Latest news with #propertyprices
The Guardian
3 days ago
- Business
- The Guardian
‘Repeatedly outbid': readers share stories of housing despair as Australia's prices reach record highs again
Dozens of Guardian Australia readers have shared their experiences of trying to buy a home in a rising market, as fear-of-missing-out fervour takes hold. After a short reprieve, property prices have surged to record highs across large parts of Australia, making a family home even more unaffordable for prospective buyers. One Melbourne reader, a nurse, said she felt like cattle herded from one home open to the next. 'Multiple times I went to inspections of properties I liked, only to be told on the way out that there was already an offer of $30-50k over asking and if I was interested I needed to submit a better offer within a few hours,' said the reader, who eventually secured a property. 'The market was so competitive I felt really rushed into making a decision a lot of the time.' Auctions are heating up across the country, with six straight weeks of preliminary clearance rates holding above 70%, according to Cotality data, in a clear sign sellers are in control. Clearance rates refer to the percentage of properties sold at auction compared with the total number of properties listed to go under the hammer, with results above 70% viewed as an indicator of strong buying demand. Bidding is expected to become even more fierce amid expectations of further interest rate cuts and an enduring lack of supply of homes. Property prices in Sydney, Brisbane, Adelaide and Perth are at peak levels, while Melbourne, Canberra and Hobart are also rising. A reader in Western Australia's south-west said she and her partner bought far from their family and friends in Perth 'not because we were seeking a lifestyle change but because we simply couldn't compete in the city or suburbs any more. 'We went to countless inspections and put in offer after offer, but were repeatedly outbid, ignored by real estate agents or told homes were under offer before we'd even had a chance,' the reader said. 'At the same time, we were grappling with housing instability, facing no-ground evictions and repeated rent increases.' The couple aged in their early 30s are now so financially stretched with their new mortgage they've made the decision not to have children. 'We simply can't afford to raise a family,' the reader said. 'That's not something we ever imagined we'd have to sacrifice, but this housing crisis has forced people like us to choose between stability and the future we once hoped for.' Many readers commented on the presence of investors bidding up prices at auctions. Over the past five years, investors have increased their share of new home loans from 28% to 37%, according to Australian Bureau of Statistics data. One Canberra resident said she wanted to buy a home to provide stability for her family after moving between rentals eight times in nine years. The public servant went to two auctions where the same investor bid up prices, with his teenage son filming. Sign up for Guardian Australia's breaking news email 'I saw the same guy at an open house for the house we purchased and gave him a filthy look of recognition,' said the reader, who was pleased the investor didn't lodge a bid for her eventual home. A Melbourne reader said while it wasn't always possible to identify who he was bidding against, 'it was always obvious at auctions who were the first home buyers as they bowed out first'. Most market watchers attribute the growing influence of investors to favourable tax settings, including the Howard-era decision to halve the rate of capital gains tax. Those settings are particularly helpful to investors when many prospective first home buyers are being priced out of the market. Australia's intense housing problem, whereby Sydney, Adelaide, Melbourne and Brisbane are all in the top 10 least affordable global cities, has a knock-on effect across society, with foster care agencies reporting a fall in the number of applicants given many people can't afford the time and don't have the spare room to be a carer. Some readers have turned to 'rent-vesting', a strategy of renting a home to live in while buying a more affordable property elsewhere, in the hope that capital growth will pay for a future deposit. A Sydney reader said he and his wife tried to buy a home for 15 years. 'The most frustrating thing was watching our rent, continuously being raised, go to pay someone else's mortgage,' he said. 'We had to become part of the problem to beat the system. We had to rentvest for five years to accumulate enough equity to pay for our own home.'
Daily Mail
3 days ago
- Business
- Daily Mail
EXCLUSIVE The end of Britain's housing boom? Experts issue warnings for sellers amid biggest July downturn in two decades - as map shows where prices are falling the most
British homeowners trying to sell their properties are facing a 'reality check', experts warned today after the biggest July drop in asking prices for at least two decades. The average price tag on a home coming to market fell to £373,709 this month - marking a £4,531 or 1.2 per cent decrease on June, according to Rightmove. While there is often a seasonal dip in prices in July, this is the largest monthly price drop at this time of year recorded by the firm over more than 20 years of data. Rightmove has also cut its house price forecast for 2025 from 4 per cent growth to 2 per cent amid concerns over a high level of seller competition limiting price growth, although the company is retaining its prediction of 1.15million transactions this year. London, and particularly inner London, has been a driver of asking price falls among new sellers, according to the firm. Price tags across London have fallen by 1.5 per cent month-on-month, rising to 2.1 per cent average price falls in inner London. April's increase in stamp duty has had a particular impact in London where property prices are higher. But property experts believe the market is undergoing a reset rather than collapsing, with over-optimistic sellers now correcting ambitious sale prices. Ranald Mitchell, director at Charwin Mortgages, said: 'This is not a crash, it's a reality check. Sellers can no longer name their price and expect the market to play along. This two-bedroom detached bungalow for sale on a cul-de-sac in the village of Walton near Felixstowe in Suffolk was listed for £300,000 in April, but has now been cut to £280,000 'With stock levels surging and buyers laser-focused on value, overpriced homes are being left to gather dust. The drop in asking prices is proof that wishful thinking is being replaced by market sense. 'Savvy sellers who price sharply are seeing results. Rightmove's trimmed forecast makes sense in a market that is adjusting, not collapsing.' What do the experts say about falling asking prices for UK homes? Ranald Mitchell, director at Charwin Mortgages: 'This is not a crash, it's a reality check. Sellers can no longer name their price and expect the market to play along. With stock levels surging and buyers laser-focused on value, overpriced homes are being left to gather dust. The drop in asking prices is proof that wishful thinking is being replaced by market sense. Savvy sellers who price sharply are seeing results. Rightmove's trimmed forecast makes sense in a market that is adjusting, not collapsing' Justin Moy, managing director at EHF Mortgages: 'This has all the hallmarks of seasonal demand combined with the fall-out from April's increased stamp duty costs. With mortgage rates holding and lenders digging deeper into their pockets this could just be a summer blip, but the government needs to keep a close eye on this trend.' Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management: 'Increased stock levels are giving sellers a reality check and they're pricing more realistically. People have come to understand that over-pricing can see you under-achieve when it comes to the sale price agreed. This is not a sign of a property market imploding, just one that is becoming more rooted in reality.' Babek Ismayil, Founder at OneDome: 'Sellers are waking up to the fact that, if you put your property on the market at an unrealistic price, it's simply not going to sell in the current market. And if it doesn't sell and languishes on portals, that can become a problem and see the achievable price dwindle further. This has been the case for a few years now but there now appears to be a shift, which may get the market moving in earnest finally.' Patricia McGirr, founder at Repossession Rescue Network: 'Yes, asking prices are sliding, but where I am, it's a tale of two markets. Family homes with decent space are holding strong. But in the investment world? Buyers are driving hard bargains and sellers are blinking first. Tempting price tags might boost affordability, but they're also a litmus test: if your property's not shifting, it's probably overpriced, overlooked or overhyped. The second half of 2025 may look rosier, but right now, the smart money's negotiating hard and getting what it wants.' By contrast, the North East of England has seen a 1.2 per cent rise in prices month-on-month, continuing a trend of less expensive areas seeing faster price growth. Summer sellers typically need to work harder to capture distracted buyers' attention. Justin Moy, managing director of EHF Mortgages, said: 'This has all the hallmarks of seasonal demand combined with the fall-out from April's increased stamp duty costs. 'With mortgage rates holding and lenders digging deeper into their pockets this could just be a summer blip, but the Government needs to keep a close eye on this trend.' Babek Ismayil, founder at property transaction platform OneDome, added: 'Sellers are waking up to the fact that, if you put your property on the market at an unrealistic price, it's simply not going to sell in the current market. 'And if it doesn't sell and languishes on portals, that can become a problem and see the achievable price dwindle further. This has been the case for a few years now but there now appears to be a shift, which may get the market moving in earnest finally.' Among the homes reduced in London is a freehold split-level two-bedroom flat for sale in Richmond which was put on the market in 2024 for the first time in 60 years. The property was first listed last September for £1.4million, before being reduced to £1.35million in November, £1.285million in January and £1.2million in May. In Kent, a three-bedroom semi-detached house in Kemsing was put on the market for £740,000 last October, but cut to £725,000 in February and £695,000 in June. And buyers in Hampshire could look at a two-bedroom thatched country house in Martin. The New Forest property was listed for £549,000 in March, but has now been cut to £495,000. Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said: 'Increased stock levels are giving sellers a reality check and they're pricing more realistically. 'People have come to understand that over-pricing can see you under-achieve when it comes to the sale price agreed. This is not a sign of a property market imploding, just one that is becoming more rooted in reality.' Tempting pricing from new sellers is said to be helping to improve buyer affordability, enticing new buyers into making inquiries. With mortgage rates falling and two more Bank of England base rate cuts still expected in 2025, Rightmove believes the overall outlook for the second half of the year remains positive. Patricia McGirr, founder of the Repossession Rescue Network, said: 'Yes, asking prices are sliding, but where I am, it's a tale of two markets. 'Family homes with decent space are holding strong. But in the investment world? Buyers are driving hard bargains and sellers are blinking first. 'Tempting price tags might boost affordability, but they're also a litmus test: if your property's not shifting, it's probably overpriced, overlooked or overhyped. 'The second half of 2025 may look rosier, but right now, the smart money's negotiating hard and getting what it wants.' Many lenders have recently made changes to their criteria, allowing some borrowers to potentially take out bigger loans. Rightmove's mortgage tracker indicates that the average two-year fixed mortgage rate is now 4.53 per cent, compared with 5.34 per cent a year earlier. Colleen Babcock, a property expert at Rightmove, said: 'We're seeing an interesting dynamic between pricing and activity levels right now. 'The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. Key price figures from Rightmove's report Average asking price of property has fallen to £373,709 in July, down 1.2% or £4,531 since June London is the biggest regional driver of new seller asking price falls this month, down 1.5%; with inner London down 2.1% The number of sales being agreed is 5% higher than at this time last year Number of potential future buyers contacting estate agents about homes for sale is 6% higher than last year Average new seller asking prices just 0.1% higher than they were a year ago. Average two-year fixed mortgage rate is 4.53%, compared with 5.34% at this time last year Key price figures from Rightmove's report 'What's most important to remember in this market is that the price is key to selling. 'The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. 'It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.' Ms Babcock added: 'Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this.' Phillip Bishop, managing director at Perry Bishop in Cirencester, Gloucestershire, said: 'We're seeing significantly higher stock levels than a year ago but mitigated in part by a good increase in buyer registrations and viewing levels compared with last year. 'Buyers are taking their time and viewing more before deciding, and the serious and motivated sellers are pricing sensibly and getting success.' He added: 'Rarely available properties are still receiving mass interest and multiple offers. 'The Cotswolds summer market can slow over the holidays, but we expect a second wave of serious buyer activity in the autumn, with serious motivated buyers wanting to agree their purchase.' Rightmove's report was released as property firm Hamptons downgraded its 2025 rental growth forecast from 4.5 per cent to 1.0 per cent across Britain. It said this reflected a faster-than-expected market slowdown. It said the primary driver behind this cooling rental market has been the transfer of demand from the rental sector to the sales market. As mortgage rates have fallen, homeownership has become more accessible, leading to strong first-time buyer activity, Hamptons said. Hamptons said that rents on newly let properties rose by 0.4 per cent year-on-year across Britain in June, reaching £1,369 per month - the weakest growth since August 2020. Aneisha Beveridge, head of research at Hamptons, said: 'The rental market has softened more quickly than we anticipated towards the end of last year. 'What initially appeared to be a London-centric slowdown has now spread across the country, with rents declining in multiple regions and growth easing elsewhere. 'A combination of falling mortgage rates and a weaker labour market has shifted the dynamics - more affluent renters are becoming first-time buyers, while the economic slowdown is limiting what others can afford. 'That said, this isn't the end of the rental growth story.' She said that a shortage of rental homes 'remains unresolved' and regulatory changes are likely to add to landlords' costs, constraining supply. Hamptons' lettings index uses data from the Connells Group to track changes to the cost of renting. It is based on achieved rather than advertised rents. Nathan Emerson, chief executive of property professionals body Propertymark, said: 'We have seen encouraging signs from (Chancellor) Rachel Reeves's Leeds Reforms which are designed to potentially better help lenders serve those on lower incomes. 'However, such reforms alone will not help keep house prices manageable without the UK Government and the devolved administrations meeting their individual housing targets to keep pace with real world demand.'
Daily Mail
3 days ago
- Business
- Daily Mail
Want to stop renting and buy a place of your own? This is where to start
Tired of paying off your landlord's mortgage instead of your own? You're not alone. But deciding what to do about it isn't always easy. Taking your first step onto the housing ladder can seem daunting, especially with today's high property prices and uncertain economic outlook. But there are practical steps you can take today to start working towards this target, including some that might surprise you. Plum, a smart money app available to download for free on App Store or Google Play, has years of experience helping Brits work toward their financial goals - big and small. Below, we've drawn on their expertise to create a simple, handy guide for renters struggling with making their first strides towards home ownership. Bear in mind that Plum does not offer financial advice, and individuals should conduct their own research or seek independent advice. 1 - Figure out what you can afford A vital first step for anyone wanting to buy a home is working out how much money you'll need to spend. To do this, it's handy to know the average price of the kind of house you're looking to buy. You can find this out by looking at property websites, so that's another excuse to browse Rightmove at work! You'll usually need to pay a deposit worth at least five to ten per cent of the overall asking price, so once you know the approximate cost of your ideal home, calculating a rough deposit is fairly easy. After you have your deposit settled, it's time to consider how big a mortgage you could feasibly borrow. There are lots of handy online resources to help you, such as the mortgage affordability calculator at MoneyHelper, a government-funded personal finance website. This allows you to input expenses, such as bills, credit card repayments and travel costs, before working out roughly how much you could afford to borrow. After all, you don't want to end up borrowing too much and struggle to keep up with your mortgage repayments. Armed with all this info, you're in a good place to start working out how much more money you need to save to reach your target deposit, not forgetting all the additional costs involved in buying a home, including stamp duty and estate agents' fees. Once you've come up with a total figure, you can then work out how much you'll need to save each month to reach it. If your target deposit is looking unrealistic and your mortgage repayments are too high, then it may be time to aim for a cheaper property. 2 - Start saving with a purpose Being able to save enough money for a deposit can feel like a difficult challenge, but you can make it more achievable by taking a planned, strategic approach. Taking advantage of tax-free savings products can help speed up your progress, particularly if you use providers that offer a good rate of interest. And remember, the sooner you start, the more you'll be able to put away. Two of the most popular are Lifetime ISAs (LISAs) and Cash ISAs. Keep in mind that tax treatment depends on your individual circumstances and may change in the future. LISAs allow you to save £4,000 towards a first home (worth up to £450,000) or retirement. The government then adds a 25 per cent bonus to whatever you put away, up to £1,000 a year. If you're curious about how much the Liso could accelerate your plans of buying a home, Plum's LISA Calculator is a fantastic tool. You can use money in your Lifetime ISA to help buy a first home if it's been open for at least 12 months and the property costs £450,000 or less. You may get back less than you paid into your LISA as a 25% government penalty applies if you withdraw money for any reason other than buying your first home or retirement. This means it's worth taking time to ensure a Lifetime ISA is right for you. LISA rules may change and tax treatment is subject to your personal situation. Opening one with Plum is easy, and you'll benefit from a competitive 4.80% AER (variable) interest rate for the first year, including a 1.19% AER (variable) bonus. Both your bonus and any interest payments are free from tax. Rates may change. If you sign-up for the LISA, you have the right to cancel it fully within 30-days. UK taxpayers have a total annual ISA allowance of £20,000, so if you've already used your full £4,000 LISA allowance, you could consider using a Cash ISA for the rest. Plum offers a competitive rate of up to 4.98% AER (variable), which includes a bonus rate of 1.69% AER (variable) for the first 12 months. If you transfer an ISA to Plum, the interest rate is 3.29% AER (variable). There's no subscription fee for opening a Cash ISA with Plum. Withdrawals take one day and are free of charge. 3 - Get mortgage-ready early Not everyone knows it, but saving isn't the only thing you can do to prepare for buying a home - you can also start getting ready to apply for a mortgage many years before you actually do so. One of the key factors every mortgage lender will consider is your credit score, a number that's used to show how likely you are to repay money you're lent. Having a higher score makes it more likely you'll be approved for a mortgage with a good interest rate. To see how you're getting on, it's possible to check your credit score for free online. You can then take some steps to improve it in the years before you apply for a mortgage, such as by registering on the electoral roll and paying off any debts. It's also wise to do some research on what mortgage lenders look for so you're in the best position when it's time to apply. Red flags include maxed out credit cards, lots of gambling transactions, and frequent dips into an unarranged overdraft. If any of these sound familiar, taking action early can make a big difference down the line. 4 - Build a consistent savings habit When you're trying to hit a savings target, it can be tempting to divert big slugs of cash into your savings only to find you've left yourself short later on. A far better approach is to save relatively small amounts on a consistent basis. When you automate your savings with Plum, its clever algorithms scan your bank account to work out how much you can afford to save each week before setting it aside for you. This means you're constantly making progress towards your house deposit, without ever being left short. Plum's user-friendly interface makes it easy to track your progress to make sure you're on course towards your target. If you're not, you can increase the size of your automatic deposits at any time by changing your savings 'mood' to a higher setting, such as 'ambitious', which puts away 50 per cent more than the default level. There are lots more Auto Savers you can try, too, like Rainy Days, which puts aside a set amount each time it rains in your local area, and Round Ups, which rounds your spending to the nearest pound and banks the rest. Note that some smart Saving Rules are paid features and therefore fees apply. You will need to review periodically whether automation is suitable for your circumstances. Why you can trust Plum to keep your money safe You work hard for your money, so you'll want to ensure every penny you put away is protected. Money held in a Plum Easy Access Interest Pocket, Lifetime ISA or Cash ISA is covered by the Financial Services Compensation Scheme (FSCS) up to a total of £85,000 per customer per our banking partner. Learn more about how your money is protected here. There are also protections for a non-interest earning pocket, like a Primary Pocket, which is covered by the E-Money Safeguarding Rules. The Plum app also supports encryption and face and fingerprint ID for added security. And if you ever need help, their friendly customer support teams are available 7 days a week. Click here for more information on how your money is protected with Plum. Plum is the trading name of Plum Fintech Limited and Saveable Limited. Plum Fintech Limited is registered and regulated by the Financial Conduct Authority (FRN 836158). Saveable Limited is authorised and regulated by the FCA (FRN: 739214)
Zawya
3 days ago
- Business
- Zawya
Egypt's residential property prices soar up to 30% in H1 2025
Egypt's residential real estate market has experienced one of its steepest price surges in over a decade during the first half (H1) of 2025, with average unit prices climbing by 20% to 30% compared to late 2024. In some of Cairo's prime districts and along the North Coast, prices have reached record levels, surpassing EGP 200,000 per square metre. This sharp rise comes as a result of several overlapping factors. The significant depreciation of the Egyptian pound against the US dollar in early 2024 has raised the cost of imported building materials, energy and finishing components, forcing developers to adjust prices upwards to protect profit margins. At the same time, annual inflation, which hovered above 30% into 2025, has driven up wages, transportation and raw material costs, further inflating construction expenses. Land scarcity has also played a critical role. In high-demand areas such as East and West Cairo and the North Coast, limited availability of prime plots has intensified competition among developers, pushing prices higher. The surge in speculative demand, as investors seek real estate as a hedge against inflation and currency volatility, has added further pressure to an already tight market. Meanwhile, rising financing costs and higher prices for steel, cement and finishing materials have led many developers to revise their pricing strategies, particularly for new project phases. Despite these challenges, the market has shown remarkable resilience. According to The Board Consulting, the top 10 real estate developers in Egypt recorded combined sales of approximately EGP 290 billion in the first quarter of 2025, up 23% from EGP 235 billion in the same period last year. Around 18,500 units were sold in the quarter at an average price of EGP 15.7 million per unit, reflecting a 25% year-on-year increase, particularly in the upper-middle and luxury segments. Some of the most significant price hikes were recorded in East Cairo's Fifth Settlement, where prices per square metre ranged from EGP 60,000 to over EGP 200,000. The fast-growing Sixth Settlement also saw average prices rise to between EGP 120,000 and EGP 160,000, an 18% increase in just the first four months of the year. In West Cairo, prices ranged from EGP 50,000 to EGP 170,000, underlining the continued strength of demand in both established and emerging districts. The North Coast remains a major hotspot, supported by the momentum following the announcement of the Ras El Hekma development deal. Prices in the area now range from EGP 70,000 to EGP 200,000 per square metre, while premium secondary market units have reportedly changed hands for between EGP 800m and EGP 1bn. Emerging areas such as El Obour City have also witnessed notable increases, with prices rising from around EGP 7,000 per square metre in 2023 to roughly EGP 35,000 in 2024. Meanwhile, residential prices in the New Administrative Capital have ranged between EGP 50,000 and EGP 70,000 per square metre, depending on factors such as developer reputation, construction progress and project scale. The initial driver behind the sharp rise in prices was the early 2024 currency devaluation, which prompted developers to adjust pricing models. Although there was a brief period of price consolidation following a temporary stabilisation in exchange rates, prices resumed their upward trend in the second half of the year, registering further increases of 15% to 30%. Looking ahead, market forecasts indicate that property prices could continue to rise by another 20% to 30% through the rest of 2025, as inflationary pressures and elevated construction costs remain significant. This is despite recent interest rate cuts by the Central Bank of Egypt, which reduced rates by a total of 3.25% in April and May. Developers continue to price projects based on a combination of regional demand, rising input costs and competitive benchmarking, leading to substantial variations across districts and segments. Yet flexible payment plans and long-term instalment options have allowed the market to absorb these price increases, reflecting sustained demand and long-term confidence in Egypt's residential real estate sector — even in the face of ongoing economic volatility.
Zawya
3 days ago
- Business
- Zawya
Rightmove reports record fall in July UK property prices
LONDON: Asking prices for newly advertised British houses and apartments recorded their biggest July fall in more than 20 years this month, property site Rightmove said on Monday. Prices for property put on sale during Rightmove's July period - which runs from June 8 to July 12 - were 1.2% lower than for property marketed a month earlier, the biggest June to July drop since the series began in late 2001. Compared with a year ago, asking prices were 0.1% higher. "With the number of available homes still at a decade-high level, summer sellers are pricing even more competitively to attract buyer interest," Rightmove said. British property sales surged earlier this year but then fell sharply after the end of a temporary tax break on many purchases in April. "Discerning buyers can quickly spot when a home looks over-priced compared to the many others that may be available in their area," Rightmove property expert Colleen Babcock said. While sales volumes are still running at around 5% above 2024 levels, Rightmove said it was cutting its forecast for price rises over 2025 as a whole to 2% from 4% due to the high level of competition between sellers. Overall, Rightmove expects 1.15 million property sales in 2025. Prices fell most in inner London, which saw a 2.1% monthly drop, while the biggest rise was in northeast England where there was a 1.2% rise. Earlier this month Nationwide Building Society, Britain's second-biggest mortgage lender, said its house price index dropped by 0.8% in June, the biggest seasonally adjusted monthly fall since November 2022. Official data, which is based on completed purchases, showed that house prices in May were 3.9% higher than a year earlier, down sharply from annual growth of 7.0% in March. Rightmove said smaller price rises, combined with strong pay growth and lower mortgage rates, were making property purchases more affordable. Typical mortgage rates for a two-year fixed period have dropped to 4.53% from 5.34% over the past year, while average wages rose 5.0% in the year to May. (Reporting by David Milliken; editing by Suban Abdulla)
