Tag Archives: london
Average prices in England and Wales up 6.6% year on year
Average house prices in England and Wales increased by 6.6% year on year to an average of £292,077, according to the latest index figures to be published. This means that the average house prices has increased by £17,963 since December 2014 but property values in central London fell by 8.7% on average during 2015, dragged down by higher stamp duty, the index report from Your Move and Reeds Rains shows. The annual price growth figures falls to 4.7% of London and the South East are excluded from the calculation and month on month prices increased by 0.6%. Outside of these top five central Boroughs, London prices increased by 11%, the biggest increase, followed by the East Midlands, driven by a 10.6% annual rise in Nottingham’s house prices. Where sales are concerned it was the strongest December for since 2006, with transactions up 7.1% year on year as buyers compete for fewer homes on the market. Richard Sexton, director of e.surv chartered surveyors, believes that the highest year on year house price growth for 10 months may prompt existing home owners to move up to the next rung of the property ladder in 2016, freeing up homes at the bottom for first time buyers. ‘The rise in property prices has been propelled so far by a sinking supply of houses coming onto the market, compared with increasing enquiries from potential buyers eager to clamber aboard the property ladder,’ he said. ‘If the current speed of house price growth continues into 2016, the value of the average home may soon pass the £300,000 watermark, having reached £250,000 in December 2013. Property price rises have certainly left the recession in their wake, with house prices passing the £200,000 milestone only in October 2005,’ he added. He also pointed out that prices are probably set to rise further during the first quarter of 2016 before the Government’s new house building programmes have a chance to boost the supply of property on the market. The data shows that in Kensington and Chelsea, London’s most expensive borough, prices fell by 14.2% year on year and Sexton explained that the tax changes announced in 2014’s Autumn Statement increasing the rate of stamp duty on homes worth over £1.5 million to 12% has had an effect. ‘While price increases in the central boroughs used to keep England and Wales’ house price growth afloat, since January they have been anchoring down the average price increases in London and the country overall,’ he said. ‘The reality is that there has been an undercurrent of growth in the rest of London, with values outside these top end boroughs rising by 11% year on year. The increase has been strongest in the cheaper boroughs, with Newham seeing 23.8% annual growth. But the overall price rise across the capital has been submerged by the top end, with the annual change in London standing at just 5.6%, below the UK average,’ he added. He also explained that the 8.1%… Continue reading
Generation of UK home owners stuck due to lack of downsize properties
A lack of suitable homes for downsizing is preventing a large number of home owners in the UK from moving to a smaller property, it is claimed. Some 33% of home owners aged 55 and over are considering or expect to consider downsizing, but a lack of suitable options is preventing them from moving, a new report says. A new YouGov survey for the report found 29% who have already downsized or are considering or expecting to consider downsizing did or expect to release in excess of £100,000 in equity, with the most prevalent way of using the money being to put it in a savings account. The report, Generation Stuck: Exploring the Reality of Downsizing in Later Life, has been written by the International Longevity Centre UK and commissioned by retirement house builder McCarthy & Stone. The report suggests that a 'Generation Stuck' dilemma is being created by a substantial number of older people who want to move and downsize, but can't due to a lack of choice in the market place. A chronic under supply of suitable properties for later life, including purpose built retirement housing, means the UK is running out of homes for its ageing population, leaving them stuck in under occupied properties unsuited to their needs. According to previous research findings some 52% of all people who classify as under occupiers in the UK are aged 55 and over and at current market trends, it would take 20 years for housing supply, at its current rate, to meet the demand of just half of people aged 60 and over interested in downsizing. As part of the report, a new YouGov survey found 48% of the 1,252 home owners surveyed would consider downsizing or have already moved to a more suitable property, making this an area worthy of much greater policy consideration by Government. Of those who have already downsized or are at least considering downsizing some 56% wanted to do so to spend less on property maintenance, 43% wanted to reduce their bills and 43% wanted to move as their children had left home. The finding that almost three in 10 home owners aged 55 or over expect to release more than £100,000 in equity from downsizing is reinforced by McCarthy & Stone's figures which show its home owners released an average of almost £60,000 in equity when downsizing to a retirement apartment, with 19% releasing more than £100,000. The report also details how these home owners used, or plan to use, such equity. Some 35% wanted to put it into a savings account, 30% to enhance their day to day life, and 19% to give it to family members. Of those aged 55 to 59 34% wanted to put it towards a pension. ‘Housing and planning policy should not just be about starter homes. Millions of older people want to downsize to more suitable housing but there is currently little incentive or choice for them to move…. Continue reading
UK buyers taking longer to make up their minds than a year ago
Property buyers in the UK are taking longer to make up their mind about a home with many taking a second or even a third viewing before making an offer, new research has found. On average it now takes 53 minutes of viewing a property, up from 38 minutes a year ago, according to the research from online estate agent eMoov. Indeed, just 6% make an offer after the first viewing. The majority of buyers, 53%, return for a second viewing, with a further 41% feeling the need to view a property more than twice. Buyers in London are more likely to seek a third viewing. The research also suggests that buyers undertake a considerable amount of research before they view a property. Some 67% read the full property description before arranging to view and 59% look at other properties listed in the area. It also found that 56% check out the road where the property is on Google street view, 53% take a detailed look at the floor plan and room sizes, 49% research the local amenities, 44% research the historic value of a property or surrounding properties and 25% check out schools. ‘UK buyers are taking that extra bit of time viewing a property, before submitting an offer. Although demand is still high in a number of areas, particularly London and the surrounding areas, the market isn’t quite as competitive as it has been in previous years, so many potential buyers are opting for a second or third viewing before committing to a property,’ said the firm’s chief executive officer Russell Quirk. ‘It makes sense given the enormity of such a decision and with buyers not feeling as pressured, there is no need to rush to submit an offer and secure a property after the first viewing,’ he added. But he pointed out that the data shows that there are still those 6% of buyers that will view a property for less than 10 minutes, before deciding to buy it. ‘This still amazes me but highlights the speed the market can move at, in the areas where demand is still outstripping supply,’ said Quirk. Continue reading
