Tag Archives: facebook
Prime property in south west London outshines rest of capital
Price growth in the prime south west London property market marginally outperformed the prime London average in the second quarter of 2015 with values rising 2% and 1.6% respectively. The data from the latest analysis report from Savills shows that the large leafy district running south from Fulham to Wimbledon and stretching west from Clapham to Ham, also shows that annual growth was 0.8% compared with year on year falls in other prime London markets. The strongest growth across all the prime south west London submarkets was recorded for properties below £1 million, where buyers benefited modestly from the stamp duty reform announced in the Autumn Statement of December 2014, the report says. However, price growth was just 2.1% as the mortgage market review continues to restrict the amount people can borrow and at the top end of the market, buyer caution has been most evident, with properties valued over £2 million seeing small price falls of 0.7% over the past year. The report points out that this has particularly affected some of the higher value markets such as Fulham and Battersea, where values of property worth over £1.5 million fell by 2.5% and 3.5% respectively over the past year. Price falls were largely a result of the stamp duty changes and the uncertainty surrounding a mansion tax in the run up to the general election, the report suggests and since the election, some of the deferred demand is beginning to flow back into the market, although the new stamp duty rates are still keenly felt by buyers. This has restricted any significant boost to prices and transaction numbers and we expect this to continue over the rest of 2015. Nonetheless, Savills is forecasting price growth to return to the market in 2016 and values to rise by 22.7% over the five years to the end of 2019. In the rental market average rents in prime south west London have increased by 1.7% over the past 12 months, despite seeing very small falls of 0.1% over the three months to the end of June. This compares to a more subdued annual increase of just 0.5% across all prime London. The report explains that the area attracts a wide range of tenants. Corporate relocators, both from the UK and overseas, account for 42% of tenants, and the higher value markets of Richmond and Battersea are particularly popular. Additionally, many affluent families are becoming more flexible in their location preferences and increasingly attracted to south west London where the average rent per square foot is £28 per year, less than half of that in prime central London. In the first half of 2015, 17% of tenants moved from either the borough of Kensington and Chelsea or City of Westminster, compared to 13% of tenants in 2014. This is particularly evident in Fulham which, despite being the most expensive south west London rental market, is 42% cheaper than neighbouring Chelsea. A potential risk to the sector is… Continue reading
July sees subdued valuation and survey activity in UK housing market
Housing market activity in the UK in July was more subdued than normal but is still up 57% compared to the same month in 2014, the latest survey and valuation research shows. However, overall valuation activity in July dipped 24% compared to June 2015, according to the report from Connells Survey & Valuation. But, according to John Bagshaw, the firm’s corporate services director, the housing market momentum is only getting stronger and the slight monthly wobble is more than outweighed by the annual growth across all sectors. ‘July has been a little more subdued than normal as the post-election feel good factor began to taper out. But, fundamentally, the high pace of annual growth demonstrates that the property market is strong. As wages continue to outstrip inflation, job security increases and interest rates remain at record lows, people young and old are feeling ever more confident about the property market. There’s every reason to feel very optimistic,’ he explained. The report also shows that the number of valuations for existing owner occupiers seeking to move home in July was down 33% compared to the previous month of June. However, yearly activity has climbed 48% on July 2014. Similarly, despite the number of first time buyer valuations slipping 25% on June 2015, year on year activity accelerated 40% compared to July last year but Bagshaw believes that home movers and first time buyers are in a strong position. ‘At first glance the monthly figures might suggest we’ve endured a slow July. However, this is mainly because home movers and first time buyers are most affected by housing market seasonality. These two groups possess neither the capital of most buy to let investors or the pre-existing property of remortgagors. First time buyers in particular tend to be more sensitive to headwinds,’ he pointed out. ‘Moreover, the yearly figures indicate that first time buyers are showing no real hesitancy in getting on the ladder. Government schemes such as Help to Buy, alongside local authorities attempting to drive up property development, are giving the home mover and first time buyer markets a vitality not seen for many years,’ he said. Meanwhile, valuations in July for buy to let investors and remortgagors increased on a year on year basis. Buy to let and remortgaging valuation activity grew 76% and 75% respectively, when compared to July 2014. However, on a monthly basis, July’s buy to let valuation activity fell back 21% on June, while remortgaging activity declined by 16% over the same period. ‘Remortgagors and those in the buy to let business have had an exceptional year’s stretch. Since the first glimmers of the economic recovery, remortgaging was the first sector to make up lost ground because it was viewed as the least risky by lenders and that momentum has obviously continued into this month. Meanwhile, the latest threats… Continue reading
Less prominent locations in Scotland seeing home sales grow
Secondary Scottish locations have come to the forefront of the property market in the year to June with saes in Glasgow, Dunbartonshire and Argyll and Bute increasing, the latest research shows. Sales in these areas were higher than in Scotland as a whole, with buyers now looking beyond primary locations in search of more affordable and attainable property, according to a new report from Savills. These secondary locations have benefitted from the UK government’s Help to Buy mortgage guarantee scheme and the Scottish government’s new build scheme, with its £250,000 price limit applicable to greater numbers of properties than in more expensive core areas, the report suggests. Both Glasgow City and West Dunbartonshire have enjoyed a significant increase in supply, with private sector house building completions up by 44% and 75% respectively, driving up transaction levels. In contrast, traditional primary locations such as East Renfrewshire, and Aberdeen City have suffered from a lack of supply and are subsequently lagging in terms of activity, although prices have remained stable. In Argyll and Bute, for example, Helensburgh has seen a resurgence of interest following the referendum, with interest in holiday destinations regaining momentum, according to Faisal Choudhry of Savills. However, across the board, sales above £500,000 have fallen slightly in Scotland due to short term uncertainty following the introduction of Land and Building Transaction Tax (LBTT) in April. ‘We’re confident sales will pick up as the market adjusts to the new system. Below this threshold, the property market is strong and there is still a great deal of activity up to £500,000,’ explained Choudhry. ‘The Help to Buy mortgage guarantee scheme has assisted more first time buyers in Scotland and across the UK to get on the housing ladder with 78% of users purchasing their first home,’ he added. Looking ahead, the scaling back of government initiatives and continued lending constraints could prevent significant growth in Scottish sales levels, according to Savills. ‘The discontinuation of the Help to Buy new build scheme combined with the stricter lending criteria introduced by the Mortgage Market Review (MMR) will limit the number of buyers who can access sufficient lending to purchase property,’ said Choudhry. ‘Anticipated rises in mortgage rates could also dampen activity among those with lower deposits. Consequently, transaction levels are not likely to show double digit growth in the year to June 2016, but we would expect to see a small rise, he added. Continue reading
