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HomeOwners Alliance House Price Watch shows 0.5% growth, reaction to Help to Buy and RICS Housing Survey

October 8, 2013

HTB 2 launches today – fears of a Help to Buy price bubble may be unfounded. RBS, Natwest and Halifax will start taking applications for the state guaranteed mortgage scheme this week. Although there are fears that this will fuel a price bubble which is already underway.

HomeOwners Alliance CEO Paula Higgins said: “Help to Buy phase 2 will allow people who had no chance of buying a home to finally get on the housing ladder, so we support the scheme. One way of preventing a bubble will be to make sure an increase in demand is matched by a greater supply. As has been the case for the last twenty years, Britain needs to build more homes.”

“While we welcome Help to Buy as a means of helping would-be homeowners, Homeowners Alliance recognises the dangers of encouraging reckless lending and we hope to see stringent measures employed by the Government and the Bank of England in regulating the scheme.”

Rics’ September Residential market survey published. The report shows UK house sales reached an almost four-year high in September.

HomeOwners Alliance CEO Paula Higgins said: “It’s great to hear reports that more and more people are realising their dreams of becoming homeowners. Although the numbers are climbing, they are still at an historic low and the government needs to incentivise builders, as well as buyers to get on to the market.”

House Price Watch published today shows 0.5% growth in the last month. See infographic.

HomeOwners Alliance’s House Price Watch compares UK house price reports (eg Land Registry, Nationwide, Halifax, Rightmove) to give a monthly summary of the market.

Paula Higgins, chief executive of the HomeOwners Alliance, says,

“Concern of a national housing bubble is premature. Although most indices report rising house prices during August and September, we must remember that outside of London and the South, prices are just beginning to rise and this is from a low base. There is fear, but no evidence of a housing bubble just yet.

Key findings include:

The average monthly increase is UP 0.5% – excluding Rightmove (national house price changes over the past month range from -1.5% by Rightmove up to 0.9% by Nationwide)

The average annual increase is UP 3.6%. (national house price changes over the past year range from 1.3% by Land Registry up to 5.4% by Halifax)

Reports indicate September 2013 marks highest annual national coverage of price rises since 2007 Nationwide reports, for the first time since 2007, all 13 UK regions experienced annual house price growth in the third quarter of 2013

Demand supported by low mortgage rates — first-time buyer mortgages at highest level in 5 years Modest economic improvement, low mortgage rates supported by official schemes such as Funding for Lending and Help to Buy are seen to be boosting housing demand in recent months.

Growth in house prices is evident in many but not all areas in the past month(declines are noted in Wales, the North East and East Anglia). London (up 1%), South West (up 0.7%) and North West (up 0.7%) experienced the biggest rises in the past month.

The North/ South divide continues. London’s average house price exceeds £455,000; up 7% since August last year according to Land Registry figures. Areas outside the South and East have an average house price below £200,000; lowest in the North East (£122,000).

Longer term affordability is a concern particularly in London and South East where the greatest mismatch between supply and demand is reported and there is a lack of housing supply.

To understand how we compile HomeOwners Alliance’s House Price Watch, click here

 

When quoting this Press Release please link to the HOA website a thttp://hoa.org.uk/

For media enquiries contact Paula Higgins, paula@hoa.org.uk or Angela Kerr, angela@hoa.org.uk.

 

About the HomeOwners Alliance

The HomeOwners Alliance champions the interests of Britain’s homeowners and aspiring homeowners, and provides services they can trust. We are a member-led organisation, acting as the voice of the homeowner in the media, lobbying for the interests of homeowners and aspiring homeowners in government, and campaigning against bad practices in industry.

 

We directly engage with government and the media by conducting independent research and publishing reports that promote and champion the interests of homeowners. Former Housing Minister, Grant Shapps, called the HomeOwners Alliance “good news for homeowners and homeownership”. Sunday Times wrote: “with the launch of the HomeOwners Alliance, British property owners finally have an ally”.

 

At hoa.org.uk, we provide independent advice for the key moments in owning a home, supported by legal and industry experts. Get our free newsletter with a market-wide review of house prices and all the latest tips on buying, selling, improving and managing homes. On our website you can find free independent guides, checklists and top tips.

 

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