5.2% Rise For UK Prices In The 12 Months To December, Plus More

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5.2% Rise For UK Prices In The 12 Months To December

 

The latest official index from the Land Registry has revealed the annual performance for house prices throughout the UK in 2017.

According to recent data, the UK saw overall growth of 5.2% from December 2016 to December 2017 and an increase of 0.4% month-on-month, meaning that the average price of a home now stands at &226,756.

While this is a slight slowdown in the growth seen in the previous year, with the average remaining around 5% in 2017, it does show signs of stability for the UK property market.

When looking at some of the more detailed statistics, it seems that Scotland has experienced the highest average increases in house values, showing strong growth of 7.7% taking property values to &149,000.

Wales and England took 2nd and 3rd place, showing similar growth of 5.4% and 5%, respectively, with the average Welsh home now valued at &154,000 and the average English home valued at &244,000.

Northern Ireland recorded the smallest increase, but still saw a rise of 4.3% to an average of &130,000.

As expected, the capital remains at the top for the highest average price of a home by region, as typical London house prices stand at &484,000.

The South West recorded the biggest increase across the year, with a huge 7.5% increase in 2017, closely followed by the East and West Midlands, both showing a 6.3% rise in average prices.

While the rise of property values is always good news for homeowners, it does create an affordability question for prospective buyers.

Senior Economist at PwC, Richard Snook, spoke on the statistics stating that it “shows that house price growth has outpaced average earnings growth for the fifth consecutive year, further ratcheting up the affordability challenge. Cumulatively, house prices have increased by 22% more than earnings between 2012 and 2017.”

Sales and Marketing Director at OneSavings Bank, John Eastgate, had similar comments regarding the latest index, he commented; “Today’s surprisingly robust figures will not be welcomed by those looking to get a foothold on the housing ladder. The absence of wage inflation means that affordability continues to get tougher and, with many forecasting an interest rate increase in May, the resultant increase in mortgage rates will be a further barrier. It would be fair to expect house price inflation to soften through the year.”

Other financial experts have stated that the market remains competitive, however, now may be the time for buyers to make their move.

This is also the opinion of the CEO of the online mortgage broker Trussle, Ishaan Malhi, he said “By the end of 2017, the average house cost &12,000 more than it did in December 2016. The shortage of homes for sale has kept the property market competitive.

“If you’re looking to buy in the coming months, it’s worth keeping an eye on the mortgage market. The cost of borrowing is expected to rise, as certain bank subsidies fade away and interest rates climb. In such an environment, locking in a competitive five-year fixed deal will keep your repayments stable for the next few years, while the country comes to terms with an increasingly uncertain economic future.”

Predictions: How Much Will The Average House Cost In 10 Years

 

There always seems to be new forecasts on how property prices will perform across each year, but new research has aimed to predict how much it will cost to own or rent 10 years from now.

Financial comparison site money.co.uk has analysed data from the Office for National Statistics that details personal finance data across the previous 80 years, with the aim of estimating how much our costs will rise to by 2028.

According to their estimations, the average property price in the UK will jump by almost &50k by 2028, as the current average stands at &208,318 and will rise to &255,292 over the course of the next 10 years.

One of the headline figures from this research was how much homes will have grown in price over 25 years. In 2003, the average price of a home was &127,246, half the price of what the expected cost of a home will be in 2028.

The study has also forecasted a slight fall in homeownership, as the 14.6 million British homeowners are expected to fall to 14.4 million a decade from now.

Similar changes were also predicted for the rental market as generation rent continues to grow. Money.co.uk has suggested that we will see a 10% increase in rental rates by 2028, rising from an average monthly rate of &925 to &1,017.

Editor in Chief of money.co.uk, Hannah Maundrell, commented on the results of the research, she said; “It’s really hard to save a deposit while you rent. If buying a property is on your bucket list, you need to seriously work out how you are going to achieve it. Getting a handle on your outgoings and incomings is the first step to budgeting for your life. It sounds daunting to budget for life events that feel so far away. However, with prices evidently on the rise, it will take you far longer to save up to achieve your life goals.”

Maundrell went on to say “The figures we’ve predicted are based on trends in Government data. We expect certain external events may have a large impact on future finances, such as large political milestones like Brexit or wage freezes in the public sector.”

What Perks Are Tenants Happy to Pay More For?

 

When it comes to letting a property, most landlords would probably remain quite conservative in terms of perks included with the home to avoid pricing themselves out of the market.

Whilst the property will need to be competitively priced to get the most out of your investment, there are some perks that tenants are happy to pay a little extra for.

A new survey has questioned tenants in the UK on what features and extras they’d most like in their homes and how much they’d be willing to pay for them.

Unsurprisingly, one of the most popular choices for tenants was the inclusion of pets, with 28% of the 3,290 tenants surveyed, willing to pay an average of &24 a month to have their furry friends stay with them in rented accommodation. This figure only increases for the up-and-coming generation, with 31% of 18-35-year olds willing to pay an extra &25.55 a month.

Also high on the list of wants is high-speed internet, with 21% happy to pay &19 more a month for a home located in an area that has a strong internet speed, which is understandable with today’s world of smart gadgets and streaming.

In some rented spaces, a bit of greenery can go a long way. Properties that come with a garden, even a communal one, are in high demand with 32% of tenants willing to pay extra for a home that has access to an outdoor space. Gardens are even more valuable in some of the larger cities, as houses with gardens in the capital command up to 20% more when put up for sale.

Staying in shape is clearly a priority for a good proportion of renters today, as 41% of those surveyed said that they would be happy to pay up to &20 more a month for accommodation that comes with an on-site gym. This also means that if your buy-to-let property is located close to good leisure facilities, it could fetch a higher price.

It was also found that tenants are willing to pay more for cleaning services. There were reports last year that due to lack of time, half of millennials are paying a professional to keep their homes and 13% of participants in this survey said that they would pay an average of &28 a month more to free themselves of some of their weekly chores.

While some of these perks may not apply to every property, it is clear that landlords and developers should take a closer look at what their property has to offer, as your home may be in more demand than you think.

Guide: Making an Offer as a First-Time Buyer

If you’re a first-time buyer and have begun the hunt for your first home, you may think that once you’ve found the right one you simply offer what they ask for and its job done.

However, when it comes to making an offer on a home, there’s a bit more work that should go into it than just offering the price advertised.

The property market is possibly more competitive than it’s ever been. You want to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

The first step and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will fetch you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim, however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to do it just to be nice, so if your offer is lower than the asking price, you’ll need to demonstrate why.

Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.