Archive for the 'House Prices' Category

Ing Direct and Future Foundation have announced results of research into factors pointing to growth potential in property values. The bank interviewed 200 estate agents in order to compile the list of factors. The three main factors were:

1. Improving school results (79%)
2. Skips and scaffolding (70%)
3. Planning application notices (57%)

• more traffic wardens
• busier public transport
• more burglar alarms
• neighbourhood watch schemes
• graffiti removal
• ethnic food in local shops
• a growing telephone directory

ING estimates that if an area is displaying at least six of the factors, it should outperform the national average by over 13% for the next ten years.

ING Direct’s chief executive Lindsay Sinclair said “Traffic wardens and more crowded public transport are not things you would normally welcome, but it appears that such annoyances do come with a silver lining.”

New data from the Land Registry shows that average house prices have risen above £200k – to £211,453 to be precise.

Data from the Land Registry is from actual sale prices – unlike estate agent figures which come from market prices.

The most expensive place to live was Kensington & Chelsea, where a detached property would cost £5.6 million on average. In comparison, a detached house in Kingston Upon Hull would cost around £165k.

Prices have risen by 8.7% since this time last year, with prices remaining strong despite the recent rate rise, and further expected rises in the near future.

Nationwide’s figures for September showed that house prices rose by 1.3%, bringing the annual rate to 8.2%. It would appear that August’s interest rate hike has not affected demand for property, with strong demand from landlords helping to support the market.

At the end of September, the average property price stood at £169,413.

Commenting on the figures Fionnuala Earley, Nationwide’s Group Economist, said: “Just like the weather, the housing market was unseasonably warm in September as August’s interest rate hike did nothing to cool the rate of house price inflation.”.

The Department for Communities and Local Government (DCLG) has released information today showing that the annual rate of property price growth was 6% in July this year. This figure was up from the 5.3% for June.

This means that in July 2006, the average house price stood at £194,454.

The DCLG has replaced the Office of the Deputy Prime Minister (ODPM) and is headed by Ruth Kelly.

House price inflation was higher than average in London, which had an annual increase figure of 7.1% in July.

The DCLG also stated that “The average price paid by first time buyers across the whole of the UK was £150,252 in June, while the average price paid by former owner occupiers was £213,309.”

The Nationwide building society has today said that house prices grew by 0.8% in August. This brings the yearly rate of increase to 6.6%.

This update has been the first since the Bank of England raised rates from 4.5% to 4.75% earlier in August. Fionnuala Earley, Nationwide’s Group Economist, said “The annual rate of house price inflation picked up for the third consecutive month in August. House prices are now 6.6% higher than at this time last year. This is the fastest annual rate of growth since April 2005 and almost three times faster than at this time last year.”

Although a further base rate rise is expected before the end of the year, Nationwide does not expect this to have any significant effect on house prices. Fionnuala added, “Even though we expect rates to increase to 5% – 25 basis points above the peak of the last cycle – current economic conditions, especially in the labour market, are still supportive. This means that rate rises are likely to only be a catalyst to the slowing we had already expected, rather than fostering a repeat of the 2004 slowdown.”