Tag Archives: crisis
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows. The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time. In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation. In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square. For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square. ‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International. ‘While in part it is the address that purchasers are paying for, the size and quality of the property is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained. ‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added. Continue reading
UK buyers with pension pots favouring property as an investment, it is claimed
Pensioners in the UK have more investment opportunities than ever before due to pension rule changes and many are looking to property as an alternative to annuities, shares and bonds, it is claimed. Since pensioners were granted full control of their retirement savings in April, some 70% have opted to drawdown all or part of their retirement wealth and domestic and international property is topping the investment stakes. Compared to investments in the stock market, property remains a far more predictable and stable option in the longer term according to the latest Global Real Estate Outlook report from property investment company, IP Global. IP Global’s findings show a clear price surge in cities like Berlin, which saw a 10.01%rise, and the central wards of Tokyo, where investors have achieved a 13% return so far this year. In addition, growing rental demand in cities like Brisbane means that investors can expect a yield of 5.4% per year. Supported by the strong British pound against the Euro and Japanese Yen, UK investors can not only obtain far more favourable purchase prices but also secure a continued income. Domestically, London and most recently, Manchester, are leading the way, according to the report, with prices in Greater London increasing by 12% in the last year. In Manchester, a new property is still valued at less than half the average seen in London, however, prices are expected to rise to close this gap, with new projections putting Manchester price growth at a strong 26.4% up to 2019. With these new found freedoms, there has been a sharp rise in demand from pensioners for experienced and qualified advice on what retirees can do with their savings as they decide how to make use of their pension pot. Continue reading
Survey reveals majority of UK tenants are satisfied with current landlord
Some 81% of UK tenants renting their home in the private rented sector are satisfied with their current landlord and 70% believe their rent is value for money, new research has found. The survey also found that 82% said they consider the property they rent to be their home, a fifth of respondents said in the long term they plan to buy their own home and 35% said they expect to stay in the PRS. The survey, carried out during the first quarter of the year for specialist buy to let lender, Paragon Mortgages also revealed that 12% of tenants felt uncomfortable approaching their landlord about extending their tenancy agreement and 6% who had asked for a longer tenancy were refused. However, 57% said they had always been happy with the tenancy offered and 17% had asked for a longer term and their landlord had agreed. ‘The research is really interesting. It is important that we understand the world from the tenant’s viewpoint so we can continue to deliver products that support better standards in the private rented sector,’ said John Heron, the firm’s director of Mortgages. ‘There has been a lot of noise around the need for longer term tenancies for some time and I think there is a common misconception that landlords are not willing to be flexible in the tenancies they offer. Our landlord research demonstrates that many are more than willing to extend terms and in 71% of cases it was the tenant who chose to end the tenancy and not the landlord,’ he explained. ‘We are big supporters of offering longer term tenancies and we were one of the first buy to let lenders to announce we would support the Government’s new model lease and allow landlords to offer 36 month tenancies to those tenants who need that extra security, as we believe this is our social responsibility,’ he added. Continue reading
