Weekly Property Newsletter - Week Ending 24/01/16

Our weekly newsletter on the property market will keep you up to date with all the latest news and legislations!

Our newsletter is published every Monday reporting on the most important news over the past week.

Housing Demand Exceeds Supply by 12 to 1

Thursday 21st January

House prices hit a record high of £233,947 at the start of this year, according to new research.

The new price record is 14.6% higher than at the same point last year, with the average price of a first time buyer home sold subject to contract was £170,812.

It is estimated that there were 58,623 exchanges of contract in the UK over December, a decrease of 5.8% on December 2014. It also puts the ratio of new buyer demand to homes on the market at almost 12 to one.

David Gascoyne, Sales and Lettings Manager of Residential Estates, expects 2016 to be a busy year with regards to property. He said that this is especially “for the first few months as buy-to-let investors clamour to complete purchases by April and the introduction of the 3% Stamp Duty surcharge”.

One-third of tenants frustrated by home buying barriers

Wednesday 20th January

33% of private tenants in Britain are irritated in their attempts to purchase their own property and have stayed in rented accommodation longer than they had originally planned, according to new research.

Experian’s latest analysis of 1,500 renters in the UK suggests that many are frustrated first-time buyers.

18% of private tenants said they believed they wouldn’t be accepted for a mortgage with 10% saying they faced struggles in raising a deposit, thus delaying their plans to purchase. A further 5% said they had been held up with a mortgage agreement, prolonging their time in the private rented sector.

David Gascoyne, Sales and Lettings Manager of Residential Estates said “In spite of making regular payments as part of their tenancy agreement, many renters do not see this reflected on their credit score in the same way as mortgage holders”.

Mortgage lending at seven-year high-reaction

Thursday 21st January

New research from the Council of Mortgage Lenders (CML) suggests that gross mortgage lending reached £19.9bn in December 2015.

This was a 3% month-on-month dip on the £20.5bn recorded in November, but was a huge 23% greater than the £16.2bn in December 2014. The estimated total of gross lending in 2015 is £220.3bn, an 8% increase on the £203.3bn in 2014 and the largest annual gross lending figure since 2008.

In the final quarter of last year, gross mortgage lending came to £62.3bn, a 1% increase on quarter three and a 23% rise from the final quarter of 2014.

Steve Povall, Managing Director of Residential Estates said “The second half of 2015 was a strong period of time for lending, which has created a positive start to 2016. More policies have been implemented in order to attract first time buyers so hopefully 2016 will be the year to have more people buying their own homes.”

House prices up 8.3% in England and 7.8% in all-UK according to ONS

Wednesday 20th January

The latest government house price index from the Office for National Statistics shows that house prices across the UK rose by an average of 7.7 per cent in the year to the end of November.

Across the national regions this meant an annual rise of 8.3 per cent in England, 1.3 per cent in Wales, 0.4 per cent in Scotland and 4.6 per cent in Northern Ireland.

Estate agents have reacted broadly enthusiastically to the latest index.

“With house price growth improving, there is a general sense that people are having a push before the stamp duty policy is implemented in April” says Ellis Bradshaw , Sales and Lettings Coordinator at Residential Estates.

Half of landlords unprepared for Right to Rent

Thursday 21st January

A report has found that half of UK landlords are not prepared for the Right to Rent legislation, set to come into force on 1 February 2016.

A survey of 5,000 landlords by urban.co.uk found 20% of landlords believed that they had until April 2017 to prepare for the changes, while 3% believed they had until 2018 to get ready.

Jason Dodd, Sales and Lettings Coordinator at Residential Estates said, “the new legislation, will require all landlords and agents in England to check a tenant’s immigration status in the UK. Failure to do this could leave landlords at serious financial risk, with potential fines of £3,000 if they do not comply”.