Property Market Fact File – December 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 fell slightly, from £5.6 billion in September to £5.5 billion in October. Remortgaging also fell, from £3.8 billion in September to £3.7 billion in October.
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 £159,999 as at the end of October 2011.
The Monthly change in October in England and Wales was a reduction of 0.9%.
The Annual change to October in England and Wales was a reduction of 3.2%.
Source: Land Registry

Halifax House Price Index figures.
The average price of a house by the end of October 2011 was £163,311, according to the Halifax House Price Index. House prices in October were 1.2% higher than in September. However, the quarterly figure showed a 0.3% drop. The seasonally adjusted figures show that house prices are 1.8% 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 November showed that the average cost of a home in the UK was £165,798 during the month of November. After seasonal adjustment, this is a 0.4% rise from October, and the annual rate is up by 1.6%.
Source: Nationwide

Rightmove House Price Index figures
Rightmove’s November survey shows the asking price of a typical UK property in the period from 9th October to 12th November 2011 was £232,144, a decrease of 3.1% (£7,528) on the previous month. However, house asking prices are 1.2% higher than a year ago.
Source: Rightmove

RICS survey overview
The RICS Housing Market Survey for October underlines some continuing issues. Both supply and demand for property have stayed low, and prices are still falling in every region of the UK except London. Wales and the West Midlands saw the largest falls in house prices in the month, and yet the West Midlands had the highest level of newly agreed sales. The South West had the lowest level of new buyer enquiries, and the South East had the highest level of new buyer enquiries for the second successive month.
Source: Royal Institution of Chartered Surveyors

New Mortgages granted – September figures
The Council of Mortgage Lenders reports that in September, 48,200 loans were made for house purchase, worth £7.1 billion. This is 3% higher than last September, both in terms of value and volume, but slightly down on August. First-time buyer loans totalled 18,200 (valued at £2.2 billion) and 34,200 remortgage loans were made, worth £4.3 billion. These figures are slightly lower than last month, but 25% higher in volume than last September (26% by value).
Source: Council of Mortgage Lenders

New Mortgages granted – October estimates
The Council of Mortgage Lenders reports that October’s estimated figures for gross mortgage lending in the UK is £13.1 billion. This is 4% lower than September’s figure of £13.7 billion, but a rise of 13% since last October.
Source: Council of Mortgage Lenders

Regional trends in Rightmove Estate Agents Asking House Prices in England and Wales.
Rightmove’s November survey shows the asking price of a typical UK property in the period from 9th October to 12th November 2011 did not increase anywhere. Wales saw the smallest decrease which was 0.4%, taking asking prices down to an average of £164,905. The largest decrease in asking prices by Rightmove registered estate agents in the period is East Anglia, where the average asking price is down 6.9% to £211,765, which is 1.8% higher than a year ago.
Annually, the largest increase is in Greater London, where asking prices have risen by 6.6% over the year, to an average of £444,724.
Source: Rightmove

Regional Analysis of Land Registry’s House Prices in England and Wales.
The Land Registry’s October survey shows the prices of a typical UK property per region as follows:
The highest monthly price increase is 0.7% in the East of England, where the average asking price is now £173,410. However, this is 2.4% lower than a year ago.
The largest monthly decrease in price is Wales, where the average price is down 3.0% to £115,923, which is 6.1% lower than a year ago.
Once again, Greater London is the only region to have an annual increase in house prices – at £340,308, it is 0.3% higher than a year ago.
The largest annual fall in price is the North East of England, which is down by 7.2% to £100,674.
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 12th November 2011, the average change over all property types is an increase of 1.2%. Flats’ and apartments’ prices are still performing well, at a 3.0% increase over the year. At the other end of the scale, both terraced properties and semi-detached properties decreased by 0.5% over the year Detached properties’ asking prices increased by 1.8%.
Source: Rightmove

Land Registry’s Average Prices by Property Type
The Land Registry’s October average price figures analysed by property type show that the prices for all types of property have fallen by 3.2% in the year since October 2010. The average price is now £159,999.
Terraced properties have fared worst, falling by 5.2% to £119,848. Detached properties did better than the other types, falling by 2.0% to an average of £255,315. Semi-detached properties fell by 2.3% to £152,543, and Flats & Maisonette properties were down by 3.2% to £148,810.
Source: Land Registry

Hometrack Monthly House Price Survey
Hometrack compile sample data monthly from thousands of Estate Agents in all 2,300 postcodes in England and Wales. The figures are weighted according to postcode, but not seasonally adjusted.
November’s figures show that the average amount of time that a house is on the market is creeping up, and is now 9.9 weeks. On average, 92.5% of the asking price is achieved.
5.0% of postcode districts reported a price increase in November, but 32% of postcode districts had a price decrease over the month.
Over the month, there were fewer new buyers registering with estate agents (a fall of 2.2%), fewer sales agreed than last month, and fewer homes listed with agents (down by 0.8%). Hometrack say that 2011 has seen the lowest level of housing turnover for 40 years, and this trend is expected to continue into 2012.

Outstanding Mortgage Debt
Average outstanding mortgage for the 11.3m households who currently have mortgages now stands at £109,643.
Total secured lending in the UK on dwellings stands at £1,242bn at the end of September 2011.
Source: Credit Action

Mortgage Arrears and Homes Repossessions
The number of house repossessions in the third quarter of 2011 totalled 9,200, which is just 0.08% of all mortgages. The number of households in arrears with their mortgages has fallen slightly. At the end of September 2011, the number of mortgages with arrears of more than 2.5% was 161,600, which is 1.44% of all loans. This is 8% lower than September 2010.
Source: Council of Mortgage Lenders

Next Monthly Market Fact File due in early January.

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