Property prices increased by 2.3% between December and January, amounting to £6,785, Rightmove’s house price index has revealed.
There have been 1.3 million buyer enquiries since the election, up 15% compared to the same period a year ago.
Meanwhile there has been a 7.4% growth in number of sales agreed year-on-year
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although Rightmove looks at asking rather than selling prices, they provide an important indicator of market activity, not least because this survey has been around for such a long time.
“Asking prices can be notoriously unreliable but these confirm what we have been seeing on the ground for the last month or so.
“Sellers inevitably are a little bit more optimistic at this time of year but it remains to be seen, probably by the end of January/beginning of February, whether these higher prices, much of which is driven by shortage of stock, actually turn into agreed prices and transactions.”
James Anderson, operations director of property lender MT Finance, said: “Political uncertainty has, at times, brought the housing market to an almost complete standstill and while we are early into 2020, we are starting to see demand overcoming doubt.
“We hope the early movers – often professional investors who recognise that there are great deals out there – will be met by vendors who respond with the necessary supply as we move into spring.
“And in a more settled political climate where prices are starting to rise, we fully expect them to do so. Among those who see light at the end of the tunnel, optimism is high.”
Original Article: House prices see 2.3% monthly surge from the Property Wire website
Landlords regret investing in buy-to-let – Over half (53%) of landlords would not have purchased their properties in the first place had they known how regulated the Private Rented Sector would become, research from property development firm Accumulate Capital has found.
Over a third (37%) of property investors plan to sell at least one of their properties this year.
Of this group, three in five (61%) blamed increasing regulations and taxes while one in five (21%) pledged to instead focus on alternative property investment, like debt and development finance.
Paul Howells, chief executive of Accumulate Capital, said: “Property investors are clearly frustrated by how much red tape there now is within the private rental sector and buy-to-let market.
“Yes, there is a need for regulatory measures to protect the interests of all parties involved in the property market, but as our research shows, some landlords feel the current system is unfairly weighted against them.
“What we might see as a result, is investors selling properties and downsizing their portfolios.
“Indeed, a considerable number of investors are now looking to alternative real estate investment options instead, such as development finance – these provide ways to access bricks and mortar investment opportunities without the complications or costs of actually purchasing the asset.”
Reflecting on the challenges facing landlords, nearly three quarters (72%) believe current tax and regulation measures are unfairly weighted against landlords.
Meanwhile over two thirds (69%) reckon the costs of managing their property portfolio has risen considerably in the past five years.
Original Article: Landlords regret investing in buy-to-let from the Property Wire website
Letting Agents anticipate rent increases in 2020 – The majority (84%) of letting agents think rent prices will rise next year, up from two thirds (65%) last year, ARLA Propertymark has predicted.
More than three fifths (61%) think demand will continue to increase, but almost seven in 10 (68%) reckon the number of landlords operating in the private rented sector will decline next year, as they are driven out by rising costs.
Indeed, two thirds (68%) expect landlords’ taxes to rise again.
David Cox, chief executive, ARLA Propertymark, said: “For far too long, successive governments of all political persuasions have passed significant amounts of complex legislation for landlords.
“As a result, much of this year has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or choosing to step away from the sector altogether.
“This has impacted tenants most, who have restricted supply and have been faced with less choice and paying higher rents.
“Looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords.
“This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.”
Original Article: Letting Agents anticipate rent increases in 2020 from the Property Wire website
Buying a House Homeowners call for the government to ban gazumping
Looking to move home, buying a house can be stressful enough.
Four in five (80%) homebuyers would like the government to introduce laws preventing gazumping in England and Wales.
A third (31%) have experienced the phenomenon in the past decade, research commissioned by Market Financial Solutions has revealed.
Two in five (39%) had to pay fees to intermediaries despite not completing on a property purchase.
Paresh Raja, chief executive of MFS, said: “With demand for UK property constantly high, the process of buying a home has become incredibly competitive. As a result, a significant number of UK homebuyers are losing out on deals at the critical closing stages.
“Not only is gazumping a cause for frustration and disappointment, it also can incur significant costs to the prospective buyer.
“Avoiding complicated chains and having immediate access to finance can reduce the chances of a prospective buyer missing out on a purchase, but it’s clear from MFS’ research that further measures are needed to prevent gazumping in England and Wales.
“In the aftermath of the general election, let’s hope the elected government looks at measures to stamp out gazumping as a top priority.”
Two thirds (66%) feel it has become increasingly difficult to buy properties over recent years as a result of greater competition and a lack of housing supply.
Such is the competition these days, 43% would consider gazumping a rival buyer.
(Article extracts from www.propertywire.com 21st November 2019)
With Brexit delayed again and a general election announced the upheaval caused by uncertainty in the housing market is not set to go away just yet but new research shows how voting intentions have affected prices.
Leave voting areas have recorded higher average house price increases than Remain voting areas since the European Union referendum in June 2016, according to the research from online estate agent Housesimple.
The analysis of average house price changes in 324 local authority areas in England since the vote in June 2016, shows that 16 of the top 20 performing ones voted Leave. In Rutland prices increased by 26.27%, in Corby 24.8%), in Harborough 23.79%, in Blaby 21.68% and in the Forest of Dean by 21.47%.
Only four Remain voting areas made it into the top 20, including the Cotswolds with growth of 30.45%, Leicester up 21.57%, Rushcliffe up 19.62% and Stroud up 19.35%.
Meanwhile, average house prices in London and the South East have been hardest hit since the vote and 12 of the worst performing are in London, including the City of London with a fall of 11.86%, Westminster down 10.08% and Hammersmith and Fulham down 8.2%. In the commuter belt Bracknell Forest saw prices drop 6.63%, Elmbridge down 4.32% and Windsor and Maidenhead down by 0.66%.
‘It is important to remember that correlation does not always equal causality. Just voting Leave hasn’t made your house more valuable on its own. There are a range of reasons driving house prices in England,’ said Sam Mitchell, Housesimple chief executive officer.
‘The data points to an overall North/South divide. Brexit uncertainty does not appear to have affected the North to the extent that we may be seeing in the South. Other Important factors underpin these findings, including punitive stamp duty that has a lower impact on properties valued under £500,000 so there is less of a drag factor in the North,’ he explained.
‘We’re also seeing a longer term trend whereby house price growth in London and the South East that really took off in 2012 has been slowing to more sustainable levels since 2016, or even dropping in some London areas. At the same time properties in the North and the Midlands saw more modest growth post 2007, and cities like Manchester, Liverpool, Leicester and Leeds have robust local economies and increasing demand for housing which has helped to drive double digit price increases since the referendum,’ he pointed out.
‘The bottom line is that despite the fact Brexit uncertainty will now drag on into 2020, the market fundamentals, a long running supply and demand issue, historically low interest rates and growing income levels, remain in place,’ he added.
(Article extracts from www.propertywire.com 31st October 2019)