Marketing No Comments

Property industry reacts to UK house price data

Residential property prices increased by 0.4% in February, marking the fourth monthly increase in a row, according to the latest Halifax house price index.

Contact us today to speak with a specialist Commercial Mortgages Broker to discuss how we can assist you.

The data shows that during the month property prices grew 1.7% on an annual basis, against a 2.3% in the prior month.

Get in touch to discuss your Commercial Finance needs today.

The figures showed the average cost of a home in the UK is now £1,000 higher than last month.

To read the full article click the link below:

Source: Property Industry Eye

Marketing No Comments

House prices remain remarkably stable

The UK economy has shown unexpected resilience in the face of rising interest rates and inflation. Agreed, the economy fell into a recession in the second half of last year, but so far, a very mild one.

Contact us today to speak with a specialist Commercial Mortgages Broker to discuss how we can assist you.

The high unemployment, financial stress and big company corporate failures that looked possible a couple of years ago have not materialised.

Get in touch to discuss your Commercial Finance needs today.

The housing market has also held up, confounding expectations of sharply lower house prices.

The last time I wrote about house prices was in November 2022, in the aftermath of Kwasi Kwarteng’s ill-fated mini-budget. At that time I forecast a 15 per cent decline in house prices.

To read the full article click the link below:

Source: Reaction

Marketing No Comments

Why the ‘mood music’ surrounding the housing market outside London has changed

An influx of new residents into Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow helped the housing market remain resilient during 2023, according to a new report.

Contact us today to speak with a specialist Commercial Mortgages Broker to discuss how we can assist you.

New research from global property advisor JLL shows there was a surge in demand from renters and buyers for prime residential properties across the UK’s ‘big six’ despite high inflation and interest rates.

Get in touch to discuss your Commercial Finance needs today.

The report, which tracks residential development activity, prices and rents across the six areas, highlighted a desire from city centre residents to live in ‘vibrant, highly-amenitised and well-connected central locations’.

To read the full article click the link below:

City A.M.

Marketing No Comments

House prices fall by -1.4% in December – ONS

Average house price annual inflation was negative 1.4% in the 12 months to December 2023, compared with negative 2.3% (revised estimate) in the 12 months to November 2023, according to the latest data from the Office for National Statistics (ONS).

Contact us today to speak with a specialist Commercial Mortgages Broker to discuss how we can assist you.

The average UK house price was recorded at £285,000, which is £4,000 lower than 12 months ago.

Average house prices in the 12 months to December 2023 decreased in England to £302,000 (negative 2.1%), decreased in Wales to £214,000 (negative 2.5%) and increased in Scotland to £190,000 (3.3%).

The average house price increased in the year to Q4 (October to December) 2023 to £178,000 in Northern Ireland (1.4%).

Get in touch to discuss your Commercial Finance needs today.

On a non-seasonally adjusted basis, average UK house prices increased by 0.1% between November 2023 and December 2023, compared with a decrease of 0.8% during the same period 12 months ago.

Of English regions, annual house price inflation was highest in the North West, where prices increased by 1.2%.

London was the English region with the lowest annual inflation, where prices decreased by 4.8% in the 12 months to December 2023.

To read the full article click the link below:

Source: The Intermediary

Marketing No Comments

UK house prices rise at fastest rate since January 2023

UK house prices rose 2.5% in the year to January, recording the biggest increase since January last year, as lower mortgage rates and fading inflationary pressures led to increased buyer and seller confidence, Halifax has said.

Contact us today to speak with a specialist Commercial Mortgages Broker to discuss how we can assist you.

January marked the fourth consecutive monthly rise, with a 1.3% uplift on December, the UK’s biggest mortgage lender said, with the average home costing £291,000, £3,900 more than in December.

Get in touch to discuss your Commercial Finance needs today.

Kim Kinnaird, the director at Halifax Mortgages, said: “The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers.

To view full article please click the link below.

Source: The Guardian

Marketing No Comments

UK house prices to rise by 3% in 2024

Knight Frank has revised its UK house price forecasts as inflation is falling faster than expected, with the company now suggesting that house prices will rise by 3% in 2024.

This compares to a decline of 4% which was predicted in October.

Knight Frank also expects cumulative growth of 20.5% in the five years to 2028.

This is partially a result of stronger demand, as the number of mortgage approvals was 10% higher in November than the previous year and the firms expects a double-digit percentage increase in sales volumes this year compared to 2023.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

The report forecasts slightly lower growth for the mainstream London market (+2%) this year as continued affordability constraints in the capital mean lower-value areas of the country are likely to outperform.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

In the prime country house market, Knight Frank expects a narrower decline this year (-2%) as the market comes down from the highs of the pandemic in recent years.

By Jodie Bradley

Source: Bridging & Commercial

Marketing No Comments

Have House Prices Fallen Or Risen In 2023?

9 2023 was a tough year for the property market. With an unstable mortgage market, where rates went on a rollercoaster ride, demand was subdued. Many commentators were predicting property prices to decline as a result. But have house prices fallen or have they risen in 2023?
House prices are often seen as a reliable indicator of the health of the property market. And while not infallible, they can offer an insight into how confident sellers and buyers are in the market.

The last year was not the best in terms of confidence in the market. Rising mortgage rates and high inflation has forced many people to put their plans to buy a new home on hold.

There was much speculation how the year will end regarding prices, with many predicting that they will fall. Now that we have data from several industry insiders, can we determine whether house prices have fallen or risen in 2023?

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

Halifax Announces Slight Rise In House Prices in 2023
After Nationwide and Rightmove, Halifax has released its latest House Price Index for December 2023. The data shows that house prices have risen by 1.1% compared to November last year.

According to the lender’s figures, this is the third monthly price rise in a row, pushing up the average UK house price to £287,105.

Year-on-year, Halifax’s House Price Index suggests that house prices have risen by 1.7% in 2023, compared to 2022. This means house prices were £4,800 higher in December than in December the previous year.

However positive these figures appear, they contradict data from Nationwide and Rightmove.

Nationwide’s House Price Index for December 2023 showed that house prices have stagnated on a monthly basis in the final month of the year. Compared to December 2022, house prices have fallen by 1.8%.

Rightmoves’ final House Price Index of 2023 also says the year has ended with a decline in house prices by 1.1% compared to the year before. Their data put the monthly house price decline in December at 1.9%, compared to November.

So what’s going on? Have house prices fallen or risen? The difference is down to the use of different datasets.

Halifax and Nationwide are likely to base their figures on data from properties bought with their mortgages, Rightmove uses property prices from all properties listed on their portal.

As such, Rightmove’s data seems to be the most complete. However, not all properties are listed on the portal. This means that all these figures have to be taken with a pinch of salt.

The most complete data to establish if prices have risen or fallen comes from land registry data. So we will have to wait for the Office forNational Statistics’ House Price Index to know for sure, which will be released mid to end of January.

But the likelihood is that house prices will have fallen by around 1% at the end of December 2023 compared to the previous year.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Predictions For Next Year
While the currently available data doesn’t help to definitively answer the question of have house prices fallen or risen, there is more consensus about what direction prices will go this year.

Most commentators, including Rightmove and Nationwide, agree that house prices are likely to decline in 2024. Even Halifax believes that house prices will drop by between 2% and 4%.

Despite mortgage rates having come down recently as lenders compete for borrowers, mortgage rates are still at an elevated level. Inflation is also slowing, but prices for many everyday items are still high, putting pressure on many household budgets.

The current economic uncertainty will likely continue into 2024, keeping many buyers and sellers cautious.

Source: Property Road

Marketing No Comments

Property industry delivers verdict on new UK house price data

Property prices in the UK rose for the third consecutive month in December 2023, according to the latest Halifax HPI data.

The cost of an average UK home rose to £287,105, up £3,066 (+1.1%) from November, reaching the highest level since March 2023.

According to Halifax, this means the housing market beat expectations in 2023 and grew by 1.7% on an annual basis.

The average property price is now £4,800 higher than it was in December 2022.

Kim Kinnaird, director for Halifax Mortgages, said: “Whilst it’s encouraging that we saw growth in the last three months of the year, this was preceded with property price falls for six consecutive months between April and September.

“The growth we have seen is likely being driven by a shortage of properties on the market, rather than the strength of buyer demand. That said, with mortgage rates continuing to ease, we may see an increase in confidence from buyers over the coming months.”

Across all the UK regions, Northern Ireland recorded the strongest house price growth in 2023, with properties increasing by 4.1% to £192,153. Scotland saw property prices rise by 2.6% to £205,170.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

At the other end of the scale, the South East fell most sharply, with houses there now averaging £376,804, down by £17,755 (-4.5%).

Kinnaird said: “As we move through 2024, the UK property market will continue to reflect the wider economic uncertainty and buyers and sellers are likely to be naturally cautious when considering making a move.

“While wage growth is now above inflation, helping to ease cost of living pressures for some and improving housing affordability, interest rates are likely to remain elevated for as long as inflation remains markedly above the Bank of England’s target.

“Our latest forecast suggests house prices could fall between 2% and 4% during the coming year, although, as with recent years, forecast uncertainty remains high given the current economic climate.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

More reaction

Anthony Codling, managing director, equity research, RBC Capital Markets, said: “The demise of the UK housing market is somewhat over reported. Most, including us, thought house prices would fall during 2023, and most think they will fall in 2024, but not us.

“With rising wages, falling inflation, falling mortgage rates, and increasing talk of election-related housing stimulus packages, we expect house prices to rise in 2024. Our pessimism was misplaced in 2023, and we don’t want to make the same mistake twice.”

For full article follow link below

Source: Property Industry Eye

By Jerome Smail

Marketing No Comments

Savills predicts over 8% annualised returns in eight UK property sectors for 2024

Savills forecasts that eight asset classes in the UK property market are set to achieve annualised returns exceeding 8% for 2024.

This includes buy-to-let in the North West, London industrial properties, and retail warehouses, which are expected to be the top performers, with annualised investment returns between 8.5% and 9.2% from 2024-2028.

The upcoming year is seen as an opportune time for commercial investors, as retail, industrial, and office spaces are projected to be more affordable. The private rented sector’s challenges are likely to prompt institutional landlords to focus more on Built to Rent and Purpose Built Student Accommodation.

Farmland is also identified as a key area, expected to contribute significantly to net zero initiatives. Demand for prime arable land, primarily for food production, is anticipated to remain high, influenced by global events and environmental concerns.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

Richard Merryweather, Savills joint head of UK investment, highlights the positive shift in the market: “The factors that drove falls in UK property values and transaction levels over the last two years are expected to improve in 2024. There will be significant opportunity – especially in the commercial and residential spaces – for investors to buy at the bottom of the market.”

In 2024, investment focus is expected to shift to asset-specific basics rather than sector-wide trends. Strategic logistics projects, prime and green office spaces, and certain retail market segments are identified as areas with potential for better than average rental growth. The residential market is also expected to recover, with prospects for growth in mainstream house prices by 2025.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

By Ryan Fowler

Source: The Intermediary

Marketing No Comments

UK house prices rise again as easing of mortgage rates tempts more buyers

UK house prices rose for the second month in a row in November, according to a leading index, as a slight easing in mortgage rates helped coax more buyers into the market.

The average price of a UK property rose by £1,394 – or 0.5% – last month to £283,615, according to the mortgage lender Halifax.

It signals an uptick in activity across the housing market, where price growth has stalled over the past year because of an increase in interest rates and subsequent affordability pressures that have driven away otherwise eager buyers.

UK house prices have also been underpinned by a shortage of available properties over the past year, as many sellers wait for the market to normalise and prices to recover.

Contact us today to speak with a specialist Commercial Finance Broker to discuss how we can assist you.

On an annual basis, prices are down 1%, although Halifax said this was a “relatively modest” drop given the economic headwinds that have weighed on consumers over the past 12 months. Average house prices are still £40,000 above pre-pandemic levels, having been skewed during the Covid crisis, when people scrambled to buy larger homes.

“Recent figures for mortgage approvals suggest a slight uptick in activity levels, which is likely as a result of an improving picture on affordability for homebuyers,” Kim Kinnaird, the director of Halifax Mortgages, said. “With mortgage rates starting to ease slightly, this may be leading to increased buyer confidence, seeing people more inclined to push ahead with their home purchases.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

However, Kinnaird said house prices were unlikely to continue their upward climb into the new year. “The economic conditions remain uncertain, making it hard to assess the extent to which market activity will be maintained. Other pressures – like inflation, the broader cost of living, overall employment rates and affordability – mean we expect to see downward pressure on house prices into next year.”

Northern Ireland has experienced the strongest rise in house prices over the past 12 months, with the average home costing £4,294 more compared with last year, at £184,684.

For full article follow link below

The Guardian

By Kalyeena Makortoff