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Most UK regions see strong annual rental market growth
Nine out of 12 UK regions saw rental price rise in November compared to the same month last year, according to the latest rental index. However on a month on month basis there was the traditional autumn with nine out of 12 regions recording lower rental prices compared to October 2014, the findings from the Home Let index shows. It means that the average monthly private rent in the UK is £874 per month or £702 excluding London and Scotland saw strong rental price growth with an 8.7% increase in November 2014 compared to the previous month and 11.7% up on the same month last year. Overall the regions that have experienced the highest growth compared to this time last year include Scotland, Greater London, and the West Midlands, with rental prices 11.7%, 11% and 8.7% higher than this time last year, respectively. Regarding the autumn dip, with the exception of Scotland, the East Midlands and the South West all saw lower rental prices in November than in October. Scotland recorded a monthly increase in rental prices of 8.7% with the East Midlands and the South West recording monthly increases of 1.5% and 1.4% respectively. The index report says that the recent dip in prices reflects typical seasonal movement in the rental market and sits within the context of a market that remains strong. Annually, only three regions of the UK recorded lower rental prices in November 2014 compared to the same month last year. The North West dropped 3.6%, the North East fell by 2.5% and Wales was down 2%. ‘We see the autumn’s moderation in rental growth as broadly in line with the typical seasonal effect that often sees rental prices balance or even slip into reverse in many areas of the country at this time of year,’ said Martin Totty, chief executive officer of the Barbon Insurance Group of which Home Let is part. ‘The outlook for the private rented sector remains positive for several reasons, the pace of house building is unlikely to have a significant effect on the supply of property to buy or to rent in the short term, high house prices, and a mortgage market where lending criteria remains constrained, are combining to ensure that the demand from tenants needing rented accommodation remains strong,’ he explained. ‘In terms of seasonal highs we see Scotland bucking the trend of the rest of the country, the rapid growth in the Scottish rentals market reflects the strength of the economy north of the border, particularly in oil-rich Aberdeen, which has a thriving rentals sector, but also in other Scottish cities and throughout the country,’ he added. Continue reading
Belgrave Square named as having the most expensive homes in England and Wales
The streets of Belgravia and Knightsbridge in central London are the most expensive locations in England and Wales to buy a property, according to new research. Located in one of London's most prestigious areas in the heart of Belgravia between Hyde Park Corner and Belgrave Square, Grosvenor Crescent is the most expensive residential street, the research from Lloyds Bank shows. To acquire a typical Grade II listed house on Grosvenor Crescent will cost an average of £16,918,000, it reveals. Indeed, five of the 10 most expensive streets are in the prime residential areas of Belgravia and Knightsbridge in the City of Westminster. They include Eaton Square with an average property value of £15,520,000 and Chester Square at £8,282,000, both in Belgravia. This is followed by Trevor Street at £10,150,000 and Montpelier Street at £8,483,000 in the Knightsbridge area. The remaining four streets are in all in the Royal Borough of Kensington and Chelsea. They include Cadogan Square with an average value of £8,592,000, Elgin Crescent at £7,683,000, Egerton Crescent at £7,100,000 and Hillsleigh Road at £7,091,000. Outside central London the capital's most desirable addresses are Cambridge Gate in Camden which has an average property value of £6,670,000, Coombe Park in Kingston upon Thames at £3,515,000 and Lichfield Road in Richmond upon Thames at £2,863,000. ‘London dominates the list of the most expensive residential addresses in England and Wales. As an international city, London has always attracted overseas buyers and in recent years the capital has been a magnet for ultra high net worth individuals,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘This has led to soaring demand for homes in the prime residential areas of central London and as a result values have grown significantly. For the first time since this survey began, there are three streets with an average property price of over £10 million,’ he explained. ‘The Royal Borough of Kensington and Chelsea has always pulled in wealthy buyers, but this survey shows that properties in Belgravia and around Knightsbridge are now the ones commanding the highest prices,’ he added. Away from London the most expensive streets are both in Oxshott, Surrey; Spicers Field at £3,734,000 followed by Leys Road at £3,609,000. They are followed by Virginia Avenue in Virginia Water at £3,320,000 and Icklingham Road in Cobham at £3,264,000. A place near the sea has obvious attractions for many wealthy buyers and several exclusive addresses are dotted along the south coast. These streets include Sandbanks Road on Poole harbour at £2,493,000, Western Avenue also in Poole at £2,450,000 and Restrongeut Point in Truro at £2,097,000. The only address outside southern England in the top 50 most expensive streets is Park Lane in Altrincham with an average property price of £2,494,000, followed by South Road, also in Altrincham at £2,025,000. Other expensive addresses include Withinlee Road in Macclesfield at £1,960,000, The Ridgway in Leicester at £1,783,000, Tiddington Road in Stratford upon Avon at £1,313,000, Runnymede Road in Newcastle at… Continue reading
England and Wales house prices showing strongest annual growth since 2005
House prices in England and Wales increased by 0.8% in November with values climbing across all regions taking the average price to £280,733. The LSL Property Services/Acadata index also shows that annual growth accelerated to 11.3% but it points out that strong growth is buoyed by London and the South East. Excluding them takes the annual growth to 5.7%. But it does mean that the average house price has now exceeded £280,000 for the first time and annual growth is the strongest it has been for almost a decade. However, completed house sales have been squeezed by slow supply. ‘Annual house price growth across England and Wales has more than doubled over the last 12 months, accelerating from 5.4% in November 2013, to 11.3% during the past year,’ said David Newnes, director of Reeds Rains and Your Move estate agents. ‘These figures are spurred on by London and the South East, where the housing recovery has been fast tracked. When these regions are removed from the calculations, a calmer 5.7% annual rise in house prices materialises, the largest divergence on record,’ he explained. ‘After a temporary hiatus at the highest tiers of the property market, growth has rallied again in the capital with values in prime spots such as Kensington and Chelsea, and Hammersmith and Fulham surging 5.3% over the course of the month, hitting new price records along the way,’ he added. He also pointed out that overall, average house prices in London are now 1.9% higher than September, rebounding back from a more moderate 0.8% increase the previous month, and driving annual price rises to 19.7% in the year to October 2014. However, after a solid advance in activity throughout 2014 to date, completed house sales withdrew last month, from a particularly busy October. House sale completions in November also dipped below the level witnessed a year previously. ‘This doesn’t undermine the strength and stability of the growth in activity experienced over the year as a whole in some locations. For instance, completions have jumped 58% in Slough in the last year, propelling an 18.5% increase in average house prices in the area over this time,’ said Newnes. He also explained that the changes to Stamp Duty should also allow activity to build further at the bottom rungs of the ladder, facilitating hefty savings. ‘This should help erode the upfront barriers of purchasing a home for the significant majority of buyers and sellers may feel the benefit of weightier demand, as well as being able to price their homes more realistically, without having to tactically negotiate threshold barriers,’ Newnes said. ‘Meanwhile, the impact on the top end of the market isn’t as black and white as it may seem at first glance with properties ranging between £1 million and £1,125,000 liable for less stamp duty than before although above that there are no winners,’ he added. ‘In the year to September 2014, some 69% of completed house sales on properties worth £1,125,000 or more were in London, and a… Continue reading
