News

Market Update 14 April 2016
The Office of National Statistics (ONS) has shown the average house price inflation to February 2016 to be 7.6%, down on last year for the same period (7.9%). The ONS reported that house price annual inflation was 8.2% in England, 2.8% in Wales, 2.4% in N Ireland and – 0.8% in Scotland.
First time buyer property increased by 8% on the previous year, this may well have been fuelled by the buy to let market and the Government’s help to buy scheme. The additional 3% tax on buy to let has not held buyers back, although there was a mad rush prior to the March dead line.
Averages are one thing, what is happening on the street in your area is more important.
As usual anything up to £250k is selling very quickly now, £250 to £325k, is a bit slower but on the move. Above £325k is a difficult market, but we are making headway, over £500 has gone very quiet again.
Unfortunately, “Rightmove” the largest property portal only reports statistics for England and Wales, which the media pick up on and report “house price rises at a rate of up to 8%”.
This leads to a false picture up here and many Estate Agents give out the same signals trying to attract new business, only to disappoint clients.
The problem we are having with the higher end is the buyers are very much influenced by political and economic events. They go quiet leading up to elections and referendums and Scotland seem to have had at least one every year for the last three and this year we get both!
Still it should all be over by the end of June and I don’t believe the result will have any impact on the housing market. Markets just like certainty and once the election and referendum are past, what will be will be and we get on with it.
New builds are faring better than the resale market, buyers now seem to want everything brand new. The day of “doing up” seems to be behind us.
The latest Council of Mortgage Lenders (CML) figures show that home movers borrowed £5.3bn, up 14% compared to February 2015, totalling 26,000 loans.
Re mortgage activity totalled £4.8bn up 37% compared to a year ago, 28,400 loans. It appears the middle market are adding to their existing property rather than incurring the costs of moving. The Scottish Parliament SDLT has a lot to answer for. Let’s hope they don’t go equally mad with income tax now that they have control over that.
First time buyer’s figures are shown separately as £3.7bn up 21% on February last year. That is the best news ever, it is the first time buyer that kick starts the housing market, let’s wait and see if this is a blip or trend. 
Bill Reid BEM BA NAEA DipPFS
01738237337/