Tag Archives: real estate
New research reveals how expensive homes are in UK National Parks
Home buyers would pay over £125,000 extra to live in some of the UK's most beautiful landscapes, according to new research. House prices in the National Parks of England and Wales in 2014 are, on average, £125,796 higher than their county average. In percentage terms, this represents a premium of 58%. The research from Lloyds Bank also shows that the New Forest commands the highest price premium whilst Snowdonia has the smallest and is the only National Park with an average price below £200,000. All National Parks have higher house prices than the average for their county, with four of the 12 National Parks attracting a house price premium in excess of £125,000. Homes in the New Forest command the largest premium relative to the average for the surrounding area in both monetary terms at £259,066 and a difference of 101%. The next highest percentage premiums to the surrounding area are in the Peak District at 94% and the Lake District at 84%. Homes in Snowdonia command the smallest premium, with property prices only 5% above the average for the surrounding area. Overall the average house price in National Parks has risen by £91,265 or 36% over the past ten years, from £251,269 in 2004 to £342,534 in 2014. This was £10,000 more than the £81,269 increase in the average price for all properties in England and Wales over the period. Exmoor recorded the biggest percentage increase with a 47% house price rise, closely followed by the South Downs at 45%. In contrast, the North York Moors at 17% and the Yorkshire Dales at 18% recorded the smallest gains in house prices over the last decade. The research also shows that the increase in house prices outpaced the 25% of average earnings across England and Wales’s National Parks, resulting in a deterioration in home affordability over the past decade. The average National Parks house price of £342,534 in 2014 is, on average, 11.3 times higher than average gross annual earnings. This is up from a multiple of 10.3 in 2004. The New Forest is both the most expensive and the least affordable National Park with an average house price of £516,479 that is 14 times local gross average annual earnings. The South Downs at 12.3 times average earnings is the second least affordable National Park. Exmoor, Dartmoor, the Lake District and Peak District also have average prices that are more than 10 times local average annual wages. Snowdonia is both the least expensive and the most affordable National Park with an average house price of £173,779, which is 6.5 times local average annual earnings. Snowdonia is the only National Park with an average price below £200,000. Seven of the 12 National Parks surveyed have an average house price that exceeds £250,000. ‘The high quality of life associated with living in some of the country's most beautiful areas attracts many homebuyers to our National Parks. They are also increasingly popular with those purchasing a second property. These factors mean that homes in National… Continue reading
Property value growth in Australian capital cities flat in September
Residential property values across Australia’s capital cities were virtually flat over the month of September, according to the latest RP Data CoreLogic Home Value Index. There was a 0.1% rise in values over the month which translates into a 2.9% capital gain over the third quarter of 2014. However, the flat result for September masks the fact that five of Australia’s capital cities recorded a fall in values over the month whilst only Sydney with growth of 0.8%), Brisbane with a rise of 0.7% and Adelaide up 0.9% recorded an increase in dwelling values over the month. The September quarterly was once again driven by exceptionally strong conditions across the Sydney and Melbourne markets where the quarterly capital gain rate was 4.1% and 3.7% respectively. Additionally, Adelaide recorded a solid increase in values over the September quarter, posting a 3.1% capital gain. Brisbane was up 0.6%, Darwin up 1.4% and Canberra also up 1.4%. But Perth saw a fall of 0.6% and Hobart was down 1%, the only two capital city markets to record a decline in values over the September quarter. Values are now 9.3% higher over the 12 months to the end of September 2014, with every capital city recording an increase in dwelling values over this period. Sydney values are driving the growth trend, increasing by 14.3% over the past year. The data shows that a substantial gap exists between Sydney and the next best performer, Melbourne, where values increased by 8.1%. Darwin was the third strongest performer over the past year with a 7.1% capital gain, followed by Brisbane at 6.4% and Adelaide at 5.8%. Hobart values were 4.6% higher over the past 12 months while in Perth values were 3.2% higher. Canberra recorded the lowest rate of annual capital gain at 1.7%. Despite the ease in capital gains over September, other indicators remained strong over the first month of spring. Auction clearance rates continued to beat the 70% mark week to week while volumes across RP Data real estate agent and valuation platforms remained strong which indicates heightened levels of industry and mortgage market activity. According to RP Data’s research head Tim Lawless, more listings are entering the market place as the weather warms up. He said that the big test for the housing market will be whether additional stock is absorbed by an increase in buyer numbers. ‘The annual rate of appreciation in dwelling values has actually been moderating since reaching a peak in April this year. The fact that the annual trend of capital growth has been trending lower is an important factor to note as it highlights that the rate of capital gain is no longer accelerating,’ he explained. ‘Even though housing market conditions remain very buoyant, we have been seeing the 12 month trend drifting lower since peaking at 11.5% in April. A moderating annual trend, as well as the relatively flat September result, is likely to be welcome news to policy makers and potential buyers after the… Continue reading
The rate at which UK house sales fall through is rising
The rate at which house sales in the UK are falling through has increased steadily since March 2013, new research shows. Tougher mortgage rules have prevented purchasers borrowing as much as they anticipated they would be able to is one reason, according to the research from Quick Move Now. Also, buyers are increasingly nervous of a potential market crash, said Quick Move Now’s market analyst Donna Houguez. ‘We are seeing two clear reasons for the upwardly moving fall through rate. Stricter rules imposed on borrowing by lenders as a result of the mortgage market review have resulted in buyers making offers, confident that they would be able to secure a mortgage and then realising that they were unable to, forcing them to pull out of sales,’ she explained. ‘In August and September, the reason for sales falling through clearly changed, and it was the buyers themselves who became nervous. We saw a sharp increase in the number of buyers who had made a generous offer in order to secure a property against the competition change their mind and pull out amid fears of an imminent property market collapse,’ she added. Meanwhile, the Little House Company has compiled statistics from its database of private vendors to evaluate the trends of private sellers from June to August 2014. This data is particularly interesting as the summer months are generally regarded as a bad time to sell homes, yet the findings show a significant number of vendors bucked the trend and listed their homes this summer. The research shows that the average age of private vendors was 40.3 years of age, which suggests that the majority of private vendors are second time buyers. The research also shows that greater London is the most popular area to sell homes without an estate agent, compared to other UK regions. Central London remains a stronghold for estate agents with direct sales stronger in the suburbs. Private vendors are not limited to Greater London, and the data shows private vendors listing properties up and down the UK. The second and third most popular areas for private property sales this summer were Cheshire and South Yorkshire, respectively. Continue reading
