UK Property Market Report 2014

This is a comprehensive report about UK property market in 2014. It summarizes the past trends and highlights the current scenario so that the investors can make better and informed decisions. Starting with the market overview, it leads to the scenario regarding sales in the UK property market. The market trends for residential and commercial property are discussed separately. Rise in the property prices in UK has been demonstrated through the use of graphical aid. Report also discusses the rental incomes and its trend during 2014.

UK property market has shows a similar trend pattern over the years, but it still remains of immense interest to information seekers and prospective investors. UK property market is discussed in terms of UK property trends other than London and property trends for London. Despite the similarity in trends in London and non-London property, London shows rapid increase in property rates, interest charged and rents.

Scenario changed significantly from 2013 and onwards in the property market. Government has also shown keen interest in this sector to provide considerable reforms. It is also a major decision to decide whether one intends to invest in residential property or commercial property. Rental income can also be considered as a handsome source of money.

Investors from across the globe have keen interest in UK property. Everyone, a professional investor or a first-time buyer, keeps an eye on residential and commercial property in the UK for optimal opportunities.

If the statistics for sale and purchase are analysed, an average house price in England and Wales is £172,011, because of an annual growth rate of 6.4%.

London has been a bit more expensive, showing a monthly 1.0% increase in residential property; thus average property price in London has been £437,608, which is way more than that for England and Wales. A trend analysis of London vs. England and Wales has been demonstrated in this graph:

graph 1

According to a regional comparison, where annual price increase has been highest in London (at 16.4%), it has been lowest for North East (at 0.8%). For monthly price changes, West Midlands has been the most expensive (at 1.9% increase) while Yorkshire and The Humber have been the cheapest (at 1.3% decrease). Numerical figures for this regional data are shown as follows:

table 1

If Regions observations are taken into account, the following trends can be observed:

  • Annual price increase has been maximum for London at 16.4%
  • Annual price fall has been maximum for North East at 0.8%
  • Monthly increase has been maximum for West Midlands at 1.9%
  • Monthly price fall has been maximum for Yorkshire and the Humberat -1.3%
  • In a period of three months (January 2014to April 2014), average monthly transactions indicating sales volume were 65,679
  • While, in a period of three months last year (January 2013 to April 2013), average monthly transactions indicating sales volume were 48,597

Records for monthly sales volumes for England and Wales, and for London are shown in the graphs below:

graph 2

The trends for residential and commercial properties in UK have been changed fairly in accordance with each other; when the residential market experienced as increase, the same happened to commercial ones, and the other way around.

Commercial property transactions:

The following two graphs show the number of transactions and the value of transactions for commercial property in different regions of England to show the trend variation:

graph 3
Residential property transactions:

Residential property transactions have been showing variation in number of transactions for different price bands. Vast majority of residential property transactions rated below £250,000, while only 2% of these transactions crossed the threshold of £1m; and these were only restricted to London and South East.

Transactions in different price bands between 2006 and 2013 for residential properties in UK are demonstrated below:

graph 4
  • Average house price in London increased by 20.1% till May, and 18.7% from May
  • Average house price in remaining England increased by 11%
  • Average house price in England (excluding London) was £223,000
  • Average house price in London was £492,000

Average house price and their annual change for different England’s regions is shown in the graph below:

graph 5
  • Economic growth has been remarkable for England, especially London
  • Unemployment has been decreasing sharply
  • Mortgage conditions have improved
  • Trend for first time buyer has also increased
  • Prices for new and old houses are rising at 20% in London
  • Average house price in London is £492,000
  • Sales activity has also increased as compared to previous years
  • Mortgage interest rates have seen a recent fall (loan to value rate: 75% or below)

Economic growth in GVA for London increased by 3.1% and for the rest of UK it increased by 2.7%. The comparison between economic growth of London and rest of the England, as per Real Gross Value Added (GVA) is shown below:

graph 6

Private rental market has shown the following trends for UK property market:

  • For the period between 1 April 2013 and 31 March 2014, the median rent was recorded at £595 in England
  • Median rent remained the highest for London, at £1300
  • Median rent remained the lowest for North East, at £450
  • Average rent has been highest for London than other regions of England
Rental Prices in Great Britain:

The Private Housing Rental Prices in Great Britain have been increasing gradually at more or less a constant rate. If we see the percentage change over 12 months for Great Britain, the prices increased by 0.7% if London is excluded, and if Great Britain is seen as a whole, the prices rose by 1%. This has been demonstrated below graphically:

graph 7

Private rental prices as seen for Great Britain as accumulated effect of England, Wales and Scotland show a constant increase for all constituent countries. The data as recorded from January 2011 to January 2014 is shown below:

graph 8

Needless to say, United Kingdom’s property market is a lucrative option. For investors from all parts of the world, UK property will remain in demand. This report has highlighted different aspects of property in different parts of the UK. Rates and trends vary according to the region, so the report has gone to length to show actual statistics for different parts of the UK. Without a doubt, the market conditions appear satisfactory and constructive. With the steady increase in rates, risk of the investor is diminishing proportionately for investment in property market of the UK.

Valuation Office Agency - Private Rental Market Statistics England - 2014
http://www.voa.gov.uk/corporate/statisticalReleases/140610_Private_Rental_Market_Release_Note.html#Methodology

Land Registry House Price Index - 2014
http://www.landregistry.gov.uk/__data/assets/pdf_file/0010/96805/HPIReport20140721.pdf

HM Revenue & Customs - Annual UK Property Transaction Statistics – 2014
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323126/2014_AUKPTS_circ.pdf

British Property Federation – Property Data Report 2013
http://www.bpf.org.uk/en/files/reita_files/property_data/BPF_Property_Data_booklet_2013_spreads_web.pdf

Greater London Authority - London Housing Market Report - 2014
http://data.london.gov.uk/housingmarket#regprice

Office Of National Statistics - Comparison of regional house price indices before and after the financial crisis - 2014
http://www.ons.gov.uk/ons/rel/hpi/house-price-index/april-2014/info-hpi-comparison.html

Index of Private Housing Rental Prices - 2014
http://www.ons.gov.uk/ons/dcp171778_372229.pdf

This report is for general information purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus,agreement or other document without prior consent. Whilst every effort has been made to ensure its accuracy, Daniel Johns accepts no liability whatsoever for any direct or consequential loss arising from its use. As a general report, this material does not necessarily represent the view of Daniel Johns in relation to particular properties or projects. Daniel Johns is a registered company in England & Wales. Company No. 08559585

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