Reeds Rains Property Blog

Property News from Reeds Rains

House Price Index - July 2014

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 House sales recover to the highest level for 7 years - 4.6% annual price growth outside London and SE 

  • 90,000 sales in July, increasing 10% in a month as the market climbs back from April’s regulatory changes
  • Average house price rises to £270,636 – but driven by the capital and the South East
  • Annual growth in London climbs - taking average prices to £560,386
  • Prices stabilise across 7 regions in June as the market steadies

David Newnes, director of Reeds Rains estate agents, owned by LSL Property Services plc, comments: “First-time buyers and buy-to-let landlords are helping the flow of activity in the UK housing market. Overall 90,000 properties were sold across England and Wales in July, up 21% on a year previously and representing the highest monthly total since November 2007. As the common property choice of a new buyer or investor, flats have seen the largest increase in sales during the second quarter of this year, rising a third (36%) compared to Q2 2013. As the market emerges from the chrysalis of regulatory change, sales have climbed 10% in the past month. But chequered supply across the country has created considerable regional variation in sales. London and the South East have seen the slowest growth in house sales between Q2 2013 and Q2 2014. In these areas, limited availability of property is impacting sales. Elsewhere, lower prices and the stimulus of Help to Buy are aiding activity. The biggest boost in sales during April-June 2014 was found in the North West and East Midlands, increasing by a third (32%) on the same period last year.


“The average price paid for a home in the capital reached £560,386 in June, following a £10,850 (2.0%) monthly rise. After a temporary waning of growth in the London market, 24 boroughs have set new peak prices, and in Kensington and Chelsea average house prices are on track to surpass the £2million mark. However, a dampening of sales activity and more supply starting to come to the market will help control house price inflation in London.


“Housing policy should not be led astray by what is happening in prime central London. If London and the South East are removed from the equation, the annual change in average houses prices drops by 5.3% to 4.6%. Average prices in Northamptonshire, Bournemouth, and Wiltshire rose in June as the housing recovery starts to spread. The tendrils of recovery may be branching out from the centre, but they haven’t yet unfurled to all corners of the country. Outside of London, the South East and East Midlands, prices dropped and stabilised across all other seven regions in June.


“A more thoughtful and prudent housing market is emerging. Lending is stabilising to sustainable levels, and supply and demand is more balanced. Further interventions or tighter rules could fracture the health of the recovery, particularly further afield where schemes like Help to Buy are a necessary tonic spurring new buyers onto the housing ladder.”

First Time Buyer Opinion Barometer - July 2014

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First Time Buyer Sales Grow 27% In A Year

  • 146,000 first-time buyers between January and June – over 30,000 more than in than H1 2013
  • Strongest opening half of the year since 2007
  • 26,500 first-time buyer sales in June – topping 26,000 for second consecutive month
  • Average first-time buyer deposit a fifth lower than a year ago 

The first half of 2014 saw 30,000 more first-time buyers get on the housing ladder than in H1 2013, according to the latest First Time Buyer Opinion Barometer from Reeds Rains, part of LSL Property Services. 

In total, there were 146,600 first-time buyer transactions between January and June this year, up 27% from 115,700 in the same period last year. It was the strongest opening six months in seven years. The last time the opening half of a year saw more first-time buyer sales was in 2007 (181,500 transactions), before the financial crisis began to bite.

On a monthly basis, there were 26,500 first-time buyer sales in June, 10% more than twelve months ago. It was the second consecutive month in which the number of transactions topped 26,000.

The average first-time buyer deposit was £24,530 in June, falling 18% from £29,845 over the last twelve months. First-time buyer deposits have averaged less than £25,000 for five consecutive months.

At the same time, first-time buyer purchase prices have stayed fairly stable. The average first-time buyer mortgage has risen 2.9% over the last year to £119,743, while prices have stayed flat but deposits have fallen. The market is indicating signs at first-time buyer level of remaining stable and prices not spiralling out of control.

David Newnes, director of estate agent Reeds Rains, part of LSL Property Services group, said: “The bottom of the market continues to recover, even as activity further up the price bands is beginning to show signs of slowing down. Lenders have been more willing to lend to higher loan-to-value borrowers.  Help to Buy has boosted confidence and with it demand among first-timers who have been carefully saving up for their deposit.


“But the new loan-to-income caps could have a stifling effect on the first-time buyer market. They have understandably been designed to prevent too much ‘risky’ lending to borrowers with smaller deposits, but they need careful interpretation to ensure they do not cut good buyers - with realistic and very affordable borrowing expectations - out of the market. MMR regulations already stress test borrowers’ ability to withstand a base rate rise. The further regulation could sap the energy at the bottom of the market.”

Read the full First Time Buyer Opinion Barometer - July 2014 here

Reeds Rains announce Acomb Cricket Clubs player of the month

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Reeds Rains Branch Manager Andy Jacques with Matty Dale, Acomb Cricket Clubs player of the month.

Reeds Rains is delighted to announce Acomb Cricket Clubs player of the month for June. The Player of the Month Award recognises an individual player from the Acomb Cricket Club who has demonstrated outstanding performance for the club.

Congratulations to Matty Dale on successfully winning the award for June. Matty currently has made 311 runs for the club in his 9 games and he has shared recent victory with the team by beating Bridlington by 141 runs and Heworth by 7 wickets.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques is the Acomb branch manager for Reeds Rains who works alongside the club. He comments: “It’s great to sponsor the local cricket club and support the players. Matty is very talented and is a valued member of Acomb Cricket Club.  He is a well deserving winner. The sponsorship is part of the Reeds Rains drive to support the local community and create greater links with it.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.


(*)Calls may be recorded for training and/or monitoring purposes.

Buy-to-let index - June 2014

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Rent Growth Remains Stable as Tenant Finances Improve

  • Rent rises of 1.4% in last twelve months leave average residential rent at £747 per month
  • Tenant finances improve since last year with 7.8% of rent in arrears, down from 8.3% last June
  • Landlords see total returns reach the highest level since June 2010, at 11.8% per annum

Rents have risen at just 1.4% and tenant arrears have improved over the last 12 months, according to the latest Buy-to-Let Index from LSL Property Services plc, which owns the UK’s largest lettings agent network, including national chain Reeds Rains.

The average residential rent across England and Wales is now 1.4% higher than in June 2013. In absolute terms, this amounts to £747 per month, up from £737 per month in June 2013.

While the latest annual rental increase is below the rate of inflation (CPI of 1.9%) for the thirteenth month in a row, this means rent rises have doubled the pace of average pay growth.

By comparison, average earnings have risen by just 0.7% on an annual basis, according to the most up to date figures, released this week.

David Newnes, director of estate agent Reeds Rains, part of LSL Property Services, comments: “If rents had kept up with inflation for the last twelve months, this summer would have seen the average rent break through £750 per month.  And that hasn’t happened.

 “With housing costs making up such a big section of monthly budgets, it will be encouraging for many tenants that rents are going up more slowly than other household bills.  Thanks to extensive investment by landlords the supply of homes to rent has grown rapidly, and this has restrained rent rises.

“But while the private rented sector is becoming cheaper in real terms, the cost of living challenge continues.  And this is because wage growth has been constrained.”

Read the full buy-to-let index here.

Reeds Rains support home grown talent of Acomb Cricket Club

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Acomb Cricket Club

Reeds Rains estate agents is pleased to be supporting the home grown talent of the Acomb Cricket Club, near York,  by officially sponsoring their kit and supporting the annual local community music event the club hosts called Mothership.

The sponsorship is part of the Reeds Rains drive to support the local community and create greater links with it.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques Acomb branch manager for Reeds Rains comments: “The Cricket Club is committed to Acomb and they do a lot for the community – which we also want to be seen to be doing. The Club hosts an annual summer outdoor concert called Mothership which welcomes performances by local musicians.  Once again the very popular York based band called The Supermodels attended and sounded fantastic. Along with the great music the guests also enjoyed a BBQ, bar and plenty of activities for the kids which was popular with the families.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.

Mothership music festival, Acomb, York.

(*)Calls may be recorded for training and/or monitoring purposes.

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