Archive for December, 2009
Property values rise £4 per day in 2009
2008 was undoubtedly a torrid year for homeowners. But, property prices have stabilised this year, rising gradually since April after a fairly weak first quarter.
We are still a long way from the values seen before the recession took hold, but the housing market has not worsened in 2009 as some had feared and recovery signs are starting to appear.
As 2009 draws to a close, British homeowners can let out a little Christmas cheer compared to this time last year as home values across the nation have risen by £39.1 billion in 2009. Whilst the increase is modest, it is a massive improvement over 2008 when British property values fell £811.3 billion, according to our research.
However, with the total value of the British residential housing stock now standing at £5.3 trillion, up marginally on one year ago, it still remains over three quarters of a trillion pounds below its peak of £6.1 trillion in late 2007. The average home in Britain is now worth £205,591, up £1,517 (0.7%) from one year ago, a daily gain of £4 for the average property. This is in stark contrast to 2008 when property values fell by £31,355 (13.3%) on average, equivalent to a daily loss of £86 per home.
Property prices in England have climbed 0.9% over the past 12 months, having fallen 13.9% in 2008. Scottish values have also risen in 2009 by 0.6% to an average of £156,905 up from £155,597 at the end of last year. However, the property market in Wales is yet to rebound and has seen average values drop a further 2.5% (£3,866) in 2009 on top of the 13.2% decline in 2008.
Property value changes in 2009
| Country | Value change % | Value change £ | Avg. value today |
|---|---|---|---|
| England | 0.9% | £1,902 | £214,451 |
| Scotland | 0.6% | £948 | £156,905 |
| Wales | -2.5% | -£3,866 | £148,659 |
Source: Zoopla.co.uk
Homeowners in Gloucestershire have had the biggest cause for celebration in 2009 as average property values have risen 3.8% over the past year to a current average home value of £229,945. At the other end of the scale, there is far less to cheer about in Merthyr Tydfil where the property values suffered the largest loss in 2009, falling 6.2% to a current average value of £94,132.
Find out the value of your home on Zoopla.co.uk
Property value changes by type in 2009
| Property Type | Value change % | Value change £ | Avg. value today |
|---|---|---|---|
| Detached | 1.9% | £5,972 | £306,727 |
| Semi | 3.6% | £6,342 | £182,840 |
| Terrace | -1.1% | -£1,561 | £160,821 |
| Flats | -0.1% | -£461 | £188,671 |
Source: Zoopla.co.uk
Best performing towns in 2009
| Town | Value change % in 2009 |
Value change £ in 2009 |
Avg. home value (Dec 09) |
|---|---|---|---|
| Downham Market, Norfolk | 8.1% | £12,380 | £164,535 |
| Widnes, Cheshire | 7.9% | £11,013 | £150,258 |
| Maidstone, Kent | 7.1% | £15,265 | £229,130 |
| Barrow-in-Furness, Cumbria |
6.5% | £6,855 | £112,086 |
| Salisbury, Wiltshire | 6.0% | £14,985 | £264,402 |
Source: Zoopla.co.uk
Worst performing towns in 2009
| Town | Value change % in 2009 |
Value change £ in 2009 |
Avg. home value (Dec 09) |
|---|---|---|---|
| Liversedge, West Yorkshire | -12.9% | -£20,206 | £136,172 |
| Sandbach, Cheshire | -12.8% | -£27,057 | £184,706 |
| Leatherhead, Surrey | -10.9% | -£59,055 | £482,472 |
| Halstead, Essex | -10.7% | -£23,431 | £196,412 |
| Welshpool, Powys | -10.6% | -£19,642 | £165,682 |
Source: Zoopla.co.uk
Zoopla.co.uk wins Website of the Year award
Thanks to you, we’ve been crowned Best Real Estate Website of the Year at the Website of the Year awards – Britain’s most important people’s choice award for websites.
The full list of category winners can be seen here.
This year, 259 websites were nominated over 18 categories. More than 800,000 votes were cast between November 3 and December 8 and other winners include: Boots, Abbey, BBC and Google.
So, a BIG THANK YOU to all who voted for us.
Here’s a little more about the awards:
The Website of the Year awards are the largest annual ‘people’s choice website awards and are organized by MetrixLab since 2004, the global Online Market Research company that specialises in the areas of New Product Development, Brand Communication, E-Business Performance and Satisfaction Research.
Pre Budget Report – the property perspective
The pre-Budget report (PBR) is the Government’s autumn statement about the economy and its future plans for taxes, spending, borrowing and benefits – in this instance look at it as a belt-tightening exercise for the Government in order to halve the current £178 billion deficit!
To put this frightening figure in perspective this is slightly more than the current value of the total housing stock in Kent, which we currently value at £177 billion. Perhaps one solution could be to sell Kent?
Seriously though, what does this mean for home owners and those in the property market?
Key property points:
- Stamp Duty Holiday to end 1st Jan 2010
- VAT to revert to 17.5% on January 2010
- Individual Inheritance Tax allowance frozen at £325,000
- Bingo duty to be cut from 22% to 20% (not property related, but intriguing)
- Mortgage support scheme for the unemployed to be extended for 6 months
- New scrappage scheme to help up to 125,000 homes replace inefficient boilers
Here’s the reaction from our Commercial Director of Zoopla.co.uk – Nick Leeming - on the measures affecting the housing market in the today’s Pre-Budget Report:
Stamp duty holiday
“The government should strongly reconsider its decision not to extend the stamp duty holiday if it is serious about helping first time buyers – preferably making first timers permanently exempt. Since the holiday came into effect, Zoopla.co.uk research shows it has provided relief for only 153,000 buyers (a quarter of the number predicted by the government to benefit), but first time buyers already face more than enough obstacles in trying to get onto the property ladder without the additional burden of stamp duty, not least the uphill struggle of obtaining a mortgage. Should lenders demonstrate any commitment to improving the mortgage funding on offer in 2010, there will be more first time buyers in a position to benefit from a stamp tax break. £1500 – the average saving made by stamp holiday beneficiaries – is a big proportion of the cost of starting up in your first home – enough to cover typical mortgage interest payments for around three months or around 5% of an average house deposit. Encouraging first time buyers back into the market and stimulating housing market activity is vital to boosting the health of the wider economy.”
Here’s our recent research on Stamp Duty
Inheritance Tax
“Death and taxes are the two certainties in life – this government wants to profit from both. Its decision not to raise the Inheritance Tax threshold for couples from £650,000 to £700,000 means 102,525 more family homes would be dragged into the death tax net. Nationally, 581,403 homes are valued at over £650,000 and rising house prices see even more homes move into the IHT bracket. At the current rate of house price recovery, at least 10,000 extra homes a month would be required to pay the tax.”
Win B&Q vouchers
It’s been an interesting year for property and we really want to hear your views on the property market in your local area.
So, we’ve compiled a really brief (11 questions) survey that will only take you three minutes, four at a push!
As a thank you for your time, we’ll enter you into a free prize draw for a chance to win one of three £50 gift vouchers for DIY store B&Q.
Simply click here to begin.
Thanks for your time.
