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Autumn Surge In UK Property Prices Predicted

Autumn Surge In UK Property Prices Predicted

Various residential property indices published by banks and mortgage lenders have shown that UK house prices have been increasing for some months, however the latest survey from Rightmove shows that property asking prices have actually declined over the summer although it is predicting an autumn surge in uk property prices.

The Rightmove report says that there was a summer  slowdown in residential property prices as discretionary sellers were distracted by the heat-wave and have been waiting to market their properties.

Those property vendors who were unwilling to wait had priced properties more aggressively and asked an average of £3,704 (GBP) equivalent to 1.5% less for their property in August compared with the previous month’s asking prices.

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Best Places For UK Property Investment

Best Places For UK Property Investment

UK Property Investment Hot Spots
Identified By Journalist

The post-recession boom in house prices has prompted Christopher Middleton to write about the best property investment hot spots in the press this week and he put forward some of the best areas of the UK that can provide property investors with decent returns.

According to the Office for National Statistics, UK house prices are officially on the up. Property values rose by 3.1% in the 12 months to June 2013, compared to 2.9% in the year to May 2013.

The Royal Institution of Chartered Surveyors (RICS), say that property prices are rising at their fastest rate since the pre-crash days of 2006.

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Help To Buy Scheme Could Cause New Property Bubble

Help To Buy Scheme Could Cause New Property Bubble

Critics Warn Help To Buy Scheme Will Cause New Property Bubble

The Chancellor of the Exchequer has launched the second phase of the ‘Help to Buy’ scheme and laid out the terms of a programme that will underwrite UK residential property purchases up to the value of £600,000 (GBP) following a meeting with mortgage lenders and house-builders.

A number of groups, however, have warned that, if this scheme is allowed to drive up house prices in the UK, it will cause another property ‘bubble’ and encourage people to take on huge mortgages.

George Osborne is hopeful that the terms of the scheme will prevent another property bubble, as there are now strict income checks and other lending criteria imposed by mortgage lenders and the loan scheme will not be allowed to be used by purchasers to acquire second homes.

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UK Property Prices Increase Again

UK Property Prices Increase Again

UK Residential Property Prices
Return To Good Health

UK residential property prices increased again in June 2013, marking the return to good health of the property market.

Property price rises are at their fastest rate in over two-and-a-half years as mortgages became more available and less expensive, adding to fears of another property market bubble as overall housing supply remains low.

The latest monthly residential property price index from UK mortgage lender, Nationwide, shows that UK property prices were up 0.3% in June 2013, while the annual increase of 1.9% was the sharpest residential property price increase since September 2010, but those gains were below the 0.4% monthly rise and 2.1% year-on-year price increases forecast by many economists.

In May 2013, residential property prices rose an unrevised 0.4% on the month and 1.1% on the year overall, signalling the recovery of the UK property market.

The number of mortgages approved by UK banks also increased by a quarter in the twelve months to May 2013. However, over the same period, the value of outstanding mortgage loans secured on property dropped by 0.2%.

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New Help to Buy scheme may not be much use to first-time buyers as property prices continue to rise

New Help to Buy scheme may not be much use to first-time buyers as property prices continue to rise

Help to Buy scheme may boost

UK property prices
but may not be much use

to first time buyers

The controversial Government incentive scheme “Help to Buy” set for launch on 1st January 2014 is designed to aid first time buyers with property purchases and in turn this incentive could boost the UK residential property sales market without being of any real use to first-time buyers.

Morgan Stanley have issued a forecast that UK residential property prices are expected to increase between 8% and 13% before the end of 2014 and the bank reckons that its forecast is “supported by government policy”.

The investment bank’s prediction follows a warning by the Organisation for Economic Co-operation and Development (OECD) which says that the Help to Buy scheme offering 95% mortgages, due to launch in January 2014, could pump up UK residential property prices but would not necessarily increase the supply of available residential property.

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Which is the best residential property price index?

Which is the best residential property price index?

If you are a property investor looking to conduct thorough due diligence before purchasing property, which of the conflicting reports from different monthly house price indexes do you rely on?

Below is a quick overview of the four main index providers, provided by Quick Move Now!, along with some handy notes for how to interpret their data, and a comparison of their reporting of residential property prices during 2012 

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The Bank of England reported on Wednesday that mortgage lending to home buyers in December was at its highest for nearly a year, although approvals remain low compared to the long term norm.

UK Mortgage Lending Increases

UK Mortgage Lending Increases

The number of residential property mortgage approvals in December was 55,785, with economists estimating that a level of 70,000 to 80,000 being consistent with stable prices.

Figures from the Bank of England (BoE), that were published last Friday, showed that the bank’s Funding for Lending Scheme, which went into operation in August 2012, may finally be starting to increase the amount of money being lent by banks and other mortgage lenders to residential property buyers.

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Property Investors Still Cashing In As Property Prices Continue To Fall

Residential property prices slipped by 0.7% during October 2012 as the weak economy continued to dampen demand, according to UK mortgage lender Halifax.

UK residential property prices dropped again in October 2012

UK residential property prices dropped again in October 2012

The latest residential property price decline, which contributed to a 1.7% drop compared with a year ago, took the UK average residential property price down to £158,426 (GBP).

Residential property prices in the third quarter up to October 2012 were 1.2% lower than the previous quarter, Halifax says, marking the fifth property price drop in a row for this measure of the underlying trend.

Nationwide said last week house prices had risen 0.6% month-on-month in October, but it added prices had fallen 0.9% year-on-year, taking the average UK property price in October to £164,153 (GBP).

House prices have been dropping on a monthly basis since June, and analysts have said distractions such as the Olympics and Paralympics have disrupted the UK residential property sales market.

Halifax housing economist Martin Ellis said: “The latest figures are evidence that the trend for a modest deterioration in property prices is continuing. The weak economic background has been a key factor dampening housing demand this year. Recent encouraging developments relating to the level of overall economic activity and conditions in the labour market, however, may help to support demand and underpin house prices around current levels over the coming months.”

Residential Property Prices Continue To Fall

Future UK property price falls may not just be down to the usual festive period slowdown as the latest Hometrack data has indicated that the number of new instructions for the sale of residential property, available on the open market, are increasing at a much faster rate than the number of potential buyers registering with estate agents.

Howard Archer, chief UK economist for IHS Global Insight, thinks UK house prices are likely to drift even lower in the coming months, stating: “Certainly, any significant turnaround in house prices still looks some way off. House prices are likely to stay under pressure from persistent limited market activity, low and fragile consumer confidence, and muted earnings growth.

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Tenants Prepared To Pay More Rent For London Property

Rental prices in the UK have been rising steadily for some time and rents in London have risen by 12% over the last year and look set to continue rising for years to come.

Rents Reach Record High and Continue to Rise

UK Rents Reach Record High and Continue to Rise

Central London residential rents rose 3% during the third quarter of 2012 and rental prices are predicted to rise even more over the next ten years as the supply of housing in the capital fails to meet the needs of people working in the city.

The Government forecasts a rise in residential household numbers in London of between 34,000 and 38,000 annually up to 2028, however this estimate is over ambitious according to some forecasts.

The author of a new report claims that based on development levels over the last ten years, an optimistic estimate of the number of homes which will actually be delivered each year is just 21,000.

The Government estimates were exposed in a new independent research paper, commissioned by Cluttons, called ‘Renting in London: The Coming Boom’, written by Professor Michael Ball.

Professor Ball says that the supply deficit offers attractive opportunities for residential property investors to provide long-term rented accommodation for those living and working in London. Although market cycles may affect yearly returns, income yields are expected to rise along with significant capital growth. He also forecasts average rent increases of 5% annually over the next ten years, exceeding house price growth of around 4% per year.

The research paper’s conclusion predicts a significant housing shortage, with people either paying more, crowding into existing homes or being priced out of the city.

Currently almost two-thirds of households rent in inner London and 40% in outer areas, roughly equally divided between private and social housing.

The lettings market in London continues to strengthen, as demand is still far outstripping supply. Transaction levels in terms of rental deals done rose by 31% compared to the second quarter and 8% more than the same period in 2011.

The average rent increase of renewing tenants in London during the 3rd quarter of 2012 was 4%.

Residential lettings partner at Cluttons, Lynn Hilton, said: “The private rented sector feels the strong pressures of a growing population and workforce, being both the first point of contact and the safety option for many people searching for housing. New jobs being created in London are increasingly for well-paid and highly qualified staff. Those tenants in the higher income groups, including families, will be a growing component of the rental market, seeking good-quality accommodation over longer periods. The pressure of demand from tenants wanting to live in the city will underpin rental growth at a level ahead of the historic long-term trend.”

UK Is A Buyers Market As Property Values Increase

UK Is A Buyers Market As Property Values Increase

UK property investors have known that the day would come when the rest of the country’s population would cotton on to the fact that there is money to be made from property.

With newspapers and television media reporting that UK property values are experiencing the strongest annual growth for nearly two years, there is little doubt that the UK public will be able to ignore the facts for very long.

The media reports are based on data from the UK Land Registry, showing the average cost of residential property in England and Wales increased by as much as 1.1% to £162,561 in September 2012, the biggest year-on-year rise since November 2010

The majority of the public have been made aware of the upward trend in house values and now believe that the UK housing market will favour buyers rather than sellers, over the next year.

The thoughts of the general UK public are also backed by new research from the Halifax, however, only 9% of people feel truly positive about buying and selling property in the near future, suggesting the UK market may still remain quiet for some time yet.

56% of respondents think it will be a good time to buy property within the next year, and just 11% believe it is the right time to put one on the market.

Halifax said that the UK was gradually becoming more optimistic about property price rises, although most people still believe any price variation within 2013 will be relatively small, with two thirds expecting fluctuations of around 5%.

The national average property valuation has begun climbing gradually again since May 2012, after a year-on-year price drop was recorded in every month between January 2011 and April 2012

62% of people believe one of the biggest challenges remains finding the money for a deposit on property, and 30% said mortgage availability would still be a challenging obstacle.

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