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November 2021 Property Market Update

INTRODUCTION


London saw house prices rise over 5% in just one month. UK Rental prices also saw significant growth, rising by 9% annually. The Bank Of England decided to keep the base rate at 0.1% however some lenders have started to pull their lowest rates from the market. First time buyers are still enjoying great product choice at the higher loan to value levels.


HOUSE PRICES - UK House Price Index


The UK HPI is based on completed housing transactions. Typically, a house purchase can take 6 to 8 weeks to reach completion. Therefore, the price data feeding into this 2021 UK HPI will reflect sales agreed in April.


UK


- Average Price UK £255,535 - August 2021

- Annual Price Change 10.6% - August 2021

- Monthly Price Change 2.9% - August 2021


London


- London Average Price = £525,893 - August 2021

- London Annual Price Change = 7.5% - August 2021

- London Monthly Price Change = 5.6% - August - 2021


HOUSE PRICES - HALIFAX HPI


The Halifax uses its own database of approximately 300,000 mortgage approvals per annum (ca. 25% of all mortgages) as a basis for its monthly house price reports. Because it uses approved loans rather than completed mortgages, the Halifax can obtain data earlier than the Land Registry


UK


- Average Price: £270,027,587 - November 2021

- Annual Price Change: +8.1% - November 2021

- Monthly Price Change +0.9% - November 2021


TRANSACTIONS (September 2021)


The provisional seasonally adjusted estimate of UK residential transactions in September 2021 is 160,950, 68.4% higher than September 2020 and 67.5% higher than August 2021


RENTAL INDEX MARKET (October 2021)


Data is gathered from our tenant referencing service, and our rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs (HomeLet)


- Average rent in UK = £1,059

- Annual Variation for the UK = +8.7% (year on year)

- Average rent in London = £1759

- Annual Variation for London = +9.7% (year on year)

- Household Rent To Income Ratio UK: 33% (single earner)


“In normal market conditions, we might see spikes in rental values for desirable or emerging areas, but we’re still seeing a really high demand for all property in the lettings market; that’s now the case in most parts of the UK. With fewer new properties coming up to rent when compared to pre-pandemic levels, we can expect the trends we see continuing throughout 2022” - Homelet


MORTGAGE MARKET


  • The average rate on a two year mortgage deal requiring a 10% deposit fell from 2.56% to 2.54% between October and November. The average five year rate on deals with a 10% deposit fell from 3.05% to 3.02% during this same period.


  • The Bank Of England voted to keep the base rate at 0.1% for now, however some lenders have removed some of their lowest interest rate mortgages that were previously on offer


  • Nationwide relaunched its tracker range in November with rates starting from 0.79%. The new two-year products are priced at 40 basis points below equivalent fixed rates in each category.


  • There are now 217 fixed-rate 95% deals now available, compared to just 5 at the start of March.


  • Mortgage borrowing surged to £9.5 billion in September, more than double its level in August, as buyers raced to complete purchases ahead of the stamp duty holiday deadline


  • Buy-to-let specialist lender, Fleet Mortgages, has announced the return of 80% LTV buy-to-let products across its standard and limited company/LLP mortgage ranges, following the relaunch of its product range at the end of October.


OTHER NEWS


  • KSEYE research, which highlights feedback of over 750 respondents, all of whom had applied for mortgages in the past five years, found that 32% of mortgage applicants faced at least one rejection from a lender and 44% were rejected due to having an irregular income rather than a monthly pay-check (30% were self-employed).


  • According to research, 44% of those aged between 30 and 49 advised that they are working from home as of June 2021 - This has spurred people to on to increase the demand for properties in rural areas


  • The combined housing stock in the top ten local authorities in the UK by value broke through the trillion-pound barrier for the first time over the course of the pandemic, rising to £1.007 trillion from £978 billion


  • 61% of private landlords who helped tenants out during the pandemic by reducing or cutting rent had to rely on savings to absorb the cost, according to new research conducted by BVA/BDRC for the National Residential Landlords Association.


  • The number of homes for sale across Great Britain with an electric car charging point on the property or nearby has increased six-fold compared to this time last year, according to Rightmove.


  • EIG reported that last month there was a 15% rise in the total raised from property auctions compared to the same time in 2020.

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