Nationwide: House price growth hits a four-year high

House price growth has hit a four-year high as pent-up demand and the Stamp Duty holiday continue to boost the property market, Nationwide claims.

The lender’s latest House Price Index revealed average property values grew by 5% annually in September and 0.9% on a monthly basis to £226,129.

It is the highest level of annual price growth since September 2016.



Good news for market as first time buyer numbers hit 12-year high


First time buyers reached an estimated 353,436 in 2019, the highest level since 2007.

This is the fifth time in six years that the number of people buying their first home with a mortgage exceeded 300,000 according to the Yorkshire Building Society.

The data shows that almost twice as many first-buyers secured a mortgage in 2019 as at the start of the financial crisis in 2008 – when the figure was 191,040 – with those entering the property market now accounting for 51 per cent of all homes purchased with a mortgage in 2019.

In 2008 this share was just 38 per cent.



‘Annual House Price Growth at Six Year Low’ Halifax


The latest figures from Halifax show annual house price growth has dipped to a six-year low. Average property price growth in September dropped to 1.1% – the lowest level recorded since April 2013.On a monthly basis, prices dropped by 0.4%, while quarterly growth was recorded at 0.4%.

Halifax calculates the average UK house price at £232,574 last month. (more…)


New form of planning consent set to boost new home building in England


New form of planning consent could be the key to unlocking thousands of new homes across England, it is suggested.

Under new powers introduced by the Town and Country Planning (Permission in Principle) (Amendment) Order 2017, developers now have the right to benefit from a fast track Permission in Principle (PIP) power, giving them automatic planning consent for small housing schemes across England.

Although legislation for PIP was first introduced in 2016, it only applied to sites that were either designated by a local planning authority (LPA) on a new brownfield land register as suitable for housing, or where a site is allocated for housing in the local plan.

The extension of the powers, which came into force at the beginning of June 2018, now means that small schemes which fall outside these restrictions may now be brought forward.



July’s Property Round Up – East Midlands Still Performing Well

A round-up of the latest property market news, collating survey data, statistics, trends and information about the property market.

UK House Price Index
Data source: Land Registry
UK average house price = £226,351,  up 0.1% in the month, up 3.0% in the year. Monthly index (where January 2015 = 100) is 118.7

May’s 3.0% growth rate is the lowest since July 2013, when it was also 3.0%. The East Midlands saw annual growth of 6.3%, while London fell by -0.4% (the fourth consecutive month of fall for London).

New instructions were positive for the first time in 27 months but sales expectations were flat. The number of residential housing transactions fell by -0.5% compared to the same period in 2017. The demand for new build property is stronger than existing property, but are becoming more difficult to sell than a year ago.

In the year to May 2018, detached property increased in value by an average 4.7%, while the price of flats and maisonettes fell by -0.9%. This reflects the fall in London prices, which accounts for 30% of England’s flats and maisonettes.

UK average house price = £225,654, up 0.3% in the month, down -0.7% in the quarter, up 1.8% in the year.

The number of mortgage approvals has slowed down in 2018, despite the UK employment market gaining strength, which will ease household financial pressures.

A shortage of properties coming onto the housing market will continue to support house prices. A slight increase in homes for sale was seen in May after falling for 26 successive months, although new buyer enquiries declined.



Annual house price growth slows to a five-year low in June – But the East Midlands region still performing well.

House prices are growing at their slowest rate for five years, Nationwide claims.

The Nationwide House Price Index for June put annual growth at 2%, down from 2.4% in May and the slowest rate of growth since 2013 when figures of 1.3% were reported.

Average prices are up 0.5% on a monthly basis, putting average values for this month at £215,444.

“The East Midlands was the strongest performing region in England, and also the UK, with prices up 4.4% year-on-year. Scotland was the only region to see a notable pickup in annual price growth this quarter – to 3.1%. Wales saw a
softening in price growth to 4%, though it was the best performing home nation.

London was found to be the weakest performing region, with prices down 1.9% year-on-year to £468,845.

Chief economist for Nationwide, Robert Gardner  said: “Annual house price growth has been confined to a fairly narrow range of 2-3% over the past 12 months, suggesting little change in the balance between demand and supply in the market over that period.

“There are few signs of an imminent change. Surveyors continue to report subdued levels of new buyer enquiries, while the supply of properties on the market remains more of a trickle than a torrent.

“Looking further ahead, much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.

“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.

“Overall, we continue to expect house prices to rise by around 1% over the course of 2018.”

For the full report click here


Empty nesters are now enjoying life with no intention of downsizing

NEARLY half of “empty nesters” whose adult children have left home are not considering moving to a smaller property themselves, a survey by Lloyds Bank has found. Some 45 per cent of parents whose children have moved out of the family home are staying put with no intention of downsizing,

More than 1,000 parents whose children have left the family home were surveyed. It was revealed that on average ’empty nesters’ typically have two spare bedrooms as a result of their children moving out.

Some parents have left their grown-up children’s bedrooms untouched -but many are now being used as home offices, guest rooms or hobby rooms, while others now rent them out through websites such as Airbnb.

Looking at why people are staying put, reasons included having built strong links with their community, do not need the money that moving to a smaller property could free up, or simply do not want the hassle of moving, the research found.



House prices hit new record high, but Nationwide warns of slowdown

House prices reached a record average high of £213,000 this month, according to new figures from Nationwide Building Society.

Property values in Britain climbed 0.2 per cent month-on-month during April, reversing a 0.2 per cent decline in March, its latest house price index has revealed.

The annual pace of house price growth also accelerated to 2.6 per cent, from 2.1 per cent when they slumped to a seven-month low in March.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “There was a slight pickup in UK annual house growth in April to 2.6%, from 2.1% in March. House prices rose by 0.2% over the month, after taking account of seasonal factors.
“February saw a softening in house purchase approvals to 64,000 cases, following a surprise rise in January. These figures are broadly in line with our expectations and close to the average for the last three months of 2017. Surveyors continue to report subdued levels of new buyer enquiries and recent months have also seen a softening in new



‘Baby Boomers’ are on the move and confidence is building


The Silver Economy ( older home owners 55+) are currently a very active group in the UK property market and are showing good levels of growth year on year, with 46% more property exchanges in the first quarter of 2018 compared to the same period of 2017.

According to the national home mover report from customer insights company TwentyCi, the active growth in the property market for the 55+ age groups is undoubtedly fuelled by a combination of pension drawdown and equity retrieval as the baby boom generation accesses the wealth accumulated in their properties and pensions.

Colin Bradshaw, Chief Customer Officer at TwentyCi said “We are also seeing a big uplift in buyers aged 66+ moving to semi-detached properties. This could infer either an increase in downsizing to release equity – which we would expect to trickle down into the economy – or alternatively older couples splitting up. While the latter is good for the property market, it would be less of a boon for the economy in general.”



Budget 2017: How will stamp duty cut help first-time buyers?

The claim: Changes to stamp duty will save an average of £1,700 to first-time buyers.

Reality Check verdict: The average first-time buyer would indeed save about £1,700 in stamp duty, but for some people it’s likely that would be more than offset by increased house prices, according to the Office for Budget Responsibility (OBR), which provides independent assessments of the Budget. It’s likely to be better news for potential first-time buyers struggling to get together a deposit than for those unable to borrow enough as a result of their earnings.