TSI
Average prices in England and Wales down 0.2%, land registry data shows
Average house prices in England and Wales fell 0.2% in September compared with the previous month, according to the latest index from the Land Registry. But property has experienced year on year growth of 7.2% with the average price now £177,299 compared with the peak of £181,324 in November 2007. The data also shows that there were over 93,350 residential properties in England and Wales lodged for registration in September. The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with growth of 18.4% while the East experienced the greatest monthly rise at 1.4%. Yorkshire and the Humber saw the lowest annual price growth at 1.4% and the region also saw the most significant monthly price fall of 2.2%. The most up to date figures available show that during July 2014 the number of completed house sales in England and Wales increased by 7% to 79,214 compared with 73,749 in July 2013. The number of properties sold in England and Wales for over £1 million in July 2014 increased by 19% to 1,439 from 1,207 in July 2013. David Newnes, director of Your Move and Reeds Rains estate agents, said the figures show the market has experienced ongoing steady growth. ‘Property prices slowed down slightly compared with the previous month, but the annual picture is still stable,’ he pointed out. ‘There are regional differences with some regions doing better than others. Property prices in London have been steadily marching forward and have experienced the strongest recovery in the UK, whereas areas like the North East and Yorkshire and Humber still have some catching up to do,’ he explained. He also pointed out that there were 11% more first time buyer completions than a year ago. ‘These robust figures are in part due to the Help to Buy scheme which has crucially assisted first-time buyers get on to the property ladder. The scheme has made higher LTV lending much more accessible and first-time buyer deposits have fallen by 8%,’ said Newnes. ‘However, more geographical targeting of the Help to Buy scheme would help rejuvenate struggling areas in the UK, particularly those outside London and the South East. And with many regions still in a delicate balance of recovery, the government should be mindful of heeding any calls to curtail the scheme,’ he added. Despite the increase in property values in the capital, market conditions in London are now more sustainable, according to Nick Leeming, chairman of national estate agents Jackson-Stops & Staff. ‘London is seeing a greater balance in supply and demand, which is more sustainable in the longer term. With the London effect and buoyant local markets, the Home Counties remain relatively active and do not yet reflect any reduction in market activity. However many Jackson-Stops & Staff offices report that the top end outside London is seeing continued resistance to high pricing levels and, in many areas, sales at above £1 million remain hard to secure,’… Continue reading
Prime arable farm land prices in parts of UK up almost 18% year on year
Prime arable farm land prices in Britain have increased by 17.9% year on year but this substantial growth land masks some early signs of potential change to the market. According to the latest quarterly report from Savills the average rate of growth during the three months to the end of September for prime and average quality land across England slowed as the implications from weak commodity prices dawned for many potential purchasers. However, as with all averages these figures hide some exceptional sales where the right product in the right location, which often represent a once in a lifetime opportunity for a purchaser, buck the trend. Conversely, higher average growth rates were recorded for some of the poorer quality land, according to Alex Lawson head of Savills farms and estates team. ‘The range in values for farmland is now so significant that there are buyers who are choosing to take advantage of the relatively good value poorer quality livestock land,’ he said. The research from Savills shows that just over 120,500 acres of farmland were publicly marketed across Britain during the first three quarters of 2014, a fall of 7% compared with the same period in 2013. However there are significant differences between countries with Scotland seeing a 28% fall, Wales a 22% fall while in England the acreage increased by 4%. Supply across England continues to be historically low and our records highlight that this year the volume of publicly marketed farmland is the second lowest since 1995 as 2004, the year before Single Farm Payment, being the lowest with 114,400 acres being advertised to end September. Savills says it is worth noting that the private market accounts for some of the shortfall, which this year includes the sale of the substantial Co-operative Farms portfolio. Moving into 2015 there are a few factors that might increase supply and affect ongoing growth in values. These include pressure on farm incomes and political uncertainty. At a national level Savills is expecting some growth in average values, but this will be more muted than in 2014, with a continued diversity in the ranges of values achieved. ‘Clearly an understanding of local market conditions will be critical to both buyer and seller to ensure realistic expectations,’ said Ian Bailey head of rural research at Savills. Continue reading
Prime central London experiencing shortage of three bed homes to rent
As the lettings market in the capital continues to thrive, one leading national estate agent is experiencing a shortage of rental properties available, particularly for three bedroom homes which are in high demand. The demand for three bedroom homes for rent in central London is seemingly insatiable, according to Zoe Rose, head of London lettings at Strutt & Parker. ‘As soon as we get a good one on our books, it lets in a flash. We recently let a three bedroom lateral top floor apartment on Cranley Gardens in South Kensington for £1,300 per week within two days on its first viewing and similarly we let a three-bedroom apartment on Ladbroke Gardens within one week for its asking price of £1,500 per week,’ she explained. She said that while buy to let investors often believe owning a one or two bedroom flat is a failsafe option when it comes to attracting tenants and optimising rent, the firm’s experience suggests that it’s actually three bedroom homes that are the most sought after at present. Indeed, Rightmove recently reported that more than a third of its top 5,000 most viewed homes were all three bedroom properties. ‘Owning a three bedroom property is clearly good news for landlords. They are a great investment because they have such broad appeal. Prospective tenants include young couples, small families and older couples looking to downsize. At a time when there has been a surge in working from home, having a spare room to use as an office is also very attractive to tenants,’ Rose pointed out. Strutt & Parker’s latest figures for lettings transactions in the third quarter of 2014 also indicate that it’s the larger, more expensive properties that are performing most strongly. When compared to the same period last year, transactions are up 18.4% for properties between £2,000 and £2,999 per week, up 14% for properties between £3,000 and £3,999 per week and up 16.7% for properties over £4,000 per week. However, lower priced properties costing less than £999 per week to rent, were down 7.5% on last year and properties between £1,000 and £1,999 per week were also down very slightly by 1.4%. Rose predicts that 2015 will be a good year for landlords with property in the prime central London market. ‘We are anticipating a 2.5% increase in lettings prices in prime central London for 2015 and we’ve already seen 2% growth for lettings in 2014,’ she explained. ‘This slow but steady growth will be underpinned by the simple fact that there are still so many people out there that can’t afford to buy a home in London and these people will continue to rent. Not to mention the large number of people who enjoy the flexibility of renting and the threat of rising interest rates rising will also play an important contributing factor,’ said Rose. ‘We currently have 25% less property available for… Continue reading
