Kate's July 15 property price summary with data from LSL and RICS

publication date: Jul 13, 2015
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

Kate's July property price summary

Kate's monthly property report tracks key reports on property prices produced on a monthly basis, and summarises crucial numbers and what experts are saying about the market. It also includes Kate's comments on what this means, primarily for the general public, but also for the industry, market and the economy. The indices includes data from Hometrack, NAEA, RICS, LSL and Rightmove.

Download the full report for July 2015


Kate's comments on the property price headlines:
“Another mixed picture this month with regards to property price changes. The Hometrack Index clearly shows that cities are doing well price wise, and according to Your Move and the Reeds Rains Index, much of this increase is down to a post-election market surge, as volumes have grown to an unexpected high level in June, which is good news for the industry. Despite economic issues of Grexit and China, these don’t appear to be impacting on the market as yet. This is due to the UK’s economic growth, low inflation and cracking value mortgages, together with a real rise in wages impacting positively on people’s confidence, a key factor in driving both volumes and prices upwards."

Actual Report Headlines:-

Rightmove “Prices surge to new record as buyers act but sellers hold back.”

Home.co.uk “Shock monthly rise of £10,000 for the average London home.”

NAEA “House buyers at the highest level in eight months.”

RICS “Demand sees further moderate rise while price momentum accelerates.”

Nationwide “Annual house price growth slows again in June.”

Halifax “House prices in the three months to June were 3.3% higher than in the preceding three months.”

Agency Express “Property Activity Index reveals a sizzling summer.”

LSL “House price growth at two-year low, but sales jump 15% in June.”

Hometrack “House price growth continues to accelerate.”

Land Registry “The May data shows no monthly price change.”

Download the full report for July 2015

 

Kate's comments on regional price differences:
“The regional picture this month shows how unbelievably diverse property prices are. With a media that tends to report more from a ‘London perspective’ it is vital that agents use their data to make sure local buyers and sellers understand what’s happening locally and aren’t tainted by national reports which can lead to overpricing. Having studied how long house prices grew for in London, it appears when growth does start to hit, it carries on for around two years at most, then price growth falls back. Prices tend to rise to around 5% year on year, then increase by 10% and finally peaking at 15-20%. However, what we don’t know yet is whether the growth we’ve seen in London will be mirrored around the rest of the country.”

Here's what the indices are saying about regional price variations:
Rightmove “Six out of ten regions have set new record price highs this month as the supply/demand imbalance and consequent upwards price pressure continue to head further north. As well as the four southern regions, both the East Midlands and West Midlands reached all-time price highs this month. London has seen the strongest monthly price performance, up by 5.7%, aided by the higher-priced boroughs seeing more top-end owners willing to come to market now that the threat of the Mansion Tax has been removed. Indeed much of this month’s national average asking price rise is due to a strong increase at the upper end of the market. (Jun 15)”

Home.co.uk “The regional picture of the UK property market remains highly disparate. At one extreme we observe a slower London market with precariously high pricing and at the other extreme the North is showing genuine signs of recovery as marketing times fall, although prices there have yet to recover their 2007 highs. We are observing a two-tier property market. In the first tier we have three regional markets that are outperforming the rest of the country (Greater London, the South East and the East of England). In the second tier we have the 6 other English regions, Scotland and Wales, which are all indicating price rises below that of the national average. (Jun 15)”

LSL “This month the rate of house price growth compared to the previous month has risen in two English regions: the West Midlands and Yorkshire and Humberside, along with Wales. The largest rise was observed in the West Midlands, up from 3.7% to 4.0%, while the largest reduction in the rate of house price growth was observed in Greater London, being 2.3% lower this month compared to last. (Jun 15)”

Hometrack “The year on year rate of house price growth across UK cities is 8.7%, higher than 6.5% growth recorded across the UK. At a city level year on year growth ranges from 3.2% in Edinburgh to 12.3% in Oxford. The upward momentum in house prices is originating from a broad range of cities. The strongest levels of growth in the three months to May 2015 have been registered in Bristol (4.5%), Glasgow, Edinburgh and Belfast (4.2%) and Nottingham (3.9%). (May 15)”

Land Registry “The regions with the most significant annual price increase are London and the South East with a movement of 9.1 per cent. Wales saw the only annual price fall with a decrease of 0.6 per cent. The East and the North East experienced the greatest monthly price rise with a movement of 1.6 per cent. Wales also saw the largest monthly decrease with a fall of 1.7 per cent. (May 15)”

 

Download the full report for July 2015

 

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