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This week the Governments autum statement was released with some mix views raised in response, here is our Newsletters from pre the announcment, click here to read
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The number of houses sold for at least £1 million has risen by 12% in the first half of 2016 compared with the previous year, a report has suggested.
But the average price of a top-end property is less than it was two years ago, according to Lloyds Bank.
It found the average price of a home sold above £1m has dropped by £135,251 between 2014 and 2016.
The bank said the price drop was partly due to a reduction in sales at the higher end of the market.
The research found 6,684 homes were sold for at least £1m during the first six months of 2016, a 12% rise on the 5,946 sold in the same period in 2015.
The report said the average price of a property selling for more than £1m had dropped from £1,862,578 to £1,727,327 over a two-year period.
Changes in stamp duty in late 2014 made it more expensive for buyers to purchase a home which was worth more than £937,500.
The bank found north-east England had the biggest rise in the number of million-pound property sales with an 83% increase - due to 11 purchases.
The largest number of purchases took place in London where there were 4,238 sales of million-pound properties.
Scotland was the only part of Britain where sales of houses above the £1m mark have fallen over the last year with a 33% decline, according to Lloyds Bank.
Housebuilder Persimmon has reported a 29% jump in first-half profits and said customer interest since the Brexit vote has been "robust".Pre-tax profits in the six months to the end of June were £352.3m............click here here to read more
The average price of property coming to market has hit a new high of £310,471 with a monthly rise of 0.8% (+£2,320). There have been price rises every month so far in 2016, showing that the uncertainty associated with the EU referendum has failed to halt this year’s upwards price momentum. This is in contrast to the run-up to the May 2015 general election, when the electoral uncertainty resulted in a price fall of 0.1% in the month of the election. This year the first quarter buy-to-let surge has exacerbated the shortage of suitable property for sale, and with ongoing buyer demand fuelled by cheap mortgage money, there appears to be greater resilience. The result is that the average time it takes to sell a property is at its lowest level since Rightmove started monitoring it in 2010.
The chief reason for sales falling through is that the seller decides not to sell their home after all.
According to new research from Which? Mortgage Advisers, 28% of deals fall through after acceptance of an offer, leaving buyers almost £3,000 out of pocket.
A survey of 2,000 home buyers who had bought their home in the last two years found it takes over 4.5 months on average from starting a property search to having an offer accepted.
However, 28% of purchases went on to fall through because:
- The seller decided not to sell their home after all (27%)
- The buyer pulled out, as their own property sale had fallen through (21%)
- The buyer found somewhere else to buy (21%)
- The buyer was gazumped (21%)
The average loss per buyer was £2,899, including conveyancing, survey, mortgage valuation or broker fees.
The Government has said it will consult on how the home buying and selling process could become more efficient, by preventing fall-throughs by making deals binding on the acceptance of an offer.
House prices would rise whether we vote to stay in or leave the EU, according to a report from the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA).
However, the organisations believe that price increases would be slower if we leave.They estimate that if the UK votes to remain in the EU on 23rd June, the average house price would be £303,000 by 2018.
However, if the UK instead votes to leave, the average price would rise to £300,800, a difference of £2,200.
The difference would be more marked in London, at £7,500.The report claims that the slower rate of growth in the event of a Brexit would be caused mainly by less investment in London, foreign companies relocating from the capital, and reduced demand for commercial and residential properties.
The study, compiled by the Centre for Economics and Business research, says that while a Brexit could cause a labour shortage in the housebuilding sector, it may help first time buyers onto the property ladder through lower house prices.
The report adds that while there would be no immediate impact, rent prices could fall as a result of reduced demand. It points out: “Currently, private renting is a more popular choice among UK residents born in non-UK EU countries than for UK born individuals.”
The Managing Director of ARLA, David Cox, believes that a fall in rents could create more housing issues: “The fact that rent costs would face downward pressure is both a blessing and a curse. While renters should face fair and reasonable prices, landlords need to be able to at least break even on any outgoings they have, such as a mortgage.“If demand eases to such an extent that landlords cannot recuperate costs, we’ll likely see a mass exit from the market, which would then just have the opposite effect on demand as supply falls, and we’d be back to square one.”
Mark Hayward, the Managing Director of the NAEA, comments on the report: “Unfortunately, it’s not as simple as saying that Brexit would have a positive or negative effect on the property market.“We might like to believe, for example, that the ease in demand and lower prices will allow first time buyers a route into the market, but any transactions may be put off for the short term until the period of uncertainty is over.”
Separately, ratings agency Moody’s has reported that a vote to leave the EU would result in lower house prices, which would benefit first time buyers. The firm also claims that London’s property market would be the most affected by a Brexit and that landlords could struggle to pay their mortgages due to falling rental demand.
Rents are now rising at the fastest rate for six months, standing last month at an average of £793 across England and Wales.According to LSL firms Your Move and Reeds Rains, average rents are 2.4% higher than in April last year, equating to an extra £19 per month.In three regions, the east midlands, west midlands and east of England, rents are at an all-time high.A number of tenants are struggling to pay rent, with 9.1% of all rent due in arrears, compared with 7% in April last year.