20 things

Hometrack Monthly National Housing Survey – June

7 July 2007

• The Hometrack Monthly National Housing Market Survey for June 2007 revealed that property prices continued their stunted growth, with prices increasing 6.4 per cent in June, compared to 6.8 per cent in April.

• According to the monthly survey, the percentage of postcode districts with price increases over the month had a figure of 27.9 per cent.
• This was down from the 43.7 per cent seen in April, according to the Hometrack report.
• The June results were also a drop from the 33.9 per cent recorded in May 2007, Hometrack indicated.
• For the fourth month in a row the growth in the supply of homes coming to the market exceeded the growth in new buyers.
• Supply, according to Hometrack, peaked at 12.4 per cent.

• Hometrack showed that the growth in new buyers reached 5 per cent in June.
• According to the report, London saw the largest decline in demand over June, falling by 3.5 per cent from the previous month.
• However, prices in London rose by 0.7 per cent over the month, down from 1.3 per cent in May, Hometrack revealed.
• This was compared to a national average of plus 5 per cent.
• Hometrack’s monthly housing report attributed this to the above average growth in the equity fuelled prime housing markets in Central and South West London.
• There was also an increase in housing supply, which reached 10.9 per cent – representing the highest amount since February 2005, the survey suggested.

• Price rises were less than 2.5 per cent in 60 per cent of regions, the Hometrack year-on-year findings reported.
• According to Hometrack, the 12-month price change in April was plus 6.8 per cent, and plus 6.7 per cent in May, while in June this dropped to 6.4 per cent.
• Richard Donnell, director of research at Hometrack, said: The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates and widespread fears of further rate rises to come. With much of the new supply coming to the market from discretionary sellers looking to achieve close to the full asking price, it seems likely that the average time to sell property will increase in the months ahead with a slowdown in sales volumes and a switch to a ‘buyers’ market.”
• He added: We expect the headline year-on-year rate of growth to slow to 4 per cent by the year end with growth remaining in low single digits well into 2008.”

• The Hometrack index is based on a housing database that details the latest market information across more than 2,300 postcode districts in England and Wales.
• The Hometrack Monthly National Housing Index is compiled from over 6,000 individual reports, which are received from up to 3,500 estate agents.
• The survey collects market evidence from across the country not just where housing transactions happen to be taking place.
• Hometrack’s Housing Intelligence System is being used by local and regional government to inform policy and strategy in the housing and planning areas. Developers and investors are using the information and analysis in the system for demand modelling, scheme appraisals, planning negotiations and strategy development.