12 Dec Average UK property price up 7.6% year on year
The average property price across the UK is now £191,290, up 7.6% annually and 0.2% month on month, the highest average price since April 2012, according to the latest index. Growth has been steady and sustained over the last year with first time buyers paying more and the number of viewers per property up, the data from the December index from nationwide agency haart shows.
The average first time buyer property price is up 9.4% annually and 1.8% month on month. The report points out that after a lull in growth during the spring months, over autumn and the start of November, first time buyer properties are increasing in price due to increased competition following government initiatives, such as Help to Buy’s second phase, which have created more demand from first time buyers. The number of first time buyers across the UK is up 78.4% on last year and 4.5% on last month.
New buyers coming onto the books are up 39.9% annually, down by 1.1% on the month, whereas new property sales are only up 4.7% annually with new properties for sale down 6.6% on the month. If this high demand in relation to supply continues, it will lead to further property price rises in the coming months.
The ratio of buyer viewings per every property for sale across the UK has now reached 10.6:1 in November, up 13.1% annually and 4.2% on month. The number of buyer viewings is up 18.5% annually whereas the number of property sales is up 9% annually. These activity levels show that buyers are particularly busy in the run up to Christmas, the firm says.
The resurgence of the first time buyer was still going strong in November. Their registrations were up again in November and they are in a more desirable position when compared to last year in terms of mortgages. First time buyers now make up 43.8% of mortgages written and are now able to stump up an average deposit of £35,413, which is up 4.4% on last year. The report also points out that the average mortgage secured by a first time buyer is 10.9% higher than last year, now reaching £199,866.
The average London property price is now £423,376, up 12.5% annually and up 3.6% on the month. Transactions across London are up 12.1% annually and 5.4% on month, levels higher than the national average.
The report confirms that demand is London outstrips the demand seen nationally with new buyers up 58.5% annually and new first time buyers up 87.5% annually. However, the housing supply deficit is more acute in London than elsewhere with new properties for sale down by 6.7% on month and 6.3% annually.
Also, while the number of property sales has increased 12.1% annually, the number of viewings is down 16.1% annually, which indicates that people are aware of the intense competition for property. As such the ratio of buyer viewings per property for sale is down 10.2% annually to 12.4/1.
‘The recovery of the UK property market is continuing relentlessly in the winter months with annual growth in all areas. Property prices across the UK are up 7.6% annually but our data shows that this growth has been steady, the sign of a healthy, recovering property market,’ said Paul Smith, chief executive officer of haart.
‘Growth is controlled, with the Bank of England appointed guardian against the property market bubble in the Chancellor’s Autumn Statement. In fact, governor Mark Carney has already taken his foot off the market stimulus pedal by removing Funding for Lending for mortgages, wary that too much demand may have a detrimental impact,’ he explained.
‘The first time buyer resurgence continues with their registrations up 78.4% annually across the UK. They are now able to secure significantly higher deposits, up 4.4% annually, and mortgages, up 10.9% annually, and first time buyers now make up 43.8% of all mortgages written. With competitor banks also taking up Help to Buy, more first time buyers will be given that boost onto the property market ladder,’ he pointed out.
‘High demand in relation to supply remains problematic with new buyer registrations up 39.9% annually but new property supply only up 4.7% annually. Let’s see if the Chancellor’s commitment to pump £1 billion into infrastructure to unlock construction projects comes off and alleviates the crippling shortage of property supply,’ he concluded.