House prices bounced back in July, says Nationwide
Thanks BBC News for sharing my thoughts on the latest Nationwide house price data released today. For the full article click here.
The Stamp Duty Land Tax change and pent up housing demand have unsurprisingly encouraged an increase in buyers. On the supply side, proposed changes to Capital Gains Tax are encouraging those who had considered selling and were waiting for ‘the right time’.
This combined force is increasing the rate of transactions amongst ordinary property owners and potential owners. It shows up in the data: annual house price growth recovered to 1.5% in July, with house prices up 1.7% month-on-month.
Anna provides commentary on the latest data and analysis from HMRC
How many times have you heard, “We negotiated 10% off the asking price”, followed shortly by, “we’re delighted!”?
People often assume that if the price of a property is discounted, it will be a better deal. The truth is, a price discount doesn’t always mean a property will prove more valuable.
I wrote a blog for REalyse, a proptech platform leading the way in residential property data and analytics, on the differences between price and value, and how investors can use technology and processes to quickly navigate this.
Find out more in the blog post here: https://www.realyse.com/mistaking-price-for-value/
I was asked to comment in the press on the latest data released by HMRC, that property transactions rose 16% in May.
The investors we work with are keen to start moving again, and we are hearing reports of queues for viewings as the Coronavirus lockdown releases, which is not reflected in the data yet.
Let’s see what happens when we get the summer and autumn statistics! Please let me know your thoughts here.
I was asked to comment on UK house price predictions in City AM this week, where there was a debate around what analysts predict and what property agencies are seeing on the ground. Here’s my thoughts on the wide-ranging predictions:
“Perhaps the only thing more vulnerable to manipulation than statistics is forecasts, and the assumptions they are based on. It is hard for any of us with knowledge of the market to make totally unbiased forecasts.”
What do you think? Would you rely on the forecasts mentioned in the article? Let me know here.
Coronavirus set to wipe £12,000 off value of average UK house by the end of summer: Anna’s commentary featured in Mirror’s Money article
Coronavirus set to wipe £12,000 off value of average UK house by the end of summer – according to The Mirror.
The figures also suggest prices won’t stop falling when summer ends either, with an average value decline of 5.1% expected by the end of the year.
Anna Clare Harper, co-founder of property fund Anglo Residential, said: “Nationwide’s data is beginning to reflect the impact of lockdown measures on housing market practicalities.
“It highlights how lockdown is influencing housing priorities, with people wanting a garden, more indoor space and the right community.”
For the full article click here: https://www.mirror.co.uk/money/average-uk-house-see-12000-22156217
Nationwide reports that house price growth slowed sharply to 1.8% as the impact of the pandemic begins to filter through. This, according to Robert Gardner, Nationwide’s Chief Economist, “is the largest monthly fall since February 2009”.
Anna Clare Harper, author of Strategic Property Investing and co-founder of property fund Anglo Residential, says: “Nationwide’s data is beginning to reflect the impact of lockdown measures on housing market practicalities. It highlights how lockdown is influencing housing priorities, with people wanting a garden, more indoor space and the right community. In the investment space, everyone we speak to is reprioritising in favour of properties that offer stability and income.”
Strict lockdown measures have resulted in many buyers pulling back from the market concerned that their financial position might deteriorate in the future.
According to the latest figures released this morning, average UK house prices saw a ‘modest’ fall of 0.2% during May, with early signs that market activity is beginning to pick up.
Between March and May, house prices were 0.5% lower than in the preceding three months. However, May’s house prices remain 2.6% higher than in the same month a year earlier.
Anna Clare Harper, co-founder of property fund Anglo Residential, says: “The recent and dramatic fall in transactions, new instructions and buyer demand, as well as practical restrictions on valuations and finance, means it is hardly a surprise that Halifax’s data illustrates a slight fall in house prices on a monthly and quarterly basis. However, many investors and homebuyers remain keen to purchase property.
“From what we are seeing in the market, we expect short-term volatility exaggerated by low transactional volumes. More important for most long-term investors and buyers is the underlying 2.6 per cent annual growth illustrated by Halifax, reflecting positive sentiment beneath the obvious.”
To view the full article, click here: https://www.propertyreporter.co.uk/property/ouse-prices-fall-for-third-consecutive-month-says-halifax.html
The ‘new normal’ for property investing
I recently discussed changes in the property market, and the ‘new normal’ in an interview with propertyreporter.co.ukfor their ‘In the Spotlight’ series.
– The benefits to ‘taking the long view’ in property investing.
– Thoughts on how to best succeed in the current climate, and
– The biggest misconceptions in the property industry (a theme I’ll be exploring in more detail in the new series of The Return Podcast).
Link to the article below. I hope you find it useful – let me know your thoughts!