House Price Growth reaches 10.2% as demand for properties intensifie
According to data collected by the Office for National Statistics, house prices in the UK increased by 10.2% in March.
This increase comes on top of a 9.2% annual increase in February, meaning that the average UK house price in March reached £256,000, an increase of £24,000 over March 2020.
For the third consecutive month, England saw prices increase by 10.2% to reach an average of £275,000. The capital saw the lowest growth at 3.7% – the lowest of any English city.
Among the most popular towns in the English countryside were Chichester, Taunton, and Chipping Camden, as well as London’s prime commuter-belt towns such as Sevenoaks, Dorking, and Cranbrook.
People continued to value space, nature and have a true work-life balance, while committing to long-term home-based work or a hybrid model of working.
Government creates £26M fund for faster property searches
The Treasury Secretary Steve Barclay recently announced the creation of a fund of £26 million to help homebuyers in England and Wales find property more quickly through a national Local Land Charges (LLC) Register.
It was announced last December that the government would migrate all English and Welsh local authorities to the central register by 2025. Through this funding, the home-buying process will be made simpler and more efficient for everyone.
In exchange for transferring their local land charges data to the LLC Register within an agreed timeframe, local authorities will receive transition payments.
In addition they will continue to receive existing burdens payments. Local authorities will, therefore, be able to access more than £40 million in total financial support.
HM Land Registry’s director of transformation, Karina Singh, said: “We understand the uncertain economic landscape facing many local authorities and the resourcing issues this creates.
Queen’s Speech: The biggest overhaul of England’s Planning System in 70 years
Splitting the country into “growth” and “protection” zones, a third “regeneration” designation may also be possible. Construction in growth areas will be limited, while restrictions on construction will be imposed in protection areas.
Councils will define the zones in local plans with community consultation. Nevertheless, any development fitting within the plan will have less of an opportunity to be rejected. This is big news. As a result of less discretionary rules with ambitious targets, building investments are more confident, alleviating the housing crisis.
The goal of planning reform must not be so narrow. There is an acute housing shortage in cities, and that must be addressed. The rents in London are twice as high as those in the rest of the country, and mortgage repayments are two-fifths more than in the rest of the country.
Ultimately, this is driven by population growth in cities, which is the engine of the contemporary economy. They are where people work, socialise and be entertained. When people meet each other, they exchange ideas spontaneously, a phenomenon known as “agglomeration effects.”. It is through this clash of ideas and greater productivity that humanity advances.
The eminent urban economist Edward Glaeser states: “our culture, our prosperity, and our freedom are all ultimately gifts of people living, working, and thinking together—the ultimate triumph of the city.”
Over a quarter of BTL landlords plan on expanding their portfolios
27% of buy-to-let landlords are currently planning to expand their portfolios in the near future, as buy-to-let continues to outperform other asset classes. A survey by Knight Knox shows that buy-to-let is still outperforming other asset classes in terms of returns.
The property investment consultancy surveyed 500 UK landlords and found that 27% plan to increase their property portfolio in the next 12 months, influenced at least in part by the extension of the stamp duty holiday.
An estimated 35% of those considering property investments currently say the extended stamp duty holiday has influenced their decision.
Andy Phillips, Knight Knox’s commercial director, commented: “The last 12 months have been a total rollercoaster for the housing market. Lockdown 1.0 temporarily halted activity before Rishi Sunak’s announcement of the stamp duty holiday led to the industry facing one of the busiest periods for a decade.
“For landlords, the incentive has provided a welcome opportunity to purchase more properties while making significant savings. Appetite for rental property is high – particularly given that the financial impact of the pandemic could be affecting people’s plans to purchase – so buy-to-let is a fantastic investment in the current climate.”
Equity in UK homes exceeds £650bn for first time
Halifax’s quarterly regional house price index revealed that the total amount of housing equity available to homeowners over 55 stood at £650.7bn in the most recent quarter; this was an increase of £50bn from the previous quarter.
Halifax’s quarterly regional house price index revealed that the total amount of housing equity available to homeowners over 55 stood at £650.7bn in the most recent quarter; this was an increase of £50bn from the previous quarter.
This surge in potential equity is being driven by higher house prices in the South East, London, and the South West.
With an average price of £345,000, the South East has £125bn of equity available or just over £110,000 per household, making it one of the regions in the United Kingdom with the most equity available.
Following closely behind was London with £123bn of equity or £161,276 per household.
As of Q1 of this year, Wales and Scotland have seen the most growth in house prices, with increases of 3.6% and 2.8%, respectively.
Welsh households have access to approximately £25bn of equity, or a little less than £60,000 equity per household.
Scotland has just over £40bn, which equates to about £58,000 per household.
Those with the least amount of equity were found in the North East and Yorkshire, where the median household equity was £47,421 and £56,778 respectively.
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