Tag Archives: london
UK property prices up almost 8% year on year
UK house prices increased by 7.9% in the year to January 2016, up from 6.7% in the year to December 2015, taking the average price to £292,000, according to the latest data to be published. The index from the Office of National Statistics (ONS) also shows that prices increased by 8.6% in England, by 0.1% in Scotland and by 0.8% in Northern Ireland but fell by 0.3% in Wales. Annual house price increases in England were driven by an annual increase in the South East of 11.7%, then London with growth of 10.8% and the East of England up by 9.8%. Excluding London and the South East, UK house prices increased by 5.1% in the 12 months to January 2016 and on a seasonally adjusted basis, average house prices increased by 0.9% between December 2015 and January 2016. In January 2016, prices paid by first time buyers were 7.7% higher on average than in January 2015 while for owner occupiers prices increased by 8% for the same period. Richard Snook, senior economist at PwC, pointed out that the first ONS housing market figures for 2016 show strong momentum in the UK but he also pointed out that performance has been mixed across the UK. He said that the market has cooled in Wales, Scotland and Northern Ireland, where prices are roughly unchanged from a year ago, whilst growth in the South continues to power ahead. ‘The recent changes to stamp duty, whereby supplementary rates will be charged on purchases of additional homes, may be providing a small boost to the market, as people rush to complete transactions before the changes come into force in April this year,’ he added. Rishi Passi, chief executive officer of Oblix Capital, believes that behind the scenes, an imbalance between supply and demand has been squeezing the bottom end of the market, which together with a rush to beat the April stamp duty rise, has driven up prices and stretched affordability for those taking their first step on the housing ladder. ‘The new Lifetime ISA and Help to Save initiatives will go some way to give entrants to the market a much needed leg up, and with local authorities across England planning 270,000 houses a year over the next 15 years, the Chancellor’s commitments to house building may begin to level the playing field,’ he explained. The figures reveal the sharp regional differences, according to Mark Posniak, managing director at Dragonfly Property Finance, and he said that for annual prices in the South East to have out-performed London underlines an ongoing shift in demand away from the capital as people look for more value elsewhere. ‘London will remain a formidable bastion of the UK's property market but for many its prices are an insurmountable obstacle. With interest rates unlikely to rise this year and the employment market as strong as it is, demand will remain,’ he pointed out. Continue reading
Lack of off street parking means a home takes longer to sell in big UK cities
Properties in resident parking zones in the UK can take twice as long to sell as homes with off street provision, particularly in some of the biggest cities, new research has found. An analysis of property sales data for the last 12 months shows that properties with off-street parking provision take on average just 25 days to sell compared to 50 days for properties in areas where parking restrictions exist. Highlighting the parking permit postcode lottery in different parts of the country, the survey conducted by Quick Move Now reveals that lack of parking availability in the North West is the main motivation for moving to a new property as 34% of vendors in this area opt to sell up and move home due to parking concerns. A quarter of households in London and the South-East have decided to sell up and move house due to parking concerns, but in contrast only 2% of vendors in the East Midlands have similar worries. In addition, just 10% of home owners in Wales and 12% in the South West decide to sell up and move due to parking problems. These findings follow research that shows 62% of councils issue parking permits. Birmingham and Manchester head the list of the highest annual parking permit charges in the UK followed by the London Borough of Islington. Whilst the national average cost of an annual car park permit is £59.17, Birmingham City Council and Manchester City Council both charge £750. The research suggests that parking is a bigger reason for putting a property on the market than lack of space, crime, distance to work and neighbour. Indeed, a recent survey by The AA suggested that almost one in four drivers in London put off making car journeys in order to avoid losing their parking space and almost 20% of drivers nationally say they always worry about being able to find a parking space as they approach their home. And with car ownership increasing by almost 600,000 in the last year according to the Society of Motor Manufacturers and Traders, this situation is set to become more and more acute. ‘Our findings show that properties with off-street parking provision sell in half the time and are very attractive to prospective buyers. With no guarantee of being able to park outside, or even near, their property, and a postcode lottery determining the cost of on-street parking permits, parking is a real issue for a large proportion of UK home owners,’ said Danny Luke, Quick Move Now managing director. ‘While it's an inconvenience for many home owners, issues with being able to secure an on-street parking space near their property can make many homes completely inappropriate for families with young children or older home owners who are beginning to struggle with mobility. This becomes an even more significant problem when you consider the current UK property shortage,’ he added. Luke pointed out that Manchester city council charge 12 times the UK average… Continue reading
Top end property prices in Hong Kong set to fall by 15% this year
Stock market volatility and the interest rate rise in the United States has dampened investment sentiment in the property markets in Hong Kong, according to a new report. Overall the luxury sector prices remained broadly steady, with apartment prices on Hong Kong Island and Kowloon recording some mild declines, says the latest briefing report from Savills World Research. In the fourth quarter of 2015 primary sales rebounded after the quiet summer months but secondary sales declined further, and total transaction volumes of 10,000 were the lowest since 2002. The report suggests that prime residential prices are on course to decline by 15% this year, with little positive news expected in the short term. The data shows that sales sale on Hong Kong Island declined by 36% quarter on quarter in the final three months of 2015 while prime apartment prices fell 0.9%. However, there was still a 9.3% price growth over the year as a whole. Mid-Levels, with the highest concentration of primary launches and future supply among all districts, saw prices remain relatively stable in the last quarter of 2015, with an 8% increase overall for the year. Supported by a few house sales on the Peak in the fourth quarter townhouse prices remained stable over the quarter and recorded an 8.3% increase overall in 2015. Luxury transaction volumes in Kowloon and the New Territories also fell heavily by 62% and the report says this was due to a lack of significant new launches over the quarter, with most first-hand transactions coming from the remaining units of projects launched earlier in the year. Luxury prices in Kowloon declined by 1.4% while prices in the New Territories remained largely stable. ‘With investment sentiment dwindling, and few market highlights, many purchasers held off making investment decisions. This, coupled with the increasing number of newly completed luxury units being made available for lease amid declining rents, caused some potential purchasers to switch to the leasing market to avoid uncertainties over the next one to two years,’ the report explains. Mass residential prices declined by 2.9% across the board in the fourth quarter of 2015 and the report says that unlike previous declines in 2012 and 2013 which were in response to various restrictive government measures and thus short lived, the residential market seems to have turned a corner, due to the uncertain economic environment, a further possible rate hike and a potential tightening of funding to reduce capital outflows. In fact, while developers in general achieved satisfactory sales of primary projects in the quarter with 4,606 primary units sold, a 32% increase from the third quarter, this was mainly through providing more incentives, steeper price discounts, or both. The result was that the secondary market was frozen out and the 5,563 secondary transactions recorded, as well as the 10,169 total transactions recorded, were both all-time quarterly lows since 2002. Global economic uncertainties, stock market volatility and fears of further capital outflows from the local banking… Continue reading
