housing

UK Housing Market Stats and Graphs

UK Housing Market Stats and Graphs

A look at the main UK housing market data. House prices Affordability of housing Interest rates Supply of housing House price inflation Nationwide data Annual house price inflation running at 8.3% in Nov 2014 London showed strongest housing market with prices rising 21% Price of a typical home is £188,810 (Dec 2014) UK House prices in past few decade In 1975, average house prices were: £10,388. In 2014, average house prices are: £188,810. (more…)

Cut in UK stamp duty

Cut in UK stamp duty

The government have announced a change in stamp duty. The chancellor George Osborne claims the change to stamp duty will cut the rate of tax for 98% of house purchases. New marginal tax rates are: 0% tax on house purchases up to the value of £125,000 2% tax on purchases between £125,000 and £250,000 5% tax on purchases from £250,000 up to £925,000 10% tax on purchases from £925,000 to £1.5m 12% tax on purchases over £1.5m The tax change will cost the public purse £800m and represent a £4,500 cut in tax on average home…

housing-benefits-number

Housing benefit in the UK

Readers Question: There are around 22 million households in the UK, 2/3 of whom own their house. So the rental market would be around 7 million of whom one million receive benefit, some portion living in social housing, some in private rented housing. Does that seem reasonable? Can you point me towards actual numbers? In August 2014, 4.93 million received housing benefit, at an average weekly payout of £93. This gives a rough annual cost of £23 billion. Dept Work and Pensions What is housing benefit? Housing benefit is a means…

Policies to ease pressure on the housing market

Policies to ease pressure on the housing market

Readers Question: What policies could be used to ease pressure on housing market? Firstly, the main pressure in the UK housing market is the persistent and continued above inflation price increases. Back in 2004, Kate Barker’s report into housing market trends found that the UK would need to build 250,000 houses to reduce the house price inflation rate to 1.1%. But, since 2004, the UK housing market has fallen short of this target. In the middle of the recession, the number of home starts fell to just over 100,000….

Factors that affect the cost of private renting

Factors that affect the cost of private renting

Readers Question: I was looking for info on housing demand/supply. One area you have no info on is rental trends. There is a lot written about a critical housing shortage in the UK, starting with the Kate Barker review (2004), who took great pains to assure anyone who asked that UK house prices could only go up because of supply/demand fundamentals. None of her projections have been achieved and, if her assumptions were right, there should be an acute housing shortage, evidenced by rising rocketing rental rates, and…

Would a cap on house prices work?

Would a cap on house prices work?

Readers Question: Would a cap on house prices work? Despite the recession and credit crunch, UK house prices continue to rise. (See: Why are UK house prices so high?) This has caused record levels of house price to income multiples. For homebuyers in London, house prices are approaching a record seven times average earnings. Understandably many feel house prices are already too expensive, and there is a strong case for trying to limit future house price increases. For example, the Royal Institution of Chartered…

Why are UK house prices so high?

Why are UK house prices so high?

In the past five years, we have had a devastating global credit crunch, the longest and deepest recession since the 1930s (if not worse). Across Europe, we have seen mass unemployment and in countries like Spain, Ireland and Portugal, the housing market has seen up to 50% falls in house prices. Yet, despite this financial and economic upheaval, UK house prices have bucked the trend and avoided a major collapse that many were predicting as the credit crunch hit. It is true that in the first years of the credit…