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UK property values in monthly and yearly record rises
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
With the curtain coming down on 2015, a new report shows that UK property values saw record monthly and annual increases during November.
Data from a report by Haart indicates that UK property values rose 13.4% annually and by 3.7% in the month to go past the £230,000 mark for the first time. British house prices now stand at an average of £231,857.
Rise and Falls
There has been an annual increase of 7.5% in the number of new buyers but supply has dipped by 3.1% in the last month. Viewings too slipped by 4.5% during November. Sales though were more positive, rising by 0.5% over the same period.
In addition, first-time buyer house prices increased by 1.1% in the month and by 0.2% annually to hit £166,581.
However, first-time buyer numbers fell by 7% over the last month as a result of increased competition with buy-to-let investors. As a percentage of all mortgages written, the number of first-time buyers slipped from 42.5% in October to 40.4% in the last month.
More positively, the average deposit for a starter home has fallen by 2% in November and by 2.3% in the last year.
UK property values in monthly and yearly record rises
Record-breaking
‘UK house prices rose 13.4% annually and 3.7% on the month to break records again in November,’ observed Paul Smith, CEO of Haart. ‘This is the steepest monthly and annual increase on record and follows a surge in registrations from buy-to-let investors since the Autumn Statement in anticipation of the 3% stamp duty surcharge which is effective from the 1st of April of 2016. This could mean the stamp duty payable on a property worth £275,000 could rise from £3,750 to £12,000.’[1]
Smith went on to say that, ‘although first-time buyer house prices have remained relatively stable, up just 1.1% in the last month, I expect these to shoot up over the coming months as first-time buyers face fierce competition from buy-to-let investors.’ He also believes that, ‘The pressure is already being felt by many with demand among first-time-buyers already down 7% in the last month alone. While first-time buyers may face a tough couple of months, once the stamp duty changes come into effect in April, demand from buy-to-let investors is likely to recede so we should see a recovery in prices at this level.’[1]
[1] http://www.propertyreporter.co.uk/property/average-uk-house-see-steepest-monthly-and-annual-increase-on-record.html
