Tag Archives: cookies
Average prime property prices outside London up 1% in first quarter
Growth figures reveal stability in the prime regional markets in the UK with average prices up by 1% outside of London in the first quarter of 2015, according to data from Savills Research. This means that year on year they have risen by 2.2%, despite the increase in stamp duty on sales over £937,500 that was introduced in the Autumn Statement last year and price growth continued to be strongest in the prime urban markets in the first quarter of the year. The firm’s latest Market in Minutes report also shows that in the 30 to 60 minute commuter band around London, prices of prime property in town and city locations have risen by 5.8% year on year. This is the highest of all of the sub-categories of property within Savills’ prime indices. By contrast, prices in the prime London markets are showing annual price falls of 1.6% marking an anticipated turning point in the market, where the gap between the pricing of prime property in London and the regions begins to narrow. Generally the country markets have remained a little more subdued. In particular, the large houses have had to contend with the biggest increases in stamp duty and the threat of a mansion tax in the run up to a general election. So whereas prime country cottages have seen annual price growth of 4.4%, prices of manor houses have on average fallen by 0.8% over the course of the year. Similar concerns have affected the markets on the high value private estates in the South East, such as St George's Hill and Wentworth. However, across the London suburbs and the inner commuter zone, prices have risen by 2.2% in the past year on average, meaning that they are 6.8% above their pre-crunch levels. In England quarterly price growth also returned to markets beyond the commuter zone with prices rising by just over 1% having softened marginally in the wake of the autumn statement. In particular, markets such as Bath and Cheshire are continuing to benefit from demand from aspiring young families and downsizers. Coastal markets that have generally been much slower to recover due to their dependency on discretionary buyers, also showed encouraging signs of increased activity as prices increased by an average of 4.1% over the past year. The divide between prime housing in urban and rural prime locations is also evident in Scotland, where prices rose marginally in the quarter leaving them up by just 0.4% year on year, compared to the prime markets of Edinburgh which are showing 6% annual growth. All of the regions, from the prime suburban towns in striking distance of London to the prime markets of the Midlands and the North, have seen annual price growth. However, there are significant differences in where prices sit relative to their peak in different sectors of the market. This is likely to shape the market over the medium term, says Savills. ‘In the same way that the value gap… Continue reading
Housing stock in prime central London up 8.6% in six years
Housing stock in the prime central London property sector has increased by 8.6% since 2009 and has outgrown inner London boroughs by 4%, new research shows. It means that stock has increased by 5,200 over the last six years and some 7,000 more homes are in the pipeline, according to figures from Pastor Real Estate. The report says that developers have taken advantage of low land costs following the 2008 market crash and prime central London has been high on the investment agenda since 2008 from both domestic and overseas buyers. In the six years some 144 development schemes have been completed in prime central London, with almost two thirds consisting of 10 units, and most comprising studio and one bedroom apartments. Now in 2015 there are 277 development schemes in the pipeline, which will deliver 7,179 units to the market. This represents twice as many schemes and three times as many units than have been completed since 2009. Responding to growing demands from overseas buyers coming into the market and domestic buyers increasingly choosing inner city family homes over vast country spreads, developers are shifting from small single occupancy units to larger homes suitable for families. For example, there is at least one three bedroom unit within 71% of the developments currently in the pipeline. There is also a marked increase in unit sizes, with an increase of 40% in units in application compared to those currently under construction. Pastor Real Estate has found that that average unit size for schemes under construction in Prime Central London is 543 square feet compared to 763 square feet of units currently at application stage. The report has also identified Marylebone as the rising star of the prime central London market with the area currently undergoing a rapid transformation. The report identifies that of 13 development schemes set to complete in 2015, 11 are in Marylebone. The area will provide almost 50% of schemes in the pipeline, equating to 644 new residences. ‘Not only are new homes getting bigger in Prime Central London, but everything that comes with them is getting grander. As wealth continues to pour into the capital, ultra prime living standards increase,’ said Susan Cohen, head of sales and lettings at Pastor Real Estate. ‘New buyers not only want larger homes providing more space for larger families, they also want all of the luxury amenities such as concierge services, porters, five star hotel quality spas and gyms, IMAX cinema rooms and private dining rooms to entertain guests at will,’ she explained. The report also says that ultra prime and super prime residences are increasing and the market for new build property across prime central London is changing. Size and space are becoming as important as sophisticated luxury. Those acquiring large ultra prime and super prime new build residential properties in prime central London are both domestic and international buyers, seeking… Continue reading
Property Ombudsman in England sees challenges rise
More people in the rented property sector in England are prepared to launch a challenge when they are not satisfied with their tenancy, according to the latest annual report from the Property Ombudsman. It comes at a time when legislation makes it a legal requirement for lettings agents and property managers in England to join a government approved redress scheme. Some 28% more signed up as members of the ombudsman at the end of 2014 compared with at the beginning of the year. Meanwhile the number of referrals were up 42% in 2014 compared to the previous year. The report says this is indicative of both the general trend in the consumer world to challenge when something does not give satisfaction. ‘Overall 2014 saw continued and significant growth in the private rented sector. With an estimated 1.6 million private landlords, many of whom have limited experience and understanding of their responsibilities, and large numbers of consumers seeking tenancies, the role of letting and managing agents in providing quality customer service based on a comprehensive knowledge of relevant legislation, is more important now than ever before,’ said the ombudsman Christopher Hamer. He repeated his call for a properly structured regulatory regime for the lettings sector. ‘Over the past year we have seen numerous pieces of legislation being passed which deal with aspects of the sector. Whilst any controls must be welcomed I feel an opportunity has been missed to bring all such legal obligations into a coherent and sensible single law to avoid the potential for inconsistency and misunderstanding of what is required,’ he pointed out. The report data shows there was a 19% increase in registered membership letting offices, a 40% rise in lettings cases received, a 33% increase in cases resolved via mediation, and a 10% increase in cases resolved via formal review. Some 11% of lettings issues reported to the ombudsman related to repair and maintenance, 54% of complainants were landlords versus 44% tenants and the average lettings award has risen 27% from £411.97 to £524.10. Some 23% of complainants were from the South East, followed by Greater London at 21% the South West at 9% and the North West also on 9%. The data also shows that there was a 14% increase in registered membership sales offices, a 43% rise in sales cases received, a 21% increase in cases resolved via mediation, and a 13% increase in cases resolved via formal review. Some 20% of sales issues reported to the ombudsman related to communication failure, 59% of complainants were sellers versus 39% buyers and 23% of complainants were from the South East, followed by Greater London at 13% and the South West and Eastern region both at 11%. Continue reading
