Tag Archives: london
Average UK property prices down 0.4% in December 2014
Average property prices in the UK fell by 0.4% in December but are still 8.2% above the same month in 2013, the latest index figures show. This takes the average price of a UK home to £205,150, according to the data from independent estate agency haart. But in London prices fell by 0.2% month on month with annual growth of 11.4% taking the average price to £482,746. The data also shows that the deposit needed by a first time buyer fell 5% over 12 months and the average first time buyer mortgage increased 12% annually to £133,872. There were 11 buyers chasing each property available across the UK and nearly 20 in London, but sales are down, some 2.4% in December compared to November and 17.1% compared to December 2013. ‘Affordability is beginning to make a comeback in 2015 as prices start to stabilise, mortgage deals proliferate and higher loan-to-values become more commonplace,’ said Paul Smith, chief executive officer of haart. ‘We are highly unlikely to see a repeat of last spring’s meteoric annual price growth in London that broke the 20% mark and broke the 10% barrier nationally. This is good for consumer confidence and certainly better than talk of bubbles and boom and bust,’ he pointed out. He believes that a great opportunity now exists for first time buyers as lenders compete for their business. ‘Our data shows deposits reducing, despite larger mortgages and average first time buyer property prices which have grown at a rapid rate since summer 2014,’ he explained. ‘Following the Stamp Duty reforms, the purchaser of a typical first time buyer home will now save £828 which could help to cover some of the moving costs,’ he added. Continue reading
New scheme launched to boost self build in the UK
A new scheme that will enable more people to build or customise their own homes in the UK while also helping local authorities with land to develop has been launched. Designed to de-risk the process of obtaining mortgages for self built and custom built properties, it allows local authorities with land to develop to both attract buyers and retain control over developments until completed. Based on the existing local authority mortgage scheme, which has already been successfully used by 100 local authorities, the Custom and Self Build Scheme (CSB) has been launched by Capita Asset Services and Lloyds Banking Group. It will also help local authorities meet the government’s Right to Build agenda. Right to Build will see a ‘vanguard’ of 11 local authorities working with local developers and relaxed planning regulations to create new homes. ‘The Custom and Self Build Scheme tackles a number of issues head on. For those wishing to build their own homes, access to mortgages has always been a challenge because lenders, not unreasonably, insist on staged payments,’ said Cecilie Booth, director at Capita Asset Services. ‘For local authorities, either those leading developments or with land to develop, this scheme reduces risk and guarantees that buyers will have agreed finance in place. Importantly it will help to tackle the need for new homes and according to government estimates, up to 100,000 custom built and self built homes could be created over the next decade,’ she explained. Under CSB individuals wishing to self build or custom build a home in one of the participating local authority areas will apply for a mortgage and, once agreed, the deposit, for as little as 5% will be paid direct to the local authority. The local authority will fund the cost of the build to completion at which point, the mortgage will be provided by the lender, covering the build costs, which will be fully repaid to the local authority. Once the house has been built, homeowners will simply have a mortgage on a custom or self built property. ‘Improving the supply of housing across the country is crucial for maintaining a sustainable market, and this scheme will increase the options available for those looking for a new house,’ said Stephen Noakes, mortgage director at Lloyds Banking Group, the first lender to take part in the scheme. Eamonn Colman, affordable solutions director for Countrywide plc, said that the firm’s full range of property services serve as crucial support mechanisms to help facilitate the building of much needed new build stock. ‘Our national ability to provide land for redevelopment, as well to supply mortgage, conveyancing and surveying services to assist home buyers is an important part in helping more people to achieve their dream of building a new home,’ he pointed out. ‘Exploring innovations such as the Custom and Self Build Scheme that sustainably help to increase supply into the market are crucial in order to help meet current levels of demand,’ he added. Continue reading
Demand for property in prime central London from overseas remains high
Demand for prime central London real estate remains high and Chinese interest continues to grow, according to a new analysis of the sector, despite stamp duty reform and the looming election. According to the report from independent property buying agency, Black Brick, a rise in the US dollar against the pound has boosted international demand, while record low mortgage rates are encouraging domestic demand. Black Brick has signed new clients from Hong Kong, Saudi Arabia, Russia, Cyprus and the UK so far in 2015, with budgets varying from below £1 million to above £10 million. ‘At first glance, the global backdrop hardly seems positive for the prime central London market. Renewed concerns about the Eurozone, heightened geopolitical risks, and plunging oil prices, add in the changes to stamp duty land tax and it is not hard to see why vendors are now having to be more realistic,’ said Camilla Dell, managing partner of Black Brick. ‘It is no co-incidence that the falls reported at the top end of the capital’s property market equate roughly to the additional 5% in stamp duty that buyers must now pay. Importantly, while price adjustments have been the order of the day for deals already in progress, there has been scant evidence of deals falling through due to the stamp duty changes. Though very early days, we believe this bodes well for the market’s ability to absorb the higher tax rates and adjust accordingly,’ she explained. The firm said it has seen continued interest in prime central London property from its client base across the world as stamp duty reform and the impending election have not deterred them. Shorter term supports include the sterling’s recent weakness, particularly against the US dollar. The 14% decline in the value of the pound against the US dollar since the summer is a significant boost to many overseas buyers with dollar assets. Meanwhile, the changes to stamp duty are providing a welcome fillip to potential property buyers at lower price bands. ‘Chinese interest in London property continues to grow apace. According to figures recently released by the government, the number of so-called investor visas granted to Chinese nationals doubled in the year to the end of September. Chinese nationals accounted for 43% of all investor visas, the highest proportion of any country. It’s no surprise that we have seen continued growth in interest from this market,’ explained Dell. To cope with the firm recently hired Grace Ding, a fluent Mandarin speaker who will focus on assisting Black Brick’s fast growing Chinese client base and on developing its business network across Asia. As far as other trends for 2015 go, the firm believes that home owners with existing large basement extensions will now be able to command a significant premium over neighbouring properties given the restrictions announced on future development by the London Borough of Kensington and Chelsea. ‘The… Continue reading
