UK house prices back on track after September dip

Taylor Scott International News

UK house prices back on track after falling slightly in September dip with a 1.2% rise in October and up 7% annually, the latest published index shows. Growth of up to 5% is now predicted across UK in 2015 but the data from haart, the UK’s largest independent estate agent, with a network of over 200 branches, also shows that first time buyers are paying 8.1% more than a year ago. The latest rise takes the average annual house price to £204,247 but in London it is £501,561 with prices in the city up 18% year on year although monthly growth has slowed to 0.3%. The firm predicts UK property price growth between 3.5% and 5% in 2015 and in London up to 7% as 10 buyers chase each new property instruction across the country and 17 in London. ‘Although price growth is easing it is merely a market correction with all signals pointing to price rises of up to 5% across the UK next year. Savvy buyers and sellers would be wise to run with the window of opportunity that this creates now,’ said Paul Smith, chief executive officer of haart. He predicts that in the run up to the election next May it will be a case of ‘steady as she goes’ with little intervention from the government which thinks it has bigger fish to fry. However, he thinks this is short sighted. ‘Now is the time for some erudite analysis of the housing market by all political parties if we are to emerge post-election with renewed vigour. Supply of homes is the biggest issue affecting prices and until this is properly addressed, prices will continue to rise,’ he explained. The data also shows that the number of new buyers registering is down 12.3% annually and 2.4% on the month, but this must be seen in the context of the first six months of this year which were exceptionally busy with a renewed enthusiasm to buy driven by low interest rates and the availability of good mortgage deals. The number of properties for sale has dropped slightly annually, which again must be seen in context. The previous four months all saw an increase in the number of properties for sale. Overall demand remains strong across the UK. Again, with demand from first time buyers, there has been both an annual and a monthly fall in volumes by 17.2% and 3.6% respectively. First time buyers are putting down, on average, a deposit that is 4.4% lower than this time last year and the average LTV achieved is now 79.5% which is up from 78.7% last year. First time buyers are now taking out higher mortgages, at an average of £131,119, an 11.9% annual increase. Continue reading →

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