Legal Indemnity Insurance for Residential & Commercial Properties

The GCS Blog:
Subscribe via Email Weekly Update #3    

June 22, 2018

This week, we’re looking at areas that have seen more than a 250% rise in house prices since the millennium, the gap between asking and selling prices, whether Brits are “too embarrassed” to haggle over house prices and more.


Figures show the areas of the UK where house prices have risen by more than 250% in the past 18 years, and you may be surprised

Researchers from HouseSimple have released figures showing where house prices have risen the most since the year 2000. Unsurprisingly, London’s property market comes up top with average prices rising by 271% since the millennium, and the boroughs with the biggest gains were Waltham Forest (364%), Hackney (339%), and Lewisham (331%).

Perhaps more surprisingly, though, was Southend-on-Sea’s results. The Essex resort has seen prices go up by 287% since the beginning of the century, and according to Land Registry figures, it’s had the fastest rise outside of London.

Outside the capital, house price growth seems to be higher in the east. Results found that prices in Cambridge rose by 279%, Luton 276% and Basildon 274%.

“We wanted to look at how house prices had fared across the rest of the country, as London is often viewed as a stand-alone property market, but is not reflective of the UK as a whole,” said chief executive of HouseSimple, Sam Mitchell. “In the middle of this 18-year period, we experienced one of the worst recessions this country has ever seen. It shows the resilience of the UK property market.”



Survey finds that 80% of home buyers are “too embarrassed” to haggle over house prices

A poll conducted by MoneySuperMarket asked 2,000 Brits a series of questions to find out how many people are happy to negotiate to get a better deal.

The study found that only 20% admitted they’d haggle when buying a house, despite the fact that 70% of them thought they could reduce costs by 15%. The most common reason given was because they were too ashamed, with 44% confessing they’d feel too sheepish to ask for a ‘better price’. 21% of participants said that they thought bartering for a lower price was ‘rude’.

In terms of area, the results found that Londoners were the least likely to haggle, with 53% saying they wouldn’t try to get any money off. In the south east, however, only 31% said they’d never negotiated a cheaper deal.

Money expert, Sally Francis-Miles, says: “Prices can often seem as though they’re set in stone, so it’s understandable there’s a sense we’re being ‘rude’ when asking for a better deal.”




A fall in London house prices and a hike in number of houses for sale may give buyers some hope

Figures from Rightmove House Price Index show that asking prices have dropped in 2 out of 3 London boroughs, and while it isn’t a huge drop at around 1%, it’s still a good sign. The average price of a London home now stands at £637,746.

While 1% may not seem like a lot, other areas within London have experienced a more substantial reduction: Hackney (3.7%), Hammersmith and Fulham (3.9%) and Ealing (4.5%).

A 16.4% increase has also been seen in the number of houses and flats for sale in London over the past year. Head of London residential research at Knight Frank, Tom Bill, believes that the increase in supply partly caused by certain homes taking too long to sell. Rightmove claims that it now takes on average 67 days to sell in London, compared to 59 days last year.

Rightmove director and housing market analyst, Miles Shipside, argues that sellers in locations where there’s an increase in supply need to lower their prices, and he’s not alone. Tom Page, manager of Fyfe Mcdade estate agents, agrees: “There is no space for immature pricing in today’s market”.

“There used to be an argument for pricing a property high and trying your luck. However, there are no longer enough buyers in the market for overpriced properties to get attention.”



Figures show a 45% difference between asking and selling prices

Online estate agent, Emoov, has revealed figures showing an average 45% gap between asking and selling prices across the UK. The average UK selling price stands at £226,906, but the average asking price is £414,359.

Looking at each region individually, England has the largest gap at 25% with the average asking price being £323,336 and the average selling price being £243,639. Wales has a 21% average difference while Scotland has the smallest: their average asking price is £186,371 and the selling is £156,495.

The largest gaps overall appear in South Gloucestershire at 43% and Inverclyde in Scotland where the average asking price is £159,932 compared to the average selling price of £65,572. Nottingham has the second largest gap in England and the fourth largest in the UK at 31%.

So, does this mean house sellers should be inclined to lower their prices? Not according to the estate agent, who said: “The gulf between the average price of homes on the market compared to those that are actually selling in the same market.”



Telegraph, Today’s ConveyancerHomes & Property – June 2018
GCS – Guaranteed Conveyancing Solutions – Legal Indemnity Insurance