Archive for the 'House Prices' Category

House price data from Halifax has shown that house prices fell by 1.2% on average in June. The fall was unexpected after a promising start to 2006 for house prices.

Overall this contributes to a 4.5% increse in house prices in the first 6 months of 2006, and a 2.6% rise in the second quarter.

The Halifax also found a decline in the level of activity, with mortgage approvals from March to May down 4% compared with the previous three months after adjusting for seasonal differences.

The lender believes there are sound fundamentals to support continued growth in 2006, with high employment figures, and low interest rates. It does also add though, that any growth will be limited by rises in utility bills and council tax putting pressure on consumers. Rising rates for fixed rate mortgages may also temper demand.

Halifax has today released its results from May which show house prices rising by just 0.1% - the lowest monthly increase since the 0.2% fall in January this year.

The Halifax pointed to higher household bills and rising unemployment being likely to hold house prices in check for the remainder of 2006. Mortgage approvals for house buying fell in April for the second time in four months. April's figure was 11% down on January's.

Nationwide's results for May have shown that house prices rose by just 0.2%, slightly up from 0.1% in April. May's results brought the annual rate of house price inflation to 4.7%, down from 4.8% in April.

Nationwide's group economist, Fionnuala Earley, commented "The price of a typical house in the UK is now £164,632, almost £7,500 more than at this time last year. This is equivalent to a price increase of just over £20 per day over the last twelve months."

The report goes on to comment that the supply of houses on the market has increased over the past few months, while the supply of buyers has declined. As supply exceeds demand, it becomes a buyer's market, with buyers able to push down asking prices.

Interest rates have also begun to rise on mortgages, as lenders expect a rise in the base rate in the coming months.

Nationwide Building society have released results of their latest survey on what adds value to property. As always, location is the biggest factor - with a good location potentially adding over a third in value.

Adding bedrooms and bathrooms both add around 5% to 6% each, good parking can add 6%, and central heating can add nearly 7%. A good loft conversion however, can add over 20% to a property's value.

The survey also looked at the cost per square foot in different properties. It found that while larger properties may cost more, the price per square foot of the smallest properties can be nearly double that of larger properties. Small 1 bed flats can cost up to £286 per square foot, while a large 4 bed house can be as low as £149 per square foot.

In terms of comparing new builds to second hand homes, the premium for a new build has dropped markedly over the last ten years. 10 years ago a new build could command a price roughly 25% higher than a similar second hand house - this has reduced to just 6% in today's market.

The Royal Institution of Chartered Surveyors (RICS) has released results from their housing market survey, that show house prices have risen for the 6th month in a row. It also states that larger houses have outperformed compared to flats, with pre-1960s 2 and 3 bed houses seeing the largest increases.

For the first quarter of 2006, 15% more Chartered Surveyors said that prices had increased.

The number of properties available has decreased by 10% compared to one year ago, while sales activity has increased by 17%, which has lead to increased competition among buyers.

Jeremy Leaf, RICS spokesman, said: "The rise of house prices suggests a return of confidence to the market boosted by a healthy economic climate. Greater economic wealth has boosted prices for larger properties as buyers remain content to invest for the long term, with a rising stock market not detracting interest in real estate."