Uk
A south facing garden doesn’t push up a property’s price, study shows
Despite estate agents and property experts in the UK espousing the benefits of a south facing garden, this is not reflected in the asking price, new research has found. An analysis of property asking prices reveals homes with south facing gardens carry a mere 0.37% premium compared to properties with north facing gardens. South facing gardens have long been touted as desirable because they typically get the sun for most of the day and are therefore thought to be warmer and brighter, but it appears this isn’t reflected in property prices. River views however do carry a higher cost, averaging 9% compared to identical properties located on the same development without this sought after outlook, according to the study commissioned by Direct Line Home Insurance. In one North London development, a three bedroom property with a river view has an asking price of £850,000, some 42% more than an identically proportioned and designed property elsewhere in the development that costs £600,000. The research also reveals that in many cities if you live higher in a new development, you pay a significant premium for the privilege. One developer informed researchers they added a £15,000 premium to the asking price for every floor, bringing new meaning to the phrase ‘sky high’ prices. An apartment on the fourteenth floor of a new London development five minutes from Angel tube station is on the market for £850,000, which is 31% more expensive than an identical property on the third floor. In a new development near London’s Colindale station a one bedroom flat on the fourth floor costs £438,950 while an identical property on the eighth floor is on the market for £475,000. ‘The research highlights that south facing premiums may well be a myth, but a room with a view comes with a hefty price tag. People are prepared to pay thousands more for the same amenities and layout because a property is located higher in a building, has a more scenic vista, or because it overlooks water,’ said Katie Lomas, head of Direct Line Home Insurance. ‘However, while picturesque river views are much admired it is worth noting properties built near water may cost more to insure because of increased flood risk. Purchasers should check the likely cost of insurance before they commit to buy,’ she added. Continue reading
Scotland sees strongest house price growth for seven months
Property prices in Scotland increased 0.8% in December month on month and 2.5% year on year, according to the latest index figures. It is the strongest year on year increase since May 2015, taking the average house price to £170,641, with the typical property up by £4,000, according to the index from Your Move. But Aberdeen recorded a steep fall in house prices, down 6.8% year on year as demand fell due to the falling oil price. Overall sales were strong with transactions up 21% in December 2015 compared to the same month in 2014 and the top end of the market is recovering, with 11 million pound home typically sold each month by the end of 2015. But Christine Campbell, Your Move managing director in Scotland, pointed out that the increase over the year to December is still below the 4.4% rise in 2014, as growth was skewed by the introduction of the Land and Buildings Transaction Tax (LBTT). She also pointed out that the average house price has now broken through the £170,000 barrier again for the first time since May and 2015 was a turbulent one for some parts of Scotland. Aberdeen experienced the biggest dip in house prices with property values in the area falling 6.8% or £15,551. ‘This decline has been driven by the drop in demand for homes in the area, as the tumbling oil price reduces employment and investment into the city,’ said Campbell. ‘Aberdeen has also felt the negative affect of the introduction of the LBTT, as it’s home to a large number of higher value properties which the tax hit hardest. The city has now slipped to sixth in the house price rankings, down from third at the end of 2014,’ she explained. Total sales for the year were 6% higher than in 2014, in stark contrast to England and Wales where sales are down 2.6% year on year. In Scotland, the type of homes selling swiftest were flats, up 18.4% in the last quarter of 2015 compared to the same period in 2014. The smallest increase was in pricier detached properties, but sales still rose 8.8% over the same time period. ‘As typically the cheapest type of property on the market, flats have benefited most from the switch to LBTT which removed tax paid on purchases under £145,000. With an extra 3% surcharge on second homes coming into force in April, we can expect another jump in sales during the first quarter of 2016, as sellers hurry to beat the tax hike,’ Campbell said. The million pound property market has seen the most extreme changes this year. Overall, there has been a 30% annual increase in the sale of high value homes in 2015. Half of these sales came in March, as owners rushed to beat the introduction of the LBTT. This was followed by a short term drought which saw the average number of million pound… Continue reading
Discounted Starter Homes in UK will not help many families, research has found
Discounted starter homes could be out of reach for the majority of families in need of an affordable home in many parts of the UK, it is claimed. First time buyers will be able to buy 200,000 new starter homes over the next five years at a minimum discount of 20% of the market value with discounted prices capped at £450,000 in London and £250,000 elsewhere. However, according to an analysis by the Local Government Association while the national starter homes scheme could help some people onto the housing ladder it won’t help everyone who wants one of these homes. The LGA pointed out that crucial details of the scheme are yet to be confirmed but it is concerned it will help the fewest numbers of people in areas where the housing affordability crisis is most acute and will be out of reach for many people in need of an affordable home in the majority of local areas. Although house builders will be able to build and sell starter homes below the price caps, councils are concerned that this could be difficult for developers to achieve without compromising on quality, particularly in areas with higher house prices. Town hall leaders are calling for the system to be flexible regarding the number, type and quality of starter homes so that they meet the needs of local communities. Councils also need powers to provide affordable rented homes that are crucial for enabling people to save money towards a deposit, and the means to secure investment in vital infrastructure that new home buyers will expect and will rely on. The analysis by real estate services firm Savills for the LGA reveals that discounted Starter homes prices will be out of reach for all people in need of affordable housing in 67% or 220 council areas and are out of reach for more than 90% of people in need of affordable housing in a further 80 council areas. People in need of affordable housing are defined as those who would have to spend 30% of their household income to rent or buy a home. The research says that for the average earner with a minimal deposit of 5% looking to buy an average priced house, a 20% discount would make it possible to borrow enough to buy a starter home in just 45% of all council areas in England. This includes all average priced homes in the North East of England, 95% in the North West and 90% in the East Midlands. Being able to save a 20% deposit would make an average priced home with a 20% discount affordable to buy in a further 29% of local areas. This includes a third of council areas in Yorkshire and Humber and the West Midlands. The average earner living in 85% of London boroughs, 49% of council areas… Continue reading
