Diary of a Property Investor

UK property transactions up 16.9 pct mm in July

LONDON, Aug 21 (Reuters) - The number of properties changing hands in the UK jumped 16.9 percent on the month in July to a seasonally adjusted 76,000, government data showed on Friday.

That was 10 percent higher than a year ago, HM Revenue and Customs data showed.

While the figures are a lagging indicator of the housing market, economists view them as a useful guide to future trends in spending on household goods.

Source: London South East

UK Housing Market Shows Signs of Life

Recent UK house market price and activity data lends weight to the view that the housing market may have bottomed out. In this post, we analyze the various data points and present our latest thinking.

The three main price indices in the UK housing market space are the Nationwide, Halifax and the Land Registry price data. We summarize the methodological differences amongst the various price series in the box below. Overall, there appears to be some support to the assertion that the UK property market is indeed recovering.

Source: RGE Monitor

U.K. July house prices up 1.1%: Halifax

LONDON (MarketWatch) -- British house prices rose 1.1% in July, mortgage lender Halifax said in its monthly survey Wednesday, offering further evidence of stabilization in a property market devastated by the credit crunch and a deep recession.

The average U.K. house price stood at 159,623 pounds ($269,825) in July. The average price was down 12.1% compared to July 2008. The average house price for the three months ending in July was up 0.8% compared to the same period in 2008, marking the first quarterly rise since October 2007, Halifax said.

The bounce came amid a rise in demand from homes, albeit from a very low base, said Martin Ellis, housing economist at Halifax. Improved demand stems from improved affordability and low interest rates.

"Higher demand has combined with the low levels of property available for sale to boost sales activity from exceptionally low levels and support prices over the past few months," Ellis said.

The house-price index compiled by mortgage lender Nationwide last week showed a 1.3% monthly rise in July, leaving the average price 6.2% below the level seen in the same month last year.

Soure: Market Watch

UK house prices could end the year higher than 2008

Surveyors have joined the party of property experts in the UK who now believe that UK property prices could actually end 2009 higher than they ended 2008. This is a remarkable turnaround in the UK property market which only a few weeks ago appeared friendless and with little hope of a short term recovery. However, many people believe that the average house price in the UK predominately reflects sporadic price increases in various hotspots in the UK while the sector as a whole continues to struggle.

More worrying for those who believe that UK property prices could end the year up from the level at which they started the year, there are some people who believe the short-term fillip in property prices will be short lived. The truth is that nobody really knows how the UK property market will perform over the next 12 months, 24 months or next few years to be honest. Economic models relating to the current economic climate have not been written and many people are trying to superimpose recoveries seen in the past on to the current economic outlook.

However, if these positive reports on the UK property sector can instil confidence into UK property buyers then ultimately they could be self-fulfilling prophecies.

Source: FinancialAdvice.co.uk

UK property market 'over the worst'

Homeowners and private landlords have been told that the UK housing market appears to be over the worst of its recent troubles, which have seen property prices drop and a reduction in the availability of mortgages.

That is the opinion of the National Association of Estate Agents (NAEA) and the group's president Gary Smith, who have together predicted an upturn in activity over the coming months.

Recent increases in agent sales boards have been reported by the NAEA, with one in six branches noting a 20 per cent upturn.

Meanwhile, Mr Smith said that estimates have shown that there is "a significant increase in demand", which suggests there are "plenty of buyers out there".

"The NAEA calls on the government to further badger banks and building societies to respond to the opportunity to pull the situation around," he added.

Last month, chief executive of the association Peter Bolton-King said that first-time buyer confidence has been growing since the start of spring.

Written by Mark Garner

Source: Lettingzone.com

UK mortgages pick up at last

The number of mortgages approved for house purchase rose to a 13-month high in May as buyers continued to return to the property market.

Figures released by the British Bankers' Association showed a total of 31,162 loans were approved for people buying a property during the month, seven per cent more than in April.

The figure was also 16 per cent higher than it had been in May 2008, the first time the annual measure has shown an increase since November 2006.

The rise in the number of mortgages approved for house purchase adds to growing evidence that buyers are returning to the property market on the back of record low interest rates and recent house price falls.

Both Halifax and Nationwide reported price rises during May, while the National Association of Estate Agents said their members sold the highest number of properties during the month since October 2007.

But economist Howard Archer, of IHS Global Insight, warned:"We believe the pickup in actual house purchases is likely to remain gradual for some time to come."

Source: http://www.dailyrecord.co.uk/news/business-news/2009/06/24/uk-mortgages-pick-up-at-last-86908-21467077/

UK property market has 'buyers-a-plenty'

The average estate agent in the UK made ten property sales in May, according to a new study.

National Association of Estate Agents (NAEA) figures show that this was the same number reported in April, but a 30 per cent increase year-on-year.

Additionally, each agent had an average of 299 house hunters on its books, which prompted the NAEA president Gary Smith to say there are "buyers a-plenty" in the UK.

More often than not, he added, these people are potential sellers at the beginning of the moving process.

"With mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession," Mr Smith continued.

NAEA chief executive Peter Bolton-King recently suggested that confidence among first-time buyers has grown in recent months.

If more people move house, it may increase the need for safe storage, which can be used by homeowners as a useful space-saving facility.

Written by Graeme Pieterson

Source: http://www.safestore.co.uk/industry_news/19227277/uk_property_market_has_buyers-aplenty.aspx

The attractions of renting

As the UK property market continues to struggle more and more people are looking towards renting properties in the short to medium term until their own financial situations are clearer and the UK property market is more stable. While many people would suggest to you that renting property is "dead money" this is not always the case and there are a number of positive factors to take into account.

Renting gives you the flexibility and the opportunity to move to either your own home or another property at relatively short notice and without having to sell a property. Renting also gives you the opportunity to perhaps put some money away for your own property in the short to medium term and then look to step onto the ladder as UK property prices stabilise – assuming we see liquidity return to the mortgage market. The ability to rent a property in a specific area, in which you may be interested in buying your own property, and "test the water" is also something which many people will be acutely aware of in the current economic environment.

This is not to say that there are no issues with rental accommodation, perhaps a difficult landlord, a lack of free money to save for your own property or similar issues, but if you are unsure about buying your own property then renting a home is your next step up the ladder.

Source: Financialadvice.co.uk

UK Property Sales Reach 18-Month High

The National Association of Real Estate Agents reports that more homes were sold in April, 2009 than in the previous 18 months. The average agent sold ten properties in April, up from eight in March and well above the low of five, which came in August, 2008.

 

The increase in sales is a positive indicator that the bottom may have been reached in the real estate market, according to several analysts. Property firm Jones Lang laSalle is confident that property in the UK has hit rock bottom and is headed for a gradual recovery. Peter Bolton Kind, Chief Executive of the National Association of Real Estate Agents said "What we are beginning to see now are consistent positive indicators that have held firm or improved since the beginning of the year." 

 

The NAEA’s Housing Market Survey indicated that the number of first-time home buyers was at 23 percent, the same level as in March. Bolton King also was cheered by that fact, as he believes that first time buyers are taking advantage of low prices and great deals.

 

Source: Homesgofast.com

NAEA - UK Property Sales Rise in April

Yesterday (18 May) the National Association of Estate Agents (NAEA) announced that the amount of property sales per estate agent rose last month, the Mortgage Introducer website reports.

 

The amount of sales each agent made in April of this year rose by an average of 10 per cent. Although house prices have been shown to have fallen, this increase in agent numbers is seen as a positive sign.

 

It would appear that confidence in the property market is returning, as the following statistical examples highlight. April was the fourth continuous month to witness a steady percentage level of 23 per cent of first-time buyers in the overall sales figures. The number of agreed sales per agent in April saw an increase to 10, from 8 in March. The average amount of properties available for sale also rose in April to an average of 76, from 67 in March.

 

All of these are positive indicators and much needed in what remains a difficult economic environment.

 

The NAEA said: “While the number of people registering to look for properties fell in the past month, the April figure remains high when compared to the past 12 months, and so any dip should be scrutinised in that context. Taking jointly the figures for the past two months, it is clear that there has been a resurgence of interest in the property market, probably reflecting both an increased confidence in the future of the market and a belief that house prices are bottoming out after months of falls and that now might be an opportune moment to secure a bargain.”

 

Source: news.hotproperty.co.uk