Uk
Homes in a National Park in England and Wales cost on average 44% more
Buying a home in a National Park in England and Wales will cost an average of £100,000 more than other properties nearby, new research has found. The New Forest is the most expensive National Park with an average price of £531,162 but all properties in these areas are costly and prices have increased by £57,718 over the last decade. The research from Lloyds Bank shows that overall prices in the National s in 2015 are on average, £101,880 higher than their county average, a premium of 44%. Properties in the New Forest command the largest premium relative to the average for the surrounding area in both monetary and percentage terms at £258,042 and 94%. The Peak District at 89% and the Lake District at 72% have the next highest percentage premiums to the surrounding area. Snowdonia is the only National Park where property prices are actually below the average for the surrounding area at 3% less. Of the 12 National Parks included in the research, 11 have higher house prices than the average for their county, with four attracting a price premium of more than £100,000. Seven of the 12 National Parks surveyed have an average house price that exceeds £250,000. ‘Many home buyers are prepared to dig that bit deeper to benefit from the lifestyle associated with living in National Parks,’ said Andrew Mason, mortgages director at Lloyds Bank. ‘As areas of outstanding natural beauty, they are also prime locations for those seeking second properties. The combined impact of these factors is that house prices are typically much higher than those in surrounding areas,’ he explained. ‘When we take average local earnings into account, this situation can make it really tough for many of those living and working in National Parks to afford to buy their own home,’ he added. So it is no surprise that home affordability in National Parks is significantly worse than for the country as a whole. The average house price in a National Park of £332,755 in 2015 is, on average, 10.9 times higher than local average gross annual earnings. The New Forest is both the most expensive and the least affordable National Park with an average house price of £531,162 that is 14.2 times local gross average annual earnings. The South Downs, at 12.5 times average earnings, is the second least affordable National Park, followed by the Peak District at 10.3. Snowdonia is both the least expensive and the most affordable National Park with an average house price of £165,840, which is 6.2 times local average annual earnings. Snowdonia is the only National Park with an average price below £200,000. The average house price in National Parks across England and Wales has increased by £57,718 or 21% over the past 10 years, from £275,037 in 2005 to £332,755 in 2015. The biggest percentage increases were in the South Downs at 44% and the Pembrokeshire Coast at 29%. At the other end of the spectrum, the Broads Authority is the only… Continue reading
New analysis shows that demand for property in the Alps is rising
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, says a new analysis report. The latest results of the Knight Frank Prime Ski Property Index underline a broadly stable market environment with only 13% percentage points separating the strongest and weakest performer. Val d’Isere and Meribel lead the 2015 Ski Property Index recording annual price growth of 5.8% and 4.5% respectively Prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular . Indeed, the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 while previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. The report points out that currency movements have played a pivotal role in determining demand across the region. For many, having decided to buy a ski home, choosing where to buy and weighing up the pros and cons of the different ski resorts can be a challenging task. The report also points out that Swiss rules on who can buy what, and where, can be complex for even the most experienced property lawyer due to the rules for residents and non-residents according to Lex Koller and Lex Weber. Home to the world’s oldest ski resorts, the French and Swiss Alps attract in excess of 80 million ski visits per annum and account for a third of the total number of ski resorts worldwide. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008 with no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015. Val d’Isere and Meribel lead the 2015 rankings with the price of a typical four or five bedroom chalet in each resort rising by 5.8% and 4.5% respectively in the year to June. The report explains that the length of Val d’Isere’s ski season explains its long- standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods. In Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its 4.5% increase year on year. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers, the report explains. In real price terms, the exclusive resorts of Courchevel 1850… Continue reading
Rents in England and Wales fall 1.2% month on month
Rents across England and Wales fell in October, taking the average to £806 per month, down 1.2% from the all-time high recorded the previous month, according to the latest buy to let index. Despite this, rents are considerably higher than a year ago and in the 12 months since October 2014, average rents have risen by 4.7%. After negative CPI inflation of 0.1%, this represents real terms annual rent rises of 4.8%. The index from Your Move and Reeds Rains also shows that four out of 10 regions in England and Wales have seen local rents defy the more general monthly slowdown. In the lead, the East of England has seen rents rise by 0.7% between September and October. Following this, rents are up 0.4% on a monthly basis in the North East, up 0.3% in the neighbouring Yorkshire and Humber region, and rents in the East Midlands have seen 0.1% month on month growth. On the back of these rises, rents in the East Midlands are now at the highest level on record, at £604 per month, while Yorkshire and Humber has also witnessed a new all-time record, with rents reaching £552. By contrast, rents in the South East lead the generally downwards monthly trend, dropping by 2.5% between September and October. This is followed by the South West with a 2.1% monthly dip and by London where rents are 1.1% lower than in September. On an annual basis, London still leads the field with rents now 10.7% higher than in October last year, followed by annual rises of 8.9% in the East of England and 5.7% in the East Midlands. At the other end of the spectrum, recent falls take Welsh rents to levels 6.7% lower than a year ago. According to Adrian Gill, director of estate agents Reeds Rains and Your Move, the very peak of the lettings season has now passed which means better deals are possible for tenants looking to rent later in the autumn. ‘However, there has been no huge change in the fundamentals pushing rents higher than in previous years. Whether or not the sharpest mismatch between supply and demand lasts into October, the fact remains that the private rented sector is growing rapidly, driven by demand and new properties coming onto the rental market are letting quickly,’ he said. ‘Many tenants are earning more, and while buying a home is still an unrealistic stretch for millions, renting a home is luckily still within reach. The private rented sector is much more closely connected to what people earn than the property purchase market, which has the financial insulation of mortgage payments and interest rates. By contrast, rents are more fundamentally limited by monthly budgets and now that ceiling is being lifted, average rents are likely to continue to rise rapidly on an annual basis,’ he explained. … Continue reading
