Tag Archives: london
Buyers pay over 12% more on average for a property on the UK coast
Living by the coast in the UK comes at a price with homes within 100 metres of the sea worth 12.4% more on average than property up to a kilometre away. But there is also substantial variation between locations, according to international real estate adviser, Savills, which has mapped coastal premiums for the first time. The coastal premium is highest in England at 18.7%, compared to 16.6% in Wales and just 1.2% in Scotland, where the coastline is vast and complex. ‘In our survey of people looking to move home last year, we found that the view from a property is the most valued attribute that buyers are looking for and for many, a sea view is as good as it gets. That means living by the sea comes at a cost, with a clear price premium for proximity to the coast,’ said Sophie Chick of Savills research. In England, the highest coastal premiums occur in the north of the country. The North East and Yorkshire and the Humber carry the greatest premiums at 41.3% and 36.1% respectively, although average prices are highest in the South West and South East. There is also considerable variation in the premium at a regional level and this probably reflects the popularity of some coastlines over others. Merseyside holds the highest coastal premium, with properties near the sea selling for an average of £357,000, some 86.5% higher than those inland. Overall Dorset has the most expensive coastline of any county, with an average sale price of £393,000 and a premium of 46.1%, reflecting the high prices in the ultra prime coastal hotspots of Sandbanks and Canford Cliffs. ‘Counties such as Devon often hold a wider coastal premium than our 100 metre cut off, which dilutes the difference paid for proximity to the coast. On the other hand, counties with remote coastal locations such as Grampian in Scotland have lower premiums, as isolated areas drive down average prices,’ explained Chick. Continue reading
Miliband only UK political leader who would pay under mansion tax
With the general election campaign now underway in the UK research has found that Labour leader Ed Miliband lives in the most expensive house of all the main political party leaders. Labour want to introduce a new mansion tax if it wins the election in May and it has defined a mansion as being a property worth over £2 million. Yet it is only Miliband who lives in such a home. According to research by property website Zoopla, Miliband’s North London home is now worth £2.73 million, more than three times the average in the area. Conservative leader David Cameron’s West London home and Liberal Democrat Nick Clegg’s South London homes fall just short of the threshold applicable to the new proposed tax. Cameron’s home in West London is valued at £1.97 million while Clegg’s family home in South West London is valued at £1.89 million. UKIP chief Nigel Farage’s Kent home is currently valued at a more modest £550,000. However, each leader has seen the value of their home grow substantially since the last election, like most home owners across the country. Miliband has seen the value of his home increase by £1 million since the Conservative/Lib Dem coalition came to power, despite his apparent distaste for their economic policies. Cameron’s home has risen by £671,000 in value and Clegg’s by £573,000 during the same period. As things currently stand, Miliband would be the only current party leader required to pay the annual Mansion Tax mooted by the Labour party on properties worth in excess of £2 million, although house price rises could also soon nudge Cameron and Clegg into this territory. ‘Miliband’s home is in a desirable part of London and is now worth a lot more than he paid for it before the last election. If Labour comes to power as his property tax bill is likely to rise by at least £3,000 per year,’ said Lawrence Hall of Zoopla. Continue reading
UK property sales could get boost from April pension changes
UK pension changes could trigger a significant increase in residential property transactions but for most households, this is unlikely to involve the acquisition of an investment property. But the increase in sales is more likely to come from continued trend of pensioners selling larger properties and properties in prime areas and purchasing smaller properties and properties in cheaper areas in order to release additional equity to help fund their retirement years, according to real estate firm Chestertons. In a new report it says that there are a number of reasons that property is likely to prove a popular investment choice for those who decide to take control of their pension pots and invest in something other than an annuity. These include the fact that residential property is generally seen as a less volatile and relatively safe long term investment, when compared to other assets such as equities and can provide a regular rental income. Also, a strong capital appreciation over the medium to long term is anticipated and property is a tangible asset that people generally feel more comfortable with and understand better than other more complicated investment vehicles. If estimates of demand turn out to be accurate then there is likely to be a near doubling in the number of pensioners buying at least one investment property and that would push house prices up. ‘If the properties purchased were then held as rental investments, this would help alleviate the current shortage of rented accommodation, which is especially prevalent in London, thereby stabilising the rental market somewhat,’ said Nick Barnes. However, he believes that financing a property investment is likely to prove difficult for many 55 plus year olds as lenders have been toughening their stance on borrowers who cannot repay their mortgage before retirement. ‘Buying properties with cash is of course an option, but with the average pension pot in the UK standing at just £25,000, the number of people with enough contributions to cover the cash purchase of a property will be very small, especially in London where prices are much higher,’ he explained. ‘The more likely scenario is that those looking to invest in property would need to supplement their pension pots by selling their existing property and either downsizing or moving to a cheaper area. This said, many pensioners have already taken these options and dipped into their pensions to help their children and grandchildren onto the property ladder so a significant uplift in activity is unlikely,’ he added. For those that can afford to buy an investment property, identifying the right property to ensure a longer term income stream and capital growth will be the challenge. Location and rentability are key issues and a realistic assessment of operating costs and voids will need to be made, the report points out. Barnes also said that tax liability is a further important consideration and owners will need to be aware that their rental income when added to their pension or… Continue reading
