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Rural homes in the UK £43,490 more expensive than those in urban areas
Property prices in the countryside in the UK are, on average, £43,490 or 22% higher than in urban areas, according to the latest annual Halifax Rural Housing Review. There is a rural premium in all regions with countryside homes typically commanding a significant price premium over urban areas, although there are large variations across the country. In rural areas of West Midlands the average house price of £252,927 is £84,610 or 50% higher than in the region's urban areas at £168,317, the largest difference in the index. In the East of England, the premium is £16,806 or 6%, the smallest difference. House prices in rural areas are less affordable than in urban areas, the research also shows. The average property price in rural areas is seven times average annual earnings compared with a ratio of 5.9 in urban areas. The least affordable rural local area district is Tandridge in Surrey where the average house price of £433,932 is 10.8 times local annual average earnings of £40,266. All 10 of the least affordable rural districts in Britain are in southern England, including East Dorset where the average house price of £329,056 is 9.6 times local annual average earnings. This is followed by Purbeck in Dorset at 9.4, Mid-Sussex, Cotswold and North Devon all at 9.2. The least affordable rural district outside the south are Hambleton at 8.2 and Ryedale at 8.1, both in the North York Moors. Copeland in West Cumbria is the most affordable rural district with an average house price of £140,364 that is 3.7 times local average annual earnings of £38,367 while Chiltern is the most expensive with an average house price of £465,970. The next most expensive rural districts are Waverley in Surrey at £462,145, Tandridge and South Oxfordshire at £396,287. The average house price in Chiltern is four times higher than in East Ayrshire at £115,394 which is the least expensive rural district. Despite the higher price for buying in the countryside the gap with urban prices is narrowing, and property prices have risen more slowly in rural areas during the past five years, according to the research. Between 2010 and 2015, the average price of a home in the countryside rose by 13% compared with an average increase of 23% in urban areas. Between 2014 and 2015, the average price of a home in the countryside has risen by 5% compared with an average 8% increase in urban areas, excluding Greater London. Overall, the rural/urban premium has narrowed from 34% or £52,279 over the last decade. First time buyers account for 42% of all mortgage financed purchases in rural areas. This is significantly lower than in urban areas where first time buyers account for 54% of such purchases. Affordability difficulties are the key factor behind the lower level of first time buyers in rural areas. Due to the high level of property prices, getting on the rural property ladder is at its most challenging for first time… Continue reading
New manifesto calls for a more democratic planning system in the UK
A new manifesto has been launched in the UK to fight back against what it calls an assault on the country’s planning system and calling for a more democratic outlook for home and infrastructure building. Over 60 organisations and individuals have come together to call on the Government to ensure that people are placed back at the heart of the planning system, led by charity the Town and Country Planning Association (TCPA) and supported by environmental and disability rights organisations, professional bodies, housing associations and community groups. The manifesto represents the views of a broad cross sector coalition of organisations and individuals who share a common belief in the value of planning to improve the quality of lives and the condition of communities, according to TCPA chief executive Kate Henderson. ‘We believe that a powerful and democratic planning system can help ensure the delivery of decent healthcare, schools, jobs, public transport and affordable homes which are accessible and have enough space for kids to play,’ she said. ‘These are things that all sections of society should be able to enjoy as a matter of course, regardless of where they live or their ability to pay. However, the planning system as we knew it is being continually undermined and devalued though significant reforms and deregulation,’ she explained. ‘Over the last 30 years the reputation of planning has declined and it has lost all sense of the progressive social values that once lay at its core. This is partly because it lost sight of any vision that connected with people's real lives and partly because planning regulation was seen as a brake on the free market. We know this is wrong: the countries that are creating great places have strong planning systems,’ she pointed out. ‘That is why we have brought together organisations and individuals who are determined to ensure that planning shapes the kind of places that this nation deserves. Planning must change so it is genuinely focused on people's needs. Our objective is to reinvent creative social town planning which did so much to lay the foundation of a civilised Britain,’ she added. The manifesto says that the Government should give councils back power over permitted development, rebalance the National Planning Policy Framework to ensure that outcomes for people are just as important as the needs of land owners and developers, and restore a comprehensive framework of place making standards for housing including mandatory minimum standards for accessibility and space. It also says that local Government should adopt a strong social dimension to local plans. This means shaping policy that prioritises place making, providing for the full range of hard and soft infrastructure, and ensuring social and affordable homes receive the highest priority. It also suggests that the private and third sectors should establish corporate commitment to a fair and inclusive planning system while planning professionals and academics should transform planning education to ensure planners have the right skills in community development. As… Continue reading
New home sales down month on month in Australia
New home sales in Australia fell by 4% month on month in September, with the level of activity down from the April peak by 5.2%, the latest new data shows. Detached house sales declined in four out of the five the mainland states with only Victoria seeing growth at 3.1%, according to the New Home Sales report from the Housing Industry Association (HIA). They fell by 19.8% in South Australia, by 8.6% in Western Australia, by 5.9% in Queensland and by 0.5% in New South Wales. In Victoria detached house sales increased by 3.1%. ‘Following the peak level of sales that occurred in April this year, sales activity has trended lower only very modestly. This augers well for actual new home building activity in 2015/2016,’ said HIA economist, Diwa Hopkins. ‘A fresh record level of building activity during this financial year could have been achieved and could have been of strong benefit to the broader domestic economy but increasingly restrictive credit conditions are likely to curtail the boom in new home building,’ she pointed out. ‘The deterioration in credit conditions is likely to weigh more heavily on new home building activity beyond 2015/2016. We have therefore pared back our forecasts for activity over our forecast horizon beyond the end of the current financial year,’ she added. Meanwhile, separate research shows that offshore investment into Australia's commercial property market shows no signs of abating this year. Foreign investors accounted for 28% of transaction volumes by value in 2014 and already in the first half of 2015 the level is 27%. The Australian market is remaining attractive to offshore buyers, as commercial real estate assets continue to provide relatively high income returns in global context, according to the report from real estate firm JLL. It points out that Australian office assets are attractively priced for investors seeking high yielding, stabilised assets in a mature market, comparing well against major cities in Europe, Asia, and America. And even taking into account localised differences such as higher rent free incentive levels in Australia, yield spreads still favour the Australian market. ‘In Australia, yield compression has continued unabated, especially for prime grade assets, across all sectors and many markets. The weight of capital remains significant and the global portfolio tilt toward real estate continues,’ said Simon Storry, JLL's head of International Investments Australia. While 2014 was a record level of foreign investment into Australia, at the half year mark, 2015 levels are close to the record 28% of transaction volumes recorded in 2014. Storry said that the depreciation of the Australian Dollar has allowed offshore investors to be far more competitive and they seem to have a much greater desire to deploy substantial pools of capital in what they see as an undervalued market globally. Continue reading
