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Third of new homes in London in next five years set to be in the east
Almost a third of all new homes planned for London over the next five years will be concentrated east of the city’s financial district, a new analysis shows. A total of over 55,000 homes will be built in just four boroughs, according to the report from international property adviser, Savills, which identifies a shift in the capital’s centre of gravity towards the east. It says that the boroughs of Newham, Tower Hamlets, Greenwich and Barking and Dagenham will account for 29% of all new homes planned for London in the five years to the end of 2018. ‘The Olympics played a hugely important role in opening up the area to investment and transport improvements are now driving occupier, investor and developer demand in previously overlooked east London postcodes,’ said Susan Emmett, Savills residential research director. ‘This is changing the shape of London and its property market, with a discernible pattern of emerging development hugging the East London Line portion of the new London Overground. The network extension to Barking Riverside and the completion of Crossrail with give a further boost,’ she added. The analysis report points out that lower average capital values in the east of London have provided developers with the opportunity to build much needed homes that are affordable for those living and working in London. However, while central boroughs such as Westminster and Kensington and Chelsea remain the most expensive, the biggest increases in value have been seen away from London’s core over the past year, particularly in cheaper locations to the east. But, not only have prices increased ahead of the Greater London average, transaction volumes have also received a dramatic boost. In Tower Hamlets, the number of homes changing hands is now double the pre-peak norm, while deals in Newham are up almost 50% year on year. Key emerging residential areas include Stratford with 6,500 new homes, including 2,800 in East Village, Canning Town and Royal Docks with 8,000 homes, Canary Wharf with 4,500 homes at Wood Wharf and 850 at Asda Crossharbour and Greenwich Peninsula with 10,000 new homes. Average prices currently range from £500 to £700 per square foot in Canning Town and Royal Docks and £550 to £750 in Stratford, accessible to households with an average income of over £70,000. In Canary Wharf, popular with financial sector employees both as owners and tenants, values range from £700 to £1,200 per square foot. Greenwich Peninsula is expected to achieve values in the £550 to £850 range. ‘It is this dynamic of rapidly rising prices, albeit from a low base, and the strength of demand that will present developers with their biggest challenge. Market strength has pushed the value of new build in Canary Wharf, the most established East of City location, to £700 to £1,200 per square foot, out of the reach of the… Continue reading
New home sales pick up in Australia, but peak of growth has passed
Sales of new homes in Australia increased in August following a weak July but an overall downward trend in total seasonally adjusted new home sales is still apparent, the latest data shows. There was an increase of 3.3% in August driven primarily by a strong increase in the usually volatile multi-unit sector, the new home sales report from the Housing Industry Association shows. However the report, which covers Australia’s largest volume builders, says that despite the August bounce, the HIA still believes that new home sales reached their peak for the cycle back in April this year.” ‘The result for August was driven primarily by a strong lift the multi units sector where sales increased by 19.8%, taking this component of sales to its second highest level this cycle,’ said HIA economist Diwa Hopkins. She pointed out that new detached house sales didn’t fare quite so well, up by only 0.5% although this slight rise stopped a decline which stretched to three consecutive months. ‘As leading indicators of new home construction activity, both HIA New Home Sales and ABS Building Approvals are displaying a moderate downward trend. Current levels remain elevated by a historical standard, which is consistent with still healthy levels of new home building throughout 2014/2015,’ she explained. ‘It is important for the new home building sector and the broader domestic economy that we continue to see evidence of historically high levels of building approvals and new home sales throughout 2014 and into next year, even if the peak for these indicators has passed,’ she added. A breakdown of the figures show that detached house sales increased by 11.1% in New South Wales and by 2% in Western Australia but fell by 6.8% in South Australia, by 6% in Victoria and by 0.7% in Queensland. Over the three months to August 2014 detached house sales decreased in each of the surveyed states, albeit to varying degrees, with the exception of New South Wales where sales increased by 0.4%. Sales fell by 9.8% in Victoria, by 4.6% in Western Australia, by 4.4% in South Australia, and by 3.2% in Queensland. Continue reading
New research reveals what new home owners spend their money on
Over two thirds of first time buyers and home movers are spending up to £2,500 on their first project in their new home, according to new research. Overall 71% are paying out. Some 33% do so on new paintwork or wallpaper, 15% on carpets, 6% on kitchen renovations5% on a new central heating system and 5% on new fitted windows, the survey from TSB shows. Half of those surveyed, 49%, considered it essential for this first project to be carried out in their new home while 27% also felt that it would make the house feel more homely in the short term. When moving into a new home 37% stated that they would prioritise any changes to the lounge first, followed by 18% doing work on a bedroom, 16% on the kitchen and then 8% on the toilet or bathroom. When it comes to what they spend some 19% bought white goods and the same percentage bought carpets. Some 14% opted for window coverings and 11% a new sofa. New carpets are particularly popular amongst the older generation with 27% of those aged 55 and over doing so, compared with 10% of 18 to 24 year olds. The younger group prefer to spend their money on white goods. Ian Ramsden, director of TSB Mortgages Director, said the lender is focused on supporting customers with the costs associated with buying a home and is helping with a significant cost, such as Council Tax for the first year. ‘It means our customers have the opportunity to spend the money that they have saved on other aspects of home ownership, such as redecoration and furnishings. We know people often have to undertake significant projects in their new home,’ he explained. TSB has recently launched a new campaign to encourage people to ‘Borrow Well’ helping them to borrow money in a way that makes the best financial sense for them. This means that all TSB customers receive the right information so that they can make informed decisions. TSB also offers assistance for people whose mortgage application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible. Continue reading
