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New research reveals how expensive homes are in UK National Parks
Home buyers would pay over £125,000 extra to live in some of the UK's most beautiful landscapes, according to new research. House prices in the National Parks of England and Wales in 2014 are, on average, £125,796 higher than their county average. In percentage terms, this represents a premium of 58%. The research from Lloyds Bank also shows that the New Forest commands the highest price premium whilst Snowdonia has the smallest and is the only National Park with an average price below £200,000. All National Parks have higher house prices than the average for their county, with four of the 12 National Parks attracting a house price premium in excess of £125,000. Homes in the New Forest command the largest premium relative to the average for the surrounding area in both monetary terms at £259,066 and a difference of 101%. The next highest percentage premiums to the surrounding area are in the Peak District at 94% and the Lake District at 84%. Homes in Snowdonia command the smallest premium, with property prices only 5% above the average for the surrounding area. Overall the average house price in National Parks has risen by £91,265 or 36% over the past ten years, from £251,269 in 2004 to £342,534 in 2014. This was £10,000 more than the £81,269 increase in the average price for all properties in England and Wales over the period. Exmoor recorded the biggest percentage increase with a 47% house price rise, closely followed by the South Downs at 45%. In contrast, the North York Moors at 17% and the Yorkshire Dales at 18% recorded the smallest gains in house prices over the last decade. The research also shows that the increase in house prices outpaced the 25% of average earnings across England and Wales’s National Parks, resulting in a deterioration in home affordability over the past decade. The average National Parks house price of £342,534 in 2014 is, on average, 11.3 times higher than average gross annual earnings. This is up from a multiple of 10.3 in 2004. The New Forest is both the most expensive and the least affordable National Park with an average house price of £516,479 that is 14 times local gross average annual earnings. The South Downs at 12.3 times average earnings is the second least affordable National Park. Exmoor, Dartmoor, the Lake District and Peak District also have average prices that are more than 10 times local average annual wages. Snowdonia is both the least expensive and the most affordable National Park with an average house price of £173,779, which is 6.5 times local average annual earnings. Snowdonia is the only National Park with an average price below £200,000. Seven of the 12 National Parks surveyed have an average house price that exceeds £250,000. ‘The high quality of life associated with living in some of the country's most beautiful areas attracts many homebuyers to our National Parks. They are also increasingly popular with those purchasing a second property. These factors mean that homes in National… Continue reading
UK govt already agreed to buy over 350 properties affected by high speed rail link
The UK government has now agreed to buy over 350 properties along the route of the new High Speed rail link from London to Birmingham. They are affected property owners who have served Statutory Blight notices or applied via the Express Purchase Scheme. This makes clear the government’s commitment to acquire a significant amount of the property required for the construction of HS2 before the necessary legislation enabling the railway has even passed through parliament. However, even when the government has accepted a Statutory Blight notice, care should be taken when negotiating a final settlement, according to experts at independent property consultants Knight Frank. James Del Mar, head of Knight Frank’s HS2 Team, pointed out that compulsory purchase and compensation legislation is complex. ‘Those facing Compulsory Acquisition or making a Statutory Blight or other compensation claim are entitled to be represented by properly qualified professionals. HS2 will meet those professionals’ reasonable fees incurred in assisting claimants,’ he said. He explained that the ‘disturbance’ aspect of a claim, for example, has a multitude of facets. ‘As well as the value of the property, which needs to be evidenced by reference to actual market transactions, there is the Home Loss Payment of a further 10% capped at £47,000 or a business loss payment for those that aren’t home owners,’ he said. ‘There is the Stamp Duty Land Tax, itself a significant sum, the removal costs and all other associated expenses which can be considerable. In many cases HS2 are hoping to settle on a full and final basis and are leaving little ability for claimants to come back if they’ve forgotten something,’ he added. Knight Frank has a dedicated team of Compulsory Purchase and compensation specialists with over 100 years’ experience between them. The team has a 100% success rate in its dealings with HS2 with all fees being directly paid by HS2. ‘It’s an enormously stressful event and taking the comfort in the form of professional advice is one way of diffusing some of that emotion and receiving the reassurance that HS2’s proposal is correct and appropriate,’ said Del Mar. Continue reading
UK landlords predict slower annual rent rises
Landlords in the UK expect rent rises to slow over the next 12 months to below the target rate of inflation, according to a the latest survey from lettings agent network Your Move and Reeds Rains. On average, landlords estimate that rents will increase by 1.8% in the next year. This is lower than the Bank of England’s 2% target for inflation, and would also represent a slowdown on the current pace of annual rent growth. The latest Buy to Let Index from Your Move and Reeds Rains reported that average residential rents across the UK are rising at an annual rate of 2.4%. The majority of landlords polled do not intend to raise their rents in the next year, however 43% expect to raise rents and of those 57% cite covering the cost of inflation as their main motivation. Paying for maintenance work is the second most significant reason, listed by 31% of landlords. Over the last six months, 41% of landlords report seeing a rise in tenant demand. This comes as lettings activity has been growing, with new tenancies agreed across England and Wales up by 6.9% compared to August 2013. Tenant demand has helped reduce average void periods in the private rented sector, ensuring greater stability of income for landlords. In the past year, 18% of landlords have already added to their portfolio of rental properties. This appears to be inspiring confidence among property investors with 21% of landlords believing that now is a good time to invest in buy to let. Of those who report it is currently a prime time to purchase a rental property, 55% cited tenant demand as a key motivation for investment. Attractive property prices are the second biggest driver, reported by 54% of landlords, while 45% pointed to better capital returns on offer compared to other forms of investment. The proportion of landlords who expect tenant demand to increase further now stands at 63%, up from 56% in January. Only 5% of landlords currently anticipate a fall in demand for rental properties over the coming years. As a result, 22% of landlords intend to expand their portfolio over the coming year, an increase from 18% in January 2014. ‘Demand for rented accommodation is climbing, and there’s little sign of this stopping. While Help to Buy and higher LTV lending are enabling first time buyer activity, strong house price growth this year has lifted homeownership a few steps out of reach for many, and the private rented sector remains the safety net supporting those still saving for a deposit. This is in addition to the thousands of people who rely on renting to offer them flexibility and freedom in their working lives,’ said David Newnes, director of Your Move and Reeds Rains. ‘This demand is also powering more supply. Secure house prices and spirited tenant demand are encouraging budding buy to let investors and existing landlords to add to the number of available homes to… Continue reading
