Low Supply Continues to Underpin UK Property Prices
According to recent research by Knight Frank there are 13 new buyers for every house listing in the UK, the highest since the ‘Boris Bounce’ in January 2020. Autumn is traditionally selling season and normally sees a flurry of new sales listings. However, in September this year instructions to sell were 26% below the five-year average and 51% below last year. On the other hand, demand is robust despite the ending of the stamp duty holiday with the number of offers accepted for the month exceeding September 2020 levels which was the first month of the stamp duty holiday and 88% higher than the five-year average!
Posted by: Kelvin Tayfield, Sat, Oct 16th 2021
UK Houses Monthly Price Growth Hits Highest Rate Since 2007
According to UK lender Halifax house prices recorded a 1.7% monthly growth of 1.7% in September, the highest since February 2007 pushing year on year growth to 7.4%. Greater London continues to lag the regions but recorded a healthy 1% for the month, the highest for some time. Whilst estate agents agree that the stamp duty holiday played a part, they stated that the real drivers are low mortgage rates, an improved labor market and a continuing supply shortage. They also mentioned that the post lockdown ‘race for space’ has played a part with house price growth exceeding those of apartments in the past year.
Posted by: Kelvin Tayfield, Sat, Oct 9th 2021
North England Cities Continue to Lead House Price Growth
According to the latest figures released by property portal Zoopla, UK house prices maintained strong growth rates despite the phasing out of the stamp duty cut recording 6.1% growth year to date. Leading the way is Liverpool with massive growth of 9.8% followed by Manchester at 8.1% and Sheffield at 7.6%. All three cities have numerous regeneration projects which are attracting investors and tenants. Manchester in particular is luring businesses and professionals from London and Zoopla reported strong rental demand in the booming city.
Posted by: Kelvin Tayfield, Sat, Oct 2nd 2021
Middle Eastern Buyers Snapping Up Outer London Properties
Leading UK realtor Knight Frank have predicted that prime outer London prices will grow by a whopping 4% in the last quarter of 2021. This prediction is supported by leading UK developer Barratt London activity which has seen enquiries in Zones 3-5 this year increasing 27% this year. Traditionally these zones were the domain of domestic buyers but according to Barratt, Middle Eastern buyers are now focusing on these areas. The builder has seen twelve multiple unit transactions with Middle Eastern family offices in the last six months with some of these being concluded post the major stamp duty saving deadline.
Posted by: Kelvin Tayfield, Sat, Sep 25th 2021
UK Home Builders Seeing the Benefit of Housing Boom
After we noted last week that leading UK builder, Berkeley group reported that reservations are back to pre-pandemic levels, Barratt Developments recorded profits of £812m almost double that of the previous year. This is despite having to overcome staff shortages, lockdown regulations and supply chain issues. This situation for home builders is expected to be sustained according to Capital Economics who stated that the shortage of second-hand homes is likely to continue.
Posted by: Kelvin Tayfield, Sat, Sep 18th 2021