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Research reveals how properties near top schools and universities hold value
Properties in England and Wales located close to independent schools and university towns hold their value and are able to recover faster from a housing market downturn than average UK properties, new research shows. Overall average property prices of homes within a two mile radius of an independent school have outperformed the national average. House prices close to independent schools currently stand at 116% of their 2007 market peak, this compares to 98% for England and Wales as a whole. In 2014 the average property price stood at £173,500 while the average price paid for a property within a two mile radius of an independent school was £354,000, according to the study published by estate agents Hamptons International. The same pattern can be seen in the capital’s housing market. In London property prices are on average 30% higher than at the peak of the market in 2007 but for those homes close to an independent school they are 66% higher. Homes near to some of London’s best known schools have significantly outperformed the London average. Properties close to Westminster School are now 100% higher than the 2007 peak and at St Pauls School are 75% above peak levels. In the South East and South West of England average house prices have returned to 2007 levels, but for those homes close to independent schools values are on average 17% higher. The research also found that the South and South West of England attract the greatest number of overseas students. Two thirds of universities with more than 10% overseas students are located in the South and South West of the country. It pointed out that universities contribute to local economies and act as a support to house prices and rental growth. Furthermore universities often attract large scale employers, such as the science parks around Cambridge and Oxford, who in turn generate demand for housing. ‘The UK is recognised the world over for the quality of its education. For many overseas parents with children studying in the UK this is a catalyst to investing in property – be this a student flat or larger family home. The UK’s stable legal and political system, together with an economy that is growing some three faster than the Eurozone, makes the UK an attractive proposition to many overseas investors,’ said Fionnuala Earley, director of research at Hamptons International. ‘While house prices across England and Wales remain 10% below their pre-crisis peak, this figure masks significant regional variations. The average house price in London is now 30% above the 2007 market peak and other areas of the country are playing catch-up. Capital values in London may have softened recently but they are still 12% higher than this time last year. And as the recovery spreads, so the prospects for the rest of the country are looking good,’ she explained. ‘For overseas investors looking to buy in the UK our research shows that average property prices within a two… Continue reading
US pending home sales up for fourth month in a row, latest index shows
Pending home sales in the United States rose in April for the fourth straight month and reached their highest level in nine years, according to the latest data. This rise was led by the Northeast and Midwest, but all four major regions saw increases in April, according to the pending home sales index from the National Association of Realtors. The forward looking indicator based on contract signings increased 3.4% to 112.4 in April from a slight upward revision of 108.7 in March and is now 14% above April 2014, the largest annual increase since September 2012. The index has now increased year on year for eight consecutive months and is at its highest level since May 2006 when it was 112.5. According to Lawrence Yun, NAR chief economist, the steady gains in contract activity each month this year highlight the fact that buyer demand is strong. ‘Real estate agents are saying foot traffic remains elevated this spring despite limited, and in some cases severe, inventory shortages in many metro areas,’ he said. ‘Home owners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale. As a result, home prices are up and accelerating in many markets,’ he added. Following April's decline in existing home sales, Yun expects a rebound heading into the summer, but the likelihood of meaningful gains will depend on a much needed boost in inventory and evidence of moderating price growth now that interest rates have started to rise. ‘The housing market can handle interest rates well above 4% as long as inventory improves to slow price growth and underwriting standards ease to normal levels so that qualified buyers, especially first time buyers, are able to obtain a mortgage,’ explained Yun. After falling four straight months, the index in the Northeast bounced back solidly, up 10.1% to 88.3 in April, and is now 9.4% above a year ago. In the Midwest the index increased 5% to 113 in April, and is 13.3% above April 2014. Continue reading
New research reveals annual housing costs in England and Wales now above £5,500
The total annual cost of housing across England and Wales is approximately £133 billion, with households paying an average of £5,593 per year according to new research. While mortgage interest and repayments make up 49% of the total cost, private rents now account for 36% of housing costs, the research from international property adviser Savills shows. However, there is significant regional variation around this figure, reflecting a wide geographical divide. In London there are relatively few households who own their own home mortgage free, private rent makes up almost half of the total cost of housing, bringing the average cost per household to £11,329. Meanwhile, in the North East where housing is comparatively less expensive in each tenure group and 24 per cent of the cost of housing is in the form of social rent, the average cost per household is £3,450. ‘London households foot the bill for over a quarter of the total annual cost of housing in England and Wales, due to a combination of the most expensive housing and the smallest percentage of homes owned outright,’ said Lucian Cook, head of Savills UK residential research. ‘Other major cities such as Manchester, Nottingham, Liverpool and Southampton also have some of the highest levels of households with housing costs, but the availability of more affordable property across all tenures reduces the total cost per home in these locations,’ he added, At a more local level, of the 30 most expensive places to live by total cost per household, only six are outside London, namely Elmbridge, South Bucks, Winsor and Maidenhead, Epsom and Ewell, St Albans and Guildford. The least expensive locations reflect not just lower value housing markets, but also where there are relatively high proportions of older home-owning households who have paid off their mortgage, such as Powys, Staffordshire Moorlands and Eden Continue reading
