01483715823 info@ifadirect.co.uk

Resindential property review September 2018

24th September 2018

 

IFA Direct
20 Vicarage Road
Woking
Surrey
GU22 9BH

01483 715823
alastair@ifadirect.co.uk
jonathan@ifadirect.co.uk
www.ifadirect.co.uk

 

 

RESIDENTIAL PROPERTY REVIEW

SEPTEMBER 2018

 

 

 

Our monthly residential market review is intended to provide background to recent developments in property markets, as well as to give an indication of how some key issues could impact in the future.

 

Timely spike in remortgaging ahead of base rate rise seen

Just ahead of the Bank of England's decision to raise the base rate by a further 0.25%, the second quarter of 2018 saw over three quarters of remortgaging applications via intermediaries result in completion.

The 'Mortgage Market Tracker' released by the Intermediary Mortgage Lenders Association (IMLA) said that for the second time this year, Q2 saw an increase in the number of mortgagees endeavouring to protect themselves from forecasted base rate increases and benefit from more affordable deals.

Executive Director of the IMLA, Kate Davies, was quoted as saying: "The last 12 months have seen the end of a decade of record low interest rates that many borrowers have become accustomed to. The Bank of England's response to managing rising inflation had been widely anticipated by the industry and consumers . . . "

 

Proximity of quality state schools boosts property prices

Savills have reported that the proximity of top-performing state schools is one of the leading factors for families when deciding where to buy a house.

The research reveals that the average price of a house near a primary school rated 'outstanding' in England was 16% (£37,000) higher than one nearer a school rated 'good', and 30% (£61,000) higher when compared to a home in the catchment area of a primary school only rated 'inadequate' or 'requires improvement'.

Home buyers in London are paying an average of £670,000 to live close enough to the best primary schools to gain admission for their offspring.

This trend extends to Scotland where, according to The Bank of Scotland, parents are paying a premium of nearly £73,000 to live in the catchment area of a top performing state secondary school. They go on to add that the average house price in areas covering the top 20 state schools, has now reached £277,134, which represents a 36% premium to those houses in the immediately surrounding areas, now estimated at an average of £204,162.

UK assets including land and house values top £10 trillion

According to the Office for National Statistics (ONS), UK housing values added £40bn to the net worth of the country's assets in 2017. Overall land values added an additional £450bn. With UK land now worth £5.4 trillion, this equates to 53% of all the wealth found in the country, an increase of a third in net assets since 1995. This figure is now just shy of the record value of 53.3%, which was recorded by the ONS back in 2006 and 2007, just prior to the global financial crash.

In summary, the net value of total UK assets now sits at a staggering £10.2 trillion, against the last valuation of £9.75 trillion.

 

 

 

 

 


House Prices Headline statistics


HOUSE PRICE INDEX (JUL 2018)*

121.4*

 


Average House Price

£231,422

 


Monthly Change

1.2%

 


Annual Change

3.1%

 


*(Jan 2015= 100)

·        

UK house prices rose by 3.1% in the year to July 2018

·        

House prices grew fastest in the North West region, increasing by 5.6%

·        

House prices in London fell by 0.7% in the year to July 2018

 


 

 

 

 


House Prices Price change by region

Region

 

Monthly Change (%)

Annual Change (%)

Average Price (£)

England

 

1.2

3.0

£248,611

Northern Ireland
(Quarter 2 - 2018)

 

-1.0

4.4

£132,795

Scotland

 

1.4

3.2

£152,245

Wales

 

-0.2

4.2

£157,368

East Midlands

 

-0.2

3.0

£188,716

East of England

 

1.3

2.4

£294,603

London

 

0.6

-0.7

£484,926

North East

 

2.6

2.8

£131,505

North West

 

3.4

5.6

£165,529

South East

 

0.4

1.8

£327,002

South West

 

2.4

4.4

£259,971

West Midlands Region

 

0.6

4.4

£195,447

Yorkshire & The Humber

 

0.4

3.3

£161,712

 

Source: The Land Registry
Release date: 19/09/2018 Next date release: 17/10/2018

 

 

 

 

 

AVERAGE MONTHLY PRICE BY PROPERTY TYPE - JULY 2018

PROPERTY TYPE

ANNUAL INCREASE

DETACHED
£352,138

(4.6%)

SEMI-DETACHED
£216,785

(3.3%)

TERRACED
£187,242

(3.4%)

FLAT / MAISONETTE
£207,639

(0.6%)

 

Source: The Land Registry
Release date: 19/09/2018

 

Contains HM Land Registry data © Crown copyright and database right 2017. This data is licensed under the Open Government Licence v3.0.

 

 

 

 

 

Mortgage Activity

·        

"July saw steady growth in gross mortgage lending, driven largely by remortgaging as homeowners locked into attractive deals in anticipation of the recent base rate rise.""

Peter Tyler,
Director at UK Finance

 

Source: UK Finance
Release date: 24/08/2018

 

 

 

 

 

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

 

 

APFA

IFA Direct is a trading name of Credenda Ltd. Credenda Ltd is an Appointed Representative of Credenda which is authorised and regulated by the Financial Conduct Authority. Financial Services Register No: 181769 http://www.fca.org.uk/register.

IFA Direct Registered Address: 20 Vicarage Road, Woking, GU22 9BH. Registered in England, No. 2047680 .

Neither IFA Direct nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.

Please read our Privacy Statement before completing any enquiry form or before sending an email to us.