as they are currently at until 2012.

This is the opinion of Jon Brown, partnership manager at iammoving.com, who noted that there is a growing trend of people only putting their home on the market when demand is high.

He added that a number of homeowners are opting to take advantage of the buy-to-let market and rent their property rather than sell it.

Indeed, the release of figures from the Royal Institution of Chartered Surveyors appear to support Mr Brown's belief. Statistics from the company show that the housing market remained flat in March.

Across the UK, 23 per cent more chartered surveyors revealed that they had seen prices fall over the course of the month.

"The best case scenario [is that] things will carry on as they are or perhaps improve slightly, but I can't see much of a change in housing prices over the coming months," Mr Brown added.

UK property market remains stagnant

Thu, 14 Apr 2011 00:00:00 GMT

Low property sales levels and falling demand for real estate in the UK led to six per cent more surveyors reporting a fall in new buyer activity last month.

The results of the latest Housing Market Survey from the Royal Institute of Chartered Surveyors (Rics) suggest that the country's market remained stagnant in March.

Across the UK, 23 per cent more chartered surveyors revealed that they had seen prices fall over the course of the month, albeit with values only dropping between zero and two per cent.

London was the only region which reported a rise in prices, highlighting the fact that the capital is operating under different market conditions to the rest of the country.

Rics housing spokesman Ian Perry said: "The rather negative outlook for property prices across the UK seems to better reflect the general economy than the micro climate of London.

"The low level of buyer interest in many parts of the UK continues to impact on the market, resulting in some downward pressure on prices."

Meanwhile, it follows the release of statistics from the Land Registry which found the value of a residential property in England and Wales dropped by 1.7 per cent in February.

UK home buyers are 'satisfied'

Mon, 4 Apr 2011 00:00:00 GMT

New home buyers in the UK are satisfied with the all-round quality of their purchases, the results of a new survey have found.

This is according to the latest House Builder Federation's (HBF) 2011 customer satisfaction study, which reported that some 88 per cent of buyers are very or fairly satisfied with their new home.

A similar number, 86 per cent, added that they would recommend their builder to a friend - underlining the standard of workmanship on offer in the UK construction sector.

"These results are truly outstanding and a testament to the efforts made by our industry to deliver ever increasing satisfaction levels to new home buyers," said Stewart Baseley, executive chairman at HBF.

"All the evidence we now have demonstrates categorically that as an industry we are delivering in the overwhelming majority of cases the type of product our customer's want, in a manner with which they are satisfied."

The results of the survey follow figures released by the Land Registry which show that average house prices in the UK fell by 1.7 per cent in February.

Average UK property values fall, Land Registry claims

Wed, 30 Mar 2011 00:00:00 GMT

The latest figures have revealed that average house prices in the UK fell during February, although there are a number of regional differences.

According to statistics released by the Land Registry, the value of a residential property in England and Wales has dropped by 1.7 per cent.

However, house prices in London were up 3.2 per cent in the year and in the east of England values went up by one per cent.

The biggest fall in prices over the year was seen in the north-east of England, at 7.1 per cent. The region also had the biggest month-on-month decline, dropping by four per cent in February.

London had the biggest annual rise in prices, although properties in the capital did drop in value by 0.5 per cent in February month-on-month.

The IPD UK Residential Index recently claimed that property in England offered investors double-digit annual returns last year.

Standing at 10.4 per cent, the index shows that individuals with real estate in the UK enjoyed capital growth of 7.4 per cent and income growth of 2.8 per cent in 2010.

UK property prices rise for second consecutive month

Tue, 22 Mar 2011 00:00:00 GMT

Property in the UK enjoyed its biggest increase in asking prices since May 2010 this month, the latest figures have found.

According to statistics compiled and released by the Find a Property website, prices climbed by 0.5 per cent over the course of the month.

The news may be of interest to individuals looking at UK property, with the rise suggesting that there are now opportunities to make a return on real estate within the country.

The price increase is the second month in a row that the housing market has seen a return to positive growth, following an increase of 0.3 per cent in February, the real estate portal said.

Nigel Lewis, property analyst at the firm, noted that it has been a year since asking prices rise for consecutive months.

"The unpredictable nature of the housing market means that it's impossible to predict how prices will behave throughout the rest of 2011, but this month's figures do indicate that consumer confidence is still present," he added.

UK property offers investors double-digit returns

Fri, 18 Mar 2011 00:00:00 GMT

Residential property in England offered investors double-digit annual returns last year, it has been claimed.

Standing at 10.4 per cent, the IPD UK Residential Index shows that individuals with real estate in the UK enjoyed capital growth of 7.4 per cent and income growth of 2.8 per cent.

Speaking at the IPD UK Residential Annual Launch, Mark Weedon, head of UK residential services at the firm, said: "Residential performance continues to deliver high returns with low volatility."

He added that central London property had outperformed the rest of the market and offered impressive annual growth of 13.1 per cent during 2010.

The tenth yearly residential index also reveals that residential property outperformed all other main asset classes.

"With returns of over ten per cent, year-on-year, none of the major asset classes come close," Mr Weedon said.

According to the latest real estate index published by Halifax, residential property prices recorded a fall of 0.9 per cent compared to the previous month. It means that the average house price in the country now stands at £162,867.

Fall in UK mortgage lending in January

Tue, 15 Mar 2011 00:00:00 GMT

Government spending cuts, rising inflation and cuts and extreme winter weather conditions led to a fall of 26 per cent in house purchase lending in the UK during January.

According to new data from the Council of Mortgage Lenders (CML), there were 28,500 loans for residential property purchases over the course of the month.

The organisation said that the fall will ensure that the UK real estate market remains flat, although it added that one month's data is not conclusive of the overall trend.

CML director general Michael Coogan, said that monetary pressures faced by homeowners in the country meant that the fall in lending was to be expected early in the year.

"The bad winter weather and uncertainty over interest rate rises will have exacerbated the fall in lending in January, so it would be premature to draw any firm conclusions about activity levels over the next few months," he noted.

A recent report by the Royal Institution of Chartered Surveyors revealed that a total of 40 per cent of industry professionals claim that rents have increased in the three months to January.

UK property prices fall in January

Tue, 8 Mar 2011 00:00:00 GMT

Demand for property in the UK may be set to rise over the coming weeks following news that house prices dropped in value last month.

This is according to the latest real estate index published by Halifax, which showed that residential property prices recorded a fall of 0.9 per cent compared to the previous month.

It means that the average house price in the country now stands at £162,867.

"Fewer properties have been coming onto the market in recent months. This trend, if sustained, should improve the balance between demand and supply and help to prevent a more significant fall in house prices," Martin Ellis, housing economist at the Halifax, said.

The expert suggested that investors looking to buy property in the UK will see prices fall by around two per cent in 2011, with an uncertain economic outlook expected to weigh down on demand.

Meanwhile, the latest survey by the Royal Institution of Chartered Surveyors showed a reduction in new seller instructions for the fourth successive month in January.

Demand and supply pushing UK property rents up

Fri, 4 Mar 2011 00:00:00 GMT

Buy-to-let property investors active in the UK real estate market will be pleased to hear that strong demand and falling supply are driving rents upwards.

According to a report published by the Royal Institution of Chartered Surveyors (Rics), a total of 40 per cent of industry professionals surveyed reported that rents increased in the three months to January.

As rents increased, gross rental yields have also risen sharply and they have now increased in each of the last four surveys.

"The current buoyant state of the rental market is likely to persist for some time to come, given the challenges facing the sales market. It is unlikely that finance for first time buyers will become much more readily available, while uncertainty over the economy may also deter potential homebuyers," said Rics spokesperson Jeremy Leaf.

Supply of rental property to the market continued to decrease, with four per cent more surveyors reporting decreases over the three-month period.

UK prices to increase alongside demand

Thu, 3 Mar 2011 00:00:00 GMT

The huge shortfall of property and rising demand is set to help push UK real estate prices up in the coming year, it has been claimed.

While falling home values and weak demand at the start of 2011 has left the overall market stagnant, the future is looking more positive.

This is according to Vernon Pethard, managing director of NewHomesForSale.co.uk, who has suggested that growing interest from potential buyers in new homes is helping the market to recover.

It comes as the property portal reports that it has seen the number of people enquiring to buy a new build home increase by over 60 percent year-on-year in January.

"Homeowners are making an investment in their future when purchasing a new build home. Long term benefits include reduced running costs, improved re-sale value, a healthier living environment, and the satisfaction that comes with leaving a smaller carbon footprint on the earth," Mr Pethard explained.

"With the huge shortfall in housing and the latent demand rising it would be a fair assumption that property prices will rise in line with demand over the long term."

Prime London property set for consistent growth

Wed, 16 Feb 2011 00:00:00 GMT

Rising demand and a shortage of supply will ensure that prime central London property prices continue on their upward growth spiral over the coming five years, the latest forecast from Cluttons has said.

The property consultancy claims that top-end home values will have risen by at least 2.5 per cent by the end of 2011, with further increases expected in the medium-term.

Demand from domestic investors is also likely to boost the market, with many buyers competing for the limited supply of prime property available.

"While prime central London in particular continues to benefit from overseas investors, the return of the domestic buyer to the market can in part be attributed to the return of bonuses increasing buying power, which will stiffen competition and pent-up demand from buyers who have been waiting to re-enter the market," explained James Hyman, partner for residential sales at Cluttons.

However, the forthcoming stamp duty increase to five per cent for properties over £1 million is may play an important part in transaction levels, the firm added.

London residential rents to grow 3% in 2011

Tue, 15 Feb 2011 00:00:00 GMT

International property consultant Cluttons has forecast that residential rents in the central London property market will grow by three per cent this year.

As a result, the firm believes that there will be a rise in the number of investors looking to buy property in the UK hoping to take advantage of the growing buy-to-let market.

"The continued performance of the residential market has not escaped investors’ attention, particularly in the face of growing inflation concerns," said Andrew Stanford, head of the residential consultancy division at Cluttons.

"Overseas investors remain a strong driving force for the market, with Central London offering a genuine asset in a secure market and providing diversification outside a domestic economy."

The comments come after research from property website Zoopla suggested that weaker than expected demand is leading a number of residential property sellers in the UK to reduce their asking prices.

According to the study, 37.4 per cent of all homes currently on the market have been reduced at least once in the past year.

UK landlords offered energy efficiency advice

Mon, 14 Feb 2011 00:00:00 GMT

Residential landlords with real estate in the UK have been handed advice on ways that they can make their properties more energy efficient.

The Association of Residential Letting Agents (ARLA) has revealed a number of ways that owners can take advantage of the government's new Green Deal initiative.

Under coalition plans, landlords could receive up-front financing to help ensure that their homes are as eco-friendly as possible.

The government’s aim is for all properties with an Energy Performance Certificate rating of F or G to be improved beyond that grading, which may be a significant challenge for older properties.

As such, ARLA has issued a set of simple tips for landlords to make their properties more efficient.

Among the tips offered to landlords include installing cavity wall, loft and floor insulation, as well as recommending that lagging should be installed around water pipes and boilers to minimise heat loss.

"It makes sense therefore for landlords to carry out these improvements straight away, as considerable cost savings can be made," said Ian Potter, operations manager of ARLA.

Sellers look to reduce asking prices in UK market

Fri, 11 Feb 2011 00:00:00 GMT

Weaker than expected demand is leading a number of residential property sellers in the UK to reduce their asking prices, new research has found.

Property website Zoopla.co.uk has revealed that 37.4 per cent of all homes currently on the market have been reduced at least once.

And vendors are taking off an average of 6.9 per cent of the original asking price in an attempt to coax individuals into buying property in the UK.

According to the firm, the news is a representation of sellers becoming more realistic in terms of expectations and is it is likely to be viewed as a welcome sign by hard-up buyers.

The trend is most evident at the top end of the market, with the average discount for prime properties wroth over £1 million climbing to ten per cent off the original asking price, up from eight per cent in November.

Nicholas Leeming, commercial director of Zoopla.co.uk, commented: "As a result of weaker than expected demand in the last half of last year, sellers have progressively reduced asking prices to more realistic levels in order to achieve sales."

UK housing market 'remains sluggish'

Wed, 9 Feb 2011 00:00:00 GMT

A lack of demand and a low level of supply meant that the UK residential property market remained "sluggish" during January.

These are the findings of the latest report from the Royal Institution of Chartered Surveyors (Rics), which added that demand for homes fell by seven per cent in January compared to the previous month.

However, despite the slow market, many surveyors remain optimistic about the future, with the sales expectations net balance edging up from +8 to +10.

And although price expectations remained negative, a lower percentage of those questioned forecast falls than rises in the coming months, those looking to buy property in the UK may be interested to learn.

"Uncertainty over the prospects for employment, alongside the shortage of mortgage finance particularly for first time buyers continues to weigh heavily on transactions levels," said Rics spokesperson Ian Perry.

Meanwhile, new research conducted by Halifax has found that the average cost of a house in the UK has climbed by 91 per cent over the past decade.

UK buyers paying cash for home purchases

Mon, 7 Feb 2011 00:00:00 GMT

UK-based property buyers are happier investing their money in real estate than they are storing it in a bank, it has been suggested.

According to figures released by West End-based estate agents LDG, there has been a 20 per cent increase in the number of property buyers paying in cash, compared to the same period in 2009.

Indeed, the firm explained that a total of 88 per cent of its buyers paid cash for their real estate purchases.

"Low interest rates could be an explanation for this sudden increase in cash buyers, as money in the bank is not earning a good return, so people are keen to invest in something they believe to be more lucrative," said Laurence Glynne, partner at LDG.

"People can see the stability and growth in the West End property market and feel it is a safe place in which to invest. It has benefitted from a number of regeneration schemes over the last few years and more are in the pipeline, which has boosted property prices."

Average property prices rocket in UK over last 10 years

Tue, 1 Feb 2011 00:00:00 GMT

Average house prices in the UK have rocketed up by 91 per cent over the past ten years, according to new research by Halifax.

Based on the company's own data, the national average price rose by over £78,000 from £86,095 in 2000 to £164,310 at the end of 2010.

Those looking to buy property in the UK may be interested to learn that home values in the north of the country have outperformed the south in the last decade.

Indeed, prices in the north have risen by an average of 102 per cent compared with 75 per cent in the south, Halifax said.

This has also helped to stem the gap between home values in the different regions.

Suren Thiru, Halifax housing economist, commented: "The turn of this century marked the start of a period of strong house price growth across the UK.

"The traditional home of price gains, the south, was left behind by strong growth in the north where house prices more than doubled over the period."

Property predictions 2011: Family Fortunes

Wed, 26 Jan 2011 00:00:00 GMT

The property market, like many other markets, has always generally favoured those with more collateral, equating to a two tiered system where those at the top end benefit more than those at the bottom end – and the property market in 2011 will be no different.

A UK valuation surveyor has just announced that the average loan-to-value (LTV) reached a two year peak in December - LTVs have increased by up to 14% for homes valued in excess of GBP 500K, whilst those purchasing property up to the value of GBP 125K have only seen an increase of 6%.

Mortgage lenders continue with caution when it comes to first time buyers, with the market shifting radically since the heady property days during the peak of 2007 – rather than 110% mortgages to first time and self-certified buyers, lenders require sizeable deposits and in return are offering good rates and low or non-existent lender fees.

As industry rumours suggest that interest rates will start to climb back to normal levels during the course of the next couple of years, the market looks set to become even more difficult for first time buyers, who, generally located at the bottom end of the market, face tough lending criteria, expensive rents and competitive prices. Conversely, industry experts and estate agents suggest that those with collateral in above average valued homes have remained virtually untouched by the mortgage slump.

With all sorts of cost cutting legislation due to bite in the year ahead, David Cameron has waged into the property debate with continued demands on banks and building societies to ease up on lending restrictions, in a bid to get the entire market moving again. However, with unemployment figures recorded at 2.5 million in December 2010, a New Year VAT increase and rising food and fuel prices, the availability to first time buyers may not be dictated simply by lenders, but primarily by disposable income.

This article was written and supplied by Winkworth estate agents. Specialised in selling and letting prime residential property across London and throughout the UK.

First-time buyers struggle in London property market

Fri, 21 Jan 2011 00:00:00 GMT

Kensington and Chelsea have been named as the most expensive area to buy property in London, according to a new survey.

The National Housing Federation has released its Home Truths survey which details the top ten most expensive borough's within the capital and the top five most affordable.

Average prices in Kensington and Chelsea top the £1 million mark, the data shows.

The three most affordable boroughs in London are Barking & Dagenham, Bexley and Waltham Forest.

Belinda Porich, head of London region at the National Housing Federation, said that the statistics show how unaffordable property in London is for first-time buyers.

"With average house prices of over 20 times the average income in some areas of London, it has become increasingly difficult to get onto the property ladder," she said.

"Housing associations across London are working hard to help combat the housing crisis but need continued government investment to build new homes."

Estate agents positive about UK property market prospects

Fri, 21 Jan 2011 00:00:00 GMT

The UK property market has experienced a "jump-start" to the year, with estate agents hopeful that the increase in activity will continue throughout 2011.

According to a survey conducted by the National Association of Estate Agents (NAEA), 59 per cent of those surveyed said that they had seen an increase in the number of house hunters looking to buy property in the UK during the first two weeks of the year.

This was counterbalanced by a rise in the number of potential sellers signing up to agents over the same period, NAEA said.

"The results of this latest survey would seem to indicate a renewed confidence in the housing market as we begin 2011," said NAEA president Mike Jones.

"It is encouraging to see that the majority of our agents are noting an upturn on both the buyer and seller sides and those that didn't are still reporting steady figures consistent with January of last year."

Meanwhile, a recent report from property consultants Winkworth suggested that the availability of finance from banks would determine the UK property market's recovery.

Lending to determine UK property market's future

Wed, 19 Jan 2011 00:00:00 GMT

Demand from individuals looking to buy property in the UK fell over the three months to November 2010, it has been claimed.

According to a new report from consultants Winkworth, the drop was a result of falling confidence in the sector and mortgage availability remaining tight.

Despite this, the overall number of homes for sale in the UK market remained stable and higher than the amount registered over the same period a year previous.

Commenting, Dominic Agace, chief executive officer of Winkworth, explained that lending from banks will play an important role in determining the outlook for the real estate market in 2011.

"There is much debate concerning the timing and extent of interest rate rises in 2011, but the consensus is clearly that the cycle in now bottoming out," he added.

"While this will have an impact on owners and buyers, particularly those keen to lock in fixed rate products …. It is the availability of finance which remains a key determinant of the level of activity in the housing market in 2011."

Mixed outlook for UK property sector

Tue, 18 Jan 2011 00:00:00 GMT

Real estate values in the UK will go through a mixed period in 2011, with prices not expected to move significantly up or down, it has been suggested.

According to Stuart Law, chief executive officer of Assetz, a slump in the market this year is unlikely.

"All we are going to see is a mixed period which is not particularly going up or down. The lack of housing here in the UK will continue to support pricing as will rising rents, pushing people towards purchasing instead of renting," he said.

However, analysis published as part of the Fathom/Zoopla Auction Price Index has suggested that house prices are set to fall in 2011, those looking to buy property in the UK may be interested to learn.

"We expect to see bigger falls in house prices, as measured by the lenders' indices, as we move into the new year. If the reading on the Fathom/Zoopla API remains close to its current level, then a double-digit fall in house prices through 2011 is on the cards," Andrew Brigden, senior economist at Fathom Consulting, said.

UK property prices to fall 2.5% in 2011

Thu, 6 Jan 2011 00:00:00 GMT

Average property prices in the UK are expected to fall by around 2.5 per cent in 2011, experts have predicted.

According to a survey of real estate professionals by Bloomberg, government spending cuts are the main cause of the declining values.

Speaking to the news provider, David Newnes, managing director of agents LSL Property Services, confirmed: "Buyers remain tentative about the impact of government spending cuts and the prospect of unemployment in 2011.

"There are simply too many properties coming onto the UK market that are struggling to find buyers."

It is expected that the biggest drops in value in 2011 will be seen in north-east England, Northern Ireland and parts of Scotland.

For those looking to buy property in the UK, the news could act as an incentive to make a purchase this year when real estate values fall.

Meanwhile, new figures from the Halifax have shown that mortgage affordability in the UK has risen to a 12-year high.

Mortgage affordability rises in the UK

Mon, 3 Jan 2011 00:00:00 GMT

Mortgage affordability for those looking to buy property in the UK has risen, new figures from Halifax have shown.

According to the organisation, affordability in the country now stands at a 12-year high, with 40 per cent of local authorities being branded as affordable for first-time buyers.

This figure represents a considerable improvement from the same statistic during the market high of 2007, where only six per cent of areas were judged to be affordable.

Halifax claims that the recent stamp duty threshold increase, which meant that only five per cent of fist-time buyers had to pay the tax, should be considered as one of the primary reasons for the rise in affordability.

Martin Ellis, housing economist at Halifax, commented: "The 'noughties' were a difficult period for many looking to get onto the property ladder.

"The substantial rise in house prices over much of the decade prevented many potential first time buyers from entering the market, however, affordability has improved significantly over the past three years."

Lack of demand stifling recovery in UK market

Wed, 15 Dec 2010 00:00:00 GMT

A lack of demand for real estate in the UK is stifling the recovery of the country's property market, a new index has suggested.

Figures released by the Royal Institution of Chartered Surveyors (Rics) show that analyst predictions for home values over the coming three months remain negative.

Some 44 per cent more chartered surveyors reported that prices fell rather than increased in November, a slight improvement on October's net balance of -49 per cent.

Rics explains that lack of demand from buyers continues to be the primary barrier to market growth, adding that new buyer enquiries fell for the sixth consecutive month.

However, the sharp rise in the level of property coming to the market appears to be fading and new instructions have now dipped for two months in succession.

"Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers' minds," Rics spokesman Ian Perry said.

"Meanwhile, the lack of mortgage finance continues to deter first time buyers."

UK market likely to remain stable into 2011

Sat, 4 Dec 2010 00:00:00 GMT

Ongoing challenges which remain in the UK real estate market surrounding securing a mortgage will mean that the rental sector in the country will remain strong going into 2011.

According to Caroline Kavanagh, group lettings director of Badger Holdings Group, the current record levels of demand for rental stock is being driven by the large number of individuals either priced or opting out of the sales market.

"On the supply side, we are seeing more tenants staying on in their existing properties, preferring to accept a rent increase rather than risk searching for something suitable in the open market," she said.

"This has been exacerbated by a reduction in the number of new investors entering the market to satisfy additional demand."

As such, the expert has suggested that the market will remain static as we head into the New Year, with demand outstripping supply, those with property in the UK will be pleased to hear.

UK tenants bracing themselves for rent rises

Thu, 2 Dec 2010 00:00:00 GMT

A new property survey of individuals renting real estate in the UK has found that 42 per cent expect rents to rise in the coming year.

Rightmove has announced that the number of tenants expecting an increase went up in the fourth quarter compared to a year earlier, where just 37 per cent forecast growth.

The property website operator explained that the jump was likely to have been influenced by the shortage of new homes which are currently on the market.

However, despite the rising attractiveness of the buy-to-let market to potential investors at present, many are put off by the difficulties encountered when trying to secure a mortgage.

"That the combination of longer-term tenancy and improving rental returns provides a more stable and low risk investment should, in theory, increase the number of properties in the rented sector," said Miles Shipside, director of Rightmove.

"However, the influx will remain restricted to those investor landlords who have high levels of access to cash to lessen their reliance on hard to obtain mortgage funding."

UK rents expected to rise in 2011

Tue, 23 Nov 2010 00:00:00 GMT

Individuals with buy-to-let property in the UK will be encouraged to hear that rents in the country are expected to rise next year.

According to specialist residential letting agent Belvoir, high demand for homes combined with the inability of potential property owners to get loans will play a part in the increase.

Dorian Gonsalves, managing director of the organisation, is optimistic about the future for the buy-to-let market as the impact of the comprehensive spending review takes hold.

He explained that the reasons for the increase in rents which have been seen this year are a result of the continued national shortage of rental properties and constantly-increasing demand from tenants.

"The exceptional economic conditions that we are currently experiencing are predicted to continue for the foreseeable future. Potential homeowners will continue to have difficulties obtaining mortgages and saving for a deposit," he said.

"With an estimated 490,000 public sector job cuts planned, the residential sales market is bracing itself to face another dip."

UK average home prices drop in September

Fri, 19 Nov 2010 00:00:00 GMT

Average UK residential property prices fell by 0.8 per cent during September, according to the latest figures from the Department of Communities and Local Government.

But despite the slight fall, home values in the country still remain 6.1 per cent higher than they were a year previous, those looking to buy property in the UK may be interested to learn.

In addition, the statistics show that average prices were 0.7 per cent lower over the quarter to September 2010 compared to a quarterly increase of 1.6 per cent in June.

However, Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said it is significant that the quarter-on-quarter comparison figure is also still in positive territory.

"Although it is likely that prices will slip a little further in the near term, the more balanced picture between demand and supply coming through in recent Rics Housing Market Surveys suggests the downside will be quite limited," he explained.

Mr Rubinsohn added that the most pressing issue to come out of the figures was the current low level of transaction activity taking place at present.

Rural market outperforms urban over last decade

Wed, 17 Nov 2010 00:00:00 GMT

Individuals looking to buy property in the UK may be interested to learn that the rural market has outperformed the urban sector in terms of prices over the past ten years.

This is one of the findings of the annual Halifax Rural Housing Review, which stated that the average rural home value is now 20 per cent higher than the average urban dwelling.

According to the research, prices in rural areas experienced smaller falls during the recent downturn in the property market.

Indeed, rural property prices fell by 20 per cent between 2007 and 2009 compared to a 25 per cent drop in urban areas, Halifax explained.

"Rural properties continue to trade at a significant premium to homes in urban areas," said Suren Thiru, housing economist at Halifax.

"However, as a consequence of rising property prices and generally lower average earnings, the housing market in rural areas has become more challenging over the past decade."

UK home values rise in October

Tue, 9 Nov 2010 00:00:00 GMT

According to the latest Halifax house price index, home values rose in October following a fall the previous month.

The average price of a residential property in the country climbed by 1.8 per cent over the period, although analysts say the increase does not represent a turn-around in the sector's fortunes.

"Does the 1.8 per cent rebound in house prices in October reported by the Halifax significantly change our view that house prices are likely to soften by around ten per cent by the end of 2011? In a word, no," said Howard Archer of IHS Global Insight.

"It is not inconsistent with our view that house prices will trend down gradually through the final months of 2010 and during 2011 rather than crash [and] to lose around ten per cent of their value," Mr Archer added.

Earlier this week, Nationwide released their monthly price index which reported a quarterly decline of 1.5 per cent over the past three months, those looking for property in the UK may be interested to learn.

UK real estate sector ready for growth

Thu, 4 Nov 2010 00:00:00 GMT

The UK real estate sector is expected to slow going into 2011 before expanding again in 2012, it has been claimed.

Individuals looking to buy property in the UK are sure to be interested in the latest predictions made by property consultancy firm Cluttons.

Home values in the first six months of 2011 are predicted to fall before stabilising during the second half of the year, the company said in a report.

Added to this, the market is forecast to return to strength and post growth of four per cent in 2012 and five per cent in 2013.

"The balance of power in most locations in the mainstream UK housing market has moved back firmly into the hands of purchasers, placing downward pressure on prices," said Andrew Stanford, head of Cluttons' residential consultancy division.

"We expect this dynamic will be maintained over the next 12 to 18 months as austerity measures take effect.

London continues to attract investors

Tue, 26 Oct 2010 00:00:00 GMT

The property market in central London is expected to be "very strong" over the course of the coming year, it has been claimed.

Individuals looking at purchasing property in the UK are sure to be interested in the latest comments from the Frogmore Property Company.

Indeed, Paul White, managing director of the firm, explained that both foreign and domestic buyers were looking to take advantage of the strong London market.

"There are a lot of people wanting to invest and buy a home in the UK. There are also people in the UK who want to buy homes and it is still at that level," Mr White said.

"It is quite a strong market and I think that will be a winner going forward," he added.

The expert's comments come just after figures from Knight Frank revealed that the rents for luxury homes in the capital rose for the 15th consecutive month.

Spending review ‘damaging’ to UK property sector

Fri, 22 Oct 2010 00:00:00 GMT

The recent cuts announced by chancellor George Osborne in the comprehensive spending review will have an impact on the UK’s property and construction sector.

Real estate experts have said that this is then likely to have a knock-on effect on the country’s economy as a whole.

The Royal Institution of Chartered Surveyors (Rics) has issued a warning to the government that it is gambling with the economy by reducing Communities and Local Government capital spending by 74 per cent over the coming four years.

“This will have a significant effect on housing supply, especially social housing, which is already at historically low levels. As well as reducing the number of affordable homes this could have a wider impact on the housing market where continued low supply will create affordability issues,” said Mark Goodwin, Rics director of external affairs.

Meanwhile, estate agent Douglas & Gordon predicted that the spending review could lead to an influx of foreign buyers entering the UK property market.

Spending review ‘could’ damage UK property market

Tue, 19 Oct 2010 00:00:00 GMT

The forthcoming comprehensive spending review set to be announced later this week (October 20th) will have a negative effect on the UK property market.

Analysts have predicted average price falls of five per cent over the coming 12 months as a result of the austerity measures which will be implemented.

The index, published by Rightmove, also shows that asking prices increased by 3.1 per cent during October compared to the same period a year ago, although it described the increase as “illogical”.

“Given the challenges of the current market, the behaviour of sellers in raising their average asking prices by over £7,000 takes some explaining,” said Miles Shipside, director of Rightmove.

“This month’s comprehensive spending review is likely to have a negative effect on housing market sentiment and consequently challenge further any perception of pricing power among sellers.”

Meanwhile, the International Monetary Fund recently described the UK’s current economic situation as “worrisome” and warned that there is a risk of a double-dip in the country’s property market.

UK faces risk of double dip in property

Wed, 13 Oct 2010 00:00:00 GMT

Those looking to buy real estate in the UK should be aware that the country is facing the risk of a double dip in its property market as prices remain elevated.

This is the warning that has been given by the International Monetary Fund (IMF) in its latest World Economic Outlook, with the body describing the current situation as “worrisome”.

According to the IMF, house prices are still high based upon traditional valuation yardsticks and governmental intervention may not go far enough to prevent another crash in the market.

It comes in the wake of the latest property index figures showed that even the traditionally strong market of London is not immune to falling prices.

The latest figures from Knight Frank show that the average cost of a property in London fell by 0.2 per cent in September – the third monthly decline in a row.

Liam Bailey, head of residential research at Knight Frank, said: “There is no doubt that the market slowed over the summer period and as we move through the autumn market there is a more cautious approach from potential buyers. Which means that vendors are having to look very carefully at pricing.”

UK property prices fall, Halifax index shows

Sat, 9 Oct 2010 00:00:00 GMT

Property prices in the UK fell by an average of 3.6 per cent during September, the latest index for the country shows.

According to the Halifax report, year-on-year house values have increased by just 2.6 per cent, while analysts claim that this could be the start of a sustained period of declining prices.

Indeed, Martin Ellis, of Halifax, said that an increase in the number of properties for sale in recent months has exerted some downward pressure on house prices over the course of the past few months.

"At the same time, renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase," he explained.

"Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market."

However, those looking at property in the UK will be pleased to hear that Mr Ellis is confident that interest rates will remain low.

Confidence faltering in UK property market

Thu, 7 Oct 2010 00:00:00 GMT

Investor confidence in the UK property market has fallen dramatically, with more individuals convinced that prices are set to fall.

According to research from property portal Zoopla, the number of homeowners who believe that home values are set to rise has fallen from 78 per cent ten months ago to 63 per cent now.

Added to this, almost 90 per cent of those asked in the Housing Market Sentiment survey think that it is still problematic to obtain a mortgage, those looking at UK property may be interested to learn.

"The ongoing mortgage drought has started to have a real impact on consumer confidence, with optimism about the outlook for the housing market dropping sharply," said Nicholas Leeming, commercial director of Zoopla.

"Increasing activity levels is vital for the health of the property market and the wider economy in turn. The banks must pull out all the stops to increase lending."

Meanwhile, the latest report from international property consultancy and chartered surveying firm Cluttons shows that residential property prices in central London fell for the first time in 18 months during the third quarter.