Tag Archives: real-estate
Homes in a National Park in England and Wales cost on average 44% more
Buying a home in a National Park in England and Wales will cost an average of £100,000 more than other properties nearby, new research has found. The New Forest is the most expensive National Park with an average price of £531,162 but all properties in these areas are costly and prices have increased by £57,718 over the last decade. The research from Lloyds Bank shows that overall prices in the National s in 2015 are on average, £101,880 higher than their county average, a premium of 44%. Properties in the New Forest command the largest premium relative to the average for the surrounding area in both monetary and percentage terms at £258,042 and 94%. The Peak District at 89% and the Lake District at 72% have the next highest percentage premiums to the surrounding area. Snowdonia is the only National Park where property prices are actually below the average for the surrounding area at 3% less. Of the 12 National Parks included in the research, 11 have higher house prices than the average for their county, with four attracting a price premium of more than £100,000. Seven of the 12 National Parks surveyed have an average house price that exceeds £250,000. ‘Many home buyers are prepared to dig that bit deeper to benefit from the lifestyle associated with living in National Parks,’ said Andrew Mason, mortgages director at Lloyds Bank. ‘As areas of outstanding natural beauty, they are also prime locations for those seeking second properties. The combined impact of these factors is that house prices are typically much higher than those in surrounding areas,’ he explained. ‘When we take average local earnings into account, this situation can make it really tough for many of those living and working in National Parks to afford to buy their own home,’ he added. So it is no surprise that home affordability in National Parks is significantly worse than for the country as a whole. The average house price in a National Park of £332,755 in 2015 is, on average, 10.9 times higher than local average gross annual earnings. The New Forest is both the most expensive and the least affordable National Park with an average house price of £531,162 that is 14.2 times local gross average annual earnings. The South Downs, at 12.5 times average earnings, is the second least affordable National Park, followed by the Peak District at 10.3. Snowdonia is both the least expensive and the most affordable National Park with an average house price of £165,840, which is 6.2 times local average annual earnings. Snowdonia is the only National Park with an average price below £200,000. The average house price in National Parks across England and Wales has increased by £57,718 or 21% over the past 10 years, from £275,037 in 2005 to £332,755 in 2015. The biggest percentage increases were in the South Downs at 44% and the Pembrokeshire Coast at 29%. At the other end of the spectrum, the Broads Authority is the only… Continue reading
House prices growth in UK cities on track for 10% growth in 2015
City level house price inflation in the UK is on track for 10% growth in 2015 as price increases accelerates in large regional cities, according to a new index report. Cities have seen annual house price growth of 9.4% per annum and the large regional cities outside southern England are recording an acceleration in growth off a low base, says the Hometrack UK Cities House Price Index. In Glasgow prices are up 8.3%, in Manchester up 7% and in Liverpool up 5.1%, meaning that these cities are registering the highest rates of annual house price growth since 2007. Glasgow house prices currently average £110,000, less than half the £229,300 average price across all the 20 cities measured by the index. House prices in Glasgow stopped falling three years ago and have since risen by 13%. In the last 12 months they are up by 8.3%, the highest rate of growth since August 2007. Manchester house prices have been recovering since 2012 and average house prices have risen by 17% over this time to £141,200. In the last 12 months house prices across Manchester have grown by 7%, the highest rate of growth since July 2007. Liverpool has registered the weakest house price performance of all the British cities covered by the index. House prices declined between 2007 and early 2013 and have since increased by 10.5%. In the last 12 months the rate of growth has risen to 5.1%, the highest since August 2007. Despite this modest recovery, the average price of £109,800 is still 13% lower than the 2007 peak. The recovery emerging in large regional cities contrasts strongly with the rise of London’s house prices where average values are up by 70% since 2009 and by over 100% in the highest value markets in central London. The report says that it is these high value markets that are now recording some of the weakest levels of house price growth as tax and currency changes impact demand after a period of stellar price appreciation. Kensington and Chelsea has seen prices fall by 2.6% and in the City of Westminster they are up by only 1.3%. ‘Improving consumer confidence and low mortgage rates are boosting demand in cities where the recovery in house prices is in its infancy. While southern cities have been in recovery mode for over six years with price gains of up to 70%, the large regional cities have seen far more modest price rises over just the last three years,’ said Richard Donnell, director of research at Hometrack. ‘Further house price growth is likely to improve market confidence as it pushes down loan to values on mortgaged homes and creates capacity for households to access cheaper credit. Many corporate investors and developers are looking to the major regional cities in search of better value for money in new investments relative to London,’ he explained. ‘The outlook for the next 12 to 18 months… Continue reading
More British buyers in the prime London property market, research suggests
Domestic buyers have risen to a new level of prominence in the London property market as overseas purchasers are being put off by current property tax levels, it is claimed. In the third quarter of this year some 79% of property purchases were made by domestic UK buyers, up from 75% a year ago, according to the latest London Property Monitor from March & Parson. The firm says that sales activity from domestic buyers has surged forwards to fill the gap left by overseas buyers and investors, who have been left more cautious by the strong sterling, stricter Government measures on non-domicile status, and heftier Stamp Duty for higher value purchases. As a result of this new hesitation, domestic mortgage buyers and first time buyers have become more prominent in the London market, with the proportion of mortgage buyers in Prime London soaring from 53% in the second quarter to 65% in the third quarter. At the same time, overseas and foreign nationality buyers accounted for 21% of all prime London property purchases during the third quarter which has fallen quarter on quarter, and is also down from 25% of all sales during the third quarter of 2014. This pattern is also being mirrored in the prime central London market traditionally favoured by overseas investors, with the proportion of foreign buyers standing at 32%, down from 34% in the second quarter and 37% a year ago. The investor share of the market has also dipped in the prime central London market over the past three months. Investors accounted for 35% of all prime central London sales during the third quarter, a considerable drop from 42% in the second quarter. Yet with domestic buyers stemming this shortfall, overall demand for Prime London homes has grown in the three months to September 2015, and the number of registered buyers has climbed 4%. Combined with a 5% drop in the supply of properties available on the market, and buyer competition is building as these trends diverge. There are currently 14 buyers for every available property for sale in London, increasing from 12 in Q2, and 10 at the end of 2014. According to Peter Rollings, chief executive officer of Marsh & Parsons the strength of sterling and government encroachments on nom-dom status make investing in the London property market seem daunting for foreign buyers. ‘This has cast some shadows over the capital, but the millions of Londoners who live and work in the city have acclimatised much more quickly to the property taxation changes, and have risen up to fill the void left by overseas purchasers and investors,’ he pointed out. ‘We’re noticing longer purchase chains than ever as domestic buyers really start to dominate the market, and demand is really putting a strain on supply. This should ensure that London houses prices and sales activity continue their ascent into 2016,’ he… Continue reading
