Latest news with #houseprices
Telegraph
20 hours ago
- Business
- Telegraph
Posh hotspots suffer Britain's biggest house price falls
House prices in the South West are falling at the fastest pace outside of London, wiping thousands off properties that exchanged hands during the pandemic, analysis has found. Truro, Torquay and Exeter saw a spike of interest in the pandemic as Londoners looked westwards during the race for space. But the market is 'unwinding' thanks to a cocktail of price growth correction, increased stamp duty rates, higher mortgage rates and the second homes premium. The average house prices in Truro, Torquay and Exeter have fallen by up to 1.3pc in the past six months – second only to postcodes in West and Central London, according to Zoopla. Torquay's price fall comes after it dropped 1.1pc in the second half of last year. Harry Goodliffe, of mortgage brokerage HTG Mortgages, said: 'House prices in parts of the South West rocketed during the pandemic as buyers scrambled for space and lifestyle, but that kind of demand was never going to be sustainable. 'Now, reality is kicking in and some of those inflated values are adjusting. As the market cools and people weigh up hybrid working more realistically, demand has softened. It's not a crash, it's more of a reset.' The downward pressure on house prices in the South West has been caused by the introduction of the doubled council tax premium for second home owners. A host of councils in the region brought in the penalty this April after being granted powers by the previous Conservative government. A Zoopla spokesman said: 'The South West has always been popular as a location for second homes and investing in holiday rentals, as well as a place to live. 'Market conditions changed, largely on the back of tax changes for investors and double council tax for second home owners which has grown the number of homes for sale boosting buyer choice with prices posting modest price falls.' Telegraph analysis shows the average second home council tax bill has risen to £4,297 since April. Those in Torquay now face an average charge of £4,530, while a typical second home owner in Truro is paying a heftier £4,749. Pete Mugleston, of OnlineMortgageAdvisor, said: 'The South West housing market is now unwinding some of the extreme price growth driven by pandemic-era incentives. 'Low interest rates and the stamp duty holiday made second homes, Airbnb investing and upsizing incredibly attractive during 2020 to 2021. 'But today, mortgage costs are much higher and stamp duty rates have increased, particularly for additional properties. We're seeing a correction in places like Truro and Torquay, where the pandemic boom was sharpest, likely due to dampened second home and investor-driven demand.' Separate findings from Zoopla show that buyer demand is up 11pc, and agreed sales up 8pc year-on-year. The marketplace said the data shows the market is 'defying the typical summer slowdown'. The average UK house price now stands at £268,400, a modest £3,350 increase from this time last year. Richard Donnell, executive director of Zoopla, said: 'The housing market is broadly in balance. We're seeing healthy levels of demand and sales. 'More homes for sale, particularly across southern England, is reinforcing a buyer's market, keeping price rises in check.'
Yahoo
a day ago
- Business
- Yahoo
House prices ‘jump 6.1% annually in some parts of UK but fall by 5.0% in others'
Housing market activity has ramped up compared with summer 2024, bucking the usual seasonal slowdown, according to a property website. But despite the more bustling market, Zoopla's house price forecast for 2025 has halved, with the website saying that buyers are factoring increased stamp duty costs into their offers. Buyer demand is 11% higher compared with a year earlier, accompanied by an 8% increase in agreed sales, Zoopla said. Its figures compared the four weeks to June 20 2025 with the same period in 2024. The website said buyers have been looking to finalise deals before the August holidays slowdown. Recent changes to the way lenders assess mortgage affordability have been supporting housing market activity, it said. The changes, which followed clarification from the Financial Conduct Authority (FCA) will enable some mortgage borrowers to take out bigger loans. But Zoopla added that higher stamp duty costs in England and Northern Ireland, following the end of temporary reliefs in April, are acting as a drag on house price inflation. Buyers will be looking to reflect increased stamp duty costs in what they offer for homes, it said. Due to higher house prices, stamp duty costs tend to have a bigger effect on buyers in southern England than in other areas, Zoopla added. The average UK house price was put at £268,400 – 1.3% higher than a year earlier. Although price growth is up from 0.4% last June, it has nearly halved from the 2.1% seen just six months ago in December 2024, according to the report. Scotland, Wales and northern England are generally experiencing faster house price inflation, typically between 2% to 3% annually, Zoopla said. It said Northern Ireland is a 'standout,' with prices up by 6.1% and by 7.8% in Belfast, albeit from a lower base. Southern England is seeing the weakest price inflation, ranging from 0.2% in the South East and London to 0.3% in the South West. Truro, Torquay and Exeter are registering some of the biggest price falls outside of London, with declines of 1.3%, 1.2% and 1.1% respectively, the report added. Richard Donnell, executive director at Zoopla, said: 'We're seeing healthy levels of demand and sales, but this isn't sparking faster price inflation. 'In fact, more homes for sale, particularly across southern England, is re-enforcing a buyer's market, keeping price rises in check. Many more home buyers are paying stamp duty since April and want this extra cost reflected in the price they pay. 'While mortgage rates are holding steady, less stringent affordability testing has boosted buying power and is supporting more sales despite increased uncertainty. 'At the start of the year, we predicted house prices would rise just 2%, at the lower end of forecasts for house price inflation. Prices are on track to be 1% higher over 2025, half the level forecast. 'Greater supply of homes for sale and mortgage rates remaining higher than expected are the key reasons for weaker growth. Low house price inflation is not a bad thing so long as there is enough market confidence for people to list their homes and make bids to buy homes.' David Powell, CEO Andrews Property Group, said: 'The market continues to show incredible resilience, however the slow down in house prices is starting to impact consumer confidence illustrated by the increased numbers of properties currently on the market for sale.' Matt Thompson, head of sales at estate agency Chestertons, said: 'Compared to summer of last year, we have seen a more active property market which has been driven by an influx of vendors putting their home up for sale. This has given some house hunters a larger selection of properties to choose from which inevitably led to more contracts being exchanged. 'Some buyers, however, are still pausing their search in the hope that the Bank of England will announce another rate cut in August.' Here are the postal areas with the highest annual house price inflation in June 2025, according to Zoopla, followed by the average price of a home: 1. BT – Belfast, 6.1%, £186,500 2. HX – Halifax, 4.2%, £175,900 =3. FK – Falkirk, 3.6%, £167,500 =3. ML – Motherwell, 3.6%, £132,000 =3. TD – Tweeddale, 3.6%, £176,000 Here are the postal areas with the weakest annual house price inflation in June 2025, according to Zoopla, followed by the average price of a home: 1. WC – London, minus 5.0%, £823,000 2. W – London, minus 1.5%, £768,900 3. TR – Truro, minus 1.3%, £314,400 4. TQ – Torquay, minus 1.2% £293,700 5. EX – Exeter, minus 1.1%, £308,800 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Independent
a day ago
- Business
- The Independent
House prices ‘jump 6.1% annually in some parts of UK but fall by 5.0% in others'
Housing market activity has ramped up compared with summer 2024, bucking the usual seasonal slowdown, according to a property website. But despite the more bustling market, Zoopla's house price forecast for 2025 has halved, with the website saying that buyers are factoring increased stamp duty costs into their offers. Buyer demand is 11% higher compared with a year earlier, accompanied by an 8% increase in agreed sales, Zoopla said. Its figures compared the four weeks to June 20 2025 with the same period in 2024. The website said buyers have been looking to finalise deals before the August holidays slowdown. Recent changes to the way lenders assess mortgage affordability have been supporting housing market activity, it said. The changes, which followed clarification from the Financial Conduct Authority (FCA) will enable some mortgage borrowers to take out bigger loans. But Zoopla added that higher stamp duty costs in England and Northern Ireland, following the end of temporary reliefs in April, are acting as a drag on house price inflation. Buyers will be looking to reflect increased stamp duty costs in what they offer for homes, it said. Due to higher house prices, stamp duty costs tend to have a bigger effect on buyers in southern England than in other areas, Zoopla added. The average UK house price was put at £268,400 – 1.3% higher than a year earlier. Although price growth is up from 0.4% last June, it has nearly halved from the 2.1% seen just six months ago in December 2024, according to the report. Scotland, Wales and northern England are generally experiencing faster house price inflation, typically between 2% to 3% annually, Zoopla said. It said Northern Ireland is a 'standout,' with prices up by 6.1% and by 7.8% in Belfast, albeit from a lower base. Southern England is seeing the weakest price inflation, ranging from 0.2% in the South East and London to 0.3% in the South West. Truro, Torquay and Exeter are registering some of the biggest price falls outside of London, with declines of 1.3%, 1.2% and 1.1% respectively, the report added. Richard Donnell, executive director at Zoopla, said: 'We're seeing healthy levels of demand and sales, but this isn't sparking faster price inflation. 'In fact, more homes for sale, particularly across southern England, is re-enforcing a buyer's market, keeping price rises in check. Many more home buyers are paying stamp duty since April and want this extra cost reflected in the price they pay. 'While mortgage rates are holding steady, less stringent affordability testing has boosted buying power and is supporting more sales despite increased uncertainty. 'At the start of the year, we predicted house prices would rise just 2%, at the lower end of forecasts for house price inflation. Prices are on track to be 1% higher over 2025, half the level forecast. 'Greater supply of homes for sale and mortgage rates remaining higher than expected are the key reasons for weaker growth. Low house price inflation is not a bad thing so long as there is enough market confidence for people to list their homes and make bids to buy homes.' David Powell, CEO Andrews Property Group, said: 'The market continues to show incredible resilience, however the slow down in house prices is starting to impact consumer confidence illustrated by the increased numbers of properties currently on the market for sale.' Matt Thompson, head of sales at estate agency Chestertons, said: 'Compared to summer of last year, we have seen a more active property market which has been driven by an influx of vendors putting their home up for sale. This has given some house hunters a larger selection of properties to choose from which inevitably led to more contracts being exchanged. 'Some buyers, however, are still pausing their search in the hope that the Bank of England will announce another rate cut in August.' Here are the postal areas with the highest annual house price inflation in June 2025, according to Zoopla, followed by the average price of a home: 1. BT – Belfast, 6.1%, £186,500 2. HX – Halifax, 4.2%, £175,900 =3. FK – Falkirk, 3.6%, £167,500 =3. ML – Motherwell, 3.6%, £132,000 =3. TD – Tweeddale, 3.6%, £176,000 Here are the postal areas with the weakest annual house price inflation in June 2025, according to Zoopla, followed by the average price of a home: 1. WC – London, minus 5.0%, £823,000 2. W – London, minus 1.5%, £768,900 3. TR – Truro, minus 1.3%, £314,400 4. TQ – Torquay, minus 1.2% £293,700 5. EX – Exeter, minus 1.1%, £308,800
Irish Times
2 days ago
- Business
- Irish Times
Spending on infrastructure makes sense, cutting VAT on hospitality is quite mad
Looking at the performance of the economy over the last 18 months, things look pretty good, as long as you aren't looking for somewhere to live. On to an already buoyant economy, last year's election budget ploughed in more money, equivalent to more than 1 per cent of national income. With full employment, this served to further drive up domestic demand, and also house prices. It hasn't made us much better off, even if it proved popular and garnered a few votes. As election budgets go, it could have been worse. The election budget of 1977 was the biggest culprit in the economic misery of the 1980s, and the election budget of 2007 pushed the economy and house prices to new heights, leaving it even further to fall in the ensuing financial crisis. By these standards last year's election splurge, while ill-conceived, was much less damaging. This year, with no election in sight, it should be time for wiser counsels to prevail in government. While we are seeing continuing growth in the economy, the Department of Finance provides a much more sombre assessment of what is to come due to US president Donald Trump 's wrecking ball. READ MORE Tariffs and a possible trade war would directly affect Ireland, with possibly more serious consequences stemming from the damage done to the wider European Union economy. While this downbeat assessment calls for fiscal caution, instead of heeding their own advice, the Government plans to increase expenditure next year by more than 7 per cent, while national income may rise by 5 per cent. This might be acceptable if they also planned a big increase in taxes , to avoid stimulating an already fully employed economy. However, without tax increases it will add to inflationary pressures. [ What did the summer economic statement really tell us about Budget 2026? Opens in new window ] The Government also, correctly, has highlighted the huge deficit in infrastructure in Ireland stemming from the economic success of the last decade. In countries such as Germany, Italy and Greece, more older people die each year, vacating their homes, than new young households are formed. As a result, these countries don't need a big increase in housing or in related infrastructure. In contrast, with our rapidly growing population, we need to invest in more housing, water and energy, as being provided now in the updated National Development Plan (NDP). [ We need to confront the reality that the housing shortage can't be solved Opens in new window ] While the Government has the money to spend on building more infrastructure, this will work only if a range of other complementary policies are implemented. Firstly, while spending money on infrastructure makes sense, in a fully employed economy we need to redirect resources from other sectors to building and construction. For example, the plan to cut VAT on catering and accommodation is quite mad. The latest data shows that that sector is booming. Instead we need to free up resources for new building by spending less in other economic sectors. In sectors that are already thriving, it could make more sense to raise taxes than to lower them, to encourage redirection of labour to our most urgent problem, housing . David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 The NDP sensibly provides funding to build new wires to link homes and businesses with electricity generation. There is also funding for a long overdue metro for Dublin , and to bring water from the Shannon to Dublin to tackle the knife-edge water supply in the capital. However, these projects will get under way only if the planning and regulatory systems are dramatically reformed. It has already taken five years for planners to consider a verdict on the metro. Countries such as Spain would have built the metro in that time, instead of merely scrutinising the plans. The North-South electricity interconnector was announced 20 years ago, while planning delays on both sides of the Border mean it will be 2032 before it finally happens. Once started, the actual construction will just take months to complete, not the decades spent in planning. The need to pipe water from the Shannon to Dublin was established over a decade ago, yet it could be many more years before it is delivered under the present planning system. In the 19th century, specific legislation was enacted to build our railway system. As Michael McDowell has suggested, a similar legislative approach should be taken today to developing key infrastructure. [ There is a way to unblock Ireland's infrastructural logjam Opens in new window ] We need to enact a specific legal mandate, in the overriding national interest, to drive forward critical projects and avoid the endless round of planning applications, appeals and judicial reviews. Had we done that for the metro, it would have been finished a decade ago. But unless the planning system is reformed, I'm unlikely during my lifetime to ride the metro or drink Shannon water from my tap.
Daily Mail
3 days ago
- Business
- Daily Mail
Equality street! The suburban road where identical homes on one side are 'worth £100k more' than the other
Homeowners have called on Royal Mail to adopt the postcode of a neighbouring suburb where average house prices are significantly higher. A cluster of locals in Thornbury, a Bradford suburb straddling the city's eastern edge, have launched a bold bid to trade in their postcode to increase their house prices by £100k. They say they are being 'penalised' by having the city's undesired BD3 postcode despite technically falling in the council jurisdiction of neighbouring Leeds. Instead, they want to adopt the LS28 postcode of Pudsey, which carries a more desirable reputation. But neighbours on Gain Lane, the vast majority of whom are covered by Bradford council, have branded the move 'snobbish' and a thinly veiled attempt to 'pretend they don't live where they do.' One resident, firmly living in the BD3 postcode plagued by high crime rates, said: 'They're desperate to keep up appearances. 'Just because you buy a few hanging baskets and call your house 'The Willows' doesn't mean you live in Pudsey or Leeds. 'You're still in Bradford at the end of the day.' Bradford's BD3 postcode covers some of the city's most troubled and poverty-stricken communities. It ranks among the worst postcodes in the country related to car theft and dangerous driving offences. Whereas the neighbouring LS28 postcode covers the gentrified Leeds suburbs of Farsley, Calverley and Pudsey - represented in parliament by chancellor Rachel Reeves. House prices in the well-heeled commuter hubs are tens of thousands of pounds higher than in Bradford. Campaigners say they are being unfairly punished for having a BD3 suffix, despite technically falling under Leeds City Council's jurisdiction. They say that they are having to pay out for higher car and home insurance policies as a consequence, while also having to ensure deflated house prices. Lynda Berry, 59, admitted she wanted the LS28 postcode because it was 'posher'. She said: 'We're paying more in council tax and then getting hit again with higher car and home insurance. 'And we don't even get the benefits of being in Leeds, even though we technically are. 'It's frustrating. I understand there has to be a border somewhere, but we're getting penalised for being in BD3.' Russell Robinson, 69, who has lived in the area for over six decades, says the postcode saga has dragged on for years - despite multiple attempts to get it changed. He said: 'If you're in BD3, you're paying hundreds more for car insurance because it's one of the worst postcodes in the country for car crime and bad driving. 'When I used to go to an insurance broker, they'd look at my postcode and say, 'If you lived in LS28, it'd be £200 cheaper.' 'For my Freelander I have to pay £595, fully comprehensive. For my other Defender quite a few companies wouldn't insure it all. 'It's not like I'm going Trans-European or up mountains in it. It's just the Bradford postcode.' Mr Robinson, a retired council worker, revealed that when he sold his father's house - which also technically fell under Leeds but still carried a Bradford postcode - it sold for less than equivalent houses with an LS28 address. He said: 'We got £190,000 for it, something like that. It was a well-built stone house. 'They're paying £200,000 for much less in Pudsey - small gardens, one car on the drive. 'It's just the LS postcode.' According to Rightmove data, house prices in BD3 had an overall average of £120,323 over the last year. In leafier LS28, the average was £262,061 over the last year. Gurvinder Singh, 59, has lived in Gain Lane since 1989. He said he had pleaded with the council to swap his postcode to Leeds. He said: 'Our house prices are low. Our insurance is high. 'There a difference of around £100,000. If our house was in LS28 it would go for £260,000. Here there's a limit of about £160,000. 'Because of BD3, the prices are not high. We keep spending money on the house but we're not going to get the full benefit.' Asked if he tells people he is from Leeds or Bradford, Mr Singh, who works for Bradford-based baker Hovis, added: 'Leeds. Sorry to say, but Leeds. 'Bradford has a very bad reputation, especially BD3. 'I've caught drug dealers right outside the front of my house. I've had drugs thrown in my garden during a police chase. 'LS28 is like a different world. It's much better. The people are sensible, there are no idiot drivers on that side.' One resident further down Gain Lane, firmly within Bradford Council's boundaries, said the campaign was 'classist'. The woman, who would not be named for fear of riling neighbours, said: 'My house is in Bradford and I'm proud to be from Bradford. 'I think it's people trying to pretend they don't live where they do, to make them look and feel better. 'It's still Bradford, love.' Priyan Welikandu, 56, said his car insurance premiums had soared simply because of the BD3 postcode - despite paying all his bills to Leeds. He said: 'The car insurance is very high for no real reason. I've had this smaller car for 20 years, no claims, no accidents - and I'm still paying £700 a year. 'They told me it's because of the BD3 postcode. It should be around £300 or £400, but they said nothing counts for anything in BD3.' Mr Welikandu admitted he tells people he is from Pudsey, not Bradford. He added: 'If I say to my work colleagues, Bradford, they get the wrong idea - like it's dodgy. Pudsey is a bit more civilised.' The postcode lottery has also hit businesses landed with a BD3 postcode, despite administratively falling in Leeds. Mohammed Saqid, 20, who runs the Shandar takeawy on Gain Lane, said his business insurance premium had risen to £10,000. He said: 'If this was LS28 it would be £2,500. So having a Bradford postcode is four times more expensive for us. 'We pay our rates to Leeds council, we're right by the sign that says 'welcome to Pudsey'. It doesn't make any sense to us.' Conservative local councillors have backed the residents in their attempts to be reclassified by Royal Mail. Councillor Andrew Carter said: 'I am supporting local residents, and they are in contact with Royal Mail. Every possible obstacle has been put in the way of progress. Residents want to be in LS28 and they are right.' Cllr Craig Timmins said the postcode had also caused confusion for emergency services and council services. He added: 'These streets are an important part of our community and should be able to identify that way with their postcode, instead of constantly being frustrated by it.' Royal Mail said postcodes are designed to support deliveries, not to reflect geographies. A spokesperson said: 'Postcodes are designed to support the efficient sorting and delivery of mail, not to reflect geographic or administrative boundaries. Each one is based on the delivery route and the local delivery office, which means the postcode may not always match the actual geographic identity of the area. 'We have previously reviewed the arrangements and given the structure of the local network and the needs of the nearby delivery office, we do not believe a change is appropriate for our operations. 'It is important to note that postcodes typically cover groups of addresses delivered together.
