Tag Archives: housing
English regions start to outpace house price growth in London
House price growth in the South East and East Anglia has overtaken London for the first time in four and a half years, according to the latest index covering England and Wales. Overall, across England and Wales, house price growth picked up on a monthly basis in April, climbing 0.2% but the annual rate of property price growth has halved since last summer, down to 5.3% in April. The data from the LSL index shows that the average house price is now £275,961, a new high for this year and excluding London the annual growth is 4.1%. The data also shows that in the first quarter of the year sales were down 10% but the firm expects that to change as the political uncertainty that affected the market in the run up to the general election disappears. ‘Annual price growth is still cooling, but mainly due to some recent negative monthly price rises. The direction of travel is clear and accelerating and most importantly, momentum is picking up where it was lacking before,’ said Richard Sexton, director of e.surv chartered surveyors. ‘By contrast, annual price rises in London have fallen sharply. As a result, the capital has been knocked off its perch by the South East and East Anglia, who have now edged ahead of London with the strongest year on year increase in property values of all regions across the country, at 7.1% and 6.9% respectively. In contrast, annual growth in London has shrunk from 9% in February to just 6.8% in March 2015,’ he pointed out. ‘This is the first time for nearly four and a half years that London has not been leading the pack in terms of regional house price growth, as higher stamp duty rates take some of the shine off high end properties in prime central areas,’ he added. The data shows, for example, that in the City of Westminster, where the average property is now worth £1,382,965, prices dropped 5.2% during the month of March, as pre-election speculation of a mansion tax put a dampener on enthusiasm for the most exclusive London homes. London also saw the sharpest decline in completed home sales between the first quarter of 2015 and the same period a year ago, falling 16.5%. ‘Election uncertainty has now vanished, so arguably London’s unique property market could see a fresh boost. But this mansion tax effect is one for the very top of the market. Away from the prime hotspots, affordability is still the biggest factor holding back further price rises and owning a London home is still more of a dream than even an aspiration for millions,’ said Sexton. ‘The head start that the housing market in London has traditionally exercised over the rest of the UK is retreating, and more of an even playing field is emerging instead. Average property values also hit new highs in greater Manchester and Birmingham, as demand in… Continue reading
New Zealand sees strongest new home figures for almost a decade
New building consents in New Zealand have increased to the country’s strongest house building rate for nine years, according to the latest official figures. Housing supply is increasing particularly in Auckland and Christchurch, according to Building and Housing Minister Nick Smith, with 25,000 plus new consents per year nationally. The latest annual figure of 25,038 compares to the low of 13,236 following the global financial crisis. A breakdown of the figures shows there were 756 new building consents for Auckland in March, which compares to just 209 per month before and 7,940 building consents in the year to March 2015 in Auckland, the highest since 2006. ‘We are well on the way to recovering the 10,500 homes lost to the earthquakes in Canterbury, with another record set for building consents. The 588 consents issued last month confirms the Government's view that the Christchurch housing market will have supply and demand back in balance by 2017/2018,’ said Smith. ‘These positive signs follow a general pattern of strong growth that has continued for almost four years. They confirm the latest GDP data showing a $9.5 billion annual investment in residential construction – an all-time high. It shows that the Government's programme of measures to increase housing supply is working,’ he added. Smith also pointed out that there are now Housing Accords in place with six local councils to free up more land faster. ‘We have initiatives in place to constrain building materials costs, rein in development contributions, cut compliance costs and invest in improved sector productivity,’ he said. He explained that the new $435 million HomeStart support package, which came into effect 01 April, is projected to assist 90,000 people into home ownership. ‘This is good progress but with strong net migration data from fewer New Zealanders leaving, we need to keep doing more. The next steps in our programme include our planned second phase of reforms to the Resource Management Act and place based initiatives like those announced today at Tamaki. The Government remains committed to supporting more New Zealanders into their own home,’ he concluded. Continue reading
Prime central London real estate agents report major boost from election
Reports from estate agents in the prime London property market shows there has been a surge of high end deals since the election result just a few days ago. Over £200 million worth of residential property has been sold since it became clear that the Conservatives would win the election and form the new government. Peter Wetherell, chief executive of Wetherell said that the firm is currently processing some £29 million worth of offers that were made on Mayfair property on Friday 08 May straight after the election, which included a £26.5 million property in Mayfair. ‘I’ve had correspondence last Friday and over the weekend with some 70 clients and other property contacts and all of them have said to me that the luxury London market is now back in business, especially with the mansion tax worries now over,’ he explained. ‘Whilst stamp duty remains a significant cost on the prime London market, I believe that we will now see a wave of new luxury residential sales and new instructions coming onto the Mayfair and wider West End marketplace,’ he explained. ‘I’ve already had several clients coming onto me on Friday and over the weekend asking me to prepare launching new luxury properties into the market shortly. The next few months will be very exciting for the luxury residential market in central London,’ he added. Gary Hersham, managing director of Beauchamp Estates said that firm is still busy finalising the multi million pound of business activity that started on Friday, most notably a £20 million pound property in the West End which exchanged on Friday. ‘We will now see property activity in prime central London return to previous levels, if not surpass them, as delayed and pent-up activities are given the green light. Property played a very influential role in this election, voters wanted economic stability and their homes safe from a mansion tax,’ he pointed out. ‘We will now see a big wave of previously pent up demand unleashed in the London housing market, which will lead to a rise in new instructions and sales across London and the Home Counties in particular, especially in the premium sector of the housing market,’ he added. Becky Fatemi, managing director of Rokstone, revealed that the firm had exchanges and offers on prime London property worth a cool £59.7 million at the end of last week, the biggest set of deals since the rush on the day before stamp duty changes. The activity included a £20 million penthouse in Belgravia, and a £2.2 million flat on Duke Street in Mayfair. It also had offers on £37.5 million worth of additional property consisting of a £7.1 million house in South Kensington from a Lebanese buyer, a Saudi family offered on a £2.5 million apartment in St Johns Wood, an investor made an offer on a £6 million property in Hyde Park Street, and there was… Continue reading
