Currently viewing the tag: "UK House prices"
Property Valuations In UK on the Increase

UK Residential Property Values Increase Across the UK

According to Nationwide 9 out of 13 regions in the UK recorded residential property price rises in 2011, with London the best-performing region (+5.4%) and Northern Ireland the worst-performing region (-8.9%).

Property prices in Scotland are down 0.8% on the year, having remained steady in the final quarter of 2011, in Wales prices ended 2011 up 1.5% despite having lost 0.9% in the final three months.

For the UK as a whole, the typical value of home stood at £164,785 in December, following a 0.3% increase during Q4 which helped produce an annual price rise of 1.1%.

However, at 5.2, the average house price to earnings ratio remains above the long-term average of around four, although down from a peak of 6.4 in 2007.

Due to continued property price falls, Northern Ireland is now the cheapest UK region in terms of average prices, and also the most affordable relative to average earnings.

The North remains the most affordable English region, while annual price growth of 5.4% has consolidated London’s position as the least affordable region, with a house price to earnings ratio of 7.4.

In 2012 the market is likely to be dominated by fears over rising unemployment, the squeeze on household incomes and the Eurozone finance crisis.

Forecasts for 2012 are for property values to remain stagnant at best.

Shortage of suitable property supply should continue to underpin the market, although Halifax recently reported that there were only 187,000 First-Time Buyers (FTB’s) in 2011 – the lowest annual total since the lenders’ records began in 1974.

The Halifax has reported that UK house prices leapt 1.2% last month to continue a highly mixed pattern of price movements this year.

In its October housing market report, the lender found that the average UK property is now worth £163,311, marginally higher than at the end of 2010. The average price in October was £508, or 0.3%, higher than in December 2010 on a seasonally adjusted basis. 

However, despite the increases over the last month, house prices are down 0.3% on the more stable rolling three-month . Values fell 0.3% in September and 1.1% in August. 

The October rise defied analysts’ predictions – a poll by Reuters had expected a monthly increase of just 0.1% and an annual decline of 2.3%. 

The market has followed a mixed pattern so far this year according to the Halifax, with five monthly rises, four falls and one month of no change at all. 

Halifax housing economist Martin Ellis said that the prospect of lower Bank of England (BoE) interest rates, which still remain at a historic low level, will continue to support the market. He said: “The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies. Both prices and activity levels are expected to remain close to current levels over the coming few months.”

The report also found that house prices are down on an annual basis. The average house price in October 2010 was 1.8% higher than now at £164,320.

In other surveys, analysts have painted a bleak picture of the UK house market in the coming year. Many economists see house prices in Britain falling in the months ahead as the country teeters on the brink of recession.

While October’s performance was a surprise, property prices are still expected to fall by 5% from current levels by mid-2012. Whilst UK property prices can be volatile on a monthly basis there are often significant fluctuations around a trend, so October’s jump in prices will do little to change the economists view that property prices are going to be heading down over the next few months and are likely to fall by 5% from current levels by mid 2012.’

 Read the full article from ThisIsMoney here

UK property Valuation Data

Is The UK Property Market Really In Decline?

Economists are claiming that UK property prices are expected to fall further in 2102 as UK banks keep a tight rein on mortgage lending amid the Con-Dem Government’s austerity measures.

Some financial experts predict that property values will plunge by a total of between 5 to 10 % for 2011 following a period of declining prices since the summer, despite the fact that 90% mortgage products are now returning to the market.

The number of property deals requiring just a 10% deposit have more than doubled in the last two years and there are 253 mortgage products at 90% loan-to-value (LTV) currently on the market – up from 206 a year ago and up from 101 in 2009.

The doom & gloom headlines in the media about property do very little for the UK economy and such reports are dreadfully inaccurate, the severity of the impending property collapse depends on which data source is used to produce statistical information.

Below is a table of information sources used by the media to give an insight into the true state of the UK housing market, the only problem is that NONE of the data matches with any other source…

UK Property Valuation Statistics

Info Source


Period covered

House Price

% Monthly change

% Annual change

Peak avg
House Price

% Change since peak


Press Releases

Communities and Local Government House Price Index

Aug 11




(Jan 08)



FT House Price Index (Acadametrics)

Sep 11




(Feb 08)




Halifax House Price Index

Sep 11




(Aug 07)



(PDF) (England and Wales)

Oct 11








Hometrack – Monthly National Survey

Oct 11







Land Registry Monthly Report

Sep 11




(Jan 08)




Nationwide House Price Index

Oct 11




(Oct 07)




Rightmove House Price Index

Oct 11




(May 08)





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Private Rental Sector experiences popularity boost!

Buy To Let is Still a Sound Investment

With sales of UK residential property stuttering again, the UK Buy To Let market is the strongest it has ever been.

A recent report highlighted that the Private Rented Sector (PRS) has risen by 1.4 Million additional rental properties since 2001.

The PRS properties currently accounts for about 3.4 Million rental properties in the UK and this is set to rise steadily as more property investors seek suitable Buy To Let Properties.

There is still a national shortage of properties to rent out. Many letting agents are reporting more tenant applications than available rental properties, and landlords are able to select the best tenants by means of comprehensive tenant referencing.

With the Buy To Let sector experiencing the lowest number of rental voids on record and the highest rents to date, the private rented sector is still a stable and secure investment.

However, UK Landlords are being encouraged by homeless charities to set realistically achievable rents to enjoy a continued income stream with no voids or arrears.

With a growing number of financial factors affecting the average UK household it may not be too long before private rented sector landlords feel the impact through their tenants feeling the pinch of the global recession, leading to spiralling arrears and an increased number of tenant evictions.

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One of the UK’s top mortgage lenders, the Halifax reckon that taking out a mortgage on UK property is now more affordable than it has been for almost 15 years.

This announcement was made following some lenders slashing their prices and the Bank of England keeping the UK’s interest rate at 0.5%.

Martin Ellis, Halifax’s head of housing economics said: “Obviously you have got to be able to raise a deposit but it is more affordable than it’s been for a long time. Job insecurity and depleting savings have meant many people have remained cautious about buying a property.”

The benefit of a mortgage lenders price war and the continuing historically low base rate, mean that the average mortgage repayment now stands at £574.15, making up 26% of earnings after tax.

Borrowers today hand over considerably less of their earnings to mortgage providers than their parents used to, repayments have on average taken up 37% of earnings over the past 25 years, said the Halifax.

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UK property prices are still highly volatile and 2011 has been a very mixed year for the UK housing market.

Economists at Halifax, one of the UK’s largest mortgage lenders think that the current UK housing market lacks direction, after 4 months of increasing property values, 4 falls in value and only 1 month without any change.

Last month’s decline in property values of 0.5% is the second successive month of price falls, following a drop of 1.1% in August.

The Halifax said average prices in the quarter to September were still 0.1% higher than the previous 3 months – the first such rise since early 2010.

On a seasonally adjusted basis, the average UK house price in September 2011 was 1% lower than in December 2010, at £161,132.

The mixed outlook is likely to continue, as financial uncertainty still outweighs demand.

Halifax housing economist Martin Ellis said: “This mixed pattern is consistent with a market where prices are lacking genuine direction. We expect little change over the remainder of the year”.

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UK house prices have risen by approximately £100 a week so far this year meaning that house prices have increased by 1.7% or £3,667 since January 2011.

Property experts analysed more than a million homes in new research by property website and found that in almost every part of the UK prices have risen by an average of 1.7% or £3,667 since January.

The positive news will come as a relief to homeowners, many of whom have been left in negative equity as the value of their properties collapsed since the recession.

And for investors battling stock market turmoil it shows there is still money to be made in bricks and mortar which is still a safe haven for investing hard-earned pounds.

Experts say a shortage of homes in Britain means demand is driving up the price.

The research has also revealed that properties are sold nine days faster than they were at the beginning of the year.

The average cost of property in Greater London is now up £33,641 since September 2008 to £427,889. (2008 was the year when Lehman Brothers collapsed triggering the end of 100 per cent mortgages and a credit freeze).

The rise in house prices shows confidence in the property market remains steady as a result of more people realising that the old adage is true…

“In times of trouble invest in bricks and mortar”.

Despite the rollercoaster of economic tough times over the past 4 years, property has proven yet again to be a far more solid investment than analysts thought at the start of the year. This growth is very encouraging amid a still struggling economy.

According to the websites latest House Price and Affordability Index the only area of the country where house prices have dipped this year is Wales, down 0.4% since January 2011

Scotland saw the biggest rise with asking prices increasing 4.9% or £720 a month.

In the West Midlands house prices rose by 2.9% and the North East saw property values increase by 2.6%.

London, property prices rose by 2.3% and in the rest of the South East prices were up 0.9%.

Property prices also rose between 1.2 – 1.5% in Yorkshire, Humber, East Midlands and the East of England

A number of factors support house prices, including the shortage of homes for sale and although demand currently isn’t as strong as many agents and analysts would like it is cancelled out by a weak supply of properties available.

Interest rates have stagnated at 0.5% and are unlikely to rise for at least another year yet turmoil in the stock market and problems with the euro debt crisis are encouraging people to invest in property.

There is an increased demand for property from amateur landlords, who are returning to the property market to take advantage of soaring rents. This is placing upward pressure on prices.’

Earlier this month it was revealed that the price of an average house is expected to rise  by up to 14% over the next four years, reaching the highest ever recorded in Britain.

The Centre for Economics and Business Research predicts the typical home will be worth more than £200,000 by 2015, up from its current £176,000.

Average house prices peaked in 1997at £191,200

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Despite what the media would have us believe, UK house prices have survived the financial crisis relatively unscathed. Even though much of the globe is flirting with a double-dip recession or even outright depression, property prices keep on rising… gradually.

Can property prices continue defying gravity or are they finally set to crash again?

Regardless of the potentially disastrous global economic backdrop, house prices have actually risen 4.7% this year, according to the latest figures from lender Nationwide.

Predictions are that property prices could rise by another 14% by 2015 to hit a record high, according to the Centre for Economics and Business Research (CEBR). This would push up the average UK property price from £176,000 to just over £200,000, well above the peak of £191,200 hit in 2007.

The CEBR claim a shortage of property is the main reason for continuing price rises. More than 225,000 new homes are needed each year to keep pace with population growth and the trend towards smaller households, yet the UK builds just 110,000 a year.

Latest figures from the British Bankers’ Association show housing market activity levels remain low, with net mortgage lending up just 1.7% over the past 12 months.

The average first-time buyer spends just 28% of their disposable income on their mortgage, compared with 48% in the autumn of 2007.

Housing affordability differs nationwide, with the most affordable property in Scotland, Yorkshire, Humberside and the North West, while the most expensive is in the South East and the more desirable parts of London such as Chelsea and Kensington.

Brian Murphy, Head of Lending at the Brokers Mortgage Advice Bureau said “ The traditionally busy autumn house-buying period should give a good indication of the UK housing market. Let’s see how many mortgage applications are made in September and October. In a healthy market we would expect to see an increase in mortgage applications following the summer vacation but whether this will happen is anybody’s guess.”

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Figures released last week by the Halifax suggest the UK property market is beginning to level out with house prices up 0.3% in July.

This monthly rise follows a 0.5% increase in the 3 months prior to July 2011 with prices rising quarterly for the first time in over a year.

July average UK house price = £163,981

The marginal increase on the December 2010 figures is still 2.6% down on the same period in previous years.

With an increasing number of houses still on the market and the amount of sales remaining the same since 2010, property prices appear to have stabilised

This pattern is expected to continue over the rest of 2011 with little genuine direction in either house prices or sales.”

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