Property prices at highest level for two years

According to new research by Haart, the average UK property price rose by 0.6% in November meaning it has now reached the highest levels seen in two years.

Related topics:  Property
Warren Lewis
22nd December 2014
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A strong upward trajectory has been recorded in first time buyer property prices since August demonstrating inconsistancies between supply and demand for properties that are suited to the first-time buyer market.

Both the number of new buyers and volume of new properties for sale are down on an annual basis – by 18.6% and 6% annually respectively.

Also revealed in the report was a slight rise in the number of people chasing each property for sale, an increase from 1 last month now takes the total to 11.

Along with the average FTB purchase price, the mortgages that first-time buyer are taking out has also increased – by 11.8% annually and 2.2% on the month. The loan to value achieved is now 79.7%, an increase on 79% in November 2013 and it follows that the average deposit required has fallen 3.6% annually to £34,135. The age of first-time buyers has fallen again and now stands at 31.2 years – down from 32.2 years last year.

In London the average price has increased 7.9% annually,making it the first time in over 12 months that the annual house price increase has failed to reach double figures.

Regardless of this there are now 17.4 buyers on average hunting each new property listed which is a low increase on Octobers figures. The market has now become more balanced as the number of new buyer registrations and first-time buyer registrations decrease on an annual basis but at the same time the volume of properties coming to the market is on the up.

According to Haart, following the new Stamp Duty rules the level of demand will continue to rise, with the estate agent seeing a 15% increase in buyer enquiries the day after the Autumn Statement announcement.

Paul Smith, CEO of Haart, said:

“It’s taken the coalition government almost five years to reform Stamp Duty but at last they have listened to the industry just before the election! As we head into 2015 98% of buyers are set to make a Stamp Duty saving. The effect was immediate as we saw a 15% increase in enquires the day after the announcement as buyers who were previously reluctant to take a step onto or move up the property ladder suddenly had the door opened.

UK property prices reached their highest levels in over two years in November 2014, up 7.8% annually, but our data shows a marginal cooling in the London market, with a 1.9% monthly drop in property prices and only single figure annual growth.

However we are now optimistic for 2015 and while we may not see the market reach the giddy heights of the first half of this year, which is no bad thing, we predict that property price growth will remain strong and confidence will continue to ride a high as we approach the next election.”

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