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Homes in England near top state schools sell at large premium, new study shows
Homes near England’s top state schools have an average price of £344,466 and parents face paying over £40,000 more to buy a home in their catchment areas, new research has found. Homes near Beaconsfield High School in Buckinghamshire have the highest premium of £636,132 or 186% compared to the average house price in neighbouring areas, according to the study from Lloyds Bank. Regionally the largest premium paid to live near the best state schools is in the North West, with discounts seen around schools in the East Midlands and the South West. Overall in 2015, house prices in the postal districts of the top 30 state schools in England, defined as those secondary schools that achieved the best GCSE results in 2014, were on average £40,728 or 13% higher than the neighbouring locations in their counties. House prices in the postal district of The Henrietta Barnett School in Barnet had a premium of £418,860 or 76%, the second highest, followed by St. Olave's and St. Saviour's Grammar School in Orpington with a premium of £180,447 and the Tiffin schools in Kingston upon Thames with a premium of £137,665. But over half, some 16, of England's top 30 state schools are in locations with an average property price below their neighbouring areas’ average. Properties in the postal district of Aylesbury High School, for example, sell at £122,506 or 36% less than the county average of £342,166. The next largest price discounts in cash terms at 119,485 are in Reading, where Reading School and Kendrick School are located. These schools are followed by Queen Elizabeth's School, Barnet at £95,681 and Westcliff High School for Boys Academy in Essex at £58,970. ‘In general, homes close to the nation's top performing state schools command a significant premium over neighbouring areas,’ said Andrew Mason, Lloyds Bank mortgages director . ‘The presence of a top performing state school appears to help support property values in many of these locations as parents compete with other buyers to land the property that gives their child the best possible chance to attend their chosen school,’ he added. The North West has the largest premium with average house prices in the postal districts of the top ten state schools in the region selling at £66,398 or 39% above the average house price in their county. This is followed by East Anglia at £48,642 or 20% and the South East at £45,871 or 15%. In contrast, homes in the East Midlands and the South West that are close to the best performing state schools are, on average, around £6,600 or 3% lower than in neighbouring locations. The average house price of £344,466 in the postal districts of the 30 best performing state schools is 9.2 times average gross annual earnings. This is significantly higher than the average across England at £267,956 or 7.7 times average gross annual earnings. The least affordable homes are those with a typical property price of £971,882 within the postal district of The… Continue reading
REO and distressed property still an important part of the US housing market
Once a stain on the US housing market, Real Estate Owned property and short sales are now regarded as a critical market indicator and the number increased by 0.7% in August, the latest data shows. While this type of property is a reminder of the legacy of the housing downturn, real estate investors, seeking discount prices, have transformed what was once undesirable into a more popular way of investing in the market. The data from Clear Capital shows that the quarterly distressed saturation rose from 15.4% to 16.1% and the firm says that increases in distressed activity leading into winter could shift momentum towards peak distressed saturation levels of 40%. Typically, distressed saturation fluctuates with the seasons and increases in the winter season. Distressed saturation rates have exceeded that of the nation in the West and Midwest, up by 0.9% and 1.2%, respectively, while the largest gains in distressed saturation have been in the South, with a 1.5% increase from 18.6% to 20.1%. The Northeast was the only region to experience a decrease in distressed saturation, where rates dipped 0.3% from 14.3% to 14%. The report shows that for the past three years, distressed saturation in the San Juan metropolitan area has been steadily increasing, having grown 8% from 9% in 2013 to 17% today but says that this trend is unusual in the current housing environment. ~ Over the same three year period, nearly all of the major metro markets have experienced steady declines in distressed saturation. In terms of pricing, this near doubling of the saturation rate has corresponded with a rapid change in price declines from a yearly loss of 1.5% in 2013 to a yearly rate of decline of 10.2% today. The Midwest is the only region to see quarterly gains in price appreciation, nearly doubling from 0.4% to 0.7%. The region still lags behind the West, which experienced declining gains of 0.1% yet still continues to report highest quarterly growth at 1.2%. The South and Northeast appreciation rates remained stagnant, reporting 0.8% and 0.2% growth over the quarter. There are differences in regional performance. The San Jose and Detroit metropolitan areas both report healthy growth rates of 2.1%. While the South did not see accelerated price gains, continued growth through August could be a sign that this region is on firm footing moving forward. Seven of the 15 top performing markets are located in the South, while four of the lowest performing metropolitan areas are in the Northeast. Distressed saturation continues to be a challenge in today’s housing market, according to Alex Villacorta, vice president of research and analytics at Clear Capital. ‘In fact, today’s traditional housing market continues to be defined by distressed saturation levels. At the start of the downturn, distressed properties were an albatross around housing’s neck but between 2011 and 2013 investors stepped in, buying, rehabbing and selling or renting distressed properties, which gave way to higher demand and rising prices,’ he… Continue reading
NLA warns students against scam landlords at start of UK university year
As students gear up for the start of the university year in the UK, the National Landlords Association (NLA) is reminding would be tenants to be vigilant when looking for somewhere new to live and to avoid getting scammed. The NLA receive complaints from tenants every year about fraudsters who operate online and the warning comes as many tenants scramble for available properties as the new academic year is about to begin. Such scams trick people into paying an advance fee to rent a property and in some instances fraudsters use NLA branding or fake letters from NLA local representatives in order to add legitimacy to the scam and lure their victims in to a false sense of security. Scammers often target those who are coming from abroad and are securing property online, particularly those looking for university accommodation. Typically once money has been sent the ‘landlord’ becomes un-contactable leaving the potential tenant defrauded. The NLA is reissuing guidance about avoiding online rental fraud which was drafted in conjunction with the National Union of Students and the National Crime Agency. They advise against sending money up front to anyone advertising online and to make sure they are genuine first and view the property if you can and also beware if you are asked to wire any money via a money transfer service, criminals can use details from the receipt to withdraw money from another location. Tenants are also advised to use government approved deposit schemes such as my|deposits and to contact the organisations the landlord claims to be associated with in order to verify their status. Tenants wanting to check whether a prospective landlord is a member of the NLA or accredited should ask them for their membership number, then go to: www.landlords.org.uk/member-verification . Overseas applicants needing to secure accommodation before they arrive in the UK should first seek the help of the employer or university they are coming to. Everyone should get paperwork and proof by asking for a copy of the tenancy agreement or safety certificates to confirm that the landlord has a genuine legal connection with property. ‘Rental fraud is one of the uglier aspects of private renting and it tends to rear its head this time of year as students, particularly those coming from abroad, look to secure rented accommodation for the academic year,’ said Carolyn Uphill, NLA chairman. ‘Tenants, no matter where they are from, should not send payment to advertisers before they are certain it is genuine and should contact their university who will have a list of reputable landlords and letting agents,’ she explained. ‘If you receive official correspondence from a landlord and are worried it might be a scam, often a good clue is that it will be written in poor English. Tenants should also remember they can check if a landlord is an NLA member,’ she pointed out. She added that any tenant that falls victim to such a scam should contact the relevant authorities in their… Continue reading
