News
Research shows Olympic legacy has boosted house prices in east London
As the Rio 2016 Olympic Games get underway new research shows how house prices closest to the 2012 Olympic Park have increased three times faster than the national market. Homes closest to Olympic Park have seen more than 50% added to their value with prices up by £3,522 per month since the London Games ended in 2012. The research from Lloyds bank also shows that the majority of areas close to the main site have recorded price growth in excess of £100,000 since September 2012. Average property prices in the 14 postal districts in East London closest to the Queen Elizabeth Olympic Park have risen from £286,638 in September 2012 at the close of the Paralympic Games to £438,065 in March 2016, an increase of 53% or £151,427, equivalent to a monthly rise of £3,522. This is more than three times the rate of increase seen in England and Wales and nationally property values grew on average by 17% over the same period from £234,947 to £275,872. Price performance in the 14 East London areas has also outpaced London as a whole. Since September 2012 the average price in the capital has grown by 32% to an average price of £557,359. In the four years since the last Olympic Games, the average price in all but one of the 14 areas has risen by over £100,000. In cash terms the largest rise was seen in Shoreditch, where the average property price has grown by £245,330, followed by Dalston at £203,113, Homerton at £197,737 and Bethnal Green at £178,893. East Ham recorded the lowest rise in prices, a relatively modest increase of £83,566 in four years. ‘The last Olympics Games, held in London, was a great event which captured the world’s attention for a few weeks in 2012, but the longer term benefits of the Games are still being felt today, particularly for home owners in the areas close to the Olympic Park who have seen property prices outperform both the national and London markets,’ said Nitesh Patel, Lloyds Bank housing economist. ‘Since the Games closed in September 2012, regeneration in this part of the capital has seen significantly improved transport connections and facilities, which have helped attract businesses and households to the area and in turn boosted local property values,’ Patel added. In the 11 years since the Games were awarded to London in July 2015, the average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,398 to £438,065 in March 2016 an increase of 112% or £231,667, which is equivalent to a monthly increase of £1,796. They have also outperformed the increase in England and Wales in this timescale as nationally property values grew on average by 48% over the same period from £185,783 in July 2005 to £275,872 in March 2016. In the past year, house prices in the 14 areas closest to the Olympic Park rose by 15%, from £379,663 in March… Continue reading
First time buyer property valuation activity increased after Brexit vote
Housing market activity in the UK has shifted in favour of first time buyers and remortgagors, in the first full month after the vote to leave the European Union, according to the latest research. Overall, July has seen the number of all property valuations fall 2% compared to the same month last year, says the latest monthly analysis from Connells Survey and Valuation, which reflects a slight cooling compared to June. ‘Judging the Brexit effect might take years but in the meantime the first full month after the vote already looks encouraging as change has mainly been confined to the mixture of activity, rather than the overall volume of valuations,’ said John Bagshaw, corporate services director of Connells Survey & Valuation,. The data shows that activity in the first time buyer and remortgaging sectors have driven July’s valuation market. There were 12% more first time buyer valuations in July 2016 than in July 2015. Meanwhile remortgaging activity also saw the same 12% annual rate of growth. ‘July was particularly good for those making their first step on the property ladder. Despite some widespread fears about Brexit, any negative impact on wages, employment or inflation has not materialised and first time are continuing to make the most of government schemes and are now boosted by even lower mortgage rates this summer. This is the same development that is proving a boost for remortgagors, also benefitting from a new wave of even better mortgage deals,’ Bagshaw explained. Those already on the property ladder looking to move home appear to have been slightly more cautious in July than those making their first step. Compared to the same month in 2015, home mover valuations have fallen in number by 8%. Similarly, buy to let activity has been relatively cooler in July than at the same point a year ago. The total number of valuations for buy to let purchases has now fallen by 41% since July 2015. ‘Buy to let activity is steady post-Brexit vote, even if at a level lower than last year. In fact this correction is not new, and mainly not as a result of referendum uncertainty. Since April, held back by the Government’s 3% Stamp Duty surcharge, some landlords are pausing for thought,’ Bagshaw explained. ‘Looking ahead, tax changes are increasingly factored in to landlords’ investment plans which forms a strong core of buy to let activity focused on the long term and a solid basis of future growth in demand for valuations from landlords,’ he added. Continue reading
Brexit unlikely to affect Dubai real estate markets
British investors are one of the largest group of investors in Dubai’s property markets but the decision by the UK to leave the European Union is unlikely to have much of an impact, according to experts. As the most open real estate market in the Middle East, Dubai has always found itself more susceptible to external factors. But, despite the interim uncertainty brought about as a result of Brexit the emirate unlikely to feel any long term effects, says a report from international real estate firm JLL. British citizens are the third largest investors into Dubai’s real estate market, potentially leaving them more susceptible to any negative impacts from Brexit, however, JLL’s Craig Plumb, head of research for The Middle East and North Africa, believes that any negative ramifications will only be temporary. ‘Even though it is too early to predict the long-term implications, overall there is a slight probability of British investors being negatively impacted by the devaluation of the British Pound following Britain’s decision to exit the European Union,’ he said. ‘However, we believe the effect of the decision will only have temporary repercussions as a substantial number of British investors who work and reside in the UAE avoid sourcing their income in sterling,’ he explained. ‘If we dissect the market further, particularly for residential, we notice that expatriates in Dubai are most likely to continue renting their homes instead of switching to ownership, resulting in sales being more negatively affected than the rental sector. If external factors stabilize over the rest of the year, we expect the Dubai residential market to easily recover in early 2017,’ he pointed out. During the second quarter of the year, office vacancy rates throughout Dubai showed a general downward trend. However, Plumb attributes this to a lack of supply, confirming that Dubai remains the largest and most active office market in MENA with many businesses still preferring to use the Emirate as their regional hub. Meanwhile, the retail and hotel sectors have fared less well in the immediate aftermath of the decision given the devaluation of the British pound. ‘Dubai and the MENA region as a whole has become an increasingly expensive destination for European visitors,’ Plumb added. Continue reading
