Housing Demand Across UK Cities Up 26%

Prices also increasing at highest rate for two years. Demand for housing increased sharply in January, with prices registering a more modest uptick. An average rise of 26% in enquiries over the four weeks to January 20, compared to the same period last year, is indicated by the latest market data from Hometrack. The property market data firm’s monthly index of city prices showed the biggest increase was in the North and Midlands – particularly Sheffield, Leeds and Leicester. However demand also rose further south, in cities including London and Cambridge. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/housing-demand-across-uk-cities-up-26/5104002.article

Regional Housing Markets 'Shrug Off' Brexit Uncertainty

The latest UK Cities index from Hometrack has revealed that despite Brexit continuing to dominate most aspects of life in the UK at the moment, in the two and a half years since the referendum, it appears to have had a limited impact on the UK’s housing market. According to the report, households in regional housing markets appear to be shrugging off any uncertainty. Six of the UK’s largest cities are posting year on year growth figures over 6% with Leicester (7.7%), Edinburgh (7.4%), Manchester (6.3%), Birmingham (6.2%), Nottingham (6.1%) and Liverpool (6.0%) all performing strongly. Sales volumes continuing to keep pace with new supply in regional cities, supporting price growth. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/regional-housing-markets-shrug-off-brexit-uncertainty.html

House Prices Set To Increase Up To 7%

House price growth across the UK’s biggest cities is set to be stronger this year than previously predicted, according to an index. Values across the 20 biggest cities are now expected by property analysts Hometrack to increase by 6 per cent to 7 per cent over the course of 2017, higher than its previous prediction of 4 per cent made in December 2016. Continued robust house price growth in large and vibrant regional cities, such as Birmingham, Manchester and Leeds, despite uncertainty over Brexit, is behind the raised expectations. Read more on the Independent website.

London House Prices Rising At Slowest Pace In Four Years

House price growth in London has slowed to the weakest pace seen in nearly four years, with property values in Liverpool, Birmingham and Manchester now rising more quickly than the capital, according to an index. Year-on-year house price growth in London was running at 6.4 per cent in January – the lowest level recorded since June 2013 – according to property analysts Hometrack. The report said house price growth in London is expected to slow towards a "standstill" during 2017. Read more on the Independent website.

House Prices In London Reach 14.2 Times The Average Salary

The disparity between average earnings and house prices is reaching record levels in certain parts of the country, with house prices in London reaching 14.2 times the average salary. House prices in the capital have risen by 86% since 2009 and the house price to earnings ratio in London is now the largest on record and more than double the UK ratio of 6.5. Cambridge and Oxford also have double digit price to earnings ratios which, in turn, are well ahead of the average over the last 12 years while strong house price growth in Bristol, which has the fastest growing house prices in the index, has pushed the price to earnings ratio to 9.2 times earnings over the last two years. Read more on the Hometrack website.

London Tops Cost-Of-Housing Survey At 14 Times Average Earnings

The average cost of a home in London is more than 14 times average earnings – the highest level on record, according to figures from property consultancy Hometrack. Oxford and Cambridge are not far behind, the company’s latest index of city prices indicates, with house prices at 13.5 and 13.6 times local earnings respectively. A lack of homes for sale combined with demand fuelled by low mortgage rates has pushed up average prices in London by 86% since 2009, according to Hometrack, to an average of £482,000. The increase is far in excess of wage growth and means prices are 14.2 times the average London wage packet of £33,720 a year – the highest multiple since 2002. Prices in London did falter during the credit crisis but it was not long before they resumed their upwards march. Read more on the Guardian website.

EU Referendum 'Likely To Slow Housing Market'

The housing market is likely to be depressed in the run-up to the referendum on the UK’s membership of the EU, according to consultants Hometrack. Hometrack’s index of house prices in 20 UK cities revealed the overall number of sales fell by 2% in the last year. The consultancy warned that uncertainty over the ‘Brexit’ referendum was “likely to slow activity further”, based on analysis of the market during the Scottish referendum. It added that other policies – such as higher stamp duty for investors and second homeowners – was expected to contribute to a slowing market. Read more on the Hometrack website.

Help-To-Buy Loan Scheme Nets Treasury £213m In Paper Profit

Rising house prices across much of England mean a government scheme to help buyers of newbuild property may have made more than £200m for the Treasury in its first two-and-a-half years. The help-to-buy equity loan scheme gives buyers an interest-free loan for five years in return for a percentage stake in their property. When the home is sold, the buyer returns the same percentage of the sale price, meaning that any fall or rise in house prices affects the return. Analysis by Hometrack suggests that a surge in house prices means the total value of homes bought through the scheme since its launch in April 2013 has increased by more than £1bn.  Assuming each buyer took the maximum 20% loan to buy the property, Hometrack said the government’s stake is worth £213m on the £2.7bn it has put up through loans. Read more on the Guardian website.

Summer Budget: Reactions from the Sector

A wide range of housing organisations have given their reactions to the Budget. They include CIH; NHF; homeless charities Shelter, Crisis and Centrepoint; Generation Rent; YMCA; the London Assembly; Midland Heart; Hometrack; Placeshapers and Metropolitan Housing.  Read more on 24dash.

Homeowners Waiting Up To 28 Years between House Moves

The average period of time between home moves is as long as 28 years in some UK cities.  A 30 per cent drop in moves by homeowners with mortgages over the last decade is starving the market of housing supplies and driving prices upwards, Hometrack suggests. UK property prices increased by 9.6 per cent in the year to March 2015, up from 7.4 per cent recorded the previous month.

In the 1980s, the average house changed hands every 10 years. Between 2003 and 2007, the average time between moves increased to 14 years.  As prices rise, the time between house moves across all UK cities has risen to 21 years, and in some cities, like Liverpool, to 28 years. Read more on the This is Money website.

Fears of Bubble As Demand Far Outstrips Supply

Fears that Britain's housing market is headed for bubble territory have been stoked by fresh evidence that demand is far outstripping supply. As the market heats up, buyers desperate to secure a property are paying the highest proportion of asking prices seen for a decade, according to a report from property researchers Hometrack. In London, buyers are paying more than 99% of asking prices against a backdrop of soaring demand from foreign investors and local house hunters The figures come alongside a warning that the south of England faces a shortfall of at least 160,000 homes by 2018. An analysis of building projects by upmarket estate agent Savills finds that local planning authorities are "simply not planning enough new homes to meet the growing housing need." Read more on the Hometrack website.

Major Flaws Revealed In Pay-To-Stay Policy

The government’s pay-to-stay policy will not work in parts of 16 local authority areas across London because tenants will have to earn more than the £60,000 cap to be able to pay affordable rents.  Under pay-to-stay proposals outlined last month, social landlords will be able to force tenants who have a household income of more than £60,000 a year to pay full market rent or move into the private rented sector.  However, exclusive data from consultancy Hometrack reveals that in four boroughs this will not be possible for tenants paying affordable rents.  This is because tenants would need an income of up to £82,226 to pay the rent even if it is set at 63 per cent of the market rate - the average proportion charged under the scheme - rather than the 80 per cent maximum allowed. Read more on Inside Housing.

Rental Market 'Does Not Work Everywhere'

Hometrack analysis shows that 75% of lettings last year, were concentrated in just a quarter of the UK.  Put simply the private rental sector does not work everywhere.  By geographical area only 7 per cent of the UK has a mature private rented sector market, with high concentrations of rental supply and strong turnover, its analysis shows.  Read more on the Hometrack website.

Experts Warn Of Rent Price 'Limits'

Experts are warning that there is a limit as to how high rents in the private sector can go, predicting that shared accommodation will be more commonplace in the future. Hometrack - which is predicting a 2-3% increase in rents for the year ahead - says tenants are paying a premium to rent and warns they haven't benefited from lower mortgage rates on their household budgets.  It said: "Furthermore renters are more reliant on unsecured loans and borrowings where interest charges have risen in recent years. The net result is that renters are price sensitive and there is a maximum level to which they can afford to pay for rent versus other living costs."  Read more on 24dash.

Affordable Rent Puts 150,000 Homes Target in Sight

If housing associations shifted half of all lettings to the Government’s Affordable Rent product – charging rents at up to 80% of the market rate – and topped up state grant with £10,000 per unit, nearly 70,000 homes could be built by 2015, research by property analytics company Hometrack suggests. This, combined with the 70,000 homes already committed under the previous Government, could deliver 140,000 homes by 2015, just 10,000 shy of the Government's 150,000 affordable homes target, but without the addition of grant-free built homes. Read more on 24dash.