Tag Archives: london
Farm land values in England up 2% in 2014 as price growth slows
The average value of English farm land has risen by 2% to £10,100 per acre in 2014 with supply remaining at historic low levels, according to the latest data. But the rate of growth has slowed and there has been no change in values in since June, the figures from Smiths Gore show. They also reveal that values have risen by 5% in the past 12 months and by 20% in the past three years. ‘While demand for farms with houses and buildings has increased in the last year as non-farmer buyers return to the market for these types of farms after the recession, the strongest demand is from farmers buying bare land for purely farming purposes,’ said Giles Wordsworth, national head of Farms and Estates Agency at the firm. The data shows that bare land values average £7,400 per acre and have risen 4% in 2014, an increase of 2% in the past 12 months and by 27% in the last three years. Farms with houses and buildings, known as equipped land, have risen by 2%, 7% and 20% over the same periods and now average £11,000 per acre. And the value of arable land is increasing more than grassland at 8% compared with 6% in the past 12 months. Values are continuing to be supported by the lack of farmland available to buy, according to Smiths Gore. Some 10% less land has been marketed so far in 2014 compared with 2013. The 97,700 acres marketed so far is the second lowest amount marketed historically, with 79,200 acres in 2012 being an overall low point. There are significant variations between regions. The South West and East of England are the most active, with 19,300 acres and 18,000 acres marketed respectively in the year to date. The least active regions are the North East and North West, with 4,500 acres and 5,800 acres marketed respectively in the year to date. Continue reading
Prime central London property market sees second quarter of sales decline
The prime central London property market is seeing further adjustments with the latest figures showing that the overall value of properties transacted is down 21.1%. Properties under £2 million saw a decrease of 20.8%, while those in the £2 million to £5 million bracket went down by 27.1% in the third quarter of 2014 compared to the same period in 2013. The data from Strutt & Parker also shows that £5 million plus homes performed slightly better, but still saw a decline of 15.2%. A similar pattern emerged in terms of volume sales, which were down 26.8% overall, with all price bands seeing a reduction in the number of transactions. However, the firm points out that when looking back over the past five years, these statistics are not so concerning as the volume of transactions are actually up by 3.1% compared to the rolling five year quarterly average. Over the past five years, the £2 million to £5 million price bracket has seen a 20.9% increase, and the £5 million plus bracket is up by 19.6%. In contrast, the sub £2 million price bracket is marginally down by 2%. ‘Whilst total values transacted in central London are markedly down on this time last year, we must have a sense of perspective and accept that 2013 was an exceptional year. It is really not surprising that prices are stabilising after the dramatic price increases we saw over the past 12 months,’ said Stephanie McMahon, head of research at Strutt & Parker. ‘Sales volumes are also showing a slowdown and two quarters of data do suggest a trend of decline. This is as we predicted. We have seen these conditions before in the run up to a General Election when speculation mounts. It is a recognisable pattern and we do not believe it spells doom for the property market in the long term,’ she added. According Lulu Egerton, Partner at Strutt & Parker in Chelsea, there is no doubt that prime central London property is in the midst of a price correction. ‘Properties which are priced competitively and realistically are still selling and we are achieving good figures,’ she said. ‘After a spectacular year in 2013, asking prices had become inflated and they are now in a period of correction where prices are being adjusted down by around 5% to 10% as buyers become far more price sensitive,’ she added. Continue reading
UK property becoming increasingly important part of retirement planning
Property is becoming an increasingly important part of retirement planning in the UK with new figures showing a surge in the number of retirees using the wealth stored in their home to fund their retirement. The total value of equity release lending passed £1 billion in the first nine months of 2014 and reached a record quarterly amount in the third quarter of £375.5 million, according to the latest industry figures from the Equity Release Council. The data also shows that there were more than 5,500 new customers in the third quarter of the year, the most recorded in a single quarter for six years and the average amount of equity release lending also hit a new high. The amount lent for the first three quarter of 2014 at £1.02 billion is more than the entire year's lending totals for 2009 to 2012 and is already 95% of the total value of the market in 2013. The value of equity release lending in the third quarter was up by 15% on the previous quarter when it totalled £325.6 million, and up 32% year on year from £284.1 million in the third quarter of 2013. The 5,565 new customers in the third quarter of 2014 is the largest amount in a single quarter for almost six years when it reached 7,526 in the fourth quarter of 2008, a rise of 5% on the second quarter of 2014 and a 12% year on year increase. This brings the number of new customers to 15,624 in 2014 to date, putting the industry on track to see 20,000 new customers in total by the end of the year. The average value of equity release lending also broke new ground in the third quarter of 2014 by reaching £67,467, the largest amount on record and up by 9% since last quarter and up by 18% since the third quarter of 2013. The council said that the growth is being driven by the need for additional funds in retirement and by the boost that rising house prices have given to people's available equity. Lump sum and drawdown lifetime mortgages have continued their upward climb, with increases for both products in the third quarter of 2014. The value of lending via lump sum products rose 16% from the last quarter to £148.7 million while the value of drawdown lending rose by 15% to £225.7 million, demonstrating largely even growth across both product options. Lump sum plans accounted for 40% of the total market by value in the third quarter of 2014, while drawdown plans made up 60%. In contrast, for the same period last year 34% of equity release lending was via lump sum plans and 66% was drawdown. The council pointed out that this is a notable shift, potentially fuelled by the appeal of larger initial sums that allow customers to pay off lingering debts, such as outstanding mortgages, or to fund one-off expenses. While making up less than 1% of the market, home… Continue reading
