Tag Archives: real-estate
Average house prices in the UK fell by 1.1% last month, the latest data shows
Average house prices in the UK fell 1.1% in September but are still up 6.9% on an annual basis, according to the latest index figures to be published. During the month average house price stabilised at £203,135, but in London property prices fell 3.3% but are still up 19.8% year in year taking the average price in the capital to £507,967. The National Housing Market Monitor report from haart estate agents says that the market remains strong with almost 10 buyers chasing each new property instruction across the UK, up from eight two years ago. In London there are 16 potential buyers chasing each property instruction. The difference between the London market and the UK as a whole is also marked with it comes to new properties being put up for sale. They have increased annually across the UK by 2.8% but in London by 23.1%. The report from the independent agent which has a network of 200 branches across the country, also shows that the average property price for first time buyers has reached two year high at £160,218, up 4.1% on a monthly basis and 8.2% annually. ‘Although our data shows a small slowdown in house price growth on a monthly basis, this must be taken in the wider market context. Good mortgage deals are still very much on the table and interest rates aren’t going up for the foreseeable future,’ said Paul Smith, chief executive officer of haart. ‘We have 10 buyers chasing every new property instruction UK wide so sellers shouldn’t be concerned. They should be reassured that the UK property market is still performing well,’ he added. New properties for sale across the UK in September increased 2.8% annually but fell on the month. This is the fourth consecutive month in which property supply has increased on an annual basis. In contrast the number of new buyers is down 6.6% annually, again the fourth consecutive month in which the level of demand has fallen on an annual basis. Similar to new buyer registrations, the number of first time buyer registrations decreased 6.4% annually and 2.8% on the month. However first time buyers now make up a higher percentage of all mortgages written, 44.7% in September 2014, up from 41.1% last year. The average mortgage achieved by first time buyers is also up and now stands at £125,668, an increase of 11.1% annually and 3.9% on the month. Continue reading
Calls for key business districts in London to retain their office space
The Mayor of London is bidding to preserve city’s key business districts by urging the government to reconsider proposals that could see valuable office space in the capital turned into homes. Last year the Mayor negotiated for four defined areas in central London to be exempt from a Government policy that allowed office space to be converted into homes without developers applying for change of use planning permission. These areas included the Central Activities Zone which incorporates the City of London, the South Bank and the West End. More than a third of London's jobs are within this area, and a further 280,000 jobs are expected to be created here in the next 25 years. The Mayor also successfully gained exemptions for the commercial area north of the Isle of Dogs and London's Enterprise Zones in the Royal Docks, plus the part of the City Fringe in east London which makes up the emerging Tech City opportunity area. The UK government has just finished consulting on a raft of planning proposals including one that would see the exemption for these areas removed, a move that the Mayor, Boris Johnson, says would damage London's internationally important business locations. Johnson points out that London is the beating heart of the UK economy and accounts for over a fifth of GDP. It is also a global centre for business, so the Mayor believes it is vital to maintain a stock of quality office space in key areas to ensure the city can continue to attract jobs and growth. The city is home to a number of unique clusters of economic activity from government offices, to financial services, institutions and professional bodies, which employ millions of people, contributing billions to the national economy. The Mayor believes that if these clusters were to be broken up in piecemeal residential conversions these benefits would disappear. ‘London is a colossal powerhouse of jobs and growth, and the motor of the UK economy. While increasing housing output is of vital importance, I am concerned that removing the exemption in our most thriving business districts could compromise both London and the UK's future economic growth,’ said Johnson. ‘London's success depends on a rich mix of uses and more high value residential property in central London could upset this balance and change the area for good,’ he added. In a letter to the Secretary of State for Communities and Local Government, Eric Pickles, the Mayor, together with London First, the British Property Federation and the Planning Officers Society London say that ‘incremental unplanned loss of office accommodation in strategically important office areas of London can significantly weaken the agglomeration benefits provided by these locations’. The Mayor and signatories to the letter also argue that criteria should be in place to protect other, strategically important business locations across the country. They argue that due to the large variation in size and function of office clusters throughout the country, especially between London and other cities in England, it would be challenging to agree… Continue reading
Farm land values in England up 2% in third quarter of 2014
The average value of farm land in England increased by 2% in the third quarter of 2014 and has increased 12% so far in 2014, the latest index shows. The average value of commercial farm land without any land or buildings now stands at an average of £7,689 per acre, or exactly £19,000 per hectare, the results from the Knight Frank farm land index show. Year on year, farm land prices are up 15% and over a 10 year period, farm land has risen in value by 187%, second only to gold at 224%. The 2% growth in the third quarter of the year builds on the 9% growth seen during the first half of 2014. This comes at a time when there is limited supply. The amount of publicly advertised land is down 15% compared with 2013, according to the Farmers Weekly Land Tracker and the ongoing demand from both farmers and investors continues to push up prices. Despite recent falls in the price of agricultural commodities such as wheat and milk, farmers are still focused on the long term and are keen to acquire neighbouring or nearby land when it becomes available. With house builders increasing their output and acquiring more development sites, the number of farmers with roll-over funds to spend on land is growing. As farmland is acquired for the controversial HS2 rail scheme this could also bring new buyers into the market, says the Knight Frank report. Investors’ hunger for land remains undimmed, as highlighted by the recent purchase of the Co-op farms portfolio for almost £250 million by the Wellcome Trust. Part of the problem for investors, particularly funds, is the lack of suitable investment grade land available, combined with strong competition from neighbouring landowners prepared to pay a ‘legacy’ premium for land that they may only have one opportunity to buy and once purchased may stay in their families for generations to come. Because of this, many investment led deals are happening off market. Knight Frank’s Agricultural Investments team, which is acting for a number of wealthy individuals and funds, estimates private deals are outnumbering public ones by as much as two to one. Although large tracts of arable land with relatively little value tied up in high value period farm houses are selling quickly and the market for estates with large residential properties is less fluid, according to Clive Hopkins, head of the firm’s Farms and Estates team. ‘In some instances, this has led to large chunks of an estate’s farm land being sold off separately for a premium price. I think this trend really highlights the strength of the farmland market. Traditionally it has been the house leading the sale, now often it is the land,’ he added. Continue reading
