Τετάρτη 6 Αυγούστου 2014

UK homeowners start to panic sell in the face of house price uncertainty

houses for sale signs
UK house prices in May to July were 10.2pc higher than the same three month period in the previous year, elevated by a continuing housing supply crisis in Britain.
The new data showed a quarterly increase of 3.6pc and a month-on-month rise of 1.4pc, depsite the traditional summer slowdown in the housing market.
The average house price was £186,322 in July, according to the Halifax, which was up from £183,825 in June and was the highest level since April 2008.
Even so, house prices on the Halifax measure at £186,322 in July were still 6.7pc below the all-time seasonally-adjusted high of £199,612 seen in August 2007.

However, the annual rate of growth has halved from the period of April to June, which saw a massive yearly house price jump of 21pc. This reinforces recent official figures from the likes of the Office of National Statistics, and Hometrack, which show the rate of house price growth month-on-month grinding to a halt.

Despite this slow down in the annual growth rate, Halifax reported on Wednesday that the majority of UK home owners think that the next 12 months presents the best time to sell.

The latest Halifax Housing Market Confidence Tracker indicates that sentiment towards selling is rising as fears grow that property values could reverse - while new buyer demand is dropping.
Over half of those (57pc) surveyed by the lender believe they should sell within the next year to capitalise on price, compared to 32pc. This is the highest score of this measure since the survey's inception.
"In London, the trend of selling up from more central zones to get better value and more space in suburban or commuterbelt locations will also continue. Many recognise the significant arbitrage opportunity that now exists and want to maximise this opportunity to cash in," said Adam Challis, head of residential research at property group JLL.
"However, some have been trapped in low or negative equity scenarios since 2009 and are only just seeing the light at the end of the tunnel that will enable them to move on."
Only last week, data from Hometrack showed that house prices in Britain have stalled as the number of new buyers plummeted in July and consumer sentiment shifted from over-zealous to cautious.
The rate of house price growth fell to its slowest rate in 18 months - according to a leading survey of estate agents.
This drop in the growth of property values is a result interest fears, new, tighter mortgage rules and aggressive rhetoric from the Bank of England that a "hot" UK housing market, in the south east, is the biggest threat to the economic recovery.
"The Halifax data adds to the current uncertainty over the true state of the housing market," said Howard Archer, chief economist at IHS Global Insight.
"Furthermore, an appreciable rise in mortgage approvals reported by the Bank of England in June fuels uncertainty as to whether the recent loss of momentum in housing market activity is likely to be lasting or just a temporary development related to changing mortgage regulations."

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