UK Property sale hits record low

Residential property sales in the UK in April hit their lowest monthly level since comparable records began in 2005, new figures show.

Houses

There were 38,060 transactions in April, according to provisional numbers from HM Revenue and Customs (HMRC).

This was less than half the level seen in the same month last year.

Spring is usually a busy period for the property market, but the coronavirus lockdown halted activity.

The government lifted many of these restrictions on the sector in England in mid-May. The total number of UK property sales is slightly less than the previous low when the taps were turned off in the property market at the height of the financial crisis in January 2009.

Source: BBC News

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Two Rochdale roads in Greater Manchester painted with thank you message

Two roads in Rochdale have been painted with messages to thank key workers from medical staff to care workers, social workers, waste operatives and many more for the great work they are doing during this awful pandemic. The markings are now down at Whitehall Street at the approach to Rochdale Infirmary and outside Birch Hill Hospital.The thank you message outside Rochdale Infirmary

Source: Rochdale News

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UK Property market estimated to fall by 13%, Is it the right time to buy?

Economists and housing experts are forecasting UK-wide price falls of up to 13%, with “brutal” declines in some areas, as the property market struggles to rebuild during the coronavirus crisis.

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The range of forecasts from the major researchers is markedly wider than usual. At one end is the Centre for Economics and Business Research, which predicts that 2020 prices will be down by 13% “as a lack of transactions, high uncertainty and falling incomes take their toll”. But the estate agent Savills said the hit to the market could be more like 5%, and a third of valuation surveyors are predicting that price falls may be limited to 4% or less.

The post-lockdown market will be a buyer’s market, said Jonathan Hopper of Garrington Property Finders, as he forecast falls of 10% nationally and 15% in some areas.

“Areas with a more resilient jobs market should see values hold up better, but elsewhere the price correction could be more brutal,” he said.

Knight Frank, in a revised forecast issued this week, said it anticipated a fall of 7% in 2020, more than its earlier forecast of 3%. Its analysis suggested prices had already fallen 5% since March, with a further downtick to come.

Source: The Guardian 

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UK House Price Index indicate falling house price

In England the February data shows, on average, house prices have fallen by 0.6% since January 2020. The annual price rise of 0.8% takes the average property value to £246,341.

The regional data for England indicates that:

  • the South West experienced the greatest monthly price rise, up by 0.5%
  • the East Midlands saw the most significant monthly price fall, down by 1%
  • London experienced the greatest annual price rise, up by 2.3%
  • the East of England saw the lowest annual price growth, down by 1%

UK house prices

UK house prices increased by 1.1% in the year to February 2020, down from 1.5% in January 2020. On a non-seasonally adjusted basis, average house prices in the UK decreased by 0.6% between January 2020 and February 2020, compared with a fall of 0.3% during the same period a year earlier (January 2019 and February 2019).

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The UK Property Transactions Statistics for February 2020 showed that on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 103,870. This is 6% higher than a year ago. Between January 2020 and February 2020, transactions increased by 4.5%.

House price growth was strongest in Wales where prices increased by 3.4% over the year to February 2020, up from 2.5% in January 2020. The highest annual growth within the English regions was in London, where average house prices grew by 2.3%, this was due to a decrease in average house price between January 2019 and February 2019. The lowest, and only negative, annual growth was in the East of England, where prices decreased by 1% over the year to February 2020.

Source: GOV.UK

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UK property market: Questions asked by buyers and seller

The coronavirus crisis is affecting buyers and sellers alike. An estate agent talks through the hurdles faced by both parties

Spring and summer are often cited as the best time to buy a property, with the warmer weather encouraging more people to put their homes up for sale. But with the Government having all but shut down the UK’s housing market, buying and selling is challenging during the lockdown – although not entirely impossible.

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Here are the questions being asked by buyers and sellers:

Can I still complete?

The Government advises buyers and sellers to “where possible, delay moving to a new house while measures are in place to fight coronavirus”.

However, solicitors are not banned from continuing completions and the Government has accepted some may still have to take place. For those who need to move for reasons such as death, divorce or debt, and for those who want to move perhaps to be in a better school catchment area for their children, there are still some possibilities.

What if I’m looking to buy?

If you are looking to buy, things look great on the face of it. The Bank of England has slashed interest rates to a record low of 0.1 per cent in response to the crisis, meaning mortgages are more affordable than ever as repayments will, in theory, be lower.

However, many lenders have withdrawn tracker mortgages offering the best rates. Savings the banks are making are not being passed onto consumers. Larger deposits are also now required. Nationwide Building Society, one of the UK’s biggest lenders, recently withdrew mortgages with a loan-to-value (LTV) ratio above 75 per cent from sale.

Paul Broadhead, head of mortgage policy at the Building Societies Association, says: “Lenders and borrowers are facing unprecedented conditions. The temporary move away from higher LTV products across the whole market reflects prevailing uncertainty and the fact that physical valuations are on hold. Lenders are focusing on supporting their existing borrowers that have been affected by Covid-19, often with fewer staff available to work.”

What if I need a mortgage?

A downside for buyers is that you have to have 100 per cent of the property’s value in cash to now be in with a chance of securing a property. Assuming you have seen a house you liked before the restrictions came into effect, estate agents are unlikely to put any offers forward where a mortgage is required.

Mortgage valuation surveys are unable to take place during the lockdown because mortgage companies cannot send a surveyor out in person to ensure a property has not been overvalued by an estate agent. This is good news if you are a cash buyer and puts you in an even stronger position with less competition from other buyers.

However, sellers should be aware that cash-rich investors often expect a price reduction, with some offering as much as 30 per cent below the asking price.

What if I’m selling?

If you are looking to sell, it may still be possible. Some agents are making the most of technology and offering virtual viewings and video valuations, with vendors taking their own photos to market their properties.

This sounds great, but it isn’t. Unless you are a professional photographer with a wide-angle lens camera, it’s unlikely you will be marketing your property to its full potential.

It is also doubtful the valuation will be as accurate without the agent having visited. Every property is unique. And while virtual viewings are great for the casual viewer at home who doesn’t have to leave the sofa, they are not so helpful for vendors deciding how keen and motivated a buyer really is.

If an acceptable offer is made, there is even less certainty than usual when it comes to trusting that someone will see the process through to conclusion from sale agreed (subject to contract) to exchange/completion, as they have yet to set foot inside the property.

Some estate agents, such as Purplebricks, charge a fixed fee whether the property sells or not. It is worth noting that according to research firm TwentyCi, Purplebricks received an estimated £18m from 21,380 vendors whose properties were withdrawn having failed to sell in 2019. With actual viewings currently impossible, who knows what their figure for 2020 will be.

Property prices: Where next?

House prices were flat in March, the first time they did not rise in five months, according to the latest data on the UK property market.

Halifax, who compiled the figures, said the housing market began March in recovery mode as political uncertainty about Brexit had passed. Prime Minister Boris Johnson’s election victory had also boosted confidence in the market.

But by the end of the month, the UK was in different territory as coronavirus swept across the country and the property market ground to a halt as the UK was put into lockdown.

Halifax said it was too early to accurately assess the long-term impact of the virus on the UK housing market.

When will the market recover?

Problems with physical viewings and mortgages will make moving house difficult in the short term.

But once the coronavirus crisis has blown over, and the barriers on movement have been lifted, the market should bounce back fairly quickly. After the lockdown is finished, the artificial restrictions on the free market will be released, causing a flood of supply and demand from sellers and buyers.

If furloughed employees are able to return to their place of work on their full salary, consumer confidence will likely be restored. Pent-up demand will hopefully encourage lenders to increase supply of affordable mortgages.

The property market may return to normal sooner than many currently envisage.

 

By Rupert Gray – an estate agent working in the Greater London area

Source: inews

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Covid19: Air pollution falls sharply across the world

With global economic activity ramping down as a result of the coronavirus pandemic, it is hardly surprising that emissions of a variety of gases related to energy and transport would be reduced.

Scientists say that by May, when CO2 emissions are at their peak thanks to the decomposition of leaves, the levels recorded might be the lowest since the financial crisis over a decade ago.

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Researchers in New York told the BBC their early results showed carbon monoxide mainly from cars had been reduced by nearly 50% compared with last year.

Emissions of the planet-heating gas CO2 have also fallen sharply.

But there are warnings levels could rise rapidly after the pandemic.

An analysis carried out for the climate website Carbon Brief suggested there had been a 25% drop in energy use and emissions in China over a two week period. This is likely to lead to an overall fall of about 1% in China’s carbon emissions this year, experts believe.

Both China and Northern Italy have also recorded significant falls in nitrogen dioxide, which is related to reduced car journeys and industrial activity. The gas is a serious air pollutant and also indirectly contributes to the warming of the planet.

With aviation grinding to a halt and millions of people working from home, a range of emissions across many countries are likely following the same downward path.

While people working from home will likely increase the use of home heating and electricity, the curbing of commuting and the general slowdown in economies will likely have an impact on overall emissions.

Source: BBC News

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TA DenEco Consultancy – www.deneco.co.uk

COVID19: UK Government suspends property market till further notice

The housing market was halted on Thursday night by the Government after financial institutions said they could no longer operate properly.

Ministers are discouraging buyers from going ahead with house sales and purchases unless they have ­already exchanged contracts as part of wider efforts to slow the spread of the coronavirus, saying no one should move unless absolutely necessary. ­

As a result of the pandemic, homeowners trying to sell their properties face a year of misery as the number of buyers dwindles, estate agents close their doors, banks withdraw deals and house prices falling.

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Banks and building societies have agreed to extend mortgage offers where completions have to be delayed as a safety precaution.

Grainne Gilmore, head of research at Zoopla, commented: “The clarity provided by the government announcement is welcome for buyers, sellers and agents who are in the middle of the sales process.

“Agents continue to support their buyers and vendors remotely. But, now that there is some leeway on mortgage offers – with a three month extension from lenders – this will enable some buyers to press pause, and to re-start their purchase once the current social distancing rules are relaxed.”

What does it mean if you’re buying?

You should only consider going ahead with your move in the immediate term if you have already exchanged contracts.

If you have not yet exchanged contracts, the government are advising you to delay doing so.

See the source imageBanks and building societies have agreed to extend mortgage offers for up to an additional three months to enable customers to move at a later date without losing the deal they had lined up.

If your circumstances change during this period or the terms of the house purchase alter significantly, meaning that continuing with the mortgage would put you into financial hardship, lenders have pledged to work with you to manage your finances as a matter of urgency.

What it means if you are selling?

Putting your property on the market will be more challenging than usual, as you are not allowed to have visitors to your home.

As a result, you will not be able to have estate agents come to take photos or carry out a physical market appraisal, while Energy Performance Certificate assessors are also not allowed to visit you.

If your home is already on the market, you can continue to advertise it for sale, but people cannot come to physically view your property.

Importantly, you are still allowed to accept offers on your property during the current period.

In fact, the number of sales agreed between March 16 and March 22 were only 4% lower than a year earlier.

Source: Zoopla Property News

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TA DenEco Consultancy – www.deneco.co.uk