Investment
London house prices break through the £600,000 barrier
Average house prices in London have broken through the £600,000 barrier having doubled over the last seven years, according to the latest residential index to be published. Overall in England and Wales home values reached record levels in April in nine out of 10 regions with average prices no approaching £300,000. The index from Your Move and Reeds Rains estate agents also shows that house price growth is now at its fastest level 8.9% year on year. The data also shows that prices increased 1% compared to the previous month but there were fewer sales than usual. Transactions were down 20,000 but this may have been due to the buy to let rush in the months leading to the new stamp duty charges for additional homes introduced on 01 April. It means that the price of a typical home in England and Wales is now worth £24,280 more than a year ago while prices in London are up 11% or £59,605 year on year. ‘This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy to let and second home buyers. However, after an exceptional March, there is now a severe shortage of properties on the market, with fierce competition between buyers for each available property,’ said Adrian Gill, director of Your Move and Reeds Rains estate agents. ‘Clearly, the Government’s offensive against landlords has not eased the way for other buyers, as property prices continue to pick up pace, growing by nearly 50% over the past seven years, with prices rising from £204,875 in April 2009 up to £298,030,’ he pointed out. ‘With the maximum value of the government’s flagship starter homes capped at £250,000, first time buyers may soon see a lot less property for their money. Chancellor George Osborne needs to increase incentives to sell and relax planning restrictions if he truly wants to fulfil the home ownership dreams of young people,’ he added. He also pointed out that rapid growth in means the average house price in London has almost doubled over the past seven years. For example, in Waltham Forest the average house price has soared by 113% over this time period, more than any other London borough. He added that across London, it’s been the more affordable areas which have seen some of the steepest increases in house prices annually, as the capital’s residents seek out cheaper properties. Also, while London may have seen the biggest boost in house prices this month, property values have hit new records in nine of the 10 regions in England and Wales, as growth ripples out from the capital. ‘This is the first time nine regions have broken records in the same month since October 2007 at the height of the boom as the market has now fully recovered from the crash. For those looking for houses to buy, the North East offers the… Continue reading
Buyers of prime country property in Ireland favour Cork and Wicklow, a new report shows
Cork and Wicklow are the most popular rural locations for country home buyers in the €1 million plus price bracket in Ireland, new research shows. According to the analysis from property consultants Savills Ireland, this suggests that many of those seeking the benefits of country living are also looking to remain within arm’s reach of major cities, be it for shopping and entertainment purposes, prestigious schools or access to good road links and international airports. Indeed, Savills sales data support this view, with a disproportionate number of transactions located in Dublin and neighbouring counties, and along national arterial routes. The report also highlighted that while domestic buyers account for a majority of Savills country homes sales, the single biggest deal in each of the last three years was a cash purchase from the UK or the United States. In addition, Savills noted a greater level of interest from American applicants, many of whom are looking to purchase a piece of family heritage here in Ireland. High net worth individuals from the United Arab Emirates and the Far East are also now beginning to show an interest in the Irish market. ‘Buyers at the top end of the price spectrum highlight location as a top priority. However, this group tends to be on the lookout for much grander homes with secondary accommodation and staff quarters, overlooking water, with 100 or more acres of mature parklands and, in many cases, adjoining equestrian facilities,’ said Harriet Grant, Savills head of country homes. Grant also reported that, unsurprisingly, some 85% of Savills country homes sales over the last three years have been cash transactions. ‘Typically, country homes buyers are not reliant on mortgage finance,’ she pointed out. ‘In reality, a trophy estate will only ever be attainable to a small minority, not only because of the higher price point, but also due to running costs. Therefore, it is little surprise that such a high percentage of Savills country homes sales over the last three years have been cash transactions,’ Grant explained. She added that deals that are being financed with a mortgage tend to involve existing home owners trading up and are generally smaller in value, averaging €520,000 in 2015, compared with almost €1 million for cash buyers. Continue reading
New £2.7 million initiative launched in UK to help tackle housing shortage
Over 45,000 new home building workers will be trained by 2019 to help tackle the UK’s housing shortage through a £2.7 million initiative announced by the Construction Industry Training Board (CITB) and Home Builders Federation (HBF). The first of its kind, the Home Building Skills Partnership, working with research on their needs from some 40 UK home builders, will bring together firms of all sizes to ensure that the industry has the skills it needs to build more homes. This will include initiatives to promote collaboration on skills across the supply chain, so that the industry can better plan for its future needs and the partnership will support over 3,500 construction businesses and, by 2019, train 45,000 new entrants and 1,000 experienced workers with the new homebuilding training qualifications. It comes at a time when the house building industry has delivered unprecedented increases in house building over the past two years. The latest figures show that 181,000 new homes were provided last year, up 25% year on year, with the largest companies increasing their output by 50% since their troughs. With the industry looking to meet Government ambitions to increase output still further, whilst maintaining high levels of build quality and customer service, it is imperative industry capacity is increased. The aim is that the new partnership will use industry insight to understand skills needs and develop new training and qualifications ideally suited to the modern home building sector and create long term skills solutions to meet the government’s target of one million new homes by 2020. It will be overseen by a Board that will be chaired by Redrow chief executive officer John Tutte and include a range of senior industry representatives and CITB. ‘The number of new homes is up 25% in the last year because the country is building again and delivering the homes the nation wants. That’s why the Home Building Skills Partnership is an important initiative and will help deliver the training of skilled workers we need to get the job done and to improve quality across the industry,’ said Housing and Planning Minister Brandon Lewis. ‘Construction offers an exciting and rewarding career and we need to build a new generation of home grown talented, ambitious and highly skilled construction workers,’ he added. Initiatives throughout the four year programme will include research led by the HBF and employers, to get a better understanding of the barriers faced by the home building sector and the design and delivery of a new Home Building Training and Developmental Needs Analysis tool to ensure the right training is delivered to ensure the sector’s skills needs are met, now and in the future. There will also be the establishment of a framework that will set common standards for skills and training in the home building sector. This will deliver a more relevant and valued curriculum and ensuring the safety and satisfaction of homebuilders and their customers. ‘The industry… Continue reading
