HOUSE prices fell in March for the first time in six months, according to Halifax.
The lender said they slipped by one per cent compared to the previous month, and a typical home now costs £288,430.
Prices are still 0.3 per cent higher than a year ago, however.
The drop comes after mortgage rates started to creep back up again as banks and building societies adjusted to more cautious expectations of interest rate cuts.
At the start of the year, financial markets had been betting the Bank of England would cut rates as soon as May.
But that has now been pushed back to June — or even August — after the Bank kept the base rate at 5.25 per cent.
Kim Kinnaird, director of Halifax Mortgages, said: “Markets are less optimistic about base rate cuts.
“This has stalled the decline in mortgage rates that drove market activity earlier in the year.”
Jonathan Hopper, boss of Garrington Property Finders, said: “In some areas the number of homes coming on to the market is four times higher than the number of new buyers registering with estate agents — and this surge in supply is also holding back prices.”
While house prices have dipped they are still around 20 per cent higher than before the pandemic and mortgage rates almost double where they were in 2021.
WFH sideline
STAFF operating entirely from home are 11 per cent less likely to be be promoted than those working from the office, research indicates.
And those doing two or three days in the office are seven per cent less likely to step up the ladder, according to a survey of 1,000 managers by the University of Warsaw.
Body save bid
THE Body Shop may be saved in a restructuring plan that puts it back in private equity hands.
The beauty retailer collapsed four months after Aurelius bought it.
Now administrators have put forward a plan to creditors which would reduce rents but keep the remaining 115 stores open.
Good Week
Bad Week
EIGHT common features around the home could actually be knocking money off its value.
Halifax said house prices rose for a fifth consecutive month in February by 0.4% and 1.7% year-on-year.
The uptick might have you thinking of selling on your property and cashing in.
But you should be wary of a number of features that could actually make your home worth less, according to estate agent Yopa.
Ponds, artificial grass and unused or old swimming pools can knock up to 19.6% off the value of your home it turns out.
An unused or old swimming pool could slash your home’s worth by £55,799, based on the average UK property price of £284,691.
Got brown, unpainted Pebbledash on your external walls? That could be reducing the value by £28,469.
Meanwhile, poor parking options, or none at all, can slash your potential asking price by £19,359.
Artificial grass, having no lawn and no bath in the main bathroom can also see the average UK home value drop by £14,804, £6,100 and £5,694 respectively.
Having a north facing garden and pond can also see a home’s value fall by £5,525 and £5,258 respectively.
How to boost the value of your home
Some home improvements will inevitably boost the value of your home more than others.
Nick Leeming, chairman of estate agent Jackson-Stops, said buyers were increasingly looking for green energy measures in homes such as electric vehicle charging points.
He added: “We might see buyers start to negotiate on asking prices, prioritising a home purchase that is future-proofed from day one.”
Meanwhile, data from property buying company Open Property Group recommends 12 improvements that will boost the overall value of your property the most.
Loft conversions, costing around £40,000, can add £56,938 to the value of the average UK house price of £284,691.
A 20square foot extension, costing around £48,000, can add £56,938.
Meanwhile, a garage conversion can add £28,469 while only costing an estimated £15,000.
This is Open Property Group’s list of 12 home improvements, how much they cost and how much they’ll add to the value of your home:
- Loft conversion (£40,000 cost) – £56,938 added value
- 20square foot extension (£48,000 cost) – £56,938 added value
- Garage conversion (£15,000 cost) – £28,469 added value
- Garden room/office (£10,000 cost) – £21,352 added value
- Kitchen upgrade (£10,550 cost) – £15,658 added value
- Utility room (£8,730 cost) – £14,235 added value
- Solar panels (£7,000 cost) – £11,388 added value
- All over redecoration (£3,200 cost) – £8,825 added value
- Bathroom renovation (£5,000 cost) – £7,402 added value
- Boiler/central heating upgrade (£3,850 cost) – £5,409 added value
- EV charging point (£1,150 cost) – £4,840 added value
- Landscaped garden (£3,950 cost) – £4,270 added value
How else to boost the value of your home
Jonathan Rolande, from the National Association of Property Buyers, previously revealed to The Sun one quick tip to boost the value of your home when it comes to actually selling up – buying flowers and plants.
Doing this can increase the value of your home by thousands of pounds and create a greater demand among buyers.
“It increases the saleability,” he told The Sun. “You buy some nice plants, clean the rooms and the estate agent photos will look a lot better.
“This means you get more people looking around, more competition, and you can barter the price more.”
Giving your home a fresh lick of paint will boost its immediate value too, according to Chris Husson-Martin from Hamptons estate agent.
Adding a few lights to your home can add thousands to the value of your home as well, he told The Sun.
It’s worth moving any furniture that’s blocking windows around the house as well, to let any natural light in.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
EIGHT common features around the home could actually be knocking money off its value.
Halifax said house prices rose for a fifth consecutive month in February by 0.4% and 1.7% year-on-year.
The uptick might have you thinking of selling on your property and cashing in.
But you should be wary of a number of features that could actually make your home worth less, according to estate agent Yopa.
Ponds, artificial grass and unused or old swimming pools can knock up to 19.6% off the value of your home it turns out.
An unused or old swimming pool could slash your home’s worth by £55,799, based on the average UK property price of £284,691.
Got brown, unpainted Pebbledash on your external walls? That could be reducing the value by £28,469.
Meanwhile, poor parking options, or none at all, can slash your potential asking price by £19,359.
Artificial grass, having no lawn and no bath in the main bathroom can also see the average UK home value drop by £14,804, £6,100 and £5,694 respectively.
Having a north facing garden and pond can also see a home’s value fall by £5,525 and £5,258 respectively.
How to boost the value of your home
Some home improvements will inevitably boost the value of your home more than others.
Nick Leeming, chairman of estate agent Jackson-Stops, said buyers were increasingly looking for green energy measures in homes such as electric vehicle charging points.
He added: “We might see buyers start to negotiate on asking prices, prioritising a home purchase that is future-proofed from day one.”
Meanwhile, data from property buying company Open Property Group recommends 12 improvements that will boost the overall value of your property the most.
Loft conversions, costing around £40,000, can add £56,938 to the value of the average UK house price of £284,691.
A 20square foot extension, costing around £48,000, can add £56,938.
Meanwhile, a garage conversion can add £28,469 while only costing an estimated £15,000.
This is Open Property Group’s list of 12 home improvements, how much they cost and how much they’ll add to the value of your home:
- Loft conversion (£40,000 cost) – £56,938 added value
- 20square foot extension (£48,000 cost) – £56,938 added value
- Garage conversion (£15,000 cost) – £28,469 added value
- Garden room/office (£10,000 cost) – £21,352 added value
- Kitchen upgrade (£10,550 cost) – £15,658 added value
- Utility room (£8,730 cost) – £14,235 added value
- Solar panels (£7,000 cost) – £11,388 added value
- All over redecoration (£3,200 cost) – £8,825 added value
- Bathroom renovation (£5,000 cost) – £7,402 added value
- Boiler/central heating upgrade (£3,850 cost) – £5,409 added value
- EV charging point (£1,150 cost) – £4,840 added value
- Landscaped garden (£3,950 cost) – £4,270 added value
How else to boost the value of your home
Jonathan Rolande, from the National Association of Property Buyers, previously revealed to The Sun one quick tip to boost the value of your home when it comes to actually selling up – buying flowers and plants.
Doing this can increase the value of your home by thousands of pounds and create a greater demand among buyers.
“It increases the saleability,” he told The Sun. “You buy some nice plants, clean the rooms and the estate agent photos will look a lot better.
“This means you get more people looking around, more competition, and you can barter the price more.”
Giving your home a fresh lick of paint will boost its immediate value too, according to Chris Husson-Martin from Hamptons estate agent.
Adding a few lights to your home can add thousands to the value of your home as well, he told The Sun.
It’s worth moving any furniture that’s blocking windows around the house as well, to let any natural light in.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
HOUSE prices are more expensive than they were a year ago, the first time annual growth has been recorded in over a year.
Figures from Nationwide showed they were 0.7 per cent higher this February than the same month in 2023.
The average house price in the UK is now £260,420.
A year-on-year increase had not been recorded since last January as mortgages rocketed on the back of 14 interest rate rises by the Bank of England.
The annual growth in property prices gives fresh confidence that the housing market is now stabilising.
And it comes after official figures this week highlighted an uptick in mortgage approvals.
READ MORE ON HOUSE PRICES
Last year, buyers struggled to afford a mortgage as lenders raised interest costs on home loans.
The slowdown in the housing market has also meant more people have been trapped renting, which has driven rents to record high levels.
Meanwhile, the UK’s biggest property listings website Rightmove yesterday reported an eight per cent rise in pre-tax profits to £260million.
The increase was partly because estate agents were paying more to advertise properties and achieve sales in the slump.
M&S law win
MARKS & SPENCER has won its battle against Michael Gove’s attempt to block plans to demolish and redevelop its Marble Arch store in central London.
The minister last year refused permission on heritage and environmental grounds but the High Court has overturned his decision.
Asda pay rise
ASDA is spending £150million to be the best paying supermarket.
The grocer said it will raise salaries for 120,000 staff to £12.04 an hour — £13.21 inside the M25.
Co-owner Mohsin Issa said the firm was still in “a transition period”. He denied a rift with brother Zuber, who may sell his stake.
Good week
ANDREW Nisbet who will make at least £339million from selling his kitchen supply firm, Nisbets, to firm Bunzl.
Bad week
HALFORDS boss Graham Stapleton as shares fell by a quarter after warning of a bike part sales slump.
Rising debt costs and shrinking valuations are forcing major commercial property developers to sell millions of dollars worth of assets.
Precinct Properties has sold about $700m worth in the past 18 months, while hospital developer Vital Healthcare has sold $220m worth and Argosy just sold $20m worth.
“When interest rates revert as fast as they have, and when values come down, and we’ve seen in our business probably 7 or 8 per cent reduction in values, then you’ve got to stay in front of it,” Precinct CEO Scott Pritchard told Markets with Madison.
“We’ve been managing our levels of debt through asset sales and through capital partnerships and through raising new capital.”
The largest listed office developer and owner had drawn down $1.1 billion worth of debt, paying an average interest rate of 5.3 per cent – surprisingly less than most mortgagors.
That’s because it didn’t just rely on banks for funding. Precinct was now partnering with offshore investors including Singapore sovereign wealth funds, private equity firms and high net worth individuals.
“The key is to have a really diverse source of funds and to have a really laddered maturity profile, which is all the lessons that a lot of businesses learned out of the GFC to be honest.
“If we get other sources of capital to invest alongside us, it means we can do more things and ultimately drive a higher return for our shareholders.”
It was a strategy Vital was now considering too – seemingly a potential funding solution in a higher interest rate environment.
Pritchard said offshore investors were especially keen on residential property, which was driving Precinct’s push into developing apartments on Auckland’s waterfront.
But would that impact Precinct’s future net rental income, currently earned on offices?
Watch Scott Pritchard discuss how developers are managing debt in today’s episode of Markets with Madison above.
Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, on YouTube and wherever you get your podcasts.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.