News

Where is the housing market going?
There was a marginal increase in the amount of private rents paid by tenants in the UK in September, new figures show.
Fresh data from the Office of National Statistics (ONS) reveal that private rents rose by 1 per cent in the 12 months to September 2014.
A regional breakdown of the figures shows that rental price growth was led by Scotland where rents increased by 1.4 per cent, England, up 1 per cent, and Wales, up 0.2 per cent.
Rental prices rose across all the regions over the year to September 2014, led by rental price gains in London with growth of 1.5 per cent. The lowest rent rises have been recorded in the North West of England, at 0.3 per cent over the past year. Clearly the First Time Buyer is yet to be tempted out of rental, if they are still willing to pay ever increasing rents. This has an obvious impact on movement up the chain, without the first time buyer, there is no chain!
On the sales side a record number of lots were sold at UK property auctions in the third quarter (Q3) of this year, thanks partly to a strong showing in the residential market in September, the latest Essential Information Group (EIG) data reveals.
There were 205 UK property auctions held during September - the highest number recorded since September 2011 - with the volume of monthly lots offered rising by 7.6 per cent on September last year to 4,027 lots. A clear sign of desperation at the bottom end of the market. Typical first time buyer’s homes going to auction to sell cheaply to the buy to let market to rent to those too frightened to buy, and willing to pay an ever increasing rent!
Job security and low/no wage inflation are being posted as the main areas of worry not just effecting the housing market, but also the wider economy with a record drop in inflation recorded last month.
Something has to give. I feel it will be upward pressure on wages to come first followed by job security. Ironically wage inflation initially causes job insecurity so I don’t believe there is a short term solution to house prices falling.
House prices barely moved between August and September, going down by just 0.2%, the Land Registry has reported. We would normally expect a decent increase at that time of year.
Bill Reid BEM BA NAEA