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Number of London homes worth over a million set to rise by 47% by 2018
The number of London house sales breaking the £1 million price barrier is expected to rise by 47% by 2018, according to new analysis from international property adviser, Savills. It means a further expansion of a market that has grown by 165% in the past five years. In 2003, just 1,825 £1 million plus sales were recorded by the Land Registry, a figure that rose to 7,529 last year. By 2018, the annual total is expected to exceed 11,000, in response to forecast price rises and means that more locations in the Greater London area will qualify as prime property area. According to calculations from Savills, annual turnover in London’s £1 million plus market has risen by 312% over the past decade and is forecast to record a 505% increase in the 15 years from 2003 to 2018. During the same period, prime London house prices are expected to have risen by 160%, evidence both of the rising prosperity in the capital and the geographical expansion of the prime market. A decade ago just over half of sales worth £1 million or more were concentrated in just two central boroughs, Kensington and Chelsea and Westminster, with 569 and 370 sales respectively. Last year, while these two central boroughs still accounted for a third of this high value market place, four other boroughs of Wandsworth, Hammersmith and Fulham, Camden and Richmond upon Thames, each saw more than 500 £1 million plus sales recorded by the Land Registry. Only two of London’s 33 boroughs, Barking and Dagenham and Newham, did not see any £1 million plus sales recorded by the Land Registry in 2013. Three other boroughs, Croydon, Waltham Forest and Bexley, recorded fewer than 10 such sales at nine, three and two respectively. But even in the highest value areas of these five boroughs average values were between £275,000 and £390,000. ‘In the past five years, we have seen £1 million sales increasingly extend into areas such as Acton, Dalston, Herne Hill, Tooting Bec and Blackheath. In the next five years such sales are expected to become significantly more concentrated in emerging locations such as Streatham, Kingston, Borough and Northwood,’ said Lucian Cook, head of UK residential research at Savills. ‘The majority of locations where we expect to see the emergence of £1 million-plus sales in the next five years neighbour existing prime areas. Areas such as Earlsfield, Brixton and Wanstead should see a greater proliferation of the £1 million price tag, which is also expected to begin to appear in such locations as Crystal Palace to the south, Southgate to the north and Isleworth and Osterley to the west,’ he added. The Savills research also identifies the emergence of a third ‘wealth corridor’, running south east via Dulwich and Bromley, as wealth flows out from more central locations, boosting house prices along its route. ‘Much of the growth in £1 million-plus sales will be organic, driven… Continue reading
Number of foreign buyers in Paris region rises as French look to Spain
Foreign buyers are increasingly snapping up properties in and around Paris with new figures showing they account for almost one in 10 sales. In the three districts that make up the Ile de France some 9.2% of buyers were from overseas, the first time such a number of sales has been seen for 15 years. The figures from real estate group Bien, said that there has been a big shift in where buyers are coming from. Italian, Chinese, Algerian and Portuguese buyers make up the bulk of sales to overseas buyers. But overall the number of foreign buyers has remained stable with fewer French people buying homes in the region, according to the firm. In Paris itself, some 8.3% of buyers this year have been foreign nationals, with the figure rising to 11.2% in the Inner Ring and dropping to 7.5% in the Outer Ring. Four years ago, foreigners made up just 6.3% of the sales total in the region. Italians accounted for the largest foreign group in Paris, with 17% of sales. Chinese buyers dominated the foreign market in the Inner Ring with 22.2% of sales while Portuguese buyers came out tops in the Outer Ring at 29%. It is not a case of foreign buyers moving to France. The data shows that some 90% of these buyers were already resident in the Paris region. Meanwhile, another report suggests that the French are buying more property in Spain. Some 18.2% of foreign buyers in Spain are French and 51% of enquiries are within an hour’s drive of Spain, according to the latest data from Spanish property portal Kyero. It means that the French are now the second largest group of foreign buyers of Spanish property. British buyer are still top at 54.5 and in third place is Germans at 7.5%. A multitude of economic factors over the past year have encouraged more and more French buyers into Spain, according to Martin Dell, Kyero director. ‘With the French property market looking pretty flat, many are casting their eyes further south in search of holiday home bargains that can satisfy both investment and lifestyle requirements,’ he explained. ‘Property in Spain is incredibly cheap right now and for French buyers, being part of the Euro, means that the headache of currency exchange is removed from the purchase process,’ he said, adding that the north of Spain is particularly popular due to it being easily accessible. Kyero figures show that Girona, just 55 minutes' drive from France accounted for 51% of enquiries, followed by Castellon at 46%, Tarragona at 29% and Cantabria at 25%. Continue reading
Scots divided over effect of independence on property prices, poll shows
Opinion in Scotland over whether or not house prices will fall if there is a Yes vote for independence is divided, a new poll shows. Almost a third of people think house prices in Scotland will fall if the country becomes independent while about the same number believe prices will rise. The crucial vote is on Thursday. Overall the survey by s1homes shows that 32% of people believe independence could cause the value of their house to fall while 31% it will lead to a price increase. A further 24% said they did not know while 13% said they did not believe Scotland would vote to leave the union. Almost half of those surveyed, some 46% said they think that independence would make it harder to get a mortgage while 19% said it would be easier. The remaining 35% said it would be no different. Across almost all regions and age groups the consensus is that getting a mortgage would be harder in the eventuality of independence. The only segments to disagree were those aged 55 to 64 who believe that getting a mortgage would be no different and those under 18 who are split evenly between believing that getting a mortgage would be easier and believing it would be harder. Those currently living outside of Scotland are the least likely to buy property in Scotland until after the referendum, 50% said the impending referendum would make them less likely to buy or sell at the moment. The North East of Scotland followed with 35% of respondents less likely to buy or sell until after the referendum. Those aged 65 and over feel strongest that independence would result in the value of their home falling while those under 18, followed by those aged 18 to 24, feel strongest that property values would increase. More men than women believe that independence would impact on the value of their home, while more women admitted to not knowing one way or the other. Despite uncertainty over the result of the referendum and the potential rise or fall in property prices, 59% said that the referendum has no influence on their decision to buy or sell at the moment. Ewan Stark, s1 managing director, believes that the survey shows a ‘feeling of trepidation’ among Scots over the future of mortgages and interest rates. ‘The prospect of independence continues to divide the country and the results of our survey reveal that there is little agreement on what independence would mean for Scotland's property market either,’ he said. Meanwhile, a survey by rental firm Citylets found that 58% of private renters who have made up their mind on which way they are going to vote, support independence. Continue reading
