Tag Archives: real estate
London sees steep fall in property price growth, latest ONS figures show
UK house prices increased by 5.5% in the year to April 2015, down from 9.6% in the year to March 2015, according to the latest official figures, but London saw an even steeper decline. The data from the Office of National Statistics shows the growth in prices in London fell from 11.2% in the year to March to 4.3% over the 12 months to April. This is the lowest rate of growth in the capital city since October 2012. A regional breakdown shows that house price annual inflation was 5.8% in England, 1.3% in Wales, 2.2% in Scotland and 8.8% in Northern Ireland. Overall the pace of annual house price growth has fallen across the majority of the UK but increases in England were driven by an annual increase in the East of 9.6% and the South East of 8.4%. Excluding London and the South East, UK house prices increased by 5% in the 12 months to April 2015 and on a seasonally adjusted basis, average house prices fell by 1.3% between March and April 2015. The data also shows that in April 2015, prices paid by first time buyers were 5.8% higher on average than in April 2014. For existing owners prices increased by 5.4% for the same period. Peter Rollings, chief executive officer of Marsh & Parsons, commented that property values in the East and South East of England have seen the biggest boosts on a yearly basis, while annual growth in the capital has more than halved in the month since March. ‘But this was simply part of a wider slowdown submerging the country in April, when we were still wading through competing election promises, and when demand at the highest rungs of the market was being dampened by a possible mansion tax,’ he said. ‘Now the ink has dried on the ballot papers, we’re back onto firmer territory. More recent barometers of the property market indicate favourable conditions with low mortgage rates and cheaper stamp duty costs keeping demand for homes buoyant, and carrying along a tide of buyer confidence,’ he explained. ‘At the frontline of the property market, we’ve already seen a 5% jump in new buyer registrations since May, and we’ll soon see a new offensive in activity levels as a result, which will help the onward march of price growth,’ he added. According to Graham Davidson, managing director of Sequre Property Investment, pre-election jitters and uncertainty will have no doubt been a key factor in London’s slowdown, along with the shift in buying patterns of overseas buyers, who for many years over fuelled the market but are now favouring other areas that offer better and more stable long term returns. ‘Away from London and the south east, the majority of the country is experiencing more modest growth and in areas such as the North West where growth is at 3.1%, there are a wealth of opportunities for those looking to make their capital… Continue reading
Pay an extra 25% to buy a house in a popular London garden square
The average price of a home located on one of central London’s popular garden squares now costs above £2 million and commands a sales premium of 25% over a similar home nearby, new research shows. The study by residential estate agent Hamptons International analysed house prices in and around 64 of central London’s garden squares. The 25% premium for 2015 remains unchanged from 2014, although the average price of a home in a garden square rose 7% to £2,040,713, breaking the £2 million mark for the first time. In order to derive the premium, the analysis compared sales prices, taken over a five year period, of properties located on a garden square, compared to those within a 200 meter radius of a square. All prices were indexed forward to January 2015 values, to account for house price inflation. In 2015 a property situated on a central London garden square sells on average for £2,040,713 compared to £1,643,907 for a similar property within a 200 meter radius of the square. For houses the price differential is even greater. The average price for a house located on a garden square in 2015 is £5,022,221, compared to £3,320,582 for a house within a 200 meters radius of a square. ‘Growing house prices have seen the average home on a central London garden square break the £2 million mark for the first time. As well as the view of and access to shared resident only gardens, many of these homes are in the capital’s most desirable locations, with names such as Eaton Square or Chester Square recognised the world over,’ said Johnny Morris, head of research at Hamptons International. ‘While in part it is the address that purchasers are paying for, the size and quality of the property is also important and London’s garden squares are home to some of the finest examples of British architecture in the capital,’ he explained. ‘Overall it’s a combination of factors that accounts for the price premium buyers are prepared to pay for a home on a London garden square; namely setting, prestigious address and exceptional architecture,’ he added. Continue reading
Survey reveals majority of UK tenants are satisfied with current landlord
Some 81% of UK tenants renting their home in the private rented sector are satisfied with their current landlord and 70% believe their rent is value for money, new research has found. The survey also found that 82% said they consider the property they rent to be their home, a fifth of respondents said in the long term they plan to buy their own home and 35% said they expect to stay in the PRS. The survey, carried out during the first quarter of the year for specialist buy to let lender, Paragon Mortgages also revealed that 12% of tenants felt uncomfortable approaching their landlord about extending their tenancy agreement and 6% who had asked for a longer tenancy were refused. However, 57% said they had always been happy with the tenancy offered and 17% had asked for a longer term and their landlord had agreed. ‘The research is really interesting. It is important that we understand the world from the tenant’s viewpoint so we can continue to deliver products that support better standards in the private rented sector,’ said John Heron, the firm’s director of Mortgages. ‘There has been a lot of noise around the need for longer term tenancies for some time and I think there is a common misconception that landlords are not willing to be flexible in the tenancies they offer. Our landlord research demonstrates that many are more than willing to extend terms and in 71% of cases it was the tenant who chose to end the tenancy and not the landlord,’ he explained. ‘We are big supporters of offering longer term tenancies and we were one of the first buy to let lenders to announce we would support the Government’s new model lease and allow landlords to offer 36 month tenancies to those tenants who need that extra security, as we believe this is our social responsibility,’ he added. Continue reading
