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Prime central London property starting to outperform other areas of the city
Homes in prime central London saw the biggest rise in value during the first quarter of 2015, as the centre starts to outperform outer prime parts of the capital for first time since June 2013. Buyers now pay a 34% price premium to live in prime central areas like Kensington and Chelsea, according to estate agent Marsh & Parsons’ latest London Property Monitor. Historically, property prices in the most affluent prime central areas of London had been accelerating away from values in the rest of the capital, due to consistently higher demand from overseas and domestic buyers keen to live in the most famous London locations. However, over the past two years, areas such as Brook Green and Balham have experienced some of the steepest price rises across the capital, according to the firm, but this looks to have been a short term phenomenon. While outer prime house prices have fallen 1.8% in the past three months, there has been a resurgence in price growth in prestigious prime central London with values up 0.3% throughout the last quarter. This is the first time in over a year that price rises in exclusive central areas like Pimlico and Kensington have overtaken the growth in more affordable areas like Balham, and this is a trend that Marsh & Parsons expect to continue throughout this year. As a result of this turnaround, the price premium paid for Prime London property has risen for the first time in 15 months, and is now back in line with last year. Buyers can currently expect to pay a 34% premium to live in central locations. ‘Balham and Brook Green have been putting on the most astonishing performance recently, with an eye catching spurt of growth in 2014. In the long run, the traditional property stalwarts of Kensington, Chelsea and Holland Park are proving they have the stamina to withstand a wider market slowdown,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘While the market slows in other parts of the London housing market, the enduring appeal of the most desirable prime central postcodes has ensured growth ticks on. We believe this trend is set to continue in the next 12 months, with prime central areas outperforming outer prime areas for the first time in more than two years,’ he explained. As growth at the higher end of the market continues momentum, the proportion of million-pound properties in prime central London has risen 3% in the past quarter, to stand at 67% of all homes. With the average house price currently standing at £2,080,742 in these areas, 38% of properties in prime central London are now worth £2 million or more, highlighting the implications of any mansion tax on the housing market in these parts of capital. In addition, some 22% of prime central London properties surpass the £3 million threshold. The report also… Continue reading
UK estate agents say controversial fracking plans already affecting home sales
Estate agents operating close to potential fracking sites in the UK are warning that the controversial technique is likely to wipe tens of thousands of pounds off the values of nearby properties. It could also make homes harder to sell with agents in areas already targeted by fracking companies reporting concerns from prospective buyers over looming shale developments, with some sales already falling through as a result. The findings from a survey of estate agents conducted by leading marketing research agency Redshift and for environmental campaigners Greenpeace UK in three key areas where energy firms are planning to carry out fracking in West Sussex, Manchester, and Lancashire, shows that 67% believe fracking could bring down prices. A majority of them estimate the loss in value could be up to 11% with two agents putting it as high as 41% to 70%. With the price of the average house in the UK estimated at £272,000, even just a 10% drop in value could translate into a loss of tens of thousands of pounds. Some 54% said they are concerned fracking could reduce property sales near potential sites. Most of those who say they’re concerned believe more than one in 10 purchases could be affected, with nine dealers putting the estimate as high as 25 to 50% of all sales. One in four respondents also say home buyers have expressed concerns about the prospect of fracking in the area, with four estate agents reporting some customers have pulled out as a result. The Department for Energy and Climate Change is expected to auction off licence blocks to fracking firms over an area covering more than half of Britain in the coming months. The government has previously stated there’s no evidence that fracking will affect house prices. But three quarters of the estate agents said fracking should not be permitted until more research is done. James Nisbet, who lives a few hundred metres from one of the Lancashire sites says a few potential buyers have pulled out of purchasing his £375,000 house after learning about the looming energy development. ‘We have had six viewings so far, all with very positive feedback, but no one wants to commit to buying with the fracking shadow hanging over us. I’ve been hearing the same story from quite a few people in the area. We have lived here for 15 years. I really like this place and I don’t want to move, but I also don’t particularly wish to stick around to see what fracking will do to this community,’ he said. Paula Higgins, chief executive of the Home Owners Alliance, said it is worrying that homeowners who happen to live in fracking zones are being kept in the dark on how fracking will affect them. ‘Some are already starting to bear the brunt through aborted… Continue reading
UK property redress scheme for lettings dealing with increased number of complaints
The UK’s Property Redress Scheme (PRS) has now processed its hundredth complaint six months since it became mandatory that all lettings and property management agents join a consumer scheme. The PRS is one of three consumer redress schemes authorised by the Department for Communities and Local Government (DCLG) and National Trading Standards whose role it is to provide fair and reasonable resolutions to disputes between members of the public and property agents. Since the October deadline last year, the PRS team have seen complaint numbers increase daily as awareness of the scheme becomes more widespread. Certain patterns are already emerging that indicate that agents should be consciously aware of documentation and communication. The PRS says that clear and unambiguous documents, in particular those that relate to terms and conditions, charges and management agreements, are essential to ensure that the customer is fully protected. This also protects the agent, defines the business relationship and manages customer expectations. Communication is also essential and agents should ensure that they do everything to keep the channels open even when the relationship is breaking down. Not doing so inevitably leads to the situation deteriorating and by the time of scheme involvement, the consequences have moved far beyond the initial dissatisfaction. ‘Agents should not assume the customer is trying it on, is wasting your time or will go away if you refuse to engage with them. Treat the complaint seriously and professionally and above all learn from your mistakes,’ said Sean Hooker, head of redress for the PRS. With this in mind, the PRS have begun to build up the resources pages on its website to help educate and support agent members. It has seen nearly 3,400 agent offices register with the scheme. But it points out that although membership numbers and consumer awareness has been positive, there is still further work to be done. The PRS would like to encourage agent organisations and landlord groups to continue to spread the word about redress schemes and report agents that have failed to comply. ‘It is still, in my view, the duty of the industry to help police this legislation. There are a number of agents out there who either through ignorance or wilful defiance have not signed up to a scheme. We are therefore working with local authorities to ensure the law is enforced as vigorously as possible and consumers remain protected,’ added Hooker. Continue reading
