Tag Archives: london
Prime London rental values up but price growth remains muted
Rental values in prime central London continued to climb in May, and annual growth of 4.2% was the highest figure since December 2011, the latest published data shows. It compares to a decline of 1.4% in May 2014 and the positive upwards momentum over the last year has been driven by the recovering UK economy and the transfer of demand from the sales market ahead of last month’s general election, according to the report from Knight Frank. A mood of hesitation around the election, combined with the two bank holidays, meant activity in May was slower compared to last year in what was a stop start market, the report says. Indeed, the number of new prospective tenants was down 12% in May compared to the same month in 2014, while the number of viewings declined 18%. In spite of the recent dip, new prospective tenants and viewings in the 12 months to May 2015 are up by 12% and 7%, respectively, and activity is expected to increase over the summer as part of a seasonal trend among students, families and corporate tenants. Demand has remained strong in markets including Marylebone and Hyde Park, particularly in lower price brackets, suggesting companies and private renters are still cost conscious despite the improving economy. Prime gross rental yields edged upwards to 2.96% in May, their highest level since August 2013, widening the spread between the risk free rate on a 10 year government bond. Meanwhile, in the prime central London sales market annual growth is lower than at any time since the last general election in 2010. Although prices grew 0.3% in May, an annual increase of 2.3% is the lowest since November 2009. ‘This relatively low level of growth underlines the gap between the expected impact of the result and the reality of a property market still digesting a series of tax changes,’ said Tom Bill, head of London residential research at Knight Frank. Continue reading
Flagship UK Help to Buy scheme reaches 100,000
Help to Buy, the UK government’s flagship housing scheme, has helped almost 100,000 people buy a new home since it was introduced, the latest data shows. Since the launch of the Help to Buy equity loan and mortgage guarantee schemes some 80% of scheme completions have been made by first time buyers, with more expected when the government’s Help to Buy ISA launches this autumn. The data also shows that the average house price was £184,000, significantly below the national average, almost 94,000 people have bought a home through the scheme, 95% of Help to Buy completions took place outside of London and over half of Help to Buy completions have been for new build homes. The Help to Buy equity loan scheme and the Help to Buy mortgage guarantee were launched in 2013 to support buyers who could pay a mortgage, but couldn’t afford the high deposits demanded by lenders in the wake of the financial crisis. Together with the government’s Help to Buy NewBuy scheme, which offered 95% mortgages for those buying new build properties, the number of new home owners has reached 99,601. The scheme also continues to benefit first time buyers overwhelmingly, with the vast majority of sales outside of London and at prices well below the national average, officials said, adding that Help to Buy is also ensuring the long term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new build properties, helping to contribute to the 41% rise in private house building in England since the launch of Help to Buy. With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the North West region. The equity loan scheme for new build properties is particularly high in the South East region. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1% of all mortgage lending compared to an average of 3% across the country. ‘The government’s Help to Buy scheme has now helped nearly 100,000 people across the UK achieve their aspiration of buying a new or bigger home and I’m looking forward to these numbers growing even more with the launch of the new Help to Buy ISA this autumn, which will ensure that first time buyers saving for a deposit get an additional boost from the government,’ said Chancellor of the Exchequer George Osborne. ‘Key to our long term plan is providing economic security for people at every stage in life. The security of owning your own home is a big part of this, which is where Help to Buy comes in. It’s also boosting the economy more widely by driving an increase in house building in Britain, ensuring long-term housing supply and creating jobs,’ he added. Housing Minister Brandon Lewis said that anyone who… Continue reading
