Tag Archives: london
Research suggests many young people need help from parents to buy first home
Almost half of parents in Britain whose children haven't bought a home, think the only way they will be able to do so is with inheritance from them new research suggests. Many parents feel high house prices and a lack of affordable homes are leaving their children priced out, according to the report from housing charity Shelter. It says that the latest government figures suggest they are right to be concerned, with home ownership levels having collapsed among young adults in the last decade. With the housing shortage making it much harder for young people to get a foot on the property ladder the Shelter poll shows that of those 25 to 34 year olds who have been able to buy, one in six of them relied on inheritance money from a relative, and nearly a third were gifted money for a deposit. This follows another recent report from Shelter which found that those locked out of homeownership have less stability in their finances and careers. Whilst many are also put off parenthood because they don't have a stable home of their own. Richard is one of those currently priced out. He's 28, and has a good job, but is currently living with his parents in their semi-detached home at the opposite side of London to his workplace. 'Even though I save every penny I have and cut costs wherever I can, it never seems to be enough with today's house prices. I hate the thought that losing the people I love most in the world could be the one chance I'll have to secure my own home,’ he said. Campbell Robb, chief executive of Shelter said no parent wants to think the only way for their children to ever own a home of their own is through losing someone they love. ‘It's a tragic consequence of our housing shortage that, even when they are working hard and saving what they can, a generation of young adults have no choice but to rely on the prospect of inheritance to have any hope of buying their first home,’ he added. He believes that the failure of successive governments to build anywhere near enough affordable homes is leaving millions of young adults facing a lifetime of uncertainty. ‘Politicians should give back hope to the priced out generation by making a real and lasting commitment to building the affordable homes we desperately need,’ he added. Buying a home is simply unaffordable for many first time buyers across England, particularly in London and the south, according to a new report by a housing charity. Shelter research says that first time buyers are being placed under increased financial pressure. Analysing homes listed on property listings website Zoopla across England it found that 16.9%, or 42,185 homes, were affordable and suitable for families earning the median income of £30,748 a year. For single people looking to buy a home, only 7.5% of homes were listed at an affordable price while for… Continue reading
British prime farm land values continue to rise, but at a much slower pace
Prime farm land values in Great Britain increased by 0.5% to £9,900 per acre, much slower than previous quarters in recent years, the latest available data shows. According to the Farmland Value Survey from Savills it suggests that the ‘bull run’, driven by the top end of the market, in average capital value growth is slowing. In the first quarter of 2014 and 2013 the corresponding figures were 1.4% and 1.8% respectively. Quarter one growth was principally concentrated in the southern regions of England and in the East Midlands, where quality farms and estates dominated the market. Average prime arable farmland growth in these regions was 0.4% in the South East, 3.5% in the South West and 0.6% in the East Midlands. All other regions recorded zero growth and the data also shows that values continue to be highest in the East of the country. It points out that average values continue to mask the diversity in the market with sales at values in excess of £15,000 per acre being achieved for the right farms. ‘This end of the market continues to be driven by quality and location with large commercial arable farms and high quality estates attracting the strongest demand,’ the report says. ‘The trend of limited supply continues and, whilst remaining historically low, shows a slight increase on the first quarter of 2014. Supply remains at close to the lowest levels ever recorded, similar to 2001 during the foot-and-mouth outbreak and 2004 during the run-up to the introduction of the Single Farm Payment Scheme,’ the Savills report explains. It also points out that the lack of clarity surrounding the potential outcome of the general election coupled with pressure on farm incomes is creating some uncertainty. Overall just over 15,250 acres of farmland were publicly marketed across Great Britain during the first quarter of 2015, a 9% rise, amounting to 1,320 acres, on the same period of 2014. In the first quarter of this year the increased activity was concentrated in England with 26% whilst the levels of supply continued to fall in Scotland by 10% and Wales by 53%. Across England there were some significant regional differences during the quarter. Large increases in supply were recorded in the East Midlands at 280% and the South East of England at 362%. In the South East of England activity was boosted by two large properties in Hampshire at 1,600 and 1,000 acres. In contrast, decreases in the supply of farmland were recorded in the East of England with a fall of 30%, the North of England down 37% and also in the South West of England with a fall of 11%. Although activity in the South East of England was dominated by two large farms the market in the first quarter predominantly consisted of a larger number of smaller farms suggesting that pressure on incomes and cash flows may be having some effect Savills does not expect a significant change in the overall levels in the… Continue reading
Prime London market sees more first time buyers
More first time buyers are active in the prime London property market with fewer real estate investors in the sector in the first quarter of this year, new research shows. While investors continue to account for the majority of house purchases made across prime London, this margin has narrowed significantly, according to estate agent Marsh & Parsons’ latest London Property Monitor. Some 29% of prime London property purchases were made by an investor in the three months to March 2015, down from 37% at the end of 2014 but first time buyer sales increased from 21% of all purchases in the last quarter of 2014 to 28% in the first quarter of this year. The rise in first-time buyers has caused the number of prime transactions funded by mortgages to jump 17% in the past three months and over the past three months, demand for prime London homes has risen by 20%. As a result, heightened competition for available homes on the market has pushed the ratio of registered buyers per property up from 10 in December 2014 to 12 in March 2014, the data also shows. ‘First time buyers have been riding a wave of fortuitous circumstances recently with almost unheard of mortgage rates, reduced up-front stamp duty costs, and support schemes like the Help to Buy ISA inflating confidence,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘Combined with a more accessible pace of property price growth so far in 2015, many more have been able to take the plunge into the property market. Prime London property has always been a bastion of investment, but it’s encouraging to see the drawbridge being lowered for everyday Londoners who live and work in this city,’ he explained. ‘However, there is, and has always been, some aspirational prime central areas that are out of grasp for new buyers, and will remain an investment stronghold. Addresses like Kensington and Chelsea resonate around the world, and will forever entice buyers looking for unparalleled capital returns,’ he added. The report reveals that as a result of this strong demand for starter homes, one bedroom properties in prime London have seen the biggest increase in value over the past 12 months with average values up 5%, compared to 1.7% annual growth across the market as a whole. This means the price of a typical one bedroom property in London has risen by £75 a day over the past year. Similarly, one bedroom properties are highly sought after as buy to let investments, with rents appreciating at the fastest rate of all property types across the capital. The average weekly rent for a one bedroom property has risen 5.8% year on year in more affordable outer prime areas of London, popular with young professional renters. ‘With more and more young professionals climbing onto the property ladder, one bedroom properties have outperformed the market across prime London…. Continue reading
