housing

Housing supply in UK

Housing supply in UK

One measure announced in this years budget was government support for mortgages loans. A new Help to Buy scheme will allow people to obtain a 20% interest-free loan from the government, as long as they put down a 5% deposit and buy a newly-built property However, some have suggested the fundamental problem in the UK housing market is the persistent shortage of housing – and increasing the availability of credit doesn’t directly address this problem. The number of households is forecast to grow by 232,000 a year until 2033, and…

UK Housing Market

UK Housing Market

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 5.3% in Q1 2016 London showed strongest housing market with prices rising more than other areas. Price of a typical home is £198,564 (Q1 2016) UK House prices in past few decades In 1969, average house prices were: £4,312 In 1975, average house prices were:…

house-prices

Why are UK house prices so high?

In recent 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, avoided a major collapse and now exceeded pre-crash levels. It is true that in the first years of the credit crunch, UK house prices did fall 20%….

Regional UK house prices

Regional UK house prices

In the past decade there has been a divergence between house prices in different parts of the UK. In particular, house prices in London and surrounding areas has rocketed to unprecedented levels. Source: ONS According to the ONS, average mix-adjusted house prices in September 2015 stood at £299,000 in England, £175,000 in Wales, £199,000 in Scotland and £162,000 in Northern Ireland. Most expensive region The most expensive region is unexpectedly London – with…

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…

London housing market – boom and bust?

London housing market – boom and bust?

The London housing market is one of the most expensive places in the world. In Sept, 2015, the average London house price is now just under £500,000 (BBC) Since 2013, house prices in London have risen 40%, defying a weak economy and stagnant growth in average earnings. London house prices are 7% higher than the pre crisis peak of 2007 and have consistently outpaced growth in the rest of the UK.   Source: ONS House Price Index | via…

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…