Latest news with #houseprices
News.com.au
2 days ago
- Business
- News.com.au
‘Competing hard': Brisbane Olympics house price battle looms
The Brisbane Olympics continue to loom as a potentially massive upward driver of house prices. Speculation is rife about just how much the Games will push up prices in Brisbane in particular. As soon as the long-awaited venues were confirmed in March, realtors began promoting their properties as within the 'Olympic precinct'. Finder research suggests 1.5 million people would be looking to buy in Brisbane between now and the 2032 Games. 'The ripple effect on the local property market, especially in Brisbane's inner and middle-ring suburbs, cannot be underestimated,' Australian Property Investor magazine said in April. Propertytology managing director Simon Pressley tempered the huge expectations this week though, downplaying estimates Brisbane house prices would double in the next seven years. 'No guarantee,' he told Channel 7 on Tuesday morning. 'Property markets are obviously very, very complicated. 'There's no precedent with past Olympic Games around the world that property booms always happen.' The Sydney 2000 Games did spark a property boom though, but the NSW economy and the monetary policy of the time were larger factors for the boom, Mr Pressley said. 'Broadly, for the whole state of Queensland, the outlook for its property market for the foreseeable future looks to be strong,' he said. 'Buyers are already competing very hard for a small volume of properties for sale.' The latest national figures show Brisbane's median dwelling value has increased 7.1 per cent in the past year to $918,000. Of the capital cities, only Perth prices have gone up more in the past 12 months. Regional South Australian prices have shot up the most. In March, the Queensland government unveiled plans for a new Olympics precinct in Brisbane. 'There's going to be a lot of construction obviously with various stadiums and arenas built all over the state,' Mr Pressley said. 'Skilled labour is going to be a big challenge for the Queensland government as well.'
The Independent
2 days ago
- Business
- The Independent
How much would you pay to live here? Now add another 20 per cent…
Just a month after a surprising fall in house prices, they have bounced back and then some – taking both the City and your correspondent by surprise. New figures from Nationwide show that prices increased by 0.5 per cent in May when compared to April. Prices in that month had fallen 0.6 per cent compared to March. The annual rate, when compared to May 2024, also edged higher (3.6 per cent) when compared to April's annualised 3.5 per cent rise. April's slowdown was always expected, coming as it did after a flurry of activity in March as purchasers rushed to get purchases through ahead of Rachel Reeves' stamp duty increases. But the rapidity of the bounce back comes as a surprise. True, this could be a blip, and Nationwide's is just one of a number of indices. And we're not in a boom, nor anything like it. However, despite how stretched affordability has become, parts of the market are looking very frothy. Pity the would-be buyer. In many parts of the country, becoming an owner occupier is a distant dream unless you have access to the favourable rates available from the Bank of Mum & Dad LLC, one of the nation's biggest, and most selective, lenders. London and the South East have long been positively ruinous for a long time, with prices there in the 'completely crazy' category. There isn't much room for growth, even with lenders offering longer term loans and fancy multiples of prospective borrowers' salaries to encourage first-time buyers. But that is by no means true in other parts of the country, where temperature gauge is firmly in the red. The most recent regional data, available from the Office For National Statistics, dates back to March. It shows that the Shetland Islands – one of the UK's remotest regions – recorded annualised growth of 18 per cent, followed by North East Derbyshire at 17 per cent and Blackburn & Darwen, also at 17 per cent. The first two of those are, obviously, highly rural, and rural areas have proven to be quite spicy in recent years. The trend of people moving from urban was established during the pandemic and found mixed results. Regretters were not uncommon. The bucolic fantasies promoted by shows like Escape to the Country are far from reality. City-dwellers typically have to confront unexpected challenges, such as services they take for granted not being there. However, the overall trend isn't reversing. Nationwide found growth of 23 per cent in rural areas between December 2019 and December 2024, compared with just 18 per cent in areas that are largely urban. There are, nonetheless, plenty of urban hotspots to be found in the ONS data, including Newcastle upon Tyne (14 per cent), Liverpool (14 per cent), Middlesbrough (14 per cent) and Hartlepool (13 per cent). This underlines an unpleasant fact for would-be buyers: it's tough going wherever you happen to be looking. What's the house-hunter to do? I'd gently suggest listening to Nick Mendes, from broker John Charcol who says: 'For consumers, this is a market that rewards preparation. Mortgage rates are still competitive, but deals are moving fast and lenders are selective.' He adds: 'Getting a solid deposit together, tightening up credit and working with a broker who knows the full market makes a real difference.' So delete the Klarna app, burn your credit cards, and save until it hurts. Of course, Mendes works for a broker so he would naturally advocate for their services. However, for many, sitting down with a professional is a sound idea. They often have access to deals that aren't available direct and they can be particularly helpful to people who don't fit into the comfortable boxes that big lenders, and big insurers, prefer. Those people aren't uncommon. Mendes is particularly on the money when he says this: 'Some lenders have relaxed affordability rules, particularly on longer-term fixes, and that might increase how much you're told you can borrow. But just because you can stretch your budget doesn't mean you should.' But is that message getting through? As tough as it is for buyers, it remains a much better option than renting for those who have the resources. Prices in the private rented sector are no less inflated. They're often worse. This helps to explain he willingness of buyers to stretch themselves. It isn't wise. But when the alternatives are so miserable, it is understandable. Most forecasters think prices will tread water over the next few months, despite the latest uptick. The economic uncertainty stalking to the world, thanks in no small part to Donald Trump's trade war, should help to keep a lid on things. But with wage settlements outpacing inflation, they are expected to start to accelerate later in the year, even with the cold water recently poured over hopes for more interest rate cuts by unexpectedly high inflation. Now is the time to take the plunge. If you can.
The Sun
3 days ago
- Business
- The Sun
New mortgage rules could add £19,000 to average house price and help first-time buyers with lower deposits
NEW mortgage rules could add £19,000 to average house prices and help first-time buyers get on the ladder with lower deposits. Changes to stress testing practices could cause property prices to increase by between 5% and 7.5% over the next five years, claims Savills. 1 New research by the estate agent also predicts the average deposit needed by a first-time buyer could fall from £58,000 to as little as £45,000 over the same time frame, The Telegraph reports. Lucian Cook, of Savills, said: 'Change would not be immediate, with the impact on house prices and transactions likely to take place over a period of five years. 'But in the medium to long term, the market would feel the knock-on effect of a widening pool of buyers." In March, the FCA reminded lenders they are allowed to tweak their stress testing based on market expectations. It said the market approach to stress testing could be restricting borrowers' access to affordable mortgages. It comes as mortgage interest rates fall, following drops in the Bank of England (BoE) base rate. Stress tests are carried out by lenders to see if borrowers could cope with an uptick in their interest rate or if their income dropped. A host of lenders, including Halifax, Santander and Barclays, have tweaked their stress tests in recent months. Santander said it could allow home buyers to borrow up to £35,000 more. But relaxing stress testing rules, while making it easier for buyers to get a mortgage, could see house prices rise as demand increases. The Sun's James Flanders explains how to find the best deal on your mortgage What is happening with mortgage rates? Mortgage rates have been falling steadily across the UK following a number of Bank of England (BoE) base rate cuts. Trump's "Liberation Day" blitz of tariffs also led to a number of lenders slashing interest rates below 4%. The base rate is the rate the BoE charges to high street banks and lenders when they borrow money. If it goes up, it means mortgage rates tend to rise too, as well as savings rates. When it falls, it sees the opposite happen. The base rate currently sits at 4.25%, having been lowered from 4.5% earlier this month, and down from 5.25% in summer last year. According to the average two-year fixed-rate mortgage is 5.12% today, compared to 5.93% a year ago. The average five-year fixed residential mortgage rate today is 5.09%. This is down from 5.50% a year ago. More base rate cuts are expected this year. It's worth bearing in mind, when your mortgage rate falls is dependent on the type you have. Those on tracker and standard variable rate (SVR) mortgages tend to see their rates fall first. However, if you're on a fixed rate, you won't feel the impact of any rate changes until your deal ends. If you are coming to the end of a fixed deal, most lenders let you lock in a new rate up to six months beforehand, which can be worth doing. If rates fall after you agree a new deal, some lenders will let you sign a new one at a lower rate. How to get the best deal on your mortgage IF you're looking for a traditional type of mortgage, getting the best rates depends entirely on what's available at any given time. There are several ways to land the best deal. Usually the larger the deposit you have the lower the rate you can get. If you're remortgaging and your loan-to-value ratio (LTV) has changed, you'll get access to better rates than before. Your LTV will go down if your outstanding mortgage is lower and/or your home's value is higher. A change to your credit score or a better salary could also help you access better rates. And if you're nearing the end of a fixed deal soon it's worth looking for new deals now. You can lock in current deals sometimes up to six months before your current deal ends. Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost. But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal - but compare the costs first. To find the best deal use a mortgage comparison tool to see what's available. You can also go to a mortgage broker who can compare a much larger range of deals for you. Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender. You'll also need to factor in fees for the mortgage, though some have no fees at all. You can add the fee - sometimes more than £1,000 - to the cost of the mortgage, but be aware that means you'll pay interest on it and so will cost more in the long term. You can use a mortgage calculator to see how much you could borrow. Remember you'll have to pass the lender's strict eligibility criteria too, which will include affordability checks and looking at your credit file. You may also need to provide documents such as utility bills, proof of benefits, your last three month's payslips, passports and bank statements.
Daily Mail
3 days ago
- Business
- Daily Mail
House prices rise almost £3,000 in a month despite stamp duty rise, says Nationwide
House prices rose by almost £3,000 last month, according to latest figures from Nationwide Building Society. The average home was selling for £273,427 in May, according to Britain's biggest mutual, up from £270,752 in April. It means property values are 3.5 per cent higher than a year ago and are closing in on the August 2022 peak, when they hit £273,751. The monthly jump in prices suggests the stamp duty changes at the start of April has had a minimal impact on home buyers. Robert Gardner, chief economist at Nationwide said: '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 added: 'Nevertheless, mortgage approvals data suggests that market activity appears to be holding up well following the end of the stamp duty holiday. 'Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive. 'Unemployment remains low, earnings are rising at a healthy pace - even after accounting for inflation, household balance sheets are strong and borrowing costs are likely to moderate a little if bank rate is lowered further.' Tom Bill, head of UK residential research at Knight Frank said while there are 'tentative signs of momentum' in the housing market a dramatic rebound in prices doesn't feel likely. 'Concerns around inflation and the government's financial headroom mean mortgage rates don't feel poised to drop meaningfully,' said Bill. 'Buyers also have a lot of properties to choose from this spring, which we expect to keep downwards pressure on prices in the short term.' There are also huge regional variations that are impacting house prices, according to Jonathan Hopper, chief executive of buying agency Garrington Property Finders. 'In parts of London and much of southern England, the supply of homes for sale is now far outstripping demand. 'This is especially true in more expensive, and often highly desirable, areas where the trickle of supply has turned into a flood. 'In these areas, buyers find themselves blessed with plenty of choice and the leverage to negotiate on price. This is keeping prices flat or even nudging them down. 'At the other end of the scale, demand is often exceeding supply in areas seen as representing strong value - and this is driving prices up rapidly in much of northern England.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
ABC News
3 days ago
- Business
- ABC News
House prices tipped to rise up to 10% as buyers flock back in
Skip to main content National house prices could rise by up to 10 per cent by late 2025 or early 2026, according to property analysts, who say a combination of interest rate cuts and first home buyer incentives will drive further demand for homes.
