July 2017 Property fact file

Note:  all figures below are the most recently available data.

UK House Price Index – May 2017
Data source: Land Registry

UK Average = £220,713, up 4.7% over the year, a 0.5% increase over the month

Monthly index (where January 2015 = 100) is 115.8

In its statement, Land Registry reported that price expectations are moderately positive, although enquiries from new buyers decreased over the month.

There was a 13.4 per cent increase in seasonally adjusted property transactions in the UK, of property valued at £40k or more, compared to May 2016.  The higher tax rates on additional properties introduced in April 2016 continue to skew the figures, accounting for the unusually low number of transactions in May, when many property transactions were pushed through in March 2016.

House prices in the East of England showed the largest growth, at 7.5 per cent and the lowest growth was in the North East, at 1.6 per cent in the twelve months to April 2017. London prices grew 3.0 per cent.

Halifax – June 2017
UK Average = £218,390, down -1.0% in the month, down -0.1% in the quarter, up 2.6% in the year.

The annual rate of growth at 2.6 per cent is the lowest rate since May 2013. Household finances are facing increased pressure as consumer prices continue to grow at a faster pace. New stamp duty on buy to let and second homes has weakened housing demand.

Housing prices remain underpinned by low mortgage rates and a shortage of properties, and nationally prices are 41 per cent higher than the low point of April 2009.

Rightmove – June 2017
England and Wales average £316,109 down 0.4% in the month

Nationally, sales were up 7%, the second highest in ten years (just short of May 2014’s high), while prices fell in June for the first time since the 2009 credit crunch (by 0.4% or -£1,172). Markets remain strong in the north, which enjoyed sales of +11% opposed to a 3% increase in the south.

Prices for typical first-time buyer properties (up to two bedrooms) increased by 3.5% in the month (5.5% in the year).

In London, property prices for new listings fell by -2.4% (-£15,543) in the month – the greatest fall in June since 2010. Sales increased by 3% on last year. Compared to last year, newly marketed property prices fell in London by a net -1.4% (-4.2% Inner London and +1.7% Outer London). While buyer demand seemed generally strong, properties were selling where prices were more affordable, realistically set or where sellers were willing to drop the price.

In May 2017, sales nationally were agreed in an average of 59 days, compared to a yearly high of 79 days in January. London averages were 54 days in May compared to 71 in January.

Nationwide – June 2017
UK average = £211,301 up 1.1% in the month, up 3.1% in the year.

The monthly increase in June erased the decline of the previous three months, although house price growth remains modest.

London has shown the greatest slowdown of price growth. Price growth in the north (West Midlands, East Midlands, Yorkshire & Humberside, North West and North) exceeded that of the south (South West, Outer South East, Outer Metropolitan, London and East Anglia) for the first time in eight years.

There has been a reduction in new buyer enquiries and a decline in new instructions, resulting from wider economic factors including rising inflation, affordability and a subsequent reduction in household spending. Lower levels of building activity and a shortage in property supply will continue to support price levels.

LSL / Acadata – June 2017
Average England and Wales = £301,114, down -0.2% from last month, up 3.8% in the year.

The average home decreased in value for the third consecutive month, with average values down by £2,358 from the peak in March. There is still a modest rise in the trend over the year, with prices 3.8 per cent or £11,037 up on June 2016.

Annual prices in the East of England are highest at 3.8 per cent. Prime property in the City of Westminster saw an increase of 19.7 per cent at £1,865,843. Peterborough had the highest increase in property transactions, up 31 per cent on 2015.

HM Revenue & Customs – July 2017
The provisional number of UK residential property transaction completions (>£40k) for June 2017 was 96,910, representing a decrease of 3.3 per cent between May-Jun 2017, and the seasonally adjusted figure is 1% higher than June 2016. The number of non-adjusted residential transactions was 13.2% higher than May 2017, which was 8.4% higher than June 2016.

Comparisons to May 2016 are not made, due to the higher tax rates on additional properties that were introduced in April 2016.

Non-residential property transactions fell by 5.5% between May-June 2017. This is 10.3% lower than June 2016.

The Council of Mortgage Lenders (CML) suggested in its report (30th June: ‘Where Have All the Movers Gone’) that the current shortfall of approximately 320k available properties was largely due to ‘missing movers’.  These include home owners with mortgages not moving up the ladder, fewer mortgaged owners and older owners less likely to move.  Around 140k ‘missing movers’ could be attributed to the slowdown in movers amongst those with mortgages.

CML researchers concluded that the past 50 years of market changes, which boosted people’s ability to buy and own their homes, was partly to blame, and suggested that any expectation of a return to those conditions was unrealistic.  The main factors of equity, lending, affordability and availability of housing all contribute to market change.  Low growth and interest rates coupled with high house prices will slow equity growth in the future and restrain the movement of mortgaged owners.

Land Registry Price Paid Data – May 2017
Of the 87,019 sales lodged for registration in May, the most expensive residential property sale was a detached property in London Borough of Kensington and Chelsea, which sold for £37m. There were 481 residential property sales valued at £1m or more in England and Wales, 304 of which were in London.

The cheapest residential sale was a terraced property in Wingate, County Durham, which sold for £10,250.

REGIONAL HOUSE PRICES

UK HPI Regional figures (all percentages are positive unless indicated otherwise)
May 2017 Average price (£)
GBP
Monthly change
%
Annual change
%
England £237,662 0.5% 5.0%
Northern Ireland (Quarter 1 – 2017) £124,007 -0.8% 4.3%
Scotland £143,106 0.7% 3.5%
Wales £149,817 0.6% 3.8%
East Midlands £180,903 1.3% 7.2%
East of England £284,097 0.7% 7.5%
London £481,345 -0.3% 3.0%
North East £126,738 1.8% 1.6%
North West £153,297 0.7% 3.8%
South East £315,807 -0.3% 4.8%
South West £243,969 0.4% 5.5%
West Midlands Region £183,942 0.8% 5.3%
Yorkshire and The Humber £155,268 1.1% 4.4%

UK HPI Average monthly price by property type

Property type May 2017 May 2016 Difference
Detached £328,998 £312,710 5.2%
Semi-detached £207,769 £197,445 5.2%
Terraced £178,091 £172,087 3.5%
Flat or maisonette £202,267 £192,743 4.9%
All £220,713 £210,872 4.7%

 

Rightmove regional figures
June 2017 Average price (£)
GBP
Monthly change
%
Annual change
%
Greater London 634,321 -2.4 -1.4
South East 422,904 -0.9 1.8
South West 312,764 1.2 3.6
East of England 351,276 0.6 3.8
West Midlands 216,937 -0.8 3.7
East Midlands 208,127 1.3 5.1
Wales 184,308 0.8 -0.5
North West 188,313 1.3 2.6
Yorkshire & Humberside 183,679 1.7 3.0
North East 151,997 0.7 2.2

 

FOCUS ON LONDON Average Price (£)

GBP

Monthly change

%

Annual change

%

Best and Worst (-) performers according to:
Rightmove June 2017
Kensington and Chelsea 2,407,461 6.3 16.1
Barnet 733,302 -0.6 10.2
Kingston upon Thames 605,041 -6.7 -5.9
Southwark 618,286 0.3 -7.2
LSL Acadata June 2017
City of Westminster 1,865,843 6.1 19.7
Kensington and Chelsea 1,970,331 -2.0 9.9
Southwark 602,269 -4.9 -6.3
Islington 714,461 0.2 -7.9

Figures exclude the City of London, due to small number of transactions

RICS Survey Overview
The RICS Residential Market Survey for June 2017 concluded that price growth has lost momentum, particularly in the south of England. Sales remained flat and were likely to continue in the coming months. There is an ongoing shortage in housing supply.

London continues to return the most negative net balance and the trend is spreading across the South East and East Anglia. At the other end of the scale, Wales has increased +38%, the West Midlands +33% and North West +28%.

For the fourth consecutive month, sales transactions have declined, reflecting the continuing shortage in supply.

Political uncertainty was largely blamed for the current state of the market, with Brexit and stamp duty also major concerns. Sales growth is predicted to remain cautious over the next twelve months.

Tenant demand has increased while new landlord instructions fell, and rents are anticipated to continue at roughly the same pace.

 

Source: Royal Institution of Chartered Surveyors

 

Rightmove.co.uk is the UK’s leading property website, displaying details of homes for sale or rent to the largest online audience. It is consistently ranked the number one property website in the UK (source: Experian Hitwise). It has around 90% of all properties for sale and at any time displays a stock of over one million properties to buy or rent, worth around £270 billion. The Rightmove.co.uk site attracts over 110 million visits from home movers each month who view in excess of 1.5 billion pages (Rightmove data, 2015).

LSL Acad E&W HPI is derived from Land Registry (LR) house price data, seasonally and mix adjusted by property type. © Crown copyright material reproduced with the permission of Land Registry. The prices are smoothed to show underlying trends. LSL Acad E&W HPI includes cash purchase prices and is the only index based upon the complete, factual house price data for England & Wales, as opposed to a sample.

UK HPI: Monthly house price inflation, calculated using data from Land Registry, Registers of Scotland and Land and Property Services Northern Ireland. This replaces the previous House Price Indices separately published by Office of National Statistics and Land Registry.

All figures within this article are correct at the time of going to press, and are reproduced in good faith. No responsibility will be taken for any decisions taken based on the information contained herein. Always seek professional advice.

Next Monthly Market Fact File due in August 2017.

PropertySurveying.co.uk