Tag Archives: london
Asking prices rise across the UK apart from in Scotland
Asking prices have increased across England and Wales but not in Scotland, according to the latest index to be published. Prices rises increased by 0.9% overall in England and Wales during the last month but the average annual appreciation for England and Wales is down to 6.5%, the Home.co.uk index shows. The firm says that this reflects increasing demand across most of the UK and although Scottish prices nudged down slightly they remain 4.1% higher than last year. The data also shows that the typical time on market for England and Wales has improved considerably. At 88 days, this already matches last year's post-crisis low and looks set to fall further despite the slower Greater London market. Supply of property for sale in London has risen considerably over the course of the last year, up19%. Correspondingly, marketing times have increased and the typical marketing time is now 60 days which is 13 days longer than in April 2014. Despite this, prices continue to rise at a rate of 13% per annum. Supply rises in other regions are either small or negligible and this is stimulating great price growth, the index report says. Prices are higher in East England, where the typical time on market has fallen to a new post-crisis low of 64 days. East England, the South East, West Midlands and the South West all showed higher monthly price rises than Greater London this month. Further north, marketing times are also improving and prices are nudging up as spring increases the market momentum. Overall, the current mix-adjusted average asking price for England and Wales shows that properties on the market are valued 6.5% higher than they were in April 2014. Homes might be taking longer to sell this year than last, but London’s property values have soared to new all-time highs and this month’s rise takes the average home to over £500,000. Also, the mix adjusted average price has risen by 44% in just three years, which equates to an increase of around £150,000. However, the market dynamic in London is changing and the same vigour that yielded such price growth is moving out to the regions via the Home Counties, according to Doug Shephard, Home.co.uk director. ‘The immediate future looks rosy for all of the UK, but much of this growth is based on debt at historic low rates of interest. And the music won’t stop until it appears that the debt cannot be repaid, although that moment seems a long way off,’ he said. ‘Leveraged property investors can take comfort in the fact that the Bank of England doesn’t look keen on increasing interest rates any time soon. In fact, inflation is falling to new lows and the Bank ‘stands ready’ to cut IRs should this deflationary trend continue for too long. So, for the time being, the sky’s the limit,’ he added. Continue reading
The dream British home is a farmhouse or cottage with an Aga, a new study shows
A quintessential farmhouse or cottage surrounded by quiet countryside is the dream home for many people in the UK, new research shows. But that home needs to be not too isolated, have three bedrooms or more, have good broadband, good insulation, be cosy and inviting and have an Aga in the kitchen, according to the latest Housing Futures survey from Strutt & Parker. Much has been written about the new urban living trend but the survey reveals that is not necessarily everyone’s dream. The top desire was a home in the South East of the country followed by a rural location. The third desire on the list is being less than a mile from shops, followed by a detached farmhouse or cottage with three bedrooms or more. Next is a home that has a traditional British interior and cosy ambiance and then sixth on the list is an Aga oven. The final four top wishes are for good broadband, a walled garden, an outstanding view of the countryside and good insulation for energy savings. ‘The survey results paint an interesting picture as the quintessential British farmhouse surrounded by quiet countryside clearly remains as an enduring ideal for many. Over the past decade, there has been a focus on urban resurgence, so we were interested to discover that while our respondents want to live near other people, they didn't want them on their doorstep,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Lifestyle change remained the dominant motivation for moving, but in light of pension challenges and parents seeking to help their children onto the housing ladder, we were surprised to see that so few respondents ranked release of equity, pension top up and financial support for relatives as their reasons for moving home,’ she explained. ‘It seems that we really are a nation of optimists. It certainly was encouraging to discover that 79.4% of respondents believe they can achieve their dream home within the next five years,’ she added. Focusing solely on those who intend to move within the next five years, the survey showed that the largest proportion of home buyers wished to settle in the South East at 26.1%, followed by the South West at 15.6% and the West Midlands at 9.6%. Rural areas, villages and market towns came out as the most desired living environments at 23.3%, 22.9% and 17% respectively. Walking distance to the shops of less than a mile was crucial to 49.2% of people. For the second year in a row, lifestyle change was the biggest motivation for moving for 49.3%, followed by access to shops and amenities cited by 39.3%. A new category for the survey this year was broadband connectivity, which has shot in as the third motivation at 35.8% and highlights the desire to be technologically connected. According to those who plan to move within five years, the ideal home will be a detached house for 65.7%, either a farmhouse or in a cottage… Continue reading
Property rents in UK over 10% higher than a year ago
Residential rents across the UK are 10.2% higher than a year ago and have increased in 11 out of 12 regional in the first quarter of 2015 compared to the same period in 2014. The average rent on a tenancy signed in the UK during the first quarter of 2015 was £902, compared to £819 for tenancies signed during the first quarter of 2014. Rents are higher in every region of the UK except Wales compared to a year ago. The date from the latest HomeLet rental index also shows that the average rent in Greater London is now £1,427 and rental growth is highest in the south west of England with prices 13.7% higher than a year ago at £851 per month. Excluding Greater London from the findings, average rents across the rest of the UK are 6.7% higher than a year ago, which is the highest rate of annual growth recorded by the HomeLet Rental Index since its inception in 2008. The HomeLet Rental Index figures for the first three months of 2015 have seen steady growth in rent prices with 10 out of 12 UK regions showing price rises compared to the previous month. Figures for the three months to March 2015 show an average UK rent growth of 1.5 per cent when compared to the three months to February 2015. The figures also show that the annual growth of rent prices in the Greater London rental market and the rest of the UK are continuing to converge. While rents on new tenancies spiked up sharply during 2014, the pace of growth has been more modest during the first three months of the year. By contrast, rents beyond the capital have been rising more quickly. ‘With average rents for new tenancies across the UK now more than 10% higher than a year ago, what we are seeing is a market that is experiencing sustained demand from increasing numbers of people requiring privately rented property,’ said Martin Totty, chief executive officer of the Barbon Insurance Group, parent company of HomeLet. ‘However, rent price growth in London is no longer outpacing that of the rest of the UK. The HomeLet Rental Index shows that during the first three months of 2015, rents on new tenancies in six regions of the UK rose more quickly than Greater London,’ he explained. ‘#Demand for rental property in London remains high, but rent price growth in many regions outside of the capital has matched or exceeded London over the past three months,’ he added. Continue reading
