Tag Archives: london
Asking prices in England and Wales up 0.4% in last month
Residential property asking prices in England and Wales increased by 0.4% overall in the last month and by 5.7% compared with a year ago, the latest index data shows. Monthly asking price growth was led by the East of England, up 0.7% since June, according to the Asking Price Index from Home.co.uk The data also shows that property is selling faster. The average time on the market for England and Wales dropped to 177 days, the lowest figure since November 2008 and the South East remains the fastest regional market, with a typical time on market of 59 days. Overall the supply of property for sale remains low, down by 6% in June 2015 compared to June 2014. However there are signs of oversupply in the North East and as a result asking prices are down by 0.8% The index report says that a resurgence of buyer demand continues to drive prices higher, predominantly in London and the South of England, bolstering confidence amongst vendors. ‘The UK property market is in good shape overall. Property supply remains behind buyer demand in most regions as evidenced by falling time on market figures. In Greater London, where marketing times showed a worrying increase earlier in the year, a post-election buyer resurgence has taken up the slack. Only in the North East region, where the recovery is still in its infancy, do we see a significant rise in supply and this has served to make prices dip this month,’ said the firm’s director Doug Shephard. The index also suggests that the prime central London market is showing signs of renewed momentum. After a prolonged period in the doldrums, prices there have indicated a new upward trend since May and time on market figures are beginning to fall. Time on market data for the regions shows that the northern markets of Yorkshire and the North East are the most improved over the last 12 months, recording decreases in typical time on market of 9% and 6% respectively. However, they remain among the slowest markets when compared to the rest of the UK. It is only London and the southern regions that show marketing times indicating a similar vigour to the property market pre-crisis. ‘With the recent political uncertainty now consigned to history, UK property has a clear path forward. Consequently, buyers are back in force but hampered by a lack of supply in most regions. We expect only minor price rises towards the end of this year,’ explained Shephard. ‘Demand, on the other hand, looks set to remain high, with indications from the Bank of England that interest rates will stay at their record low until at least next year, perhaps later. Hence, we expect that further competition between aspirant homeowners and landlords will continue to drive prices higher in a growing number of areas, especially in the South,’ he pointed out. ‘Contrarily, despite clear improvements in marketing times, prices remain stagnant in the North of England… Continue reading
Mayor of London announces Domesday Book of public land for building homes
The Mayor of London Boris Johnson is to publish the UK’s first database or Domesday Book of all brownfield public land that could be freed up for house building. Johnson said it will the first ever coordinated effort between City Hall, government and London boroughs to free up surplus public land to build the homes that the city so desperately needs. The London Land Commission has appointed real estate research firm Savills to compile the preliminary stages of public land data base which will be completed by the end of 2015. Once collected, City Hall will use the data to map the spread of sites across the city. It is thought to be the first time such a comprehensive set of data has ever been collected for London. The creation of the commission follows announcements from Chancellor George Osborne last week on major planning reforms designed to speed up development of brownfield land in London and increase capacity to build more homes in the areas they are most needed. The commission will build on work already begun by the Mayor in disposing of his own land holdings for development. At present 98% of all land previously in his ownership has been released, within touching distance of the 100% target for the end of his term in 2016. The commission will also work across layers of government and public bodies to develop strategies for unlocking public land for development and thus identify priority areas for future growth and co-ordinate efforts to fast track the process, whilst ensuring a good return for the taxpayer and better regeneration sites across London. The inaugural meeting was attended by London councils, NHS England, Transport for London and Network Rail with participation at the highest levels from other bodies such as the Department of Health. ‘The London Land Commission will build on the great efforts we've already made at City Hall to ensure brownfield land that has laid empty for years is put to productive use in providing much needed housing for Londoners,’ said Johnson. ‘In a city like ours, with its burgeoning population, it is simply madness not to act as quickly as we can to unlock more of these kinds of sites. The Commission's work will be vital in co-ordinating the efforts of a whole raft of public bodies to achieve this important goal, helping to cut through the red tape that has kept valuable land tied up for too long,’ he added. Housing Minister Brandon Lewis said there is clear demand to release land and provide more homes for Londoners. ‘The London Land Commission will bring a joined up approach to land release in the capital, regenerating brownfield land and providing more homes, whilst continuing to protect the green belt around our Capital,’ he explained. London Councils executive member for housing and Mayor of Lewisham Sir Steve Bullock said it is vital is that our overall strategy to tackle the housing crisis delivers an increase in… Continue reading
UK govt revises its medium term house price growth forecast downward
The UK government thinks house prices will grow sat a slower rate than previously expected in the medium term, mainly due to changes in lending. The latest forecasts from the Office for Budget Responsibility (OBR) reveal that overall, house prices are expected to rise by 34.1% by the first quarter of 2021 with the outlook revised from the last guidance which was issued in March. The OBR cites changes to the regulatory environment as well as changes to lenders’ behaviour brought about by the Mortgage Market Review (MMR) which came into play in April 2014 as reasons for the revision. As a result, the estimated cumulative level of house price growth by the first quarter of 2020 is 5% lower than it was in the March forecast so the growth prediction is now 34.1% by the first quarter of 2021. The OBR has also revised its forecasts for Stamp Duty revenue which is now forecast to raise £11.5 billion in 2015/2016, rising to £17.3 billion in 2019/2020 compared with the March forecast of £10.4 billion £18 billion respectively. So, compared with its March forecast, SDLT receipts are expected to be £1.1 billion higher in 2015/2016 but £0.7 billion lower by 2019/2020. The OBR said it has changed its short term forecast for stamp duty receipts because residential property transactions were higher than expected at the end of the 2014/2015 financial year, a trend it expects will continue. In the long term, lower house prices relative to the March forecast reduce receipts by around £1.2 billion in 2019/2020. Meanwhile, the selling market is expected to be busier this summer. Traditionally the prime months for selling houses were March through to the end of June with a second period of activity in September and October. These two seasons reflected the end of spring and school summer holidays. However, according to real estate firm Knight Frank there has been a change in recent years, with the market continuing through the usually quieter summer months. The number of properties sold by Knight Frank between June and August 2014 was in fact 25% higher than in 2013. ‘The increase in summer activity is a reflection on a number of factors including the popularity of holidays being taken in the UK and thus being able to see a house more quickly and the rise of the internet allowing holiday makers to browse their tablets and phones whilst relaxing,’ said Rupert Sweeting, head of Knight Frank Country. ‘We are seeing this happen again this year principally as the election made many buyers put their decisions on hold until after the result was known. As a result the market is six to eight weeks late. We already have a high level of house bookings going forward this month and in August,’ he added. Continue reading
