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English housing market flooded with £500,000+ homes

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English housing market flooded with £500,000+ homes


Published by Anonymous for in Housing and also in Finance

English housing market flooded with 500,000+ homes English housing market flooded with 500,000+ homes

Image: Mansion via Shutterstock

In yet further good news for wealthy folk, the number of homes valued at over £500,000 coming on to the market has risen by almost a third.

Between April and June, the number of half a million pounds or more properties on sale shot up by 30% - the highest levels since 2010.

And properties coming on to the market in the second highest price brand - those valued £250,000 to £500,000 - have increased by 16% in the last 12 months, Experian's property index has revealed.

Experian's latest index shows that in 2014's second quarter, homes worth more than £250,000 made up 41% of all the homes that entered the market for sale in the period, compared to only 37% the year before.

London led the £500,000 charge, where the price band saw a 50.7% rise.

However, sanity prevailed in the North East which continued to see the most affordable properties (less than £100,000) entering the market – up by 33.6%.

The rental market, meanwhile, which had been seeing a steady growth each quarter, saw fewer newly advertised properties coming onto the market for rent – down 4.3% across the UK compared to Q2 in 2013.

The fall was led mainly by the Outer Metropolitan and South East areas – down 10.5% and 8.8%.

According to Experian, the North East and Wales were the only areas to continue to see a growth in rental properties – up 4.3% and 1.8%.

The global information services company's latest figures show:

• Overall, the number of properties to enter the market for sale between April to June increased by 9.6% compared to the same period in 2013.
• The rise was led by the North East region which saw the number of houses coming to the market for sale increase by 25.6% compared to Q2 2014.
• The only area in the UK that witnessed a fall in numbers was the East of England, which found the number of homes coming on to the sales market decreased slightly by 2.6%.
• The West Midlands appeared among the areas to see the highest increase in properties with more than £500,000 coming onto the market for sale – up 25.5%.

Jonathan Westley, managing director of consumer information services at Experian UK & Ireland, said: “The growth in houses prices suggests that homeowners may have made reasonable capital gains on their existing properties, especially as they seek to move up the property ladder. Our latest index shows that higher-end properties now form a greater proportion of properties appearing for sale, implying it is now second or third time buyers, who are more active in the housing market.

But, 59% of all properties across the UK were still valued at less than £250k, so there are opportunities for those with smaller budgets.

“The challenge for people wanting to secure a mortgage is showing themselves in the best possible light to lenders; i.e. applicants who can afford the long term commitment, especially with an interest rate rise looming.

"Lenders have just as an important role to play ensuring they are not making decisions that could see a person fall into debt in the future. The more information they can source to fully understand a person’s individual circumstances, such as property information, the fairer the decision they can make about granting a mortgage.”


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