PROPERTY MARKET REPORT - 2017 Q4 - Kingsley Hamilton Estates
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2017 Q4 PROPERTY MARKET REPORT
| PROPERTY MARKET REPORT - Q4 2017
OVERVIEW
Despite the economic and political challenges The announcement to abolish stamp duty for
following the Brexit vote, the UK residential first-time buyers will also certainly boost the UK
property market showed great resilience in Q4. property market. The decision will help first-time
buyers get on the property ladder across the UK
According to Halifax, house prices in Q4 remained especially in areas where property prices are
stable, supported by cheap mortgages as well as higher such as London and the South East.
high employment rate. The lack of properties on
the market also provided support to house prices On the lettings side, the market in Q4 was
through the quarter. influenced by the usual seasonal slowdown but
demand remained strong throughout the UK.
For homeowners and property investors, this is
positive news as it demonstrates the resilience Foreign investors remained highly active in the
of the UK property market which remains a safe last quarter of the year, a positive sign that they
investment platform despite the uncertainty have not been dettered by the political and
surrounding Brexit. economical changes in the UK.
Supply and demand levels in the UK housing The Brexit deal is likely to have an impact on
market remained broadly unchanged in Q4, the UK housing market in 2018. However, the
showing that both buyers and sellers are active imbalance between supply and demand in the
on the market. market will also ensure that house prices remain
robust in 2018.
Philip Hammond’s decision in the Autumn
Budget to abolish stamp duty for first time buyers
combined with the creation of 300,000 homes per
year by 2025 are likely to have a positive impact
on housing demand throughout 2018.
INSIDER’S VIEW
Associate Director of Kingsley Hamilton Estates, Stan Tonchev, comments:
Overall, 2017 has been a very challenging year for the UK property market. The demand and supply dynamics
affecting the UK housing market remained unchanged throughout Q4, with a continued under-supply of
properties across the country, underpinning pricing in some of the most sought-after residential areas. Q4 saw
a slightly stronger house price growth in the Midlands, East of England and the North West, as a continuation of
the trend that has emerged during the year. The UK property market remained robust, with around 85 percent
of transactions involving first-time-buyers and second-steppers as reported by Rightmove. It can reasonably be
expected that residential property prices in the UK will continue to rise in 2018.
2 Kingsley Hamilton Estates
| PROPERTY MARKET REPORT - Q4 2017
SALES
Overall, last quarter’s data has been very
positive. The average asking price for a UK
property stood at £302,865 towards the end
of Q4 - a 2.6% fall on November, but 1.2%
higher than the same time a year ago.
In many large regional cities, sales have
held up in Q4 thanks to a combination of INSIDER’S VIEW
improving economic growth and record low Sales Valuer at Kingsley Hamilton Estates,
mortgage rates. Daniel Probyn comments:
The North East showed the highest annual Previous market uncertainty following the Brexit
growth, with prices increasing by 4.7 per cent announcement showed clear signs of having subsided
compared to 2016. This was followed by the in Q4. We usually see a slowdown in buyers’ activity
West Midlands, with a 4.3 per cent growth rate. over the festive period and the recent figures suggest
that sellers and buyers activity remained strong in
Despite the ongoing uncertainty over the Q4. Overall, the UK housing market stayed consistent
Brexit deal, buyers are keen to get on with towards the end of 2017 which should provide us with
their home-moving plans and the New Year a stable start to 2018.
will provide them with a good opportunity to
do so.
National average asking prices
Month Avg. asking price Monthly change Annual change Index
December 2017 £302,865 -2.6% +1.2% 249.3
November 2017 £311,043 -0.8% +1.8% 256.1
October 2017 £313,435 +1.1% +1.4% 258
*Figures from Rightmove
National average asking prices by market sector (excluding Inner London)
Sector December 2017 November 2017 October 2017
First-time buyers £190,310 £193,577 £196,328
Second-steppers £263,634 £267,313 £266,871
Top of the ladder £519,187 £545,107 £554,246
*Figures from Rightmove
3 Kingsley Hamilton Estates
| PROPERTY MARKET REPORT - Q4 2017
England (Q4 2017 - regional trends*)
Average house price £211,433
Annual percentage change 2.7%
Quarterly change 0.7%
Most expensive region London
Least expensive region North
Strongest annual price change West Midlands
Weakest annual price change London
*Figures from Nationwide
KEY FACTS
√√The price of properties coming to market fell by 2.6% towards the end of Q4. Nationwide
√√ Average asking prices are up by 1.2% annually. Rightmove
√√Price growth in lower and middle sectors of the market are set to continue in 2018. Rightmove
√√London remained the most expensive place to buy a home in Q4. Nationwide
INSIDER’S VIEW
Reese Ye, Head of China Desk at Kingsley Hamilton Estates, comments:
Chinese investors are increasingly investing in the UK property market, as a
result of the low value of the pound follwowing the decision to leave the EU.
Foreign investors have been ramping up their investments in London for over a decade which has only increased
since the Brexit vote. And with the strengthening of the northern powerhouse economy, many Chinese buyers
are directing their capital out of London, towards the northern cities.
4 Kingsley Hamilton Estates
| PROPERTY MARKET REPORT - Q4 2017
LETTINGS
According to Rigthmove, all regions except London recorded a rise in asking rents in Q4 2017, with
prices up by 0.7%. Farnham in Surrey led the way in Q4, followed by Corby in Northamptonshire.
Asking rents in London ended the year 1.2% higher than at the end of 2016, the first time the annual
rate in the capital has been in positive territory in nearly two years.
National average asking rent (excluding Greater London)
Quarter Avg. asking rent per month Quarterly change Annual change
Q4 2017 £777 -1.5% +0.7%
Q3 2017 £789 -0.2% +1.2%
Greater London average asking rent
Quarter Avg. asking rent per month Quarterly change Annual change
Q4 2017 £1,930 +0.5% +1.2%
Q3 2017 £1,920 -0.7% -3.3%
% quarterly change in average asking rents
3.0% +2.8%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
-0.5% -0.2%
-0.4%
-1.0%
-1.1%
-1.5%
-1.5%
Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
5 Kingsley Hamilton Estates| PROPERTY MARKET REPORT - Q4 2017
TOP FIVE MOST IN-DEMAND AREAS IN GREATER LONDON
Area Avg. asking rent per month (2 bed) - Q4 2017
Kennington £1,857
Camberwell £1,604
West Wickham £1,108
West Norwood £1,370
Mitcham £1,228
TOP FIVE MOST IN-DEMAND AREAS OUTSIDE GREATER LONDON
Area Avg. asking rent per month (2 bed) - Q4 2017
Oldham, Greater Manchester £508
Bury, Greater Manchester £571
Grimsby, Lincolnshire £448
Leigh, Greater Manchester £440
Ellesmere Port, Cheshire £534
KEY FACTS
√√National average asking rents (excluding London) rose by 0.7% in 2017. Rightmove
√√Asking rents in London ended the year 1.2% higher than at the end of 2016. Rightmove
√√Farnham in Surrey recorded the highest rental growth outside London at 9% in 2017.
Rightmove
√√South East and Yorkshire and the Humber are the only two regions to
end 2017 with asking rents down. Rightmove
INSIDER’S VIEW
Lettings Manager of Kingsley Hamilton Estates, Elaine Chan, comments:
Demand remained strong in Q4 across the UK with an increasing number of
Londoners being drawn to the rental sector. Rental demand from tenants was buoyant in Q4 and the London
market continued to offer healthy yields for investors. Despite the various economic and political challenges faced
in 2017, the London lettings market remained resilient in Q4 and showed no signs of ebbing, thanks to a combination
of tightening stock available to rent and strong rental demand.
6 Kingsley Hamilton Estates| PROPERTY MARKET REPORT - Q4 2017
FOCUS ON: LONDON
House prices in London saw the usual seasonal
drop in Q4. The price of property coming to
market decreased by 3.7% in December. KEY FACTS
Within London, asking prices have been most √√Camden, Newham and Merton were
resilient in the borough of Newham where the amongst the best performing boroughs.
average house price rose by 9.8% in December Rightmove
compared to the same period last year.
√√Hammersmith and Fulham, Islington and the
London average asking prices City of Westminster were amongst the worst
performing boroughs. Rightmove
December November October
Area
2017 2017 2017
√√The most expensive borough was Kensington
Inner £754,141 £802,210 £795,142
and Chelsea, while the most affordable was
Outer £505,689 £512,695 £518,991 Barking and Dagenham. Rightmove
√√The price of properties coming to market
GREATER LONDON in London was down by 1.8% in Q4 2017.
Rightmove
Avg. price December 17 £605,203
Avg. price November 17 £628,219
Avg. price October 17 £629,611
Avg.price Q4 £621.011
*Figures from Rightmove
INSIDER’S VIEW
Associate Director of Kingsley Hamilton Estates, Stan Tonchev, comments:
Despite a slowdown in the rate of house price growth towards the end of the year, the London property market is holding
up well. No matter the outcome of the Brexit deal, we are confident that London will continue to top the list of the most
sought-after property investment destinations in Europe. As we move through 2018, there is little reason to expect any
significant changes in the current housing trends. Buyers and selllers remain cautious while property investors from across
the globe are focused on London as a place to invest. Against a backdrop of political uncertainty, the London property
market looks resolutely stable.
7 Kingsley Hamilton Estates| PROPERTY MARKET REPORT - Q4 2017
FOCUS ON: NORTH WEST
Overall, house prices continued to hold up well
in the North West. According to Rightmove,
North West regions are selling at higher levels
than at the same time a year ago - up by 2.4%.
Given the political and economical uncertainty
surrounding the UK property market, those
figures higlight that confidence is returning to
the UK.
NORTH WEST
Avg. price December 17 £180,035
Avg. price November 17 £180,146
Avg. price October 17 £186,848
Avg. price Q4 £182,343
*Figures from Rightmove
KEY FACTS
√√The average value of a home in the North West has increased by
2.4% in Q4. Zoopla
√√The North West of England had one of the biggest price inflation
in Q4 2017. Rightmove
√√Manchester offers one of the highest rental yields across the UK
at up to 6% in 2017. Office for National Statistics (ONS)
√√The average house price in the North West rose to £180,003 in Q4
compared to £175,857 last year. Rightmove
INSIDER’S VIEW
Sales Valuer at Kingsley Hamilton Estates, Daniel Probyn comments:
As we head into 2018, prospects for the residential market in the North West parts of the UK remain very
positive. The resilient property market in the North West is supported by the highly successful regeneration
of the area. In Q4, the top locations for property purchases tend to be large regional Northern cities such
as Birmingham, Leeds, Liverpool and Manchester. Affordable property prices combined with a booming
economy are drawing professionals and families to invest in the North West which is set to remain a top
destination for property investments in 2018.
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