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One bedroom apartments in London see prices rising more than bigger flats
Property sales prices increased by an average of 4% across some key areas in London this year but there has been a slowdown overall, new research shows. Midtown, City and Docklands saw the price of one bedroom apartments rising by 7% compared with just 2% for two bedroom apartments, according to the bi-annual research from property advisors and development consultants Hurford Salvi Carr. The research also shows that the rental market picked up and recovered in the second half of 2014 with higher numbers of tenants registering and taking out new leases across Midtown, City and Docklands. Rent levels ended the year down 1% or largely unchanged over the year and the report explains that the upturn in the second half of the year coincides with a downturn in enquiries in the sales market across central London. It also shows that the average yield on a typical one bedroom apartment has now fallen to 4% with the yield of new homes averaging between 3% and 3.5%. Looking to 2015, the research indicates that there will be fewer properties being offered for sale in the first six months of next year. It is anticipated that confidence will remain weak in the sales market building up to the general election in May and prices of existing homes will remain unchanged, as owners across Midtown, City and Docklands are not highly geared or in the majority of cases have no borrowings and will not consider selling below full value. It is expected that the price of new homes up to £1 million will continue to sell at current levels and the price of new homes over £1 million may see asking prices fall by between 5% and 10% as the supply of new homes above £1 million is expected to increase in 2015. The research also indicates that residential rents will firm up in 2015 and will increase by 5%. If this happens, it will be the first time rents will have risen since 2010. Hurford Salvi Carr this week opened their new office on City Road, N1, expanding their network of offices to 5 across the City, City Fringes, Midtown and Docklands. Continue reading
Annual sales up 15% in Scotland but prices down 0.4%, latest index shows
Annual home sales in Scotland jumped 15% in September but prices slipped by 0.4%, slowing the annual change to 5.1%, according to the latest index. That taxes the average price of a house in Scotland to £163,630, the data from the LSL Property Services/Acadata report shows. Prices dropped at the top end of the market in two of the most expensive areas in the country, Edinburgh and Aberdeenshire, down 1.3% and 1.2% respectively. ‘Following almost a year of fair winds and steadfast price rises, this is the second month in succession to muddy the waters. Edinburgh and Aberdeenshire saw the tide turn, reflecting the ripples in evidence in prime central areas of London, as the top tier of the housing market experiences the keenest downturn,’ said Christine Campbell, regional managing director of Your Move. The report says that while Scottish house prices have increased by nearly £8,000 in the last 12 months overall, the rate of annual growth has eased back to 5.1% in September from 5.8% in August. Since June, the monthly pace of house price growth has slowed and this is put down to the referendum vote on independence which put the brakes on activity in the housing market. ‘However, these shifts we’re seeing on the surface haven’t uprooted the solid foundations of the recovery, with average house prices across 81% of Scotland higher than a year previously,’ explained Campbell. East Renfrewshire led the way in terms of annual price growth, with property values soaring 13.4% in the year to September 2014, and new price peaks were reached in East Lothian and Aberdeen. Indeed, the price of a detached home in Aberdeen has risen by an average £15,000 over the last three months, to total £410,000. ‘September also saw sales snap back after the vote put the lid on uncertainty, and transactions were up 15% year on year, compared to only 7% growth over the 12 months to August. After the ground that was lost in August, renewed demand saw more vigorous activity buck the usual seasonal pattern, and this was the strongest September for house sales in seven years,’ Campbell pointed out. Continue reading
UK second steppers want a four bed detached home, new research has found
Detached houses are now the property of choice for home owners moving up from their first property, new research shows. In 2010, three bed semi-detached properties were the preferred next step but now they are increasingly looking to move to a bigger four bedroomed detached house, according to the latest report from Lloyds Bank. The research also shows that second steppers spend 19 months longer in their first home than they expected, 37% are increasing their savings and 41% are overpaying their mortgage to fund the £58,000 jump to their next home. In 2010 when three bed semi-detached properties were the preferred option some 60% said that they were looking to move to a semi-detached house, with 48% also saying detached properties would also be an option. Fast forward to 2014 and 54% of Second Steppers stated they would be looking to next move to a detached house, now the most preferred option, with semi-detached properties reducing to 51%. Three bed properties remain the preferred size of house in 2014 at 45%, although this has reduced by 10% since 2010 while four bed properties seeing a significant increase in this time. Some 31% now say they are looking for a four bed house, an increase of 7%. Second steppers are becoming increasingly prepared for their next move and taking their time to make the jump up to a family home. On average, they are spending 19 months longer in their first property than they expected as they continue to save and build up equity. Overall, the average second stepper spends four years and five months in their first home. Only 6% of these people intended on staying put for over six years, however in reality, some 36% have done this. The research also found that 37% have increased their monthly savings in the last year, and 41% are overpaying their mortgage. As a result, the proportion of people concerned about the size of deposit they require to move also fell in the last year, from 50% of second steppers in 2013, to 37% in 2014. This suggests that changing behaviours and increased levels of equity are allowing people to put more towards their next deposit and save for bigger homes. The findings also show that second steppers may be delaying having a family until they can move into a suitable property. Those moving as result of needing more room to start a family have reduced by nine percentage points in two years, to 22%, from 31% in 2012. Value for money remains a key driver for purchasing a property, with 46% of second steppers saying so. This is down 6% in the past year. Finding a nice area to live in is growing in importance and has seen the greatest year on year increase. In the past year, the number of respondents selecting this has risen by 6% to 38%. Both of these changes in the past 12 months suggest a more long term perspective for second steppers looking… Continue reading
