Property Market Fact File – October 2011

Bank Lending Rate
It has been confirmed that the Bank of England Monetary Committee have decided that the Bank Base Rate is to remain at 0.5% for a further month.  It has been at this very low level for a record period, i.e. since 05th March, 2009.
Source: Bank of England

Mortgage Lending by the Major UK Lenders
According to initial data from the major UK lenders, (which comprises Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland), total mortgage approvals for house purchase rose slightly again, from £5.6 billion in July to £5.9 billion in August. Remortgaging stayed the same as July at £3.6 billion.
Source: Bank of England

Land Registry’s Property Prices in England and Wales
The Average Price of a property in England and Wales is now £162,347 as at the end of August 2011.
The Monthly change in August in England and Wales was a reduction of 0.3%.
The Annual change to August in England and Wales was a reduction of 2.6%.
Source: Land Registry

Halifax House Price Index figures.
The average price of a house by the end of August 2011 was £161,743, according to the Halifax House Price Index. House prices in August were 1.2% lower than in July. However, the quarterly figure showed a 1.0% rise. The figures show that house prices are 2.6% lower than at this time last year, measured by the average for the latest quarter against the same period a year earlier.
Source: Halifax

Nationwide House Price Index figures
Nationwide House Price Index figures published on 29th September showed that the average cost of a home in the UK was £166,256 during the month of September.  After seasonal adjustment, there is a 0.1% rise from August, and the annual rate slightly up at –0.3%. The quarterly figure, said to be a better indicator of trend, stayed the same.
Source: Nationwide

Rightmove House Price Index figures
Rightmove’s September survey shows the asking price of a typical UK property in the period from 7th August to 10th September 2011 was £233,139, an increase of 0.7% on the previous month. House asking prices are 1.5% higher than a year ago. Nationally, the average time a property is on the market is 94 days.
Source: Rightmove

RICS survey overview
The RICS Housing Market Survey for August highlights some continuing issues. Both supply and demand for property have stayed low, and prices are continuing to fall in every region of the UK except London. Economic uncertainty was cited as the main contributor, followed by the lack of mortgage availability. The West Midlands and East Anglia saw the largest falls in house prices.  The North West had the largest increase in newly agreed sales, and the highest level of new buyer enquiries during the month.
Source: Royal Institution of Chartered Surveyors

New Mortgages granted – July figures
The Council of Mortgage Lenders reports that in July, 48,800 loans were made for house purchase, worth £7.3 billion. These are 12% and 13% lower respectively than a year ago. First-time buyer loans totalled 18,200 (valued at £2.3 billion) and 31,500 remortgage loans were made, worth £4 billion. These figures are down by 7% and 4% respectively on last July.
Source: Council of Mortgage Lenders

New Mortgages granted – August estimates
The Council of Mortgage Lenders reports that August’s estimated figures for gross mortgage lending in the UK is £13.4 billion. This is 6% higher than July’s figure of £12.6 billion, and a rise of 10% since last August.
CML’s chief economist Bob Pannell stated “The August performance more or less offset the weaker than expected July figure. Taking July and August together, lending has shown little change on the same months of 2009 and 2010”.
Source: Council of Mortgage Lenders

Regional trends in Rightmove Estate Agents Asking House Prices in England and Wales.
The largest increase in Rightmove’s September survey shows the asking price of a typical UK property in the period from 7th August to 10th September 2011 is in the East Midlands region, where the average asking price is up by 2.7% to £164,453. This is 1.8% higher than a year ago.
The largest decrease in asking prices by Rightmove registered estate agents in the period is in Wales, where the average asking price is down 2.8% to £166,939, which is 0.7% lower than a year ago.
Greater London has the largest annual increase in house asking prices – at £427,889, it is 7.2% higher than a year ago. The largest annual regional decrease is in North England, which has seen asking house prices fall by 4.2% over the year down to £145,430.
Source: Rightmove

Regional Analysis of Land Registry’s House Prices in England and Wales
The Land Registry’s August survey shows the prices of a typical UK property per region as follows:
The highest monthly price increase is 0.8% in the East of England, where the average asking price is now £175,079. However, this is 1.1% lower than a year ago.
The largest monthly decrease in price is in Wales, where the average price is down 1.7% to £117,534, which is 5.5% lower than a year ago.
Greater London is the only region to have an annual increase in house prices – at £348,686, it is 2.1% higher than a year ago. The largest annual regional decrease is in the North East, which has seen house prices fall by 7.8% over the year to £101,759.
Source: Land Registry

Analysis of Land Registry’s House Prices in England and Wales by County/Unitary Authority
The Land Registry’s August survey shows the prices of a typical UK property per county or unitary authority as follows:
The highest monthly price increase is 3.3% in Denbighshire, North Wales,  where the average asking price is now £117,745. However, this is 2.1% lower than a year ago.
The largest monthly decrease in price is also in Wales – Neath Port Talbot –  where the average price is down 3.2% to £82,701, which is 7.1% lower than a year ago.
Merthyr Tydfil (Wales again) saw the largest annual increase in house prices – at £75,436, it is 3.6% higher than a year ago. The largest annual decrease is in Hartlepool, which has seen house prices fall by 15.7% over the year to £82,561.
Other poor performers over the year are Blackpool (10.8% drop), Blackburn with Darwen (10.4% drop) and the City of Kingston Upon Hull (10% drop).
Source: Land Registry

Rightmove’s Asking Prices by Property Type
Rightmove have published figures showing National Asking Prices analysed by property type.
In the year to September 2011, the average change over all property types is an increase of 1.5%. Flats’ and apartments’ prices are still performing well, at a 3.1% increase over the year. At the other end of the scale, semi-detached properties’ asking prices decreased by 1.1%. Inbetween, terraced properties increased by 2.1% over the year and detached properties have remained the same.
Source: Rightmove

Land Registry’s Average Prices by Property Type
The Land Registry’s August average price figures analysed by property type show that the prices for all types of property have fallen by nearly 3% in the year since August 2010. The average price is £162,347, a fall of 2.6%.
Semi-detached properties have fared worst, falling by 2.8% to £153,004. Flats and maisonettes didn’t do as badly, falling by 2.4% to an average of £151,441. Detached properties fell by 2.7% to £255,205, and terraced properties are also down by 2.7% to £124,060.
Source: Land Registry

House Builder news
House Builder reports on a survey by Hometrack which shows that across England and Wales, the cost of getting onto the property ladder is 42% higher in the countryside than in urban areas. The analysis shows that the required income to access the property market in rural areas is £46,500pa, whereas it is £32,750pa in the towns. Another fact which emerged is that just 12% of all new builds are in rural areas.
Source: House-builder.co.uk

Next Monthly Market Fact File due in early November.

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