Tag Archives: london
House prices have increased strongly annually across the UK, says latest ONS index
UK house prices increased by 11.7% in the year to August 2014, unchanged from the year to July 2014, according to the latest index from the Office of National Statistics (ONS). House price annual inflation was 12.2% in England, 4.7% in Wales, 6.7% in Scotland and 9.6% in Northern Ireland. The index report says that house prices are increasing strongly across the UK, with prices in London again showing the highest growth. Annual house price increases in England were driven by an annual increase in London of 19.6% and to a lesser extent increases in the South East of 12.3% and the East of 11.6%. However, excluding London and the South East, UK house prices increased by 7.8% in the 12 months to August 2014. On a seasonally adjusted basis, average house prices increased by 0.6% between July and August 2014, the data also shows. In August 2014, prices paid by first time buyers were 12.9% higher on average than in August 2013. For existing owners prices increased by 11.2% for the same period. ‘While price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16% year on year in September. First time buyers have been bringing much of the vitality and optimism to the party,’ said David Newnes, director of Reeds Rains and Your Move estate agents. ‘While the market adapts to a mellower beat, schemes like Help to Buy and an accessible lending environment are essential to ensure that confidence isn’t silenced, and activity continues to sing,’ he added. He pointed out that a North/South divide remains evident in the race back from the debris of the financial crash. For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score. The North has the furthest ground to travel, with average prices still 8.3% or £13,400 below their housing boom high in March 2008. The London property scene is on a different scale to the rest of the country. ‘Overall, the capital has seen the strongest housing market recovery, with prices having now grown 47.3% from their previous peak in February 2008. However, the rate of annual house price inflation in the capital eased in August, as we see growth relaxing into a slower tempo from the heady pulse earlier this year,’ said Newnes. Continue reading
UK asking price growth cooling but there is still momentum in some locations
Recent data is showing house price growth in the UK has been cooling but the latest index report suggests there is considerable momentum, especially in the South where demand remains high. However, prices are not rising as quickly as they were, according to Home.co.uk's latest Asking Price Index, and supply is rising. Asking prices increased in September by 0.6%, the ninth consecutive monthly rise, taking the average annual appreciation in England and Wales to 8.5%. But overall the market is cooling and vendors' expectations are being moderated outside of the current hotspots of London and the South East. The total number of properties on the market that have been reduced in price has risen in recent months to a two year high and now represents 13% of the total stock of property for sale. Moreover supply is growing across the UK as vendors are being encouraged by rising prices. Last month, 10% more properties entered the market than in September 2013. The rise in supply in London is much more extreme, up 49% by the same measure. A breakdown of the figures show that home prices rose across most of mainland UK over the last month but slipped in the North East, North West and Wales by 0.1%, 0.1% and 0.4% respectively. However the firm says that this is consistent with the normal seasonal price variations. Asking prices increased significantly in the more vigorous southern regions. Asking prices in East Anglia, where supply remains very tight, jumped 1.1% over the last month, and prices look set to keep rising as long as the shortage of property for sale continues as in this region the monthly rate of new instructions has fallen 70% over the last seven years. London prices also rose by 1.1% following the previous month’s dip and, for the time being, supply is historically low, down 67% compared with September 2007. However, the report points out that this situation is changing rapidly. The number of properties being put up for sale in the London region has soared by 49% over the last 12 months. Looking back further, the data shows that only five of England’s nine regions have prices that are nominally higher than they were in October 2007, whilst home prices in Scotland and Wales remain below those levels. If the effects of inflation are taken into account then only Greater London has shown any real price gains since October 2007. The data also shows that the average mix-adjusted 12 month change in asking prices for England and Wales reached a maximum in June of 9.6% and is steadily falling back. The year on year price trend confirms that average price increases are moderating overall. ‘We expect this trend to continue in 2015 as rising supply will tend to stifle further price rises, as already seen in Greater London,’ said Doug Shephard, Home.co.uk director. ‘Whilst much coverage is given to the best performing property locations, currently Stratford, Stepney, Mill Hill and Canning Town, it is equally important to… Continue reading
Third of new homes in London in next five years set to be in the east
Almost a third of all new homes planned for London over the next five years will be concentrated east of the city’s financial district, a new analysis shows. A total of over 55,000 homes will be built in just four boroughs, according to the report from international property adviser, Savills, which identifies a shift in the capital’s centre of gravity towards the east. It says that the boroughs of Newham, Tower Hamlets, Greenwich and Barking and Dagenham will account for 29% of all new homes planned for London in the five years to the end of 2018. ‘The Olympics played a hugely important role in opening up the area to investment and transport improvements are now driving occupier, investor and developer demand in previously overlooked east London postcodes,’ said Susan Emmett, Savills residential research director. ‘This is changing the shape of London and its property market, with a discernible pattern of emerging development hugging the East London Line portion of the new London Overground. The network extension to Barking Riverside and the completion of Crossrail with give a further boost,’ she added. The analysis report points out that lower average capital values in the east of London have provided developers with the opportunity to build much needed homes that are affordable for those living and working in London. However, while central boroughs such as Westminster and Kensington and Chelsea remain the most expensive, the biggest increases in value have been seen away from London’s core over the past year, particularly in cheaper locations to the east. But, not only have prices increased ahead of the Greater London average, transaction volumes have also received a dramatic boost. In Tower Hamlets, the number of homes changing hands is now double the pre-peak norm, while deals in Newham are up almost 50% year on year. Key emerging residential areas include Stratford with 6,500 new homes, including 2,800 in East Village, Canning Town and Royal Docks with 8,000 homes, Canary Wharf with 4,500 homes at Wood Wharf and 850 at Asda Crossharbour and Greenwich Peninsula with 10,000 new homes. Average prices currently range from £500 to £700 per square foot in Canning Town and Royal Docks and £550 to £750 in Stratford, accessible to households with an average income of over £70,000. In Canary Wharf, popular with financial sector employees both as owners and tenants, values range from £700 to £1,200 per square foot. Greenwich Peninsula is expected to achieve values in the £550 to £850 range. ‘It is this dynamic of rapidly rising prices, albeit from a low base, and the strength of demand that will present developers with their biggest challenge. Market strength has pushed the value of new build in Canary Wharf, the most established East of City location, to £700 to £1,200 per square foot, out of the reach of the… Continue reading
