UK Housing Market February Figures Positive

Agency Express Property Activity Index figures suggests that the UK housing market is still performing.

Data up until the end of February shows that residential property sales increased by 42.9 per cent month-on-month, the highest increase since February 2010.

The number of new 'For Sale' also rose by 18.5 per cent last month compared to January.
All 12 of the regions covered by the Index posted 'for sale' listings increases which indicated double digit growth, except for Central England which was up by just 1.3 per cent on the previous month.

In terms of properties which were actually 'sold', West Midlands led the way with an increase of 61.6 per cent while in London the rise worked out to be 52.4 per cent.


London Property Market News

Residential Landlords Set to Expand Portfolio

A recent study conducted by Mortgages for Business found that three in five landlords are looking to extend their portfolios this year, while 63 per cent will need to refinance their existing properties.

"I think the market will start to increase proportionally more than any other mortgage sector. It is definitely a sector in the growth phase again," Mr Grandin said.

"Availability is there, but maybe there is just a shifting of lending towards buy-to-let as opposed to other types of mortgages. Lenders seem to be very keen to lend to landlords as opposed to residential property owners."

Buy to Let Mortgage News

London Estate Agents Differ on Russian and Italian Property Investment Table

This London Estate Agent blog post puts Italian purchasers as the biggest foreign purchaser group.

However, a Moscow Times article and another Chelsea Lettings Post claims that Russian property investors continue to rank first among foreigners spending on high-end housing in London.

London Estate Agents News

London Property Market "Italian purchasers became the biggest foreign purchaser group"

Rising sales volumes in the London Property Market should provide comfort for London Property owners according to Liam Bailey, Knight Frank's Head of Residential Research

Commenting on the sustainability of central London's property market he said "The most telling sign of this shift in investor attitude came in January and February when Italian purchasers became the biggest foreign purchaser group, accounting for 8% of all purchases, replacing Russians who have held this position for several years."

The main points are as follows;

• Average prices for prime central London property rose by 0.7% in February
• Prices for prime central London property are up 11.6% over the past 12 months
• Prices have risen 43% from their post-Lehman collapse low-point in March 2009, and are 8.9% higher than their previous peak in March 2008
• Volume of sales has risen 85% in the year to February
• Italians have accounted for 8% of purchases since January, beating Russians to the top spot

'Prime central London' is defined in the index as covering: Belgravia, Chelsea, Hyde Park, Kensington, Knightsbridge, Marylebone, Mayfair, Notting Hill, Hyde Park, Riverside (Riverside covers the Thames riverfront from Battersea Bridge in the west running east to encompass London’s South Bank) The City and Fringe and St John’s Wood.

Changing Times Reports the Make Up of UK Households Match Victorian Era

The genealogy website Ancestry.co.uk has been comparing statistics for the make up of UK Households for the Victorian era and the present day, and found an increase in the prevalence of multi generational homes, with children parents and grandparents living in the same property,

Miriam Silverman, UK content manager at Ancestry, said: ‘The first chapter in our Changing Times report tells us how the boom that came with the industrial revolution led to some quite severe overcrowding – just as we are experiencing today.

‘Proportionally, this issue isn’t as severe as experienced by our ancestors, but it’s interesting to see how a property boom driven by economic growth can quickly price millions out of the market – whether in industrial Manchester in the 1800s, or the suburbs of London today.’

Property Market Surveys

London Infrastructure Projects and Property Prices

HS2 is thought to be the largest infrastructure project the UK has seen for a generation.It will link the capital with the West Midlands, Leeds and Manchester, which is expected to significantly reduce commuter times between the country's largest population centres.

Crossrail is the largest addition to the south east rail network in 50 years.When it opens in 2018, Crossrail will connect 37 stations, including Heathrow airport and Maidenhead in the west with Canary Wharf, Abbey Wood and Shenfield in the east.Using the Crossrail service will make travelling in the region easier and quicker, and help to reduce crowding on London's transport network.

Property Prices in some areas of London could rise as a result of these infrastructure projects and upgrades. Crossrail will go through Tottenham Court Road, Bond Street and Paddington, while High Speed Two (HS2) will travel into Euston.

London Travel and Property News

Mortgage Application Up But Do We Understand What we are Purchasing

The British Bankers Association (BBA) reported last week that the number of mortgage applications for home purchases last month was at its highest level for more than two years.

Indeed, the numbers were up by 34 per cent on January 2011 with the average advance worth £144, 400.

The number of people taking out buy to let mortgages is also set to increase this year, with 56 per cent of mortgage brokers predicting that more would-be landlords will be looking to buy a property to rent out in the next three months.

And yet a leading mortgage magazine suggests that the average mortgagee does not understand how mortgages work, and is calling for the subject to be taught in schools.

Mortgage and Home Loan News

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Paramount Property News

Homeowners are Better off in 2012 Than in 1990

An HSBC study shows that the average person’s annual income stands at £26,200 compared to £13,760 in 1990, a loaf of sliced bread costs £1.20 now opposed to 46p, while a pint of milk has risen from 31p to 50p.

This combined with a low interest rates and a more stable housing market means that home owners are now much better off than they were during the economic downturn of 1990.

Currently the average standard variable rate (SVR) stands at 4.8 per cent, whereas back in Margaret Thatcher’s last few months in office the rate stood at 15.23 per cent.

However, the average mortgage debt level is significantly higher. Back in 1990 it stood at £35,000 compared to £120,400 today.

New Build Development Shortfall in The South East

A report from the National House Building Council (NHBC) revealed the number of new houses being built in the UK has remained broadly flat over the past year, despite a severe shortage of housing stock and a number of government-backed initiatives to increase supply.

Experts have warned that a lack of new affordable housing could add upward pressure to house prices, making it more difficult for people to the get on the housing ladder.

The Home Builders federation reports that inn the South East,the average house price has more than doubled in the last decade from £112k to £229k, while the number of families on social housing waiting lists has rocketed to 73%.Fewer than 50% of the homes needed for local families are being built and this shortfall is costing 30,000 jobs.

Stewart Baseley, Executive Chairman at House Builders Federation said today:

“South East is suffering from a serious under supply of housing. It is crucial that more homes are built, particularly for younger families and first time buyers.

South East Property News