LSL / Acadata: Wales House Price Index News Release

Welsh house prices rise for first time in seven months

  • Prices increased £1,563 in September
  • Average price now £1,219 higher than start of 2013

House Price

Index

Monthly Change %

Annual Change %

£152,779

237.0

1.0

0.5

Richard Sexton, director of e.surv chartered surveyors, part of LSL Property Services, comments: “The economy is racing along and the rise in confidence, underpinned by better access to mortgages, is fuelling the property market in Wales. A shift in gear towards growth has become much more obvious: prices have moved into positive territory for the first time in seven months, with a rise of £1,563 in September compared to August.

“Hordes of first-time buyers are coming out of the wood work, providing renewed strength which will help the Welsh market gather momentum. Record low interest rates have meant mortgage payments for new borrowers are their most affordable for over a decade. As a result the mortgage market is bustling with potential buyers. Since the summer the increase in first-time buyers has helped unlock property chains higher up, allowing sales to soar. The slight drop in September is a reaction to the record high peak in August, reflecting a return to a more sustainable level on the barometer.

“The Government’s Help to Buy Cymru scheme has provided much needed support to people in search of affordable new build housing. It’s incredible to see that demand has leapt up and activity in Wales has become more even across all tiers of the property market. Prices have risen now that the distribution of sales is no longer primarily from the lower end of the market. However, there are concerns that interest rates may rise and a slowdown in wage growth could put pressure on aspiring buyers, eager to step on the ladder.

“On a smaller scale, the north and south divide is fading as the average price changes in north, south and central regions are almost identical in September reflecting the uniform recovery across the country. Cardiff is a hotspot having the largest total number of sales, and represents a substantial proportion of the Welsh property market. Often prosperous areas benefit from the upswing in buyer interest, as stronger local economies attract new buyers looking to settle down and find employment. Cardiff, boasts more green space per person than any other UK city, which is a key factor enticing more and more buyers into the region.

“With an influx of people into Wales, the market will hit a roadblock if the lack of housing supply in Wales is not addressed. The spotlight will be shone on the new Housing Bill to boost the supply of affordable homes. While the possibility of the Government’s New Buy mortgage guarantee scheme with builders and lenders will also provide a further foundation for growth.  These schemes will be crucial for the Welsh economy to stay on track and for the recovery to reach the finish line.”

Noisy sex kills off property sales

Press release – research from haart estate agent

 

House hunters’ biggest turn-offs?

·         Party animal households (54%)

·         Noisy sexual athletics (43%)

·         Train lines (32%), motorway traffic (31%) and frequent DIY (29%)

·         Survey of over 1,000 Brits

 

Straitlaced Brits are turned off their dream home by parties and sex over any other form of noise pollution, according to a survey by haart estate agent.

 

Over half (54%) of house hunters are unwilling to live next door to a party house and 43% would not put up with neighbours having loud sexual intercourse most nights – even if  they were offered a significant discount on the purchase price to compensate. Other noise pollutants considered far less offensive to potential buyers include train lines (32%) and motorway traffic (31%).

 

Only a third (32%) of homebuyers are put off by commuter train lines, and even constant animal noises are less of a nuisance, with just 33% unwilling to put up with dogs barking or cockerels crowing. At the bottom of the list of nuisance noises are motorbikes or diesel van start-ups immediately out the front of the house every morning – with only 26% saying they wouldn’t move in to this type of property.

 

Women are more concerned by troublesome neighbours than men, with nearly two thirds (58%) of female respondents opposed to living next to a party house (compared to 46% of men). The older generation are also particularly apprehensive, with 74% of those aged 65 and over unwilling to put up with party animals next door.

 

Young adults aged 16-25 proved to be the least cautious, with 17% happy to live next door to neighbours with a steamy love life most nights with no compensation required whatsoever (compared to 0% of those 65 and over).

 

Would not move in to such a property – no matter what the discount

 

Noise pollution

Regular (at least once a week) neighbour parties featuring blaring music and/or noisy guests

54%

Loud sexual intercourse most nights

43%

Close proximity to busy airport (i.e. under a low flight path of commercial and/military)

39%

Daily barking dogs or other animals, such as crowing cockerels

33%

Commuter mainline trains running regularly at back of property

32%

Being adjacent to a very busy main road or motorway

31%

Frequent loud DIY involving tools such as drills, chainsaws and sanders

29%

Noisy motorbikes or diesel van start-ups immediately out front every morning

26%

 

Aside from those who would not move in to these properties for any amount of compensation whatsoever, the remaining would demand a substantial discount, with the highest reduction required to put up with neighbours having regular parties, where people would want an average of 22% off the cost of the property. The following table highlights this:

Average price reduction demanded for noise pollution

Noise pollution

Average discount demanded

Regular (at least once a week) neighbour parties featuring blaring music and/or noisy guests

22%

Close proximity to busy airport (i.e. under a low flight path of commercial and/military)

21%

Being adjacent to a very busy main road or motorway

19 %

Commuter mainline trains running regularly at back of property

18%

Frequent loud DIY involving tools such as drills, chainsaws and sanders

18%

Loud sexual intercourse most nights

16%

Daily barking dogs or other animals, such as crowing cockerels

16%

Noisy motorbikes or diesel van start-ups immediately out front every morning

15%

Paul Smith, CEO of haart estate agent commented: “We Brits are renowned for our prudent behaviour, and this survey highlights just how significant this mind-set is when it comes to buying a home. It is usually quite simple to scope out whether a property is affected by noise from nearby traffic, train lines or motorways, however, it’s not so easy to spot the livelier neighbours in just a handful of visits.

 

“Homebuyers should make sure they check out a property at different times of day and week if possible and – if you can brush the British bashfulness aside – speak to the neighbours and get their view of the street and area before you decide to buy.”

ENDS

 

FOR FURTHER INFORMATION

 

Christina Gillings  The Wriglesworth Consultancy, 020 7427 1400 or c.gillings@wriglesworth.com 07973 595 961; or  Jamie Till  j.till@wriglesworth.com 07708 997 926

 

Methodology

 

Survey of database of over 14,000. Respondents were asked a number of questions on how much of a reduction it would take for them to live with certain noise pollutants, whether they would never live there regardless of reduction or whether they would be happy to move in without a reduction.

 

About haart

haart is part of Spicerhaart, the UK’s largest independent estate agency group. Every year, haart helps tens of thousands of people buy, sell, let or rent their home through its network of over 100 branches. haart has 20,000 homes available, worth £3 billion, at any one time. Founded in 1999, haart was named the Best Region for Bedfordshire, Cambridgeshire, Essex, Nottinghamshire and Suffolk at the 2010 UK Property Awards. For more information visit http://www.haart.co.uk.

About Spicerhaart

Spicerhaart was founded over 20 years ago by father and son Alick and Paul Smith with three branches of Spicer McColl in East Anglia. Today, the Spicerhaart Group encompasses six estate agency brands – Chewton Rose, Darlows, Felicity J Lord, haart, Haybrook and Spicer McColl – together with a range of professional services. For more information visit http://www.spicerhaart.co.uk.

 

Daily Paper Summary: Monday 26th August

Property

The number of homes planned for green-belt land has nearly doubled in a year according to the Campaign to Protect Rural England. More than 15,000 homes are planned along with 1,000 hectares of mines, offices and warehouses. The Times, Pg 2, Daily Mail, Pg 21; The Guardian, Pg 11. However, with property prices rising, most notably in London and the South East, due to increasing demand and a lack of supply, building more homes is the only feasible option to keep home ownership within reach of many.

Economic

The European Commission is said to be planning to use EU budget funds for the next rescue of Greece, meaning that Britain will have direct responsibility for shoring up the Eurozone currency structure. On Sunday Gunther Oettinger, Germany’s EU Commissioner, said that a third package worth over 10 billion Euros would be needed for Greece in 2014 and would partly come in the form of direct help rather than a debt haircut for existing creditors. The Daily Telegraph, B1.

Personal Finance

On average, children are picking up the most pocket money since 2007. A survey by Halifax also found that there has been a rise in the number of children receiving pocket money from 77% in 2012 to 84% in 2013 as families are starting to feel better about the economy. However, there seems to be a gender “pay gap” similar to that in the workplace with boys receiving more from their parents than girls. Daily Mail, Pg 26; The Independent, Pg 30; The Guardian, Pg 3; The Daily Telegraph, Pg 10.

Recruitment

Working grandmothers who help with childcare should get up to six months maternity leave or a chance to cut down on their hours, a report from the Institute of Public Policy Research suggests. The moves is aimed at the so called “sandwich generation”, women in their 50s and 60s who are helping children out with childcare as well as caring for an elderly relative. Daily Mail, Pg 9.

Jobseekers in northern England could finally be getting a break, according to a new survey from Adzuna. In July salaries on advertisements rose 1.8 per cent in the North-west, 1.6 per cent in the North-east but just 0.9% in the Capital. Flora Lowther, of Adzuna, commented that construction and manufacturing sectors were propping up the jobs market in that part of the country with some indication that the government’ s efforts to revitalise the economy outside of London are starting to take effect. The Independent, Pg 50.

Steve Lees, Director at SmartNewHomes, comments on planning minister Nick Boles’ speech to the Policy Exchange:

“The number of new homes built in 2012 is estimated to have been just half of the 232,000 new households created, stressing the urgent need for this Government to get Britain building. Brownfield sites are nearly always the default option for developers but are not always viable. Greenfield land, not to be confused with Green Belt which is protected by law, is often unsightly scrubland and could cater for a significant number of those buyers who despite the current barriers still aspire to own their own home.

“If the Government is to succeed in its aims it is vitally important that it addresses the popular misconception that the UK is being concreted over. SmartNewHomes research has shown that three out of four people grossly overestimate the proportion of land developed in England. Only one fifth correctly identify it as being 11% while a quarter assumed it to be six times as much.”

Planning Minister tackles misconceptions about built environment

Planning Minister Nick Boles is calling for more than 1,500 square miles of land to be earmarked for new homes, to solve Britain’s housing crisis. But making the case for housing will be an uphill struggle while the public remains largely misinformed about development levels in the UK, says SmartNewHomes.

Nick Boles is advocating developing in unspoilt areas if we are to provide the housing needed for future generations. Currently in the UK about 11 per cent of land is developed, with only a further 2 – 3 per cent of land required to solve the housing shortage.

However, research by SmartNewHomes carried out in September this year, reveals that the public is widely misinformed of development levels in the UK, with 75% of those surveyed grossly overestimating the proportion of land developed in England. Only one fifth (21%) of respondents correctly identified it as being 11%. Nearly half believed it to be three times as much at 30% and a quarter an astonishing six times as much at 70%. Only one in 20 underestimated the proportion of land developed at 5%.

Steven Lees, Director at SmartNewHomes, said:

Steven Lees

“With the UK crying out for millions of new homes, it is reassuring to hear that the new Planning Minister intends to tackle the issue head on. Without a sensible level of development over the next few years, an entire generation will only ever aspire to own their own home.”

BUYERS TURN TO HOUSEBUILDERS AND GOVERNMENTTO BRIDGE ‘DEPOSIT GAP’

Buyers are increasingly seeking the support of housebuilders and the Government to realise their dreams of owning their own home, says SmartNewHomes, as it reveals that the launch of the Government guaranteed NewBuy scheme saw buyer registrations on the website increase 101% compared to the previous week.

With many first time buyers lacking the ready cash for a deposit and facing difficulty accessing higher loan to value mortgages, SmartNewHomes is calling on the Government to continue its support of schemes such as NewBuy, which is helping tens of thousands of buyers to bridge the deposit gap and navigate their way on to the ladder or upgrade to a larger family home.  The call comes during NewBuy Week which runs from 10th-16th September to raise awareness of the scheme which launched six months ago.

NewBuy is available at selected new home developments in England and involves the housebuilder and Government underwriting mortgages of up to 95%. This means buyers require a deposit of just 5%. NewBuy is available to all buyers on new build properties up to the value of £500,000.

Steven Lees, Director at SmartNewHomes, comments:

“NewBuy has helped unlock pent up demand from buyers with many rushing to take advantage of the scheme which offers the cash poor but perfectly credit-worthy a much needed helping hand up the property ladder. With the mortgage drought set to continue, innovative schemes such as this will continue to play an important part in helping to get the housing market moving.  We hope that the new Housing Minister, Mark Prisk, will grant the scheme his seal of approval by opting to extend the NewBuy budget further, following the success of its first few months.”

Steven Lees, Director at SmartNewHomes, comments on the Government’s new housing and planning measures announced today:

“The £280million extension of FirstBuy will be welcomed by the tens of thousands of buyers for whom raising a deposit remains a stumbling block to home ownership. However, housebuilders have found themselves in a catch 22 situation, unable to meet growing buyer demand because of a revamped planning system that is still finding its feet and over-zealous financial constraints.

“The move announced today to fast-track large residential schemes through planning could help in bringing many more new homes to buyers but how the proposal to bypass councils not performing ‘properly’ will sit alongside the Government’s flagship Localism Bill remains to be seen. The government still needs to prove to the industry that it can act decisively to kickstart growth and support schemes that are proven to deliver – not just flash in the pan announcements.”