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Wales has lowest median house price while Kensington in London has the highest
Blaenau Gwent had the lowest median house price in England and Wales in 2014 at £75,000, a sharp contrast to the highest in the London borough of Kensington and Chelsea at £1.19 million, official figures show. The data from the Office of National Statistics (ONS) also reveals a sharp north/south divide when it comes to property prices in the country as house prices in London surged by 32% last year, leaving the rest of the country trailing. Every area of the country where property prices increased by over 20% were in the capital, while areas in the north saw homes fall by almost a quarter in value. The figures also look at home prices according to council areas. These show that the local authority that had the largest increase in median house price between 2013 and 2014 is South Bucks increasing by 23% from £390,000 to £480,000. The local authority that had the largest decrease in median house price between 2013 and 2014 is Isles of Scilly decreasing by 15% from £275,000 to £235,000. Figures were also released according to Parliamentary constituencies. Walthamstow in north east London saw the highest house price growth last year, up by 32%, taking the average price of a home from £250,000 in 2013 to £330,000 last year. While in Hammersmith prices increased by 25% from £456,000 to £570,000 on average. Dulwich, Westminster, Tottenham, Lewisham, Chelsea and Islington, representing Parliamentary constituencies across the capital make up the top 10 constituencies for house price growth. Nottingham East is the only area outside of the capital and its surrounding areas which made it into the top 25 constituencies for property price increases with 19% growth taking the typical price from £92,500 to £109,950. Bradford West suffered the worst property slump in the country with prices dropping 23% and in Blaydon in the north east the price of homes fell 5% with Rotherham in South Yorkshire also seeing a 5% drop. Data looking over the last decade shows that the biggest house price rises have been in Kensington in London with a 550% rise to £1.15 million, followed by the City of London and Westminster with a 535% rise to £980,000. Other popular commuting areas in London also saw a big rise such as Tooting with a jump of 515% taking the typical home price to £497,750 while Westminster North was up 50% to £700,000 and Vauxhall up 507% to £485,000. Continue reading
Immigration check scheme in UK makes landlords reluctant to take on foreign tenants
The immigration check pilot scheme in the UK which is running in the Midlands has led to tenants being charged additional fees and is making it harder for foreigners to rent a property, new research has found. Tenants are being charged an extra £100 in administration fees, according to a survey by the Joint Council for the Welfare of Immigrants (JCWI) which polled landlords and tenants in the pilot area since the roll-out. Under the pilot scheme, which is expected to be rolled out across the UK later in the year, landlords are required to carry out checks on new tenants and face action if they are found to be renting to an illegal immigrant. If a landlord breaches the rules they face a fine of £1,000 per illegal adult occupier and for a second offence that rises to £3,000 per adult. The survey also indicated that landlords are now more hesitant to offer viewings to anyone needing more time to provide paperwork, meaning migrants are more likely to be turned down. The research also shows that landlords are discriminating between applicants on the basis of their background and are preparing to turn away tenants because they have a foreign accent. Furthermore, some legitimate tenants who cannot easily identify themselves using a British or European Union passport are finding it harder to secure somewhere to live. ‘This research clearly shows the dilemma that landlords are facing. On the one hand they want to be fair to prospective tenants, but on the other hand, they are fearful of renting a property to an illegal immigrant,’ said Jane Morris, managing director of Property Let By Us. She gave an example of an American tenant who reported that her British husband could secure viewings for the same properties she had been told were no longer available. Morris explained that under the pilot scheme, would-be tenants have to produce evidence from a checklist of documents that they have permission to be in the UK and landlords have to take a copy for their records. ‘So before dismissing a prospective tenant, it is important that agents and landlords make all the necessary checks. For example, if an agent is taking on the responsibility for checking an occupier’s immigration status, he/she must agree this in writing and must report the findings to the landlord,’ she pointed out. ‘Agents should set out timescales for checks and reports in the agency agreement and report occupiers without the right to rent to the landlord in writing. If the landlord still authorises a tenancy agreement, they will be liable for the penalty,’ she added. She also pointed out that in the event of a breach, where an occupier is found to be living illegally in a rented property, the agent or landlord will need to establish a statutory excuse to avoid a penalty. ‘A statutory excuse can be maintained if… Continue reading
Regulation and tax set to impact property markets in Asia Pacific region
Monetary policy, tax, regulations and underlying fundamental drivers such as demographics and urbanisation will have a significant impact on property markets in the Asia Pacific region, according to the latest real estate analysis. The region’s economies are moving at multiple speeds with differing drivers and local dynamics, producing quite a wide range of housing market performance indicator, says the Asia Pacific residential review from international real estate firm Knight Frank. ‘Economic growth can certainly be a reasonable lead indicator as to which way housing markets will go,’ said Nicholas Holt, head of research for the Asia Pacific region. He also pointed out that despite facing many headwinds, the International Monetary Fund is forecasting stronger growth in 2015 for six out of the 11 major countries in the region. ‘While this should be a positive sign for home owners or investors, the reality is that in many cases there has been a divergence between short term economic growth and market performance,’ he added. The report reveals that since last November, the People’s Bank of China has cut interest rates three times, contributing to the first month on month increase in house prices in May this year, after falling for 12 consecutive months. Other countries such Australia, India and South Korea are also pursuing expansionary monetary policy. It points out that with further interest rate rises inevitable in the slow moving market of Singapore, cooling measures introduced previously could start to be reviewed by the government. China and New Zealand have already seen similar moves. And the likely extension of luxury tax and introduction of a super luxury tax have already started to impact market behaviours in Indonesia, as has the announcement of a new capital gains tax scheme in Taiwan. The report also points out that it is not just China that has seen the increasing influence of policy interventions in residential markets, whether fiscal, monetary or regulatory. In New Zealand, for example, authorities have stepped in over recent years. ‘Perhaps now more than ever, property market observers are looking to policy makers, whether Janet Yellen at the Federal Reserve, the Singapore government, the Reserve Bank of Australia, the People’s Bank of China or the Japanese government for clues about how markets will perform. We can expect more of this going forward,’ explained Holt. In Hong Kong the supply of land for development has affected the property market and the report says that until supply catches up with demand the upward pressure on prices will continue in what is already one of the costliest property markets in the world. Indeed, house prices in Hong Kong have continues to defy the ongoing cooling measures by rising 8.4% in the 12 months to the first quarter of 2015, the highest annual price growth in the overall market since the second quarter of 2013. The report suggests that the Reserve Bank of Australia’s recent decision to hold interest rates followed two 25 basis point cuts in the official… Continue reading
