Tag Archives: london
Buy to let surge results in house price growth doubling in England and Wales last month
House price growth in England doubled in February compared to the previous month and was led by a surge in buy to let sales due to the new stamp duty surcharge due to come into effect in April. Average property prices increased by 0.8% or £2,277 on a monthly basis and demand from landlords and second home buyers contributed to a 12% month on month rise in sales. The data from the latest Your Move index also shows that average prices were up 6.2% year on year, but this drops to 4.6% in London and the South East are excluded. It rakes the average house price to £289,229. London house prices rose 6.8% or £36,903 in the past year, taking the average price to £582,783 and exceeding the average Londoner’s £35,333 annual salary. Hull’s house price rise of 0.9% in a month to hit new record of £111,409, boosted by new jobs and City of Culture status. Meanwhile, the strongest sales were in Sandbanks, with property purchases in Poole up 21% year on year due to demand for luxury flats with views over Poole Harbour and Sandbanks. The report suggests that wealthy buyers are seeking to avoid the additional stamp duty surcharge and property prices have also risen as a result, up 11.6% over the year, as affluent buyers place a premium on luxury homes by the sea. ‘Growth could be as a result of buy to let investors rushing to complete quickly to avoid April’s additional 3% Stamp Duty surcharge, which has also seen sales shoot up 11.8% since January,’ said Richard Sexton, director of e.surv chartered surveyors. He believes that February’s house price growth is fantastic news for home owners, particularly those considering cashing in on the additional demand and making the most of the current sellers’ market. ‘Typical property values are now £16,866 higher year on year, the fastest annual growth rate seen in eleven months, driven by the gulf in the number of aspiring home buyers, compared to the limited supply of homes for sale,’ Sexton added. The index figures reveal that the East of England is outranking London with the fastest growing property prices of all regions, with a 7.2% uplift in the last 12 months. ‘This pace is being fuelled by commuter towns, as London’s workers search for more affordable housing. The trend towards higher house price growth in cheaper areas can also be seen elsewhere,’ Sexton explained. He also pointed out that while house prices in Yorkshire and Humberside have remained flat on a monthly basis, property values in the City of Kingston upon Hull have hit a new record of £111,409, up 0.9% compared to the previous month, as the city has one of the lowest average home values in the country. ‘The upswing in Hull’s home values is due to the increase in new jobs resulting in more demand, with major firms including Samsung lifting employment in the city. Recently winning City of Culture 2017… Continue reading
London’s prime property market likely to be attractive regardless of EU vote
The prime property market in London is likely to retain its attractiveness to wealthy international buyers regardless of what happens in the forthcoming referendum on the UK’s membership of the European Union. However, prices may soften after April as there has been a demand from buyers of second homes to complete before a new 3% stamp duty surcharge comes into force on 01 April, according to independent property buying agency Black Brick. However, one immediate impact of the prospect of a Brexit, the term coined for the UK leaving the EU, has been to hit sterling. Camilla Dell, managing partner at Black Brick pointed out that between the end of 2015 and late February, UK currency lost 6% against the dollar and, over 18 months, the currency has slid almost 20% against the greenback. ‘This serves to make UK property more attractive to dollar based buyers. As is so often the case, opportunity is the other side of the coin to crisis and, if you add currency moves to the 7% to 7.5% falls we've seen in prices in Knightsbridge, for example, then prices are more than a quarter lower in dollar terms than they were 18 months ago. It's certainly tempting some overseas buyers back into the market,’ she explained. ‘London is going to retain its attractiveness to wealthy international buyers regardless of whether the UK remains in the EU. Its cultural attractions, geographic location, legal system, and concentration of talent mean that there will always be demand for prime central London property,’ said Dell. The firm has seen that with just weeks to go before the introduction of a 3% hike in stamp duty payable on buy to let and second home acquisitions there is a rush among buyers to complete transactions before 01 April. ‘Certainly, for buyers who have had offers accepted, or who have exchanged, there's still time and obvious motivation to get deals signed and sealed before the tax rise. However, we should sound a note of warning as people yet to find the right buy to let investment should weigh up the costs and benefits of trying to rush through deals this late in the day,’ Dell explained. ‘We have seen cases of vendors seeking premiums in exchange for getting transactions done before 01 April, premiums that, in some cases, substantially erode the tax benefit involved. It's also worth bearing in mind that, as with previous increases in stamp duty, we expect this latest rise will feed through into asking prices and would expect prices for buy to let properties to soften after 01 April, as vendors' expectations align themselves with the yields demanded by investors,’ she added. Continue reading
Data confirms buy to let surge in UK ahead of stamp duty change
The UK’s buy to let sector has seen a surge of activity as property investors have rushed to complete their transactions before the new Stamp Duty surcharge comes into force next month. In February the number of buy to let valuations carried out increased by 34% compared to the same month last year. Meanwhile, remortgaging activity, which includes buy to let remortgaging activity, was up 41% over the same period. In addition, buy to let activity saw a month on month increase of 25%, while remortgaging volumes climbed 6% in February compared to the previous month, largely driven by buy to let remortgaging, according to the data from Connells Survey & Valuation. It confirms a lot of anecdotal evidence that the extra 3% Stamp Duty surcharge on second homes or buy to let properties due to take effect on sales completed after 01 April 2016 has resulted in increased demand from buy to let investors. ‘Buy to let investors and those remortgaging with the aim of buying a second home are racing against the clock. Activity from both these groups is picking up pace on a monthly basis as the April Stamp Duty deadline looms and people hurry to complete their transactions before being hit by the 3% surcharge on their buy to let property or second home,’ said John Bagshaw, corporate services director of Connells Survey & Valuation. ‘Expect this activity to reach a crescendo in March before calming in the second quarter of the year. Buy to let investors will be calculating the impact the Stamp Duty hike is having on their rental yields, while those thinking of remortgaging to fund a second home will weigh up whether it’s still financially viable for them to do so,’ he explained. ‘But behind these somewhat frantic figures there is an underlying story of steady, long term growth. Despite taking some political heat recently, the buy to let market continues to attract investment off the back of its potential returns, while the remortgaging sector remains popular with those looking to get a better mortgage or release capital on their home for investment purposes,’ he added. In addition, the home mover and first time buyer sectors have experienced strong monthly rises in valuation activity. The number of valuations carried out for first time buyers surged by 36% between January and February 2016, while those carried out for home movers grew by 35% over the same period. Activity for both these sectors was steadier on an annual basis. Those taking their first step onto the property ladder in February reported a 9% increase compared to January and home movers experienced an 8% uptick on the same month on month basis. ‘Home movers are confident the strong but steady property price rises which typified 2015 are set to continue, and so feel confident that their home’s value will hold them in good stead as they endeavor to move up the ladder,’ said Bagshaw. ‘Meanwhile, first time buyers, whose personal… Continue reading
