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West London prime property market out performs rest of sector in London
Residential property growth in the prime west London market is outperforming the rest of the sector in the city, new research shows. The area starting in Hammersmith and heading west to Ealing saw average property values grow by 4.1% in the second quarter of 2015, leaving annual growth at 0.5% compared to the small falls seen in other prime London markets. The value of properties priced over £2 million, the majority of which are concentrated in Hammersmith and Chiswick, fell 2.2% over the past year, the data from real estate firm Savills also shows. At the top end of the market, buyer caution has been evident, the firm's report says, and the the price falls largely resulted from stamp duty changes announced in the 2014 Autumn Statement and uncertainty surrounding a mansion tax in the run up to the general election. Stronger growth was recorded in the lower value markets, particularly in the £750,000 to £1 million market where buyers benefited modestly from the stamp duty reform. In the prime markets below £750,000 although price growth was positive, it was slower as new mortgage regulations limit the amount buyers can borrow. Average values in Ealing are around 25% cheaper than Hammersmith and Chiswick and consequently saw the strongest growth, of 3.9% over the past year. 'Since the election some of the deferred pent up demand is beginning to flow back into the market, although the new stamp duty rates are still keenly felt by buyers at the top end of the market. This has restricted any significant increases in both prices and transaction numbers and we expect this to continue over the rest of 2015,' the report explains. Nonetheless, Savills is forecasting price growth to return to the market in 2016 and values to rise by 22.7% over the five years to the end of 2019. In the prime west London rental sector average rents increased by 1.2% over the three months to the end of June, leaving rental growth flat on an annual basis. But Savills says that corporate relocations play an important part in the west London prime rental market and are a growing source of demand. Over the first half of 2015 some 67% of tenants were renting due to employment relocation compared to 55% in 2014. 'Over the next five years, the London economy is forecast to continue strengthening, particularly in the technology and telecommunications industries, which will underpin demand for prime rental property over the medium term,' the report points out. However, it also points out that a potential risk to the sector is the level of new stock being brought to the market by overseas investors in certain locations on the fringes of prime London. In west London the largest prime development region is White City, which may lead to rents coming under pressure in the surrounding areas. But, across the prime London markets as a whole Savills expects rents to rise by 17% over the course… Continue reading
Average UK buyer wants a three bed home priced at around £200,000
The average UK home buyer has a budget of £205,221, has owned two properties in their lifetime and is most likely to buy a three bedroom semi in the suburbs, new research shows. Most buy with a spouse or partner with just 18% buying alone and of those aged 18 to 24 some 17% buy their first home with friends, according to the study by Sarah Beeny's estate agency Tepilo. Who people buy with varies from region to region, with those from Wales most likely to buy alone at 35%, followed by those in the South East at 28% and Yorkshire at 27%. Least likely to purchase solo are those from the North East where only 3%do so and London where it is 12%. Location of a property is the most important consideration for buyers with 65% naming it as the top priority followed by 56% stating the number of bedrooms is crucial and 41% the garden. Some 34% believe the layout of the property is important, 29% having a kitchen dining room and 19% want a downstairs toilet as a priority, the research also found. When considering the location of a property, buyer rate good transport links as the most important deciding factor at 56%. Being close to shops and supermarkets is key for 44% and a low crime rate for 39%. A good local pub is an important factor for 23% with 35% of 18 to 24 year olds rating it as one of the top things they look for when buying a home. Those from the East Midlands are most keen on a local with 33% of them saying a good local pub is essential when buying a property. Having family and friends nearby is vital for 36% but this rises to 65% amongst people from the North East and drops to just 22% of those from the South West and 23% in London. Three bed properties are the most popular with 45% of buyers going for this size of property while 27% seek a two bedroom home. Indeed a two bedroom property is the most popular in the North East and Scotland where 48% are after this kind of home. A further 18% opt for a four bed, with less than 5% buying studio and one bedroom properties. The age of 44 is when most buyers think they have moved to their ideal home that they will spend the rest of their lives in, although 20% don't think such a thing exists, which rises to 33% of those aged 55 and over. The research also found that 32% have bought a property as an investment, rising to 41% amongst those aged 35 to 44. Some 45% of buyers who have invested in property bought the home for their children to live in whilst at university. In addition, 24% who invested in property did so as an alternative to a traditional pension. 'We've introduced the Tepilo Buyer Barometer survey to gauge how British house buyers… Continue reading
Key commuter city sees prime property market perform best in UK
Winchester, a popular commuter city within reach of London has seen its prime property prices outperform the wider UK market, new research shows. Prices in the city, famous for its cathedral and history, increased by .4% between April and June, taking the annual change in prices in the city to 6.3%, according to data from international real estate firm Knight Frank. Such price growth means that Winchester has comfortably outperformed the wider UK prime market where values have risen by 0.9% on a quarterly basis and 2.3% on an annual basis. Winchester has also registered stronger price growth than other prime city markets including Bath, Bristol and Oxford. A shortage of prime properties for sale, combined with strong demand for homes in thriving town and city markets, has contributed to this out performance, according to the Knight Frank analysis report. It shows that the number of properties for sale in the city was 17% lower at the end of July than at the same point a year previously. In the prime market, the number of properties for sale valued at over £500,000 was 20% lower, a factor which, combined with strong demand, can put upwards pressure on prices, the report explains. Against this backdrop, demand for property in Winchester remains widespread.'As well as those moving up the ladder locally, the city remains popular with commuters both from the wider South East region and from London. Figures from the 2011 Census show that some 53% of people living in Winchester work outside of the city,' the report says. Buyers from the capital are also taking advantage of the price differential between property prices in London and elsewhere in the country. The report points out that while there has been sustained price growth in Winchester over the last year, changes to stamp duty announced in December have made buyers at the top end of the market more price conscious. This has resulted in slower than average price growth for the most expensive properties in the city since the introduction of the new rates. Meanwhile, in geographical terms, price growth has been fairly uniform across the city. Property values in Hyde and the city centre have risen by 3.2% and 3.1% respectively over the first six months of 2015, and by 6.9% and 6.8% over the past year. To the south and the east of the city centre in St Cross and St Giles Hill annual price growth of 5.7% and 6% respectively has been recorded. Overall, there were over 200 sales with a value of £500,000 or more in Winchester over the 12 months to June, 23% higher than the previous 12 months, according to data from the Land Registry. Continue reading
