On 17 May 2016 the Office for National Statistics (ONS) released their House Price Index for Marc...
On 17 May 2016 the Office for National Statistics (ONS) released their House Price Index for March 2016.
The key figures relating to house price changes in the UK are as follows:
UK house prices increased by 9% in the year to March 2016.House price inflation in England was 10.1%, up from 8.2% in the year to Feb 16.Average sold house prices in the South-East rose by 12.2%, up from the 11.4% 12 month increase to Feb 16.
To date the Land Registry have reported 18 properties sold in March in Newbury RG14, for an average of £320,655. This is an 11.6% increase in 12 months.
On the same day the Council of Mortgage Lenders (CML) released their data on loans made in March. Key points as follows:
24,100 loans were advanced to first time buyers, for a total of £3.5Bn. This was an increase of 16.6% in number, and 28.6% in value compared to 1 year earlier.8,800 loans were advanced for BTL (new lending), for a total of £1.1Bn. This was an increase of 226.1% in number, and 290.9% in value in 12 months.
It seems clear that BTL investors were rushing to beat the April deadline for the increase in SDLT on additional properties. This does seem to be borne out by an increase in available rental properties -70 added to Rightmove in April 2015 compared to 138 for April 2016. A similar pattern is evident for the last 2 week of March and for the first 2 weeks of May.
Despite all the recent changes to the private rental market, I remain convinced that BTL works well for investors. It is, however, crucial to fully research the market and ensure that you buy the right property at the right price.
For a chat about your property investment plans, or about the property market in and around Newbury call Tim on 01635 888 288.