The New Year is well underway and we’re still seeing a very busy marketplace with some interesting results being reported.
The Rightmove House Price Index for January reported that their page views hit a record on 11th January with the total up 10% on last year – clearly the appetite for moving is not dissipating.
Further Rightmove statistics show that the average asking price was up too in January by 1.4% (+£3,798); this figure in a month when typically asking prices fall. This upward jump in house prices follows two successive dips in average asking prices in November and December.
Miles Shipside, Rightmove director and housing market analyst comments: “Early 2015 statistics currently point in the right direction for home-movers, with the Chancellor’s early Stamp Duty Christmas present perhaps being the spur for people making New Year resolutions to get on with moving. There are more positive signs of early-bird activity rather than pre-election jitters or economic worries deterring prospective movers. However, we are only a few days into the year and it remains to be seen whether this initial flurry is sustained.”
Shipside goes on to say: “The unseasonably high 1.4% jump in new sellers’ asking prices suggests that there are more rises in the pipeline for the next few months. Early-bird buyers, including trader-uppers, can potentially catch a good deal by getting off the mark quickly in 2015, and get a better pick of the housing crop.”
The Halifax House Price Index is also reporting some positive news, Commenting, Martin Ellis, Halifax housing economist, said: “House prices in the three months to January were 1.9% higher than in the preceding three months. This was the first increase in the quarterly rate of increase for six months. Annual price growth also picked up, to 8.5% from 7.8% in December, but remained significantly below last July’s peak of 10.2%. This bounce-back in house price growth in January coincides with reports of the first rise in mortgage approvals for six months in December.
“Housing demand should continue to be supported by an expanding economy, continuing low mortgage rates and a boost to households’ spending power resulting from lower consumer price inflation and reduced fuel bills. Nonetheless, we expect the overall downward trend in house price growth seen since last summer to continue over the coming months. Nationally, house prices are predicted to increase in a range of 3 to 5% in 2015 compared with 8% last year.”
January has also seen the launch of OnTheMarket.com, a new property portal that promises a cleaner, more focused and ad-free place for potential buyers to search for their new home. Certainly the site looks very polished and the national tv advertising is sure to be drawing in significant levels of traffic; it will be interesting to see how the two current marketing leaders, Rightmove and Zoopla, are effected.
In the meantime, demand from developers for mezzanine funding is at an all time high so it is certainly going to be a busy few months to come. You can read the full Rightmove HPI here and the Halifax HPI here.
For information on mezzanine funding, development stretch funding or bridge funding, then contact Saxon Trust (perviously Calmez Ltd) on 0203 3710 511, email via [email protected] or apply online here.