Property Prices....Big Increases

[Richlist]

Prices up 0.8% in October

Average UK home now costs £287,000

Eastern England prices rose 10.4% in the last year.

South East prices rose 9.5%

Reasons given are shortage of supply and very strong demand.

Nationwide say prices up 3.7% for the past year.                                                       Halifax say 9%                                                                                                                   Land Registry (Eng'& Wales only) say 5.6%...........which rather suggest none of them really know the exact figure.

Suffice to say prices are up........rents will follow shortly. My rents will be raised 5% asap.

[Carryon Regardless]

Not mine

[Richlist]

Why ?

Although these figures are averages and some property e.g. those that have been flooded for the umpteen time in the last few years will not show a price increase.

[Melboy]

Shortage around here of suitable property. All the LA's are stating that they just do not have enough property on their books and have not  for 6 months.

Good example is a property next door to one of my properties.  In 2012 it was sold.    Last Friday it came on the market at 12 midday on Rightmove. By 3pm it was sold.  The couple, on paper, made a cool £35,000  "profit" in 3 years.  Crazy.imo.

 I will find out if it was an investor which it probable was. I do know Serco Ltd. and local government are buying up property to house refugees in my area.

[Carryon Regardless]

Although I read of the latest property boom it seems to me that the migration effect hasn't got far north yet.

Last year I saw reason for optimism in that there had been an increase value trend to most of my properties. Over this year it looks to me as though they have fallen back again.

I use Estate Agents sale prices as a giude, as let's face it their motives are to push prices up but that doesn't mean a sale. A comparrison to their wishes histroically can show a refelection of any trend.

Then I take market attitude from the number of sale boards on display, and more significantly for how long. Many new boards, to my mind, is a reflection of the many that are waiting for the market to be ready for them and believing it is.

I don't follow all properties progress as I've other things to be getting on with but the actual sale prices as gained from LR information gaining sites is perhaps the most relevant. It's a few months before seeing the updated info but a good guide. I generally look at comparable properties that are very local to mine. Properties will buck the trends due to condition or personal situations but with enough examples a trend can be percieved.

I used to track stated regional increases but I'm not sure it will reflect my situation until my local market's gain some excitement. That migration effect should come but it'll be a while methinks. When it does it will also be dampened. 

I likely reason is the employment situation. Clearly buyers need an income, a job for the home buyers. Before they can afford an expensive house they need the income to support the mortgage, My areas tend to be higher unemployment, any employment tends to be low paid. Investors don't need to pay higher prices as the market is still offering lower value properties. Also rents aren't as the media describe, I charge £402PCM  for a 1 bed self contained flat, with offroad parking, My 3 bed semi's fetch £585pcm again offroad parking. These revenue's wouldn't support investors taking interest in higher value houses.

Our own home has always stayed ahead of any northern negative trends, and seems to be doing that now. The rest are generally only good for revenue, and keeping me busy changing nappies.

I've been busy at the flats with the ongoing social issues. Soon I anticpate 3 voids, possibly even following the upgrade / repair / do it up again works so I've renewed interest in looking at my options before one of the clowns puts me in hospital.