Prime London prices Peaking at spring 2008 levels 04/03/2010 by admin
Prime London residential prices are now reaching Spring 2008 levels, according to a number of estate agents, with very strong rates of growth being recorded over the last 6-8 weeks.
Prices are reported to be back to the sort of growth rates achieved during the property boom in Summer 2007.
Prime Purchase says it has seen a significant rise in the prime market of £2 million plus properties in central London over the last year and confirms that estate agency figures - of rises up to 20 per cent over the last year - are if anything understated in some highly sought after areas.
Nathalie Hirst, London Director of Prime Purchase says:
“Larger houses of £5 million plus in Kensington, Knightsbridge, Belgravia and Mayfair are in some cases now selling at prices above those reached in Spring 2008.
"The very low interest rates and a weak pound began to attract foreign investors early last year and there has been consistent demand for property over the £5 million mark since that time, driven by a perception that prices represent good value. Demand from these mainly foreign buyers has pushed prices upwards”.
The prime 'mid-market' for £2 million to £5 million London properties has been led by foreign buyers, who have made up the majority of Prime Purchase clients over the last year, including nationals and expats from SE Asia.
Guy Meacock of Prime Purchase London says: (Source: Mortgage Introducer)
“While demand for London property has increased over the last 12-months, supply has remained poor with about 25 per cent less properties available for viewings than has been usual over the last 3-years. Consequently areas of South West London, hitherto regarded as outside as secondary locations, have seen considerable buyer activity.”
Prime Purchase say that while there are concerns about the outcome of the General Election and a rise in interest rates, London will always attract buyer interest becuase of what the capital offers in terms of lifestyle and amenities, as well as the City remaining as the leading financial centre and the best place do business.
RICS: UK Housing Market Improving Better than most of Europe 02/03/2010 by admin
2010 RICS European Housing Review shows UK was among only five countries that saw house prices rising in 2009
Signs of recovery are already visible in some European housing markets, especially in sales levels and prices, says the latest RICS European Housing Review launched today in Brussels (2 March 2010).
A significant number of European residential markets were starting to show signs of recovery as early as spring / summer 2009 and further revival is expected in 2010. Norway led the way with prices rising by 12 percent, followed by Finland where they rose by eight percent and then Sweden, who saw a seven percent increase. In the UK, prices rose by one percent in 2009 overall, but by 10 percent since their lowest point in April.
Low interest rates and reviving economies helped to avoid housing market meltdown across much of Europe. In Germany, Italy, Netherlands and France, last year's falls were relatively moderate (between -4 percent to -6 percent) and though today markets are still fragile, they are starting to stabilise and to see some price growth.
However countries with vulnerable economies will continue to experience depressed markets and falling prices. The worst performing markets of 2009 were Ireland, Spain, Greece, most central and eastern European countries, and especially the Baltic States where prices declined between -27 percent to -53 percent in 2009. Geographically, together they form an unlucky horseshoe around the edges of Europe.
The economies of Europe are only showing weak signs of growth and this will hold back housing markets, especially if unemployment continues to rise. Most European house building industries, with the exception of Germany and Switzerland, are also still suffering the impact of the global financial backlash and housing supply will need some time to recover.
The report's author, Professor Michael Ball, said:
"The shallowness of the downturn in core European housing markets has surprised many commentators. But Europe is not the USA, and the problems and policy responses have been different. Mortgage defaults have only risen modestly. Low interest rates and central bank support for mortgage markets have played key roles in bringing recovery.
“Huge problems remain unfortunately. Housing markets around the fringe of Europe are still dragging down economies in a vicious circle and all European housing markets continue to face credit constraints and great uncertainty. ”
Simon Rubinsohn, RICS chief economist commented:
“A combination of extraordinarily low interest rates and a raft of government measures have helped to put a floor under residential property markets in most European countries.
“A firmer tone to the macro news flow is also providing a layer of support with clear evidence that an economic recovery is now under way. Indeed, in a number of cases the boost to liquidity has pushed prices back in the direction of previous highs. However, other housing markets are continuing to labour. In particular, the overhang of supply remains a drag in Spain and Ireland." (Source: Mortgage Introducer)
Net Lending Rose by £2bn 01/03/2010 by admin
Total net lending to individuals rose by £2.0 billion in January. The twelve-month growth rate ticked up to 0.8%, reveals the Bank of England's Lending to individuals: January 2010 report.
The three-month annualised growth rate was 1.3%, a 0.4 percentage point increase from a revised 0.9% for December. Within the total, net lending secured on dwellings increased by £1.5 billion, above the December increase of £1.2 billion and the previous six-month average of £1.0 billion.
The twelve-month growth rate ticked up to 1.0%, from 0.9% in December. The three-month annualised growth rate rose to 1.4%. The number of loan approvals for house purchase (48,198) was lower than the December figure (58,223) and below the previous six-month average (55,924); approvals for remortgaging (23,611) and for other purposes (23,035) were also lower than in December and lower than their respective six-month averages.
Consumer credit increased by £0.5 billion, above the previous six-month average of a net repayment of £0.2 billion, and also above December's net increase of £0.3 billion. Credit card lending increased by £0.2 billion and other loans and advances increased by £0.3 billion. The annual growth rate of consumer credit was less negative at -0.2%; the three-month annualised growth rate increased to 0.7%. (Source: Mortgage Introducer)
February House Sales more than double 01/03/2010 by admin
The latest Agency Express Property Activity Index shows that the UK's house sales activity dramatically sprang back to life in February.
Nationally, the number of houses sold in February rocketed by 136.6% - more than double the sales achieved in January, and were the highest level of sales achieved for almost two years – since March 2008.
Three regions topped the UK's 'hot spots' by reporting their highest month for house sales since mid to late 2007 (the year the market peaked) with the North East since August 2007, London since October 2007 and the North West since November 2007.
Every region except Central England saw substantial month on month increases in house sales with the North West (152.4%), East Anglia (125.6%), London (123.5%), the South West (122.6%) and the South East (120.8%) all seeing sales activity more than double from January.
Without a doubt, the bad weather seen in the first couple of weeks of the year and the rush to avoid Stamp Duty at the end of December certainly dampened January's house sales. But the astounding increases in February sales shows reason for optimism that the property market is now climbing out of recovery at a faster pace than expected.
Nottingham experienced the greatest increase at 206.3% - with monthly house sales trebling compared to January. Other notable rises, where house sales at least doubled, were seen in Manchester (168.4%), Oxford (147.3%), Cambridge (140.2%), Milton Keynes (134.2%), Colchester (128.1%), Glasgow (111.1%), Coventry (110.3%), Norwich (109.8%), Newcastle (107.6%) and Carlisle (103.3%).
Stephen Watson, Managing Director, Agency Express, said:
“After a pretty slow start to the year it appears that the British public is not prepared to sit around and wait any longer. Whilst we expected February to be a better month for house sales than January, the levels we have seen have exceeded our expectations.
"It appears that the growing economic optimism has permeated the housing market and people are now making the decision to move. We are now seeing house sales nearly match those we last saw two years ago and the strength of activity bodes well for the coming months”
Further encouragement that the housing market is regaining its buoyancy can be found in the number of 'For Sale' boards that were erected in February. Across the UK there was a 91.5% increase in the number of boards going up compared to January and compared to February last year, there was an increase of 64.9%. (Source: Mortgage Introducer)
House Prices up 2.1% in January 26/02/2010 by admin
The January data from Land Registry's flagship House Price Index shows an annual price change of 5.2 per cent. This is the second month in a row in which the figure has been positive and takes the average property value in England and Wales to £165,088.
The January data shows an annual house price movement of 5.2 per cent, which is the second month in a row in which the figure has been positive. While not all regions are recovering at the same rate, it is clear that overall prices are increasing.
Monthly house price change is also positive this month at 2.1 per cent. This is the eighth consecutive month that the figure has been above zero. The average house price in England and Wales now stands at £165,088, which is an increase from last month's figure.
Transaction volumes averaged 57,722 per month from August to November 2009. In comparison to this, the figure was 42,523 during the same months the year before.
January's data shows that London experienced a rise in annual growth rates, with an increase of 10.5 per cent. This was the strongest annual growth of any region and over double the figure for England and Wales as a whole, which currently stands at 5.2 per cent. January marks the fourth consecutive month of positive annual house price changes in London.
London's monthly change of 3.9 per cent is the greatest increase of any of the regions and is the eighth month in a row in which the capital has experienced a monthly movement greater than zero. The average value of a property in London is now £336,212.
Key regional observations
- Seven regions in England and Wales experienced increases in their average property values over the last 12 months.
- The region with the highest annual price change is London with an increase of 10.5 per cent.
- The region with the most significant annual price fall was the North East with a movement of -3.4 per cent.
- London experienced the greatest monthly rise with a movement of 3.9 per cent.
- The North East was the region with the most significant monthly price fall with a movement of -1.3 per cent.
Key county and unitary authority observations
- Greater London experienced the highest annual price change in January, with a movement of 10.5 per cent.
- Blackpool experienced the greatest annual price fall with a movement of -10.2 per cent.
Key county and unitary authority observations
- Greater London experienced the strongest monthly growth in January with an increase of 3.9 per cent.
- Both Denbighshire and Pembrokeshire had the most significant monthly price falls during January with movements of -1.8 per cent.
- Five county and unitary authorities exhibited no monthly price movement
Key metropolitan district observations
- The metropolitan district with the highest annual price increase is Calderdale, rising by 4 per cent.
- The highest monthly price increases were in Oldham and Rotherham, with rises of 1.7 per cent.
- Knowsley experienced the most significant annual price fall with a movement of -11.8 per cent.
- Liverpool and Knowsley had the most significant monthly price falls during January with movements of -1.1 per cent.
Key London borough observations
- The borough with the highest annual price rise is Kensington and Chelsea, with a movement of 11.2 per cent.
- Kensington and Chelsea experienced a rise of 2.5 per cent, making it the borough with the highest monthly increase.
- Barking and Dagenham experienced the greatest annual decrease, with a movement of -8.5 per cent.
- Redbridge experienced a movement of -0.4 per cent, making it the borough with the greatest monthly price fall.
Sales volumes
- In the months August 2009 to November 2009, transaction volumes averaged 57,722 transactions per month. This is an increase from the same period last year, when sales volumes averaged 42,523.
- Transaction volumes, while not at 2006 levels, are increasing slowly. Price index volatility is greater in areas where recorded sales volumes are low. Index volatility leads to erratic and high changes in reported price. Some of the areas that typically have very low transaction volumes include, but are not limited to, the following:
- City of London
- Rutland
- Isle of Anglesey
- Merthyr Tydfil
- Blaenau Gwent
- Ceredigion
- Torfaen.
Source: (Mortgage Introducer)