Tag Archives: investment
Flats cost more in the UK than semi-detached properties, new research shows
On average home buyers in the UK are paying almost £20,000 more for flats than semi-detached properties, new research has found. This could be one reason why first time buyers are bypassing flats in favour of semi-detached homes, according to a study by leading lender the Halifax. It shows that the average price of a flat in the UK has risen by £86,474 since property prices were at their lowest in late 2008 from £150,749 to £237,223 at the end of 2015. The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the same period. Additionally, it means that buyers are on average now paying almost £20,000 more for a flat than for a semi-detached home. Detached homes recorded the smallest rise at 20% over the past seven years, while terraced and semi-detached houses saw price rises of 38% and 34% respectively since 2008. The research report explains that a considerable proportion of the national rise in flat values since 2008 is due to the rapid increase in flat prices in London with growth of 62% Flats represent a much higher share of the property market in London than elsewhere with 50% of sales in the capital being flats compared with a UK average of 17%. However, if London performance is excluded, then price growth is greatest for terraced homes at 31%, closely followed by semi-detached houses at 29% and flats at 26%. Detached home properties remain the worst performer with 19% growth on this basis. Prices have increased by around 20% across all property types since 2013 with the exception of detached properties, which have seen a much lower rise of 8%. ‘The high prices being paid for London flats have had a significant impact on the national picture when it comes to property type winners and losers. This is the result of more flats being sold in the capital and at the higher end of the market. Such is their popularity that flats continued to outperform other property types in the capital last year, with an annual price growth of 17% by the end of 2015,’ said Martin Ellis, housing economist at the The research also shows that at 30% terraced homes are the most popular followed by semi-detached at 29% as was the case in 2008. But there have been some changes in market composition over the past seven years, with an increase in the share of semi-detached homes from 25% to 29%, whilst the proportion accounted for by flats has fallen from 22% to 17%. This shift from flats to semis has been particularly marked for first time buyers. Semi-detached homes have risen in popularity, accounting for 29% of purchases in 2015 compared with 23% in 2008. However, flat sales for first time buyers have fallen from 32% of all property sales to 23% over the same period. ‘Semi-detached and terraced homes have remained the most popular… Continue reading
Survey reveals how prospective UK first time buyers worry they will never own a home
Almost half of people in the UK who have not bought their own home by the time they are in their mid-30s doubt that they will ever be able to do so. First time buyers are increasingly being squeezed out of the housing market despite a strong desire to own a new home which is regarded as a sign of social and financial security. New research commissioned by Yorkshire Building Society has found that 49% of non-home owners aged 35 to 40 who aspire to home ownership think that it is ‘unlikely’ or ‘very unlikely’ that they will ever own a property. The survey, conducted by NatCen Social Research, found that 69% of young adults aged 18 to 40 felt that owning their own home was crucial to feeling that they had succeeded in life, as well as a source of social and financial security. However, the importance that young adults placed on home ownership was not matched by equal levels of optimism about their ability to achieve this milestone, particularly among older respondents. The research thus suggests that an inability to buy a home is leaving many young Britons facing an ‘early life crisis.’ ‘It is very sad to see how the hope of owning a home is fading for so many, especially as people approach their mid-thirties. For most people, owning a home is not just about security, it is also evidently integral to their feelings of self-worth, success and self-esteem,’ said Andy Caton, executive director of Yorkshire Building Society. ‘Hundreds of thousands of adults across the UK feel unable to reach this important milestone in their lives, with many reaching the conclusion that they will never be able to buy their own home like their parents and grandparents did,’ he added. The survey found that while 69% want to own a home some 45% didn't think they were earning enough money to be able to buy their own place, while 46% worried they wouldn't be able to afford mortgage repayments and 38% can’t afford required deposit. One in 10 people claimed that lack of job security was preventing them from pursuing their dream of owning their own home. Some 31% of non-home owners aged 35 to 40 have given up on ever buying, saying that they don’t think they will ever be able to afford to buy. This is equivalent to around half a million people across the UK expecting never to be able to afford to own their own home, unless there is a dramatic downward shift in house prices. Latest UK house price figures show that property values have risen to a record high, with the typical first time buyer paying 7.1% more than they would have a year earlier. Indeed, the average price paid for a starter home in the UK is now around £219,000, meaning that, with a deposit of 10% buyers would need a salary of around £45,000 a year to get their first step on… Continue reading
Detached new build homes outsell flats for first time in a decade
Flats are becoming less popular in England and Wales with the latest data from the Office of National Statistics (ONS) showing new build detached homes outselling apartments. Detached properties were the most commonly sold type of newly built home in the 12 months to September 2015 representing 32% of all new property sales, the first time flats have sold less in a decade. In the 12 months ending December 1995 sales of detached housing dominated the new build market with 44% of all sales for new properties. By 2000, the share of sales for new detached housing peaked at 52% but declined until 2008. Since then the share of sales for new detached property has been increasing steadily. The share of sales for new semi-detached properties has also been rising since 2008, albeit at a slower rate than the share of new detached properties. The percentage of new terraced housing exceeded that of semi-detached in 2001 and remained higher until 2014. For newly built flats, the share rose rapidly between 2000 and 2008, during which time many urban areas were regenerated. Since then the share of newly built flats has fallen steadily. The latest ONS data release also shows that the difference in median price between the most and least expensive parts of England and Wales was nearly £3.2 million in the year ending September 2015, down from a peak of £3.5 million in year ending December 2014. For all types of property, the median price paid ranged from £38,750 in one part of Pendle, Lancashire to £3,212,500 in one area of Westminster. The most expensive area outside of London was in Elmbridge, Surrey where the median price paid for all properties was £997,475 and house price growth has diverged for the most expensive and least expensive areas since the recession. Part of the difference in price paid between the least and the most expensive areas is caused by different types of dwelling being sold in those areas. For example, detached properties in England and Wales sold for 61% more than semi-detached properties on average in the year ending September 2015. Therefore, an area with a higher proportion of detached property sales is likely to have a higher median price overall than an area which had a higher proportion of semi-detached property sales. In the year ending September 2015 there were 581 middle layer super output areas (MSOAs) in which the median house price was in the lowest 10% of property prices in England and Wales overall. Generally, towns and cities in the north of England, the Midlands and also in south Wales contained most of these 581 MSOAs. There were 27 MSOAs in which the median price paid for all properties was more than £1 million in year ending September 2015. All these areas are in London and are predominantly in the central and western boroughs. The most expensive area outside of London was in Elmbridge, Surrey where the median price paid for… Continue reading
