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Kate Faulkner's price summary tracks key reports on property prices produced on a monthly basis, and summarises crucial numbers and what experts are saying about the market and includes Kate’s comments on what this means, primarily for the general public, but also for the industry, market and economy. This summary report includes data from the NAEA, Nationwide, Rightmove and the Land Registry.
Download the full report for August 2015
Kate Faulkner's comments on property price report headlines:
“Summer time is normally when buyers tend to disappear away and so demand falls until everyone’s back in September feeling like they can’t possibly spend another Xmas in the same home! However, it’s only Agency Express that are reporting this. Most indices suggest the summer will remain quite busy as buyers who looked earlier in the year and didn’t find what they wanted, or felt they were competing too much with others and decided to pull out of looking. Overall though, property price wise, apart from the city areas (according to Hometrack) things do seem to have slowed down towards the end of the half year. Moving forward, we should see stable to growth in volumes as stats are compared to the slowdown caused by the MMR, and it’s too early to say whether this will result in an increase in prices, or if they will continue to ease.”
Actual report headlines:-
Rightmove “Hottest demand for two bedrooms or fewer as prices hit new high.”
Home.co.uk “Prices push on up as property drought continues.”
NAEA “Housing demand at an eleven year high.”
Nationwide “Annual house price growth edges up in July.”
Halifax “Annual house price growth eases to 7.9%.”
Agency Express “School's out and sales slow down.”
Hometrack “House price growth hits 8.4%.”
Land Registry “The June data shows a monthly price increase of 1.1 per cent.”
Download the full report for August 2015
Kate's comments on regional price differences:
“The indices show some different results mainly because the Home.co.uk and Hometrack data is more reflective of the current market, whereas the Land Registry shows what happened in the market some months ago. What’s clear is how much the economy impacts on property prices. We often hear talk of people not being able to buy because of affordability issues, but someone is buying and someone is able to fund higher prices. This is typically where economies are doing super well, wages are robust and rising, and of course demand is substantially outstripping supply - London, Cambridge and Oxford being a case in point. People make so much money in these areas that they can afford the rises to the limited stock available. In these cases, the only solution to affordable housing locally is that subsidised by the government such as Help to Buy, Shared Ownership and discounted homes, and it’s these types of schemes that agents need to be involved in selling as this government is definitely planning to increase stock for these affordable solutions.”
Here's what the indices are reporting about regional price differences:
Home.co.uk “Over the last seven years, the fortunes of the regional property markets have varied considerably. At one extreme we have observed a price growth in London of 44.9%, whilst at the other end of the spectrum prices in the North East remain 6.4% below their July 2008 levels. Prices in the three northern regions of England plus Scotland and Wales all remain significantly below their pre-crisis levels, in nominal terms. Indeed, in real terms, taking into account seven years of inflation, the actual capital losses for property in those regions are in the range of 25-30%. Viewed from this perspective, it is only London and the South East that have beaten the eroding effects of monetary inflation. (Jul 15)”
Hometrack “House price inflation at a city level ranges from to 2.9% in Liverpool to 11.6% in Cambridge. Oxford and Cambridge continue to perform like extensions of the London market with all cities having a very similar profile of house price growth over the last eight years. Across the larger cities of northern England house price growth continues to increase, but it’s off a low base. The so-called ‘northern powerhouse’ cities of Leeds, Manchester, Newcastle, Liverpool and Sheffield have all registered a pick-up in growth since 2013 but with average prices still below 2007 levels. (Jun 15)”
Land Registry “The region with the most significant annual price increase is London with a movement of 9.2 per cent. Yorkshire & The Humber saw the lowest annual price increase of 1.4 per cent. The North East experienced the greatest monthly price rise with a movement of 3.0 per cent. Yorkshire & The Humber also saw the largest monthly price decrease with a fall of 0.9 per cent. (Jun 15)”
Download the full price report for August 2015
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