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Scottish country house prices moderate in first quarter of 2015
Prime country house prices in Scotland rose by 0.2% between January and March, a slightly more modest increase than the 1% growth seen in the final quarter of 2014, the latest data shows. Annual growth also slowed, to 1.2%. This compares to average growth of 2.1% in 2014, according to the latest index report from Knight Frank. Average prices remain 22% below the market peak in 2007 so a property valued at £1 million in 2007 would now be worth £780,000. However, there are regional variations in price growth across the prime market. Edinburgh leads from the front with a year on year price rise of 4.1%, followed by Central and Northern Scotland. However, while price growth at the top end of the market has slowed in the approach to the UK General Election, prime sales volumes in the first quarter of 2015 have increased. The firm says this can be attributed to the introduction of the new Land and Building Transaction Tax (LBTT) this month as both buyers and vendors in the prime market have looked to complete deals ahead of the introduction of the new levy. Under the new rules, 50% of buyers will not be liable to pay any tax on the purchase of a home. However, for homes valued above £333,000 the up-front cost of moving will increase. Knight Frank sales data shows the number of prime country homes changing hands between January and March, ahead of the implementation of the new levy, was 11% higher than during the first three months of 2014. The report suggests that the introduction of LBTT is likely to have a knock-on impact on sales at the top end of the market in the second quarter of the year. ‘However, we expect that in the medium term the market will adjust to the new system, underpinned by current favourable economic conditions,’ said Ran Morgan, head of Scottish residential sales. ‘In spite of higher levels of property tax, Scottish property continues to offer good value, especially when compared with London and southern England,’ he added. The data also shows that more than half of buyers in this property sector are from outside of Scotland. ‘Over the last year 57% of our buyers were from outside of Scotland, highlighting the global appeal of the country. This trend has continued in 2015, with individuals from Hong Kong, the United Arab Emirates and London all purchasing properties during the first three months of the year,’ explained Morgan. A breakdown of the figures shows that 31% were from other parts of the UK, on top of that 12% were from London, 5% were from the Middle East and 5% from Asia. Some 2% were from Europe and 2% from North America. Continue reading
UK Lib Dems set out plans for a Help to Rent scheme for young people
The Liberal Democrats, one of the main political parties in the UK, have announced plans for a new Help to Rent scheme to support young workers move out of their family home and into a rented property. The party, which was part of the coalition government, said it would introduce the scheme if it is again part of the new government after the general election next month. It pointed out that research shows that around two million young working adults still live with their parents despite being in paid work because they can’t afford to get a home of their own. Rising rental costs mean that many young workers can't afford the money needed for a tenancy deposit of the one to two month's rent expected up front unless they have financial help from their parents or friends. Under the Help to Rent scheme, young working people in England would be able to borrow up to £1,500 or £2,000 in London from the government to go towards their tenancy deposit. To be eligible, tenants would need to be between 18 and 30 years old, in paid employment and not be home owners or seeking social housing tenancy. Loans could be paid over one or two years and once paid off, could be used for future rental properties. The knock-on effect of having young working adults in the family can also lead to parents having to upsize or delay the downsizing of family homes to accommodate older children, thereby reducing the availability of family homes. ‘Increasingly we see young people stuck in the family home as they can't afford the upfront costs of a deposit to rent a property despite having a paid job. It's simply unfair that thousands of hard working young people still have to live in the same bedroom they lived in when children,’ said Deputy Prime Minister and Leader of the Liberal Democrats Nick Clegg. ‘When you get your own job, you want to stand on your own two feet, have your own space, and not have to rely on the bank of mum and dad. Our Help to Rent scheme removes this barrier to young people's independence, providing access to up to £2,000 towards their tenancy deposit so they can fly the nest and rent their own space,’ he added. Ian Fletcher, director of policy of the British Property Federation, pointed out that young renters often do not have a credit history and therefore struggle to raise a deposit. ‘This welcome policy will help more people into their first homes and stop them having to raise funds through pay-day lenders and other risky means,’ he said. ‘This announcement builds on the excellent work of the Confederation of British Industry and housing charity Shelter, who have encouraged employers to voluntarily offer loans for tenancy deposits, much like loans already offered for travel season tickets,’ he explained. ‘Schemes such as these are also made possible by the vast majority of legitimate landlords and agents, who… Continue reading
South West London likely to see 165,000 new homes with 36,000 by 2020
Nearly 60% of new housing supply in south west London will be concentrated in Wandsworth, Lambeth and Hammersmith and Fulham local authority areas, according to new research. An estimated 165,000 new homes could be delivered in south west London with 36,000 being delivered to the market in the next five years, the report from Savills Research says, with these three borough providing 60% of this supply. The new housing will be in clusters at Nine Elms, White City, Earls Court and Wandsworth Town. The borough of Wandsworth is anticipated to supply the market with the largest quantum of units at almost 8,000 over five years. Taking south west London as a whole, 45% of the five year supply pipeline is anticipated to be priced above £1,000 per square foot, 43% is between £450 per square foot and £1,000 per square foot, with the remaining 12% priced under £450 per square foot. Much of the anticipated development will be built along the river, with the highest values in the study area found along the river at the South Bank, Nine Elms and Fulham. The report breaks the possibilities into sectors. In White City the five year new housing pipeline amounts to 2,300 private units with three schemes greater than 1,000. The average new build values are expected to be £900 per square foot to £1,200 per square foot. The area is likely to be popular due to significant investment from institutions such as the BBC and Imperial College London, the report explains and the scale of development is underpinned by the fact that White City is an Opportunity Area consisting of 110 hectares, with potential for 4,500 new homes. No schemes have been brought to the market yet but BBC Television Centre is due to launch in 2015/2016. In Putney the five year sales pipeline amounts to 470 units ranging from small to medium sized developments of 20 to 155 homes. The average new build values are predicted to be £800 per square foot to £1,050 per square foot. Demand is likely from a wide pool of people including investors, young professionals and second home owners which have already has helped drive development along the Upper Richmond Road. Many new developments are replacing post-war office blocks by developers such as Crest Nicholson, London Realty and Art Estates. London Square’s development has helped mitigate loss of commercial space by also providing adaptable office premises, the report points out. In Vauxhall Town the five year pipeline amounts to 1,750 units with average new build values of £900 per square foot to £1,250 per square foot, ranging from 40 to 700 units. The report says that significant investment into infrastructure is helping drive development including the transformation of Vauxhall gyratory. The Northern Line extension will help to reduce traffic through Vauxhall station. In Ealing Town the five year pipeline amounts to 200 private units with an average values of £700 per square foot to £1,000 per… Continue reading
