Latest news with #BestinvestbyEvelynPartners
Yahoo
4 days ago
- Business
- Yahoo
What's the average UK house price? May's market data shows resilience
UK house prices edged up slightly to 3.5% on an annual basis in May, up from 3.4% in April, according to Nationwide's latest House Price Index report. This was ahead of analyst estimates of 2.9%, pointing to a still-resilient UK housing market, despite cost challenges following stamp duty threshold decreases at the start of April. On a month-on-month basis, UK house prices jumped 0.5% in May, bouncing back from a -0.6% fall in April. This was more than the 0.1% increase expected by the market as well. The average UK house price was £273,427 (€324,232.5) in May, up from £270,752 (€321,053.7) in April. Nationwide's chief economist, Robert Gardner, said in the May house price index report on the company's website: 'Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. 'Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021, which was also impacted by stamp duty changes.' He also noted that mortgage approval data suggests market activity has remained resilient following the end of the stamp duty holiday, with underlying UK housing market conditions staying robust despite broader global economic volatility Alice Haine, personal finance analyst at online investment platform Bestinvest by Evelyn Partners, said in an email note to Euronews: 'While some buyers are clearly pushing ahead with their purchase journey, others may now be mulling their options more carefully as higher costs pose a fresh challenge. Lower stamp duty thresholds have the biggest impact on first-time buyers as they must now save enough to cover a potentially sizable tax bill in addition to their deposit.' Related European property market: Where have housing costs soared the most? She noted that this may encourage lenders to offer 100% mortgages to help first-time buyers get started on the property ladder, especially as several loan providers have already relaxed their requirements in an effort to draw more clients. Falling interest rates as the Bank of England loosens monetary policy somewhat has also helped borrowing conditions, although sticky-high inflation may slow progress. Businesses passing on higher employment costs to consumers, mainly because of changing US tariff conditions, could impact the housing market as well. 'Uncertainty is becoming the new normal and for many first-time buyers or home movers looking to refinance their existing mortgage soon, it may be better to push ahead with a purchase rather than wait for the ideal borrowing conditions,' Haine noted. "Plus, the traditional surge in listings at this time of year is a positive buyers can take advantage of, as a wider stock of homes to choose from raises the potential for heavier negotiation on price,' she added. According to a recent special report by Nationwide, average house prices in mainly rural areas have continued to grow faster than more urban areas, rising 23% between December 2019 and December 2024. This is compared to an 18% increase in mainly urban areas. Nationwide's chief economist, Robert Gardner, highlighted: 'The pandemic had a significant impact on housing demand during 2021 and 2022, with a shift in preferences towards more rural areas, particularly amongst older age groups. Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.' The report also revealed that among house owners who have moved in the last five years, 63% moved within the same type of area, mainly between large towns or cities. 9% of homeowners moved to rural areas such as hamlets or villages from towns and cities, whereas 7% did the opposite. Perhaps unsurprisingly, younger movers between the ages of 25 and 34 preferred to move to more urban localities, whereas older people, especially above 55 moved to more rural places. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
What's the average UK house price? May's market data shows resilience
UK house prices edged up slightly to 3.5% on an annual basis in May, up from 3.4% in April, according to Nationwide's latest House Price Index report. This was ahead of analyst estimates of 2.9%, pointing to a still-resilient UK housing market, despite cost challenges following stamp duty threshold decreases at the start of April. On a month-on-month basis, UK house prices jumped 0.5% in May, bouncing back from a -0.6% fall in April. This was more than the 0.1% increase expected by the market as well. The average UK house price was £273,427 (€324,232.5) in May, up from £270,752 (€321,053.7) in April. Nationwide's chief economist, Robert Gardner, said in the May house price index report on the company's website: 'Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. 'Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021, which was also impacted by stamp duty changes.' He also noted that mortgage approval data suggests market activity has remained resilient following the end of the stamp duty holiday, with underlying UK housing market conditions staying robust despite broader global economic volatility Alice Haine, personal finance analyst at online investment platform Bestinvest by Evelyn Partners, said in an email note to Euronews: 'While some buyers are clearly pushing ahead with their purchase journey, others may now be mulling their options more carefully as higher costs pose a fresh challenge. Lower stamp duty thresholds have the biggest impact on first-time buyers as they must now save enough to cover a potentially sizable tax bill in addition to their deposit.' Related European property market: Where have housing costs soared the most? She noted that this may encourage lenders to offer 100% mortgages to help first-time buyers get started on the property ladder, especially as several loan providers have already relaxed their requirements in an effort to draw more clients. Falling interest rates as the Bank of England loosens monetary policy somewhat has also helped borrowing conditions, although sticky-high inflation may slow progress. Businesses passing on higher employment costs to consumers, mainly because of changing US tariff conditions, could impact the housing market as well. 'Uncertainty is becoming the new normal and for many first-time buyers or home movers looking to refinance their existing mortgage soon, it may be better to push ahead with a purchase rather than wait for the ideal borrowing conditions,' Haine noted. "Plus, the traditional surge in listings at this time of year is a positive buyers can take advantage of, as a wider stock of homes to choose from raises the potential for heavier negotiation on price,' she added. According to a recent special report by Nationwide, average house prices in mainly rural areas have continued to grow faster than more urban areas, rising 23% between December 2019 and December 2024. This is compared to an 18% increase in mainly urban areas. Nationwide's chief economist, Robert Gardner, highlighted: 'The pandemic had a significant impact on housing demand during 2021 and 2022, with a shift in preferences towards more rural areas, particularly amongst older age groups. Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.' The report also revealed that among house owners who have moved in the last five years, 63% moved within the same type of area, mainly between large towns or cities. 9% of homeowners moved to rural areas such as hamlets or villages from towns and cities, whereas 7% did the opposite. Perhaps unsurprisingly, younger movers between the ages of 25 and 34 preferred to move to more urban localities, whereas older people, especially above 55 moved to more rural places. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
North Wales Chronicle
4 days ago
- Business
- North Wales Chronicle
Record £14 billion cash Isa injection made by savers in April
An additional £14.0 billion was deposited into cash Isas in April – the highest amount since records started in April 1999. Commenting on the report, finance experts suggested that speculation over the future of cash Isas, attractive rates, and the tax efficiencies of the accounts prompted savers to pile their money into Isas. The new tax year starts on April 6 each year, and the period around it is known as 'Isa season' as providers try to attract customers with enticing rates. In total, households' deposits with banks and building societies increased by £3.0 billion in April, following net deposits of £7.3 billion in March – with Isa deposits being offset by other account withdrawals. Mark Hicks, head of active savings, Hargreaves Lansdown said: 'Cash Isas dominated the savings market, attracting an eye-watering £14 billion – the highest on record. 'Higher rates and rumbling discussions about the future of the cash Isa pushed tax saving to the top of the to-do list.' He added: 'The level of withdrawals from easy access savings seems to indicate a significant proportion of Isa savings has come from people withdrawing from savings and ploughing the money into their Isa equivalents at either end of the tax year, to take advantage of the tax saving. 'As competition heated up over tax year end, rates remained elevated, but they have fallen since.' Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'While uncertainty in the domestic and global economy may have motivated consumers to top up their savings, some may have been taking advantage of higher savings rates while they were still around.' She continued: 'Worsening real returns on cash savings, once inflation is factored in, will come as a blow for savers, though with increasing numbers of taxpayers being dragged deeper into the tax net as their wages increase – a result of frozen personal tax thresholds – it is the post-tax net return on that cash that delivers the biggest hit.' Ms Haine said that the personal savings allowance – the amount of tax-free savings that savers can earn – has remained static 'raising the likelihood that those with the best savings rates use up their allowance in full and pay tax on the interest they earn'. Speculation over any possible future changes to cash Isa limits may also have been a factor, she added. Ms Haine said: 'While Chancellor Rachel Reeves has confirmed the £20,000 (annual) Isa allowance will remain intact, speculation that she will cap the amount savers can subscribe to a cash Isa is rife, as it feeds into her wider mission to encourage more people to invest their money and contribute to the Government's growth mission.' Meanwhile, the number of mortgage approvals being made to home buyers fell for the fourth month in a row in April. Around 60,500 loans for house purchase got the green light in April, which was a fall of 3,100 compared with the previous month. Stamp duty discounts became less generous for some home buyers from the start of April. Stamp duty applies in England and Northern Ireland. The Bank also said that approvals for remortgaging (which only capture remortgaging with a different lender) increased by 1,600 to 35,300 in April, following an increase of 1,000 in March. Richard Donnell, executive director at Zoopla, said: 'A slowdown in demand for mortgages in April reflects the impact of a late Easter. 'We expect mortgage data for May to increase in line with a pick up in new sales being agreed, which are running at their highest level for four years. 'A key factor is also lenders relaxing affordability tests, which is delivering the average home buyer up to 20% more borrowing capacity compared to a few months ago. We expect a busy June as buyers look to secure sales before the summer holidays kick in.' Figures released by Nationwide Building Society on Monday showed property values increased by 0.5% month-on-month in May, following a 0.6% fall in April, taking the average UK house price to £273,427. The typical UK house price increased by 3.5% annually in May, compared with 3.4% in April, according to Nationwide's figures. Banking and finance industry body UK Finance also said on Monday that mortgage completions rose sharply in the first three months of 2025 as both first-time buyers and home movers sought to complete transactions to benefit from lower stamp duty rates before changes took effect on April 1. For the quarter as a whole, first-time buyer completions jumped by 62% year-on-year and home mover completions increased by 74%, UK Finance said. The UK Finance report said: 'There were notable peaks in March, with the number of first-time buyer and home mover completions increasing by 113% and 140% respectively compared with March 2024.' Data from HM Revenue and Customs (HMRC) last week indicated there were 64,680 house sales in April – 64% lower than the total for March – as buyers had rushed to beat the stamp duty deadline. The Bank of England's Money and Credit report also said that, looking at non-mortgage borrowing, the annual growth rate for consumer credit accelerated to reach 6.7% in April, from 6.2% in March. Within the total, the annual growth rate for credit card borrowing increased to 9.8% in April, from 8.5% in March.
South Wales Guardian
4 days ago
- Business
- South Wales Guardian
Record £14 billion cash Isa injection made by savers in April
An additional £14.0 billion was deposited into cash Isas in April – the highest amount since records started in April 1999. Commenting on the report, finance experts suggested that speculation over the future of cash Isas, attractive rates, and the tax efficiencies of the accounts prompted savers to pile their money into Isas. The new tax year starts on April 6 each year, and the period around it is known as 'Isa season' as providers try to attract customers with enticing rates. In total, households' deposits with banks and building societies increased by £3.0 billion in April, following net deposits of £7.3 billion in March – with Isa deposits being offset by other account withdrawals. Mark Hicks, head of active savings, Hargreaves Lansdown said: 'Cash Isas dominated the savings market, attracting an eye-watering £14 billion – the highest on record. 'Higher rates and rumbling discussions about the future of the cash Isa pushed tax saving to the top of the to-do list.' He added: 'The level of withdrawals from easy access savings seems to indicate a significant proportion of Isa savings has come from people withdrawing from savings and ploughing the money into their Isa equivalents at either end of the tax year, to take advantage of the tax saving. 'As competition heated up over tax year end, rates remained elevated, but they have fallen since.' Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'While uncertainty in the domestic and global economy may have motivated consumers to top up their savings, some may have been taking advantage of higher savings rates while they were still around.' She continued: 'Worsening real returns on cash savings, once inflation is factored in, will come as a blow for savers, though with increasing numbers of taxpayers being dragged deeper into the tax net as their wages increase – a result of frozen personal tax thresholds – it is the post-tax net return on that cash that delivers the biggest hit.' Ms Haine said that the personal savings allowance – the amount of tax-free savings that savers can earn – has remained static 'raising the likelihood that those with the best savings rates use up their allowance in full and pay tax on the interest they earn'. Speculation over any possible future changes to cash Isa limits may also have been a factor, she added. Ms Haine said: 'While Chancellor Rachel Reeves has confirmed the £20,000 (annual) Isa allowance will remain intact, speculation that she will cap the amount savers can subscribe to a cash Isa is rife, as it feeds into her wider mission to encourage more people to invest their money and contribute to the Government's growth mission.' Meanwhile, the number of mortgage approvals being made to home buyers fell for the fourth month in a row in April. Around 60,500 loans for house purchase got the green light in April, which was a fall of 3,100 compared with the previous month. Stamp duty discounts became less generous for some home buyers from the start of April. Stamp duty applies in England and Northern Ireland. The Bank also said that approvals for remortgaging (which only capture remortgaging with a different lender) increased by 1,600 to 35,300 in April, following an increase of 1,000 in March. Richard Donnell, executive director at Zoopla, said: 'A slowdown in demand for mortgages in April reflects the impact of a late Easter. 'We expect mortgage data for May to increase in line with a pick up in new sales being agreed, which are running at their highest level for four years. 'A key factor is also lenders relaxing affordability tests, which is delivering the average home buyer up to 20% more borrowing capacity compared to a few months ago. We expect a busy June as buyers look to secure sales before the summer holidays kick in.' Figures released by Nationwide Building Society on Monday showed property values increased by 0.5% month-on-month in May, following a 0.6% fall in April, taking the average UK house price to £273,427. The typical UK house price increased by 3.5% annually in May, compared with 3.4% in April, according to Nationwide's figures. Banking and finance industry body UK Finance also said on Monday that mortgage completions rose sharply in the first three months of 2025 as both first-time buyers and home movers sought to complete transactions to benefit from lower stamp duty rates before changes took effect on April 1. For the quarter as a whole, first-time buyer completions jumped by 62% year-on-year and home mover completions increased by 74%, UK Finance said. The UK Finance report said: 'There were notable peaks in March, with the number of first-time buyer and home mover completions increasing by 113% and 140% respectively compared with March 2024.' Data from HM Revenue and Customs (HMRC) last week indicated there were 64,680 house sales in April – 64% lower than the total for March – as buyers had rushed to beat the stamp duty deadline. The Bank of England's Money and Credit report also said that, looking at non-mortgage borrowing, the annual growth rate for consumer credit accelerated to reach 6.7% in April, from 6.2% in March. Within the total, the annual growth rate for credit card borrowing increased to 9.8% in April, from 8.5% in March.
Glasgow Times
4 days ago
- Business
- Glasgow Times
Record £14 billion cash Isa injection made by savers in April
An additional £14.0 billion was deposited into cash Isas in April – the highest amount since records started in April 1999. Commenting on the report, finance experts suggested that speculation over the future of cash Isas, attractive rates, and the tax efficiencies of the accounts prompted savers to pile their money into Isas. The new tax year starts on April 6 each year, and the period around it is known as 'Isa season' as providers try to attract customers with enticing rates. In total, households' deposits with banks and building societies increased by £3.0 billion in April, following net deposits of £7.3 billion in March – with Isa deposits being offset by other account withdrawals. Mark Hicks, head of active savings, Hargreaves Lansdown said: 'Cash Isas dominated the savings market, attracting an eye-watering £14 billion – the highest on record. 'Higher rates and rumbling discussions about the future of the cash Isa pushed tax saving to the top of the to-do list.' He added: 'The level of withdrawals from easy access savings seems to indicate a significant proportion of Isa savings has come from people withdrawing from savings and ploughing the money into their Isa equivalents at either end of the tax year, to take advantage of the tax saving. 'As competition heated up over tax year end, rates remained elevated, but they have fallen since.' Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: 'While uncertainty in the domestic and global economy may have motivated consumers to top up their savings, some may have been taking advantage of higher savings rates while they were still around.' She continued: 'Worsening real returns on cash savings, once inflation is factored in, will come as a blow for savers, though with increasing numbers of taxpayers being dragged deeper into the tax net as their wages increase – a result of frozen personal tax thresholds – it is the post-tax net return on that cash that delivers the biggest hit.' Ms Haine said that the personal savings allowance – the amount of tax-free savings that savers can earn – has remained static 'raising the likelihood that those with the best savings rates use up their allowance in full and pay tax on the interest they earn'. Speculation over any possible future changes to cash Isa limits may also have been a factor, she added. Ms Haine said: 'While Chancellor Rachel Reeves has confirmed the £20,000 (annual) Isa allowance will remain intact, speculation that she will cap the amount savers can subscribe to a cash Isa is rife, as it feeds into her wider mission to encourage more people to invest their money and contribute to the Government's growth mission.' Meanwhile, the number of mortgage approvals being made to home buyers fell for the fourth month in a row in April. Around 60,500 loans for house purchase got the green light in April, which was a fall of 3,100 compared with the previous month. Stamp duty discounts became less generous for some home buyers from the start of April. Stamp duty applies in England and Northern Ireland. The Bank also said that approvals for remortgaging (which only capture remortgaging with a different lender) increased by 1,600 to 35,300 in April, following an increase of 1,000 in March. Richard Donnell, executive director at Zoopla, said: 'A slowdown in demand for mortgages in April reflects the impact of a late Easter. 'We expect mortgage data for May to increase in line with a pick up in new sales being agreed, which are running at their highest level for four years. 'A key factor is also lenders relaxing affordability tests, which is delivering the average home buyer up to 20% more borrowing capacity compared to a few months ago. We expect a busy June as buyers look to secure sales before the summer holidays kick in.' Figures released by Nationwide Building Society on Monday showed property values increased by 0.5% month-on-month in May, following a 0.6% fall in April, taking the average UK house price to £273,427. The typical UK house price increased by 3.5% annually in May, compared with 3.4% in April, according to Nationwide's figures. Banking and finance industry body UK Finance also said on Monday that mortgage completions rose sharply in the first three months of 2025 as both first-time buyers and home movers sought to complete transactions to benefit from lower stamp duty rates before changes took effect on April 1. For the quarter as a whole, first-time buyer completions jumped by 62% year-on-year and home mover completions increased by 74%, UK Finance said. The UK Finance report said: 'There were notable peaks in March, with the number of first-time buyer and home mover completions increasing by 113% and 140% respectively compared with March 2024.' Data from HM Revenue and Customs (HMRC) last week indicated there were 64,680 house sales in April – 64% lower than the total for March – as buyers had rushed to beat the stamp duty deadline. The Bank of England's Money and Credit report also said that, looking at non-mortgage borrowing, the annual growth rate for consumer credit accelerated to reach 6.7% in April, from 6.2% in March. Within the total, the annual growth rate for credit card borrowing increased to 9.8% in April, from 8.5% in March.
