Irish house prices rise for first time since 2008

Irish house prices have recorded their first annual rise since the crash that crippled the country's economy in 2008 and led to its €85bn (£73bn) bailout two years later.

Residential property prices across the country increased by 1.2% in June compared with the same month last year the central statistics office said. It was the first rise since January 2008.

Prices of Irish homes have fallen on average by 50% since the crash, losing almost 20% of their value in 2009 alone, leaving tens of thousands of households deep in negative equity from which some may never emerge.

The collapse sparked huge losses in the country's banks, forcing the government to inject tens of billions of euros in capital and leading to the bailout of the state by the European Union and International Monetary Fund.

Prices in Dublin were 4.2% higher than a year ago, while properties in the rest of the country grew only 0.7%. Analysts say the split between the performance of urban and rural properties is even more dramatic.

The news comes after data last month showed the country had fallen back into recession for the first time since 2009, a blow to hopes the economy can grow fast enough to eat into Ireland's huge debt pile.

While weak exports have dragged down growth in recent months, the domestic economy has proved a little more resilient, with unemployment hitting a three-year low of 13.6%.

Most economists still expect the economy to record a third year of growth in 2013 and outperform most of its rivals on the eurozone periphery, according to a Reuters poll, and Ireland is widely expected to exit its EU-IMF bailout in December.

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Prime London rents remain static over last year

Prime London rents struggled to show any significant growth in the second quarter of 2013 given a lacklustre employment market in the financial and business services sector and rising levels of available rental stock in the wake of a rise in overseas investor buying activity.

This has meant landlords, keen to minimise void periods in order to protect their income returns, have had to remain realistic about their rental aspirations.

The effect has been most noticeable in the markets of prime central London, Hampstead and St Johns Wood, where annual rental movements are currently in negative territory.

Lonres have reported that stock levels of three and four bedroom properties in these areas have increased 16.8% and 11.9% respectively over the past year. That stock increase reflects an increase in new build supply brought to the rental market and an added incentive to those who hold their property in a corporate structure to let it on a commercial basis, following recent changes in the tax regime.

Only in the ultra prime markets, where supply is more constrained and demand is dominated by very wealthy international tenants have rents in the prime markets of central London risen, though they remain some way below the peak levels seen in 2008.

By contrast, though subdued, rental growth has remained positive in the more domestic markets of prime South West London and Islington. Lower corporate budgets have displaced demand for family houses from central London into these less expensive markets, supplementing demand from a broader tenant profile.

In the prime East of City, rents have fallen marginally over the past year, having previously exceeded their 2007 peak. Here, where student and sharer demand is more dominant, there are signs of renewed development activity that is likely to result in more rental stock coming to the market.

Prime South East

In contrast to London, rents in the prime markets of the South East rose by 1.8% in the second quarter of the year. In particular, prime towns within the commuter belt of the capital have attracted young families wanting to rent before committing to buying into the commuter lifestyle. Amongst these, Guildford saw the largest quarterly increase of 4.3% due to its strong family market.

These are encouraging signs for the prime regional housing markets, where demand for both buying and renting amongst those relocating from London has struggled to gain momentum since the downturn. Here, however, accidental landlords continue to influence the amount of stock available to rent meaning landlords need to be realistic about rents, which remain someway down on their pre- crunch levels.

George Osborne unveils details of next phase of Help To Buy

George Osborne has unveiled further details of the second phase of the government's Help to Buy scheme, due to launch in January.

Mr Osborne met housebuilders and mortgage lenders on Tuesday morning to discuss how plans to underwrite £130bn of mortgage lending will work.

The first stage of Help to Buy was launched in April and offers loans to buyers of new build homes priced below £600,000 that are interest-free for the first five years. The buyer needs a 5% deposit.

The scheme has been credited with spurring a surge in home sales and driving up prices.

The £12bn mortgage guarantee scheme, due to launch in January 2014, is open to buyers of all properties, not just new build, with a 5pc deposit. The government will guarantee a proportion of the home loan as long as the property is priced at less than £600,000.

The scheme will only be available to borrowers who can afford the mortgages, the Treasury insisted, while those with impaired credit ratings will be excluded.

It will also not be available to buy a second home, and lenders will be required to collect a declaration stating that the borrower has no interest in a property anywhere else in the world. It will not be able to be used in conjunction with another state scheme.

Both parts of the Help to Buy scheme have come under attack from bodies including the International Monetary Fund and the Office for Budget Responsibility, which have warned they could create another property bubble.

First time buyers up 68% on last year

      FIrst time buyers are up 68.0% on June last year, the highest rise for over 10 years according to the haart house price index

·         First time buyers now represent 44.3% of all mortgages written (June 2012, 38.0%) and are, on average, aged  32.1 years, 7 months younger than a year ago

·         Total new buyers in June across the UK are up 29.0% on a year ago

·         Total new supply of homes for sale down 5.5% on the year and 2.7% on the month suggesting a chronic shortage of stock

·         House sales remain subdued, up only 0.6% on June 2012, these constrained by the shortage of homes for sale

·         National house prices are up 0.5% on the month but remain only 0.1% up on last year. London prices are up 6.9% on the year

Paul Smith CEO of haart, comments:

“The growth in new buyers looking to purchase has been significant over the past 12 months, particularly for first time buyers, the numbers of which have risen bniy a record 68%.  However, potential buyers are being frustrated by the acute shortage of properties for sale which, in stark contrast, are down 5.5% over the past year. This has limited the growth in actual house sales.

Existing homeowners, seeking to buy, should put their own properties up for sale first. This would significantly help provide liquidity in the market, which is presently log jammed.”

National	June 2013	% change since May 2013	% change since June 2012
Ave UK house prices £ (current listed price)	199,677	+0.5%	+0.1%
First time buyer house price £ (current listed price)	147,618	- 0.9%	+2.3%
First time buyer % of all mortgages written	44.3	-1.3%	+16.3%
House sales (exchange)	63,535	- 4.4%	+0.6%
All buyer viewings per property for sale	10:1	- 3.3%	+10.1%

UK house prices heating up, rising 2.1% faster than inflation

KEY POINTS:
* The average UK house price rises to £199,534, up 2% on month and 5.4% annually, more than 2.1% faster than inflation, which stands at 3.3% (RPI) 
* House prices in London grow by over £10,000 in June to £386,139, up 3% on month and 2% annually 
* UK transactions rise annually by 19% and 22% in London, as buyers continue to take advantage of attractive mortgage deals 
* The number of UK mortgage applications is up 33% annually and first time buyer applications soar by 37% compared to June last year 

The UK’s average house price has risen by 2% on month and 5.4% annually, to £199,534 according to the Sequence group. 
This is the highest price point for over two years and the growth is 2.1% higher than inflation. 
London has also seen strong price rises, with the average property price standing at £386,139, which is 3% higher than May (up £10,157) and 2% higher than last June. Graph 1 shows the growth over two years with a steep rise since April, averaging at a 3% rise per month over the last quarter. 
Property transactions across the UK are at a two year high, rising by 2% in June and 19% annually, showing that buyers are undeterred by the increasing prices.(Graph 2*) Transactions in London are mirroring the national picture, rising by 22% annually, and an average of 8% per month since the start of the year. 
These high levels of transactions and increasing property prices are attributed to improving access to mortgage finance, through initiatives, such as the Funding for Lending scheme, and some relaxation in lending criteria.  
 David Plumtree, Chief Executive at Barnard Marcus, part of the 300 branch Sequence group, including William H Brown and Fox & Sons, comments: "Like the current temperatures, house prices just keep on rising with unprecedented gains in June. This is excellent news for home owners and those looking to sell over the summer. 
"It’s also extremely encouraging to see applications for mortgages from first time buyers increasing by over a third annually (37%). Instead of being deterred from entering a market which is seeing increasing house prices, first time buyers are using this period of improved financial access to step onto the ladder, and they are certainly contributing to the healthy buyer registration figures we’re seeing, up 16% annually. 
"The London market remains strong, with prices growing by over £10,000 in June alone. Increasing demand is still not being met, with new buyer registrations in London growing 47% annually but the supply of properties coming onto the market rising by just 22%. With finance readily available, people will continue to enter the market and prices will keep on rising." 

Key figures figures from the region's:

Wales: Average House Price £170,179 % Change Monthly 1.18%% Change Annually 8.18%
South West: Average House Price £180,240 % Change Monthly 2.14% Change Annually 7.37%
North West: Average House Price £145,343 % Change Monthly 0.62% Change Annually -0.79%
South East: Average House Price £242,902 % Change Monthly 1.69% Change Annually 0.95%
London: Average House Price £386,139 % Change Monthly 2.70% Change Annually 1.78%
East Anglia: Average House Price £162,663 % Change Monthly 1.64% Change Annually -0.05%
Midlands: Average House Price £132,528 % Change Monthly-0.87%  Change Annually 3.44%
North East: Average House Price £125,293 % Change Monthly 2.44% Change Annually 3.90%
Scotland: Average House Price £117,332% Change Monthly -0.01% Change Annually 3.54%

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