news release
Experian insight reveals growth in the rental market is slowing, but multi-bedroom properties soar in popularity
Nottingham, 26 June 2013 – New insight from Experian®, the global information services company, today revealed a nationwide trend in the growing number of properties valued at more than £500,000 coming onto the market for sale.
During Q1 2013, the market saw a 19.1 per cent increase, compared to the same quarter in 2012, in the number of properties for sale at over £500,000. The increase was led mainly by London and the West Midlands, each seeing around 26 per cent increase in homes falling into the highest price band.
The analysis, which offers an insight into the UK housing market to enable lenders to understand how consumers’ financial needs are changing, reveals that across the UK, the overall number of properties listed for sale were up by 13.0 per cent compared with Q4 2012 and by 9.7 per cent from Q1 2012. This revival follows a period of decline, with the number of properties marketed for sale falling by 4.0 per cent in 2012.
Meanwhile, the rental market after a strong year of growth in 2012 (increasing by 5.6 per cent compared to 2011), began to stabilise at just 2.8 per cent growth during the first three months of this year. Despite the slowdown in growth, the rental market has seen an explosion in large properties with four or more bedrooms. During Q1 2013, properties with four bedrooms or more increased by 17.2 per cent.
Jonathan Westley, Managing Director of Consumer Information Services at Experian UK & Ireland, comments: “The uplift in more expensive houses coming onto the market for sale was seen in most parts of the country and not just in the London area as would have been expected. While it suggests a growing confidence among sellers who feel now is a better time to sell than this time last year, it does also highlight a need for a better understanding of homeowners, as some may in fact be experiencing financial pressures.
“Monitoring the changing face of the UK’s property market is essential for any financial services, utility or insurance company in order to really understand a person’s equity position for credit strategies.”
Property prices
While properties for sale at over £500,000 increased across the UK, Wales and the North East were the only areas to see fewer properties falling into this price band – down 6.8 per cent and 1.1 per cent respectively, compared to Q1 2012.
The number of properties valued between £250,000 and £500,000 also increased by 11.0 per cent in the same period. However, the majority of homes for sale on the UK market in Q1 2013 were valued between £100,000 and £250,000, with 51.4 per cent of properties for sale falling into this price bracket.
Location, location, location
The analysis indicates that across the UK a number of fresh sellers are coming to the market. Scotland saw the biggest surge in properties being marketed for sale in Q1 2013, up 20.0 per cent on Q1 2012, closely followed by the West Midlands which saw the number of new listings rise by 18.0 per cent. The North East and Outer Met were the only regions to buck the trend, with the number of properties for sale falling by 4.2 per cent and 0.4 per cent in Q1 2013 compared to the same quarter in 2012.
While the pace of growth in the rental marketplace slowed overall, London continued to see a notable uplift in the number of homes to let, increasing by 27.7 per cent from Q1 2012 to Q1 2013. The capital also saw a big difference in the number of rentals versus sale properties added to the market in the first quarter. There were 45,659 properties to let, over double the number of properties up for sale (21,452).
Property type
Detached houses are the most frequent house type listed for sale across the UK, with a total of 49,461 detached houses for sale in the first quarter of 2013 compared to 43,796 in the same period last year, an increase of 13.0 per cent. Three bedroom properties were the most common size of home on the resale market, accounting for 38.82 per cent of all new listings.
In the rental market, flats took the lion’s share in Q1 2013, accounting for almost 45 per cent of all rental properties. In London, this figure rises, with this type of property accounting for 74 per cent of the capital’s rental market. However, terraced houses saw the biggest increase from Q1 2012 to Q1 2013 – up 17.9 per cent. In particular, terraced houses with four or more bedrooms to rent increased by 23.2 per cent.
ENDS
Notes to editors
Experian’s Property Index sources data from a range of UK sales & letting agents.
Contact:
Chantal Heckford / Maddy Morgan Williams / Philippa Williamson
Lansons Communications
020 7490 8828
chantalh@lansons.com / maddymw@lansons.com / philippaw@lansons.com
Notes to editors
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.