Asking Prices Reach New High in the U.K.
Sellers of new-to-the-market property in the U.K. pushed their asking prices up 0.8%, or £2,343 (US$3,146), this month to a new record high of £308,075 (US$413,683), according to a report Monday from Rightmove. The increase in asking prices is unevenly spread, however. Different markets are operating at different speeds, […]
Brexit uncertainty hits London property market the hardest in the UK, reports show
London remains a weak spot in the slowing UK housing market as Brexit clouds the outlook, reports on Monday showed. The capital had an annual price decline of 0.2 per cent in May, property website Rightmove said on Monday. Separately, Acadata reported that in April London was the only region showing an annual fall, clocking in a 2.5 per cent drop.
Overall, national price growth stood at 1 per cent compared with a 9 per cent high reached in 2016, Acadata said.
Uncertainty surrounding Britain’s exit from the European Union has hit London the hardest. At the national level, years of rampant home-price inflation and a shortage of properties for sale have also pushed ownership out of reach for many would-be homeowners.
Manchester and Salford price growth has regularly outperformed rest of UK
House price growth in Manchester and Salford regularly outstripped the national British average with strong renting yields also boosting the property market, new research suggests. Prices have increased by 34% in Manchester and 38% in Salford in the seven years to July 2017 compared to a national average of 30%, according to the report from real estate agency Cushman & Wakefield.
Meanwhile, annual returns of between 11% and 20% have been seen for both metropolitan boroughs in the three years to July 2017. The report says that while the latest forecasts record stable growth in the UK housing market in the coming two years, before accelerating from 2020 onwards, both Manchester and Salford are predicted to continue to outperform the wider UK market over the coming decade.
Similar trends are forecast for the rental market, with rental inflation running at around 2% per annum to 2021, before returning to a more typical rate of 3% plus per annum from 2021.
Spring property report:house prices drop in two out of three London boroughs in temporary market slowdown
Although prices continue to creep up across the rest of the UK, London experienced a fall of 0.2 per cent. Prices in the south east are 0.1 per cent down.
“The last time the south east recorded an annual price fall was in 2011, indicating that the softening in the London market is now spreading to its commuter belt,” said Miles Shipside, Rightmove’s commercial director.
Property prices in Wales and North Somerset surge; Annual UK growth falls
Wales and North Somerset are the clear exceptions to falling house prices around the UK, as Wales introduced the Land Transaction Tax with the Bristol boom is spreading.Overall, house prices are down for the third month in a row and the annual growth rate has fallen for 11 months in succession, according to Rightmove.
Many areas continue to prove resilient, however, with prices in England and Wales excluding London and the South East three per cent up on the same time last year. Overall, the average price in England and Wales at the end of April stood at £302,252, up from £299,374 a year ago.