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More British buyers in top end of UK country house market
British buyers are active again in the top end of the UK’s country house market, making up two thirds of buyers in the five million pounds plus sector since the start of the year. This compares to less than half of this market in the same timescale last year, according to research by leading international real estate firm Knight Frank. The figures show that British buyers have become a more regular feature in the super prime country house market this year, accounting for 71% of all sales since the start of 2014. In 2013 they accounted for just 46% of the market. The improving UK economy and growing confidence in the property market outside of London over the course of the year have contributed to the rise in British buyers at this level of the market, according to Rupert Sweeting, head of Knight Frank Country. ‘The increase in mergers and acquisitions and the stock market has also encouraged UK national buyers to buy having been waiting in the wings for a while. Some company owners now feel they can invest their dividends in a home rather than keep them in reserve for their business,’ he said. ‘However, they have often had to outbid international buyers who whilst wanting to move to the UK for education, political and work reasons have found their currency a little weaker against the pound,’ he pointed out. Since the market low in 2009, super prime country homes have risen in value by around 12%, in prime central London price growth over the same period has been in excess of 70% making the country seem good value in comparison. The firm is starting to see an increase in the number of London buyers active at the top end of the country market, with some London dwellers choosing to take advantage of record prices in the Capital and spend their budgets on large country properties. As well as rising demand from domestic buyers, demand from Asia has increased. Chinese buyers have accounted for 6% of the market since the start of 2014, up from 0% last year and 2% in 2012. While economic conditions in the UK are favourable, the political backdrop has become more unpredictable, the firm also pointed out. Taxation, for example, is likely to become more of an issue in the run-up to the general election and could have a direct impact on the demand for luxury property and on price performance. Continue reading
UK house prices set to fall in 2015 after rising too much this year
UK house prices are set to fall next year as price growth as got ahead of itself in 2014, but they will start rising again in 2016, according to a new analysis. According to the Centre for Economics and Business Research, house prices are about to hit a turning point. It’s report says that so far 2014 has seen largest rise in home values since the Prices this year are expected to rise by 7.8%, more than double the 3.5% national average increase last year. But now young buyers risk being priced out of the rising market, while an expected rise in interest rates will ‘startle’ prospective home owners, the report says. Scott Corfe, a director at the CEBR, pointed out that leading indicators already point to price declines in some parts of the UK, alongside falling new buyer enquiries and properties staying on the market for longer before they sell. ‘Affordability has become such an issue in the more expensive regions of the UK that buyers are starting to baulk at high prices. New mortgage rules, introduced in April, have also led to a slowdown in lending that will ‘curb demand for property in the short term’, he said. A rise in interest rates from the Bank of England next year is also expected to cool house price growth in the short term. ‘Although rises are expected to be very gradual, with rates remaining much lower than before the financial crisis, prospective buyers are likely to be startled by the first such increase, leading many to hold off from making purchases. This too will lead to lower prices,’ he explained. But he stressed that the CEBR is not anticipating a crash as the market is adjusting after getting ahead of itself at the start of 2014. It predicts that, after slipping in 2015, prices will start to rise again, growing by 2.6% in 2016, 3% in 2017 and another 2.7% in 2018. Howard Archer, an economist at IHS Global Insight, has previously said he expects house prices ‘to rise at a more retrained restrained rate over the coming months’. Continue reading
Mayor concerned about number of tall buildings on London site
The Mayor of London has intervened in the proposed redevelopment of a site on the Isle of Dogs following concern that too many tall buildings are being proposed without an overall vision for the area. South Quay in Tower Hamlets is made up of numerous small plots of land and many of the individual land owners want to construct their own tall buildings. But the Mayor believes that sensitively managed tall buildings that are well designed and in the right place, will help London address its housing need. However, he is concerned that without an overall strategy for South Quay, the tall buildings proposed could have a detrimental impact on London's skyline and the public realm. As a result, the Mayor is now working with the London Borough of Tower Hamlets who are developing a Masterplan for South Quay. The plan will establish the key priorities for the area so that new buildings are delivered in a planned, sustainable and responsible way. ‘South Quay is enjoying unprecedented interest from developers all of whom want to bring forward their own plans. While we want to see the comprehensive regeneration of the area, what we cannot allow is a situation where planning is granted on a first come first served basis with no overall strategy, as this could eat up valuable space, have a negative impact on the public realm and potentially cause other schemes to collapse,’ said Sir Edward Lister, Deputy Mayor for Planning. ‘This Masterplan will allow us to take a coordinated approach so that this growth is managed in a sensible way with developers coordinating their proposals. It will allow us to maximise the area's huge potential while ensuring that all development contributes directly to the sustainability of the area,’ he explained. ‘The Mayor firmly believes that tall buildings play a valuable role in addressing some of our housing needs but it is essential that the right buildings are built in the right places,’ he added. By working with the council, the Mayor hopes that the Masterplan will be brought forward more speedily so that there is clarity for developers about what schemes are suitable. This will ensure that the key planning objectives for this key growth area can be met. The Masterplan will also ensure that the social and physical infrastructure required to realise and support this unprecedented growth is delivered in a managed way. Developers are being encouraged to proactively engage in meaningful discussions to ensure that their proposals respond appropriately to this emerging vision. The Mayor also intends to develop an Opportunity Area Planning Framework to building on the work of the Masterplan and addressing the wider Isle of Dogs. Continue reading
