Tag Archives: european
Prime London lettings market sees growth cool
The London prime rental market is starting to cool after a year of record breaking growth with rents either plateauing or seeing slight growth for a third quarter in a row. The latest data report from Benham & Reeves Residential Lettings reveals that this follows a frenzied 2015 which saw unprecedented growth for the first two quarters before finally slowing as the market paused to absorb the changes. Many parts of prime central London saw rents fall, reflecting a trend which has seen demand increase in the inner suburbs, according to the report. It explains that as demand from wealthy non-nationals wanes in the run up to the referendum in June on the UK’s future in the European Union and currency controls put in place by foreign governments, the demand for luxury property in Belgravia, Knightsbridge, Chelsea and surrounding areas seems to have peaked. However, it is still anticipated that the fall in Sterling's value will make prime central London more attractive over the coming months so this decline is likely to be temporary. Rental growth in the inner suburbs continues as the domestic market gains further confidence. Wandsworth saw strong growth as did most of the trendy parts of east London. There is also demand for rental properties in Notting Hill, Bayswater, Queen's Park and Kensal Rise where larger homes offer comparative value. North London, particularly Colindale, Golders Green and Hampstead Garden Suburb that have seen the most substantial growth. This was widely anticipated as rental growth had been supressed in recent quarters while Crossrail works closed the Northern Line interchange at Tottenham Court Road. With the station now fully open, rental demand in these areas has seen a resurgence, the report points out. ‘This is a much needed pause for breath after such huge gains in rental values. Unfortunately for tenants, this pause may only be temporary,’ said Marc von Grundherr of Benham & Reeves Residential Lettings. ‘With increasing restrictions on buy to let, more amateur landlords will be exiting the market, leading to a drop in supply in the face of a growing population. Over the long term, rents will inevitably go up,’ he added. Continue reading
UK house prices up 7.6% year on year, down slightly from previous month
UK house prices increased by 7.6% in the year to February 2016, down from 7.9% in the year to January 2016, taking the average price to £284,000, the latest official figures show. House price annual inflation was 8.2% in England, 2.8% in Wales, and 2.4% in Northern Ireland. But prices fell by 0.8% in Scotland, the data from the Office of National Statistics (ONS) also show. Annual house price increases in England were driven by year on year growth of 11.4% in the South East, growth of 10.3% in the East and growth of 9.7% in London. Excluding London and the South East, UK house prices increased by 5% in the 12 months to February 2016. Also excluding London and the South East, the average UK mix-adjusted house price was £216,000. On a seasonally adjusted basis, average house prices increased by 0.4% between January 2016 and February 2016, compared with an increase of 0.8% in average prices during the same period a year earlier. The index also shows that in February 2016, prices paid by first time buyers were 8% higher on average than in February 2015 while for existing owners prices increased by 7.4% for the same period. London continued to be the English region with the highest average house price at £524,000 and the North East had the lowest average house price at £158,000. London, the South East and the East all had prices higher than the UK average price of £284,000. David Brown, chief executive officer of Marsh & Parsons, explained that while annual growth was down slightly he believes that UK property prices are certainly on a solid footing and despite the regulatory knocks over the past year, London remains one of the leading regions out in front. ‘Government intervention has prompted a lot of yo-yoing in the housing market of late, and the last week of March was one of the busiest we’ve ever experienced. A sense of urgency was palpable in the last few working days leading up to the implementation of higher stamp duty on second homes and buy to let purchases, and solicitors were working around the clock to service more than quadruple our average number of purchase completions per day,’ he explained. ‘Now we’re over the hump and this immediate buy to let incentive has passed, activity is sure to level out into the summer months, but continued high levels of buyer demand will help to keep London house prices strong,’ he added. Rob Weaver, director of Investments at property crowdfunding platform Property Partner, pointed out that first time buyers are still feeling the pinch, with average prices paid by them of £214,000. He believes that as the rate of inflation on new builds is accelerating more than existing housing stock, demand is still outstripping supply but a mood of uncertainty over the June referendum on the country’s future in the European Union could slow house price growth. He also believes that a dip… Continue reading
UK housing market boosted by April additional homes stamp duty deadline
The UK housing market received a fillip from increased activity among those looking to beat the April deadline for the new stamp duty charges on additional homes, a new report shows. The latest analysis from real estate firm Knight Frank points out that demand rose in many regions, with the Council for Mortgage Lenders reporting that gross mortgage lending in February hit the highest level since 2008. It says that activity may ease from April, but in the wider UK market the fundamentals of a lack of supply and low mortgage rates are underpinning the market. Also, in the London and South East markets the effect of uncertainty in the run-up to the European Union referendum is likely to be felt more keenly. ‘In the prime central London market, we expect differing levels of growth in the east and the west this year, underlining the very localised nature of the market,’ said Gráinne Gilmore head of UK residential research at Knight Frank. The report explains that property prices in prime central London fell by 0.1% in February, taking the annual change in values to 1% and the market remains highly localised with stronger performance in areas such as Islington, City and Fringe and South Bank. In comparison, price falls were seen in markets including Knightsbridge, South Kensington and Chelsea over the last year. ‘Overall, demand in prime central London was relatively subdued in the first two months of 2016 as a result of the higher levels of stamp duty and ongoing volatility in global financial markets,’ said Gilmore. ‘Further domestic uncertainty, in the shape of a London Mayoral election in May and an EU referendum in June, means this is likely to continue as buyers adopt a wait and see approach,’ she added. In the country market, prices rose by 3.1% in 2015 and the report says that the market is still being driven by prime properties in urban locations, with buyer demand concentrated on areas with effective transport links and good schools and amenities. In Scotland, prime country house prices ended the year up by 0.1%. Prime central London rents fell by 0.1% in February, the fifth consecutive monthly decline. As a result, the annual rental value growth in prime central London fell to -0.2%. ‘Uncertainty over taxation and slowing price growth in the sales market has resulted in relatively high supply levels, especially at above £1,500 per week. As a result, tenants feel little urgency to agree deals, putting pressure on rental values,’ Gilmore pointed out. The report adds that average UK rents rose by 2.6% in Great Britain over the 12 months to January 2016, according to latest figures from the Office of National Statistics. Continue reading
