UK's 10 most and least affordable rural areas

Here are the 10 most affordable rural local authority districts according to Halifax's findings, with the average house price and the house price to annual local earnings ratio:

1. Copeland, North West, £ 100,791, 2.7

2. Stirling, Scotland, £ 149,838, 3.4

3. East Ayrshire, Scotland, £ 100,382, 3.5

4. Western Isles, Scotland, £ 102,592, 3.7

5. Pendle, North West, £ 101,296, 3.9

6. North Lincolnshire, Yorkshire and the Humber, £ 125,276, 4.0

7. Shetland Islands, Scotland, £ 140,610, 4.3

8. West Lindsey, East Midlands, £ 135,343, 4.4

9. Selby, Yorkshire and the Humber, £ 158,055, 4.4

10. Allerdale, North West, £ 133,364, 4.4

Here are the 10 least affordable rural local authority districts according to Halifax's findings, with the average house price and the house price to annual local earnings ratio:

1. Cotswolds, West Midlands, £ 318,128, 9.4

2. Torridge, South West, £201,076, 8.2

3. North Dorset, South West £215,906, 8.0

4. Chiltern, South East, £407,012, 7.6

5. East Devon, South West, £213,677, 7.5

6. Vale of White Horse, South East, £288,522, 7.4

7. Teignbridge, South West, £202,566, 7.4

8. North Devon, South West, £194,000, 7.4

9. East Dorset, South West, £281,760, 7.3

10. East Hampshire, South East, £291,990, 7.3

UK house prices up 5.4% say Halifax

House prices are 5.4% higher than last summer as property market activity intensifies, figures from the Halifax showed today.

The lender said prices rose 0.4% in August, the seventh consecutive monthly increase, resulting in an average figure of £170,231.

Prices in the three months to August were 5.4% higher than in the same three months a year earlier, better than July’s 4.6% increase and the highest annual rate since June 2010. The annual rate has picked up from 1.1% in March.

Halifax housing economist Martin Ellis said economic improvement and Government schemes have helped boosted demand, although activity is still being held back by the squeeze on household budgets.

“Overall, house prices are expected to rise gradually over the remainder of the year,” he said.

Halifax’s report follows similar findings from building society Nationwide last week that the housing market revival is gathering pace.

Lenders, surveyors, estate agents and property websites have all been reporting a strong pick-up in activity following the launch of Funding for Lending, which has prompted a big improvement in mortgage availability and rates.

Other initiatives such as NewBuy and Help to Buy have been aimed at giving people with smaller deposits a leg-up.

House prices in UK rise £9,000 in a year say Halifax

UK House prices rose at their fastest pace for almost three years in July as market activity intensified ahead of the traditional August lull, the latest figures from mortgage lender Halifax showed today.

The 4.6% rise in the month was the strongest since August 2010. It means house prices have risen by just over £9,000 in a year.

House prices were 0.9% higher in July than in June reaching £169,624 on average, marking the sixth consecutive month on month increase in house prices. Last July the average house cost £160,428.

Commenting, Martin Ellis, housing economist, said:

"House prices in the three months to July were 2.1% higher than in the previous three months. This is similar to the rates of increase recorded throughout the first six months of 2013. Prices in the three months to July were 4.6% higher than in the same three months last year, the highest annual rate since August 2010. Sales have also picked up with total purchase transactions for the first half of the year 6% higher than in the same period last year.

"Signs of improvement in the economy, underlined by the recent evidence of a rise in gross domestic product in Quarter 2 and increases in employment, appear to have boosted consumer confidence. Greater confidence is likely to have underpinned the increase in housing demand. Official schemes, such as the Funding for Lending Scheme and the Help to Buy equity loan scheme, may also be raising demand. House prices are expected to continue to rise gradually through this year with only modest economic growth and still falling real earnings constraining housing demand and activity."

Key facts

• House prices in the latest three months (May-July) were 2.1% higher than in the preceding three months (February-April).
• Prices in the three months to July were 4.6% higher than in the same three months a year earlier. This was higher than June's 3.7% increase and is the highest annual rate since August 2010 (4.6%).
• House prices increased by 0.9% in July. This was the sixth consecutive monthly rise.
• Activity is also higher. Home sales in the first six months of 2013 were 6% higher than in the same period last year, at 495,000. (Source: HMRC, seasonally adjusted figures). The number of mortgage approvals for house purchases – a leading indicator of completed house sales – in the second quarter of 2013 was 6% higher than in the first quarter despite a 1% fall between May and June. (Source: Bank of England, seasonally-adjusted figures).)
• Supply still low. The increase in sales over the past year has not been matched by higher supply with the stock of unsold properties on the market lower than it was a year ago. The resulting tightening in market conditions has probably contributed to the modest upward pressure on house prices. Surveyors have, however, reported an overall increase in the number of homeowners providing instructions to sell in the last few months, which could help to bring demand and supply into better balance. (Source: RICS).

First-time buyer numbers have soared to their highest levels in six years, a report shows.

There were 120,000 in the first six months of this year, a 20 per cent increase year-on-year, the Halifax has found.

Improvements to the housing market have made it easier for buyers in their 20s and 30s to get on the property ladder.

Mortgage rates have been slashed to some of their lowest levels, driven by the government’s Funding for Lending scheme, giving lenders access to cheap finance to help borrowers.

Halifax said that the average house price paid by a first-time buyer was 4.26 times their annual earnings, well above an average of 3.23 over the last 30 years. Buyers in this sector are 30 years old on average, up from 29 in 2011.

Once first-time buyers have managed to make the jump on to the property ladder, mortgage repayments have become more affordable as a proportion of income.

Halifax said that the proportion of disposable earnings they typically need to put towards mortgage payments has dropped to 27 per cent, which is way below a peak of 50 per cent in autumn 2007 and sits comfortably under the long-term average of 36 per cent.

‘We’re determined that anyone who works hard and wants to get on the property ladder should have the chance to do so,’ said housing minister Mark Prisk.

‘Today’s figures show how government action is helping more first-time buyers take that step into home ownership.’

A new scheme called Help to Buy will be fully operational next year.

The government will underwrite £130billion of low-deposit mortgage lending with state guarantees.

Some analysts and even Business Secretary Vince Cable warn it could create a ‘property bubble’ with people overstretching themselves.

1 in 4 expect house prices to increase by at least 5% in the next 12 months

Confidence in the housing market has risen significantly over the past three months,according to the latest quarterly Halifax Housing Market Confidence tracker.

The tracker reveals that the headline House Price Outlook balance (i.e. the difference between the proportion of people across Britain that expect the average house price to rise rather than fall) stood at +40 in June. This was an increase of 7 percentage points compared with last quarter (+33) and was the highest score on this measure since the tracker began in April 2011.

The majority of people expect prices to rise across all regions. Confidence is strongest in London, which recorded a net balance of 69, followed by the South East. People living in the North West, the East Midlands and Wales were found to be the least confident about an upturn in prices.

In an indication that house sales could climb higher in the coming months, nearly one quarter (23%) of people think the coming year is a good time to both buy and sell a home, up from just 16% three months ago.

Martin Ellis, housing economist at Halifax, commented: “Sentiment regarding the outlook for house prices has improved markedly over the past quarter, continuing the trend seen since late 2012. This increase in optimism is partly due to house prices being stronger than expected in the first half of the year. We continue to see a clear north / south divide with significantly higher proportions of people expecting prices to rise in the south than elsewhere in the UK.

“Nonetheless, the market still faces substantial headwtoinds with, for example, house prices remaining above the historical average in relation to earnings. Such factors are likely to prevent a sharp acceleration in house prices."

Pundits revise UK house price predictions

Pundits had forecast that, at best, house prices would tread water in 2013. Now they are rising and experts are scrambling to revise their predictions predictions prices are up 4% already.
Here is what the the experts predicted for 2013 (source: The Guardian)

Halifax
The bank said in December that prices were likely to end 2013 "close to where they begin", and forecast anything between a 2% fall and a 2% rise. The mortgage lender's chief economist, Martin Ellis, now admits that the rate of house price inflation may exceed that by the end of the year, although he says he has no imminent plans to formally change his forecast.
He says the stronger than anticipated growth was the result of numerous factors: signs of improvement in both the economy and housing markethave boosted confidence, a shortage of properties for sale, and the Funding for Lending and Help to Buy schemes. 

RICS
Rics forecast a 2% rise in prices over the course of 2013. Simon Rubinsohn, Rics chief economist, was optimistic about the impact of Funding for Lending, but felt the uncertain outlook for the economy would keep a lid on prices. "As it turns out, Funding for Lending has been increasingly effective in lowering the cost of secured lending while increasing the availability of housing-related loans," he says now. "On top of that, economic newsflow has strengthened a little more than envisaged, and the government has also introduced Help to Buy." As a result, he says the 2% headline forecast appears to be "on the low side", and Rics is set to push this up "to the 4% area".

Nationwide
The building society's chief economist, Robert Gardner, said at the start of the year that he expected the housing market to "be characterised by low levels of activity" in 2013, "with prices remaining flat or modestly lower". He admits growth "has been a little stronger than we might have expected", but at 1.9% – the current annual rate of price growth – it is not far from his prediction, and cautions that a higher figure than that in July would be a result of prices falling in the same month last year. As for the rest of 2013, Gardner says: "We knew Funding for Lending and Help to Buy would provide support for the market, but if things like employment and wages pick up, they could lead to things being stronger than expected." Housing supply will be key, he says, and there are few signs that it is improving: new-build completions for England were down by 8% in the first part of the year. "If we get more demand but no more supply then there is a danger that will push up prices further," he says.

Centre for Economics and Business Research

The CEBR predicted prices would rise by 0.8% in 2013 to an average of £219,000. It revised that up to 1.4% in April and is just about to make a "small upward revision", although at the time of writing it wouldn't disclose exactly how much.Its economist Daniel Solomon says there are four reasons for the revision: previous forecasts had not taken into account Help to Buy; the Office for National Statistics house price estimates over the last quarter were marginally higher than CEBR had expected; the general economic environment had improved; and the depreciation in the pound this year was making UK houses in prime London more affordable for foreign buyers.

Knight Frank

The upmarket estate agent, was talking late last year of the longest housing market recovery on record, and predicted a 1% fall in prices this year. In June it revised its forecast upwards, saying Help to Buy had already improved buyer confidence, along with the prospect of continued low interest rates. "We see prices rising by 3% this year, just slightly above inflation," says head of UK residential research, Gráinne Gilmore.

Savills

Estate agent, predicted a 0.5% increase across the UK in 2013. Six months in, Lucian Cook, director of residential research, says prices could rise by up to 5% this year. "There are signs of improved sentiment. For example, the Rics survey shows a big uptick in new-buyer inquiries and a gap between that and supply. When that happens, prices are pushed up," he says. 

Rightmove

The property website, said "the slow recovery" would continue through 2013, forecasting a 2% rise in asking prices in England and Wales over the year, assisted by greater competition among lenders. In its latest house price report it says that across England and Wales asking prices have risen by 10.4% in the first six months of the year. Every region has seen growth, from the East Midlands up by 5.8%, to the south-east where sellers are asking for 14.8% more than at the start of the year.

Its director, Miles Shipside, says he now expects asking prices to end the year up 4%.

House prices and sales activity up say Halifax

Key facts

• House prices in the second quarter of 2013 (April-June) were 2.1% higher than in the first quarter of the year (January-March). As a result, house price growth between the latest three months and the preceding three months edged above the 1-2% range that it had been in throughout the preceding five months. This was the biggest increase on this measure since January 2010 (2.9%).
• Prices in the three months to June were 3.7% higher than in the same three months a year earlier.This was the biggest increase in this annual measure since August 2010 (4.6%).
• House prices increased by 0.6% in June. This was the fifth consecutive monthly rise.
• Activity is also picking up. The number of mortgage approvals for house purchases – a leading indicator of completed house sales – increased by 7% between April and May to 58,200; the highest monthly level since December 2009. Approvals in the three months to May were 2% higher than in the previous three months. (Source: Bank of England, seasonally-adjusted figures). Home sales in May were the highest in any month since March 2012 when there was a rush to beat the end of the stamp duty holiday for first-time buyers on properties priced below £250,000. (Source: HMRC, seasonally adjusted figures)
• Supply conditions remain tight. The stock of unsold properties remains relatively low and was 5% lower on an annual basis in May 2013, according to the latest figures. (Source: RICS)
• Commenting, Martin Ellis, housing economist, said: "House prices continue to rise steadily. Prices in the three months to June were 2.1% higher than in the previous quarter, edging above the 1-2% range recorded throughout the first five months of the year. The annual rate is at its highest for nearly three years with prices in the three months to June 3.7% higher than in the same three months last year.
  "Activity has also improved in recent months. Both home sales and mortgage approvals for house purchase – a leading indicator of sales – increased in May.
  "Improved confidence in both the housing market and the economy, combined with a shortage of properties available for sale, appear to be pushing up house prices. The Funding for Lending Scheme is also likely to be boosting the market by helping to reduce mortgage rates. There are also early indications that the Help to Buy: equity loan scheme may be stimulating demand. Despite these signs of improvement in the market, the still subdued economic background and weak income growth are expected to remain significant constraints on housing demand and activity during the second half of 2013."

Uk property prices rise 2.6% in a year

House prices recorded their strongest annual increase for more than two years in May in further signs that the market is gathering momentum, Halifax reported today.

Prices rose by 2.6% year-on-year to £166,898 on average, marking the biggest annual uplift since September 2010.

On a month-on-month basis, prices increased by 0.4%, which was smaller than the previous month but the fourth month in a row of rises.

Lenders, estate agents, surveyors and property websites have been reporting signs of confidence returning to the market in recent months, following the launch of several Government schemes to make it easier for people to get a mortgage.

The number of mortgages on the market has sharply increased since the Government launched its Funding for Lending scheme last August, which gives lenders access to cheap finance to help borrowers. Lenders have also been offering some of their lowest ever mortgage rates.

The Government also recently unveiled its flagship Help to Buy scheme, which is specifically aimed at giving people with low deposits a helping hand and will be fully fired into action next year. However, concerns have been raised that the scheme could lead to a “housing bubble” by artificially propping up prices. 

Halifax said that HM Revenue and Customs figures showed there has been a “modest” pick-up in home sales recently, although sales volumes still remain low by historical standards.

Martin Ellis, housing economist at Halifax, said: “Despite these recent signs of improvement in the housing market, the subdued economic background and the accompanying weak income growth continue to be a significant constraint on housing demand and activity.”