House price crash could wipe £54k off the average home’s value should the market decline at the same rate as the 2008 financial crisis. The warning comes following market turmoil after the mini budget in September – HBB Solutions.
£3bn worth of new homes sold in 2022 to May based on 7,591 new homes sold at an average price of £384,424. However, the volume of new builds sold is actually down on an annual basis – Unlatch.
UK construction industry to face stronger headwinds in Q4 and into Q1 next year with materials, energy, and fuel price inflation as well as new building regulations and a new Government, impacting confidence – Glenigan.
Nearly two thirds of UK homeowners plan efficiency-driven green upgrades over the decade to cut energy bills citing the rising cost of living. This represents a 15% rise on last year.
74% of homeowners now consider energy efficiency of greater importance due to cost-of- living crisis, with many of them making home improvements in order to help cut their energy bills, according to recent research by Help me Fix.
Buyers paying 15.5% more for energy efficient homes and 79% of estate agents said they are seeing more buyers ask about energy efficiency than they were 12 months ago – Santander.
Tenants shun D-rated EPC homes prompting 54% of landlords to make efficiency improvements over the last 6 months, with 63% bringing forward upgrades due to inflationary pressures – Shawbrook.
New home costs climb by 47% in the last decade even after adjusting for inflation, as new-build properties now command a 37.3% house price premium versus the existing market – Alliance Fund.
London renters suffer from huge demand-supply imbalance with seven people actively looking at each room available – roughly double the rate of almost four people in the rest of the country – and part of a worsening trend.
Foreign homebuyers benefit from weak pound with, for example, the average UK house price equating to US$369,825 at the beginning of the year, now worth $314,932 despite a rise in property prices.
House prices to fall 5% next year which will put house prices back at the same level seen last summer but still 13% above pre-pandemic levels.– Knight Frank Estate Agency.
Annual house price growth continues to slow to 9.9%, returning to single digits for the first time since January. With prices decreasing 0.1% on a monthly basis, the average property price is now £293,835.– Halifax.
Almost half of properties selling below asking price with country homes hit hardest from waning demand suggesting that the so-called ‘race for space’ seen around the pandemic may be over and that customers are making their way back to the cities and suburbs – Hamptons.
Number of homes for sale up 50% since April rising from 20 to 30 per member branch, although still below the pre-pandemic average of 41. The number of house hunters registered on estate agents’ books rose to an average of 83 per branch in September after a summer lull. The figures suggest that “despite rising interest rates and cost of living increases, people are still keen to move” – Propertymark.
House viewings drop by up to 50% since the end of September, although agents expects to see prices flatline rather than crash as they did in 2008.
Rising mortgage costs mean significant house price drop is ‘inevitable’ with falls of around 12% required to make mortgage costs more affordable, rising to 25% if rates stay higher for longer. Elevated mortgage rates and costs will also shut people out of the market, cutting annual transactions from 1.23 million this year to around 925,000 next year and in 2024 – Capital Economics.
Annual house price growth in England and Wales stood at 9.8% in September. Overall the average house price in England and Wales now stands at £373,427, up 0.8% from August.
Lloyds predicts falling house price growth to 0.2% in the first quarter of 2023 and drop further to a decline of 8.2% by Q3, softening to 7.9% by Q4.
Barclays and HSBC expect UK house prices to grow despite ongoing turbulence in the property market.
House prices hit record £371,158 despite market chaos. The 0.9% monthly rise is a softening from the five-year average rise in October of 1.2% and represents an annual rise of 7.8%, compared to 8.7% in September – Rightmove.
55% of estate agents worried about current market, with a quarter fearing the worst in the form of a significant market crash with just 11% stating they still felt confident about the months ahead.
Virginia Water tops most expensive places to live in the UK with average property prices of £1,681,981 rising to £7,179,532 in the most expensive street of Portnall Rise – Zoopla.
UK house prices increase by 8% in September with a price reduction of up to 5% in 2023 most likely as interest rates between 4% and 5% become the norm. Property sales are on track for up to 1.3m this year, down from 1.5m in 2021 – Zoopla.
House prices register first monthly decline since July 2021. They fell 0.9% in October on a monthly basis (and down from 9.5% to 7.2% on an annual basis) leaving the average price of a home in the UK standing at £268,282 – Nationwide.
Government regeneration to boost housing market by £188bn. There are 38 areas marked for significant regeneration, likely to boost average house prices by 3.6%.
