London
First time buyer valuation activity up by over 30% year on year
First time buyer activity in the UK jumped in November to a rate 31% higher than in the same month last year and up 2% month on month. The data from Connells Survey & Valuation also shows that first time buyer valuations were 2% above the annual increase for the overall housing market and 26% greater than the year on year increase for home mover activity. According to John Bagshaw, corporate services director of Connells Survey & Valuation, many first time buyers may be eager to get on the housing ladder now to avoid any potential rate rise by the Bank of England in the New Year. ‘While any increase to the base rate will likely be slight, it could be enough to persuade cash limited and price sensitive first time buyers to act sooner rather than later,’ he said. He believes that first time buyers are also looking to take advantage of Government backed schemes such as Help to Buy while they last. ‘Although the Government has given no clear indication these packages will end anytime soon, they could be gradually phased out as housing market confidence continues to improve,’ he explained. ‘These two factors are reinforced by an economy that currently boasts a golden combination of growth, low inflation and rising household incomes, an appealing economic environment for typically cautious first time buyers,’ he added. The data also shows that the buy to let market experienced similarly strong, if less pronounced, annual growth, with activity in the sector up 26% between November 2014 and November 2015. The strong performance comes despite the market contracting slightly by 4% on a monthly basis. Valuation activity for all purposes also remains strong, climbing 29% between November 2014 and November 2015, while registering no change compared to last month. ‘The buy to let sector continues to be an attractive proposition for property investors. But while the prospect of high returns is driving some of the activity in this sector, much of the energy is also being fueled by a desire to out manoeuvre the Treasury’s attempts to take more money from buy to let business,’ said Bagshaw. ‘With the Chancellor imposing more fees and regulations on landlords in his most recent Autumn Statement, many would be landlords are hurrying to get into the market before these changes kick in from April next year,’ he explained. He also pointed out that the housing market’s overall performance remains positive. All sectors are reporting healthy yearly growth and he said this is a reflection of a positive combination of economic growth, rising consumer confidence and improving real terms wages. The remortgaging market continues to expand rapidly on an annual basis, with the number of remortgaging valuations carried out in November 2015 representing a 46% increase on November of last year, while also representing a 5% increase on October 2015. However, progress for the home mover market was more gradual. Valuation activity for those seeking to progress further… Continue reading
New funding model announced to bring hundreds of shared ownership homes to London
A pioneering funding model with input from major institutional investors means that 1,000 new homes for shared ownership will be built in London. London Mayor Boris Johnson said that it will make home ownership accessible to many more people and described it as a significant boost to his plans which have already seen 52,000 helped into shared ownership homes through his First Steps programme. He said that he aims to double the number of shared ownership units built in London by 2020 and has also directed the Greater London Authority to begin purchasing land in areas suitable for further shared ownership developments. The latest two investments with Chaco Ltd and the London Borough of Barking and Dagenham working with institutional investors have been allocated £45 million from the Mayor's First Steps Challenge Fund. A further £120 million from long term private sector investment will add to the Mayor's loan funding. The fund is aimed at attracting investment from institutions such as pension funds and insurance companies to build part buy, part rent housing for low and middle income Londoners. It is expected to attract more than double its initial investment, providing strong value for the taxpayer. The Fund adds to successful efforts to encourage institutional investment for the purpose-built private rented sector, building a bigger pool of investors and new providers to support house building. The GLA will explore purchasing land in areas, such as Housing Zones, where the shared ownership model could be expanded. This would ensure vacant plots are put to productive use and preserve the developments for shared ownership properties. The GLA has successfully brought to market all of its surplus sites since the Mayor was elected, providing almost 50,000 new homes, and will now look to make acquisitions where it will accelerate or unlock new homes. ‘This scheme is a brilliant way to open up home ownership to Londoners on modest incomes, making the first step on the property ladder just that little bit easier. We've already helped 52,000 Londoners to buy their first home and realise their dream, and I'm very pleased that the first institutional investors have come on board through my First Steps Challenge Fund,’ said Johnson. ‘This is a great vote of confidence in a housing model which is incredibly popular with consumers, and we need to see more of it in London,’ he added. The first investment under the First Steps Challenge Fund scheme will be delivered in partnership with the London Borough of Barking and Dagenham and part-funded by institutional investors, and result in up to 500 new shared ownership homes by 2020. The Greater London Authority will contribute £22.5 million to the development, which will be more than matched by pension funds and other institutional investors, and repaid within 15 years with interest. The second investment will be delivered in partnership with Chaco Ltd, an organisation that provides institutional non-bank funding for housing associations and registered providers, to build 500… Continue reading
Kensington’s Victoria Road named as the most expensive for homes in the UK
Victoria Road in Kensington in London is the most expensive residential street in England and Wales with an average house price of over £8 million, new research shows. Indeed, 12 of the 20 most expensive roads are in the Royal Borough of Kensington and the top 50 are all in the south of England, the data from Lloyds Bank also shows. There is a £5.5 million gap between the most expensive streets in the South East and the rest of the UK, no million pound streets in Wales and a £7.2 million gap between the most expensive street in Wales compared to central London. The most expensive Welsh street is in Cardiff and with an average house price of £793,000, Druidstone Road is £7.2 million less than Victoria Road in London. Such is the pull of living in Kensington and Chelsea that 12 streets in the Royal Borough are in the list of the 20 most expensive in the country. These include Egerton Crescent with an average price of £7,550,000, followed by Manresa Road at £7,359,000, De Vere Gardens at £6,606,000, Drayton Gardens at £5,954,000 and Chelsea Manor Road at £5,523,000. Other central London locations featuring prominently in the list of most expensive streets are in Westminster, including Eaton Square with an average price of £6,727,000, Chester Street at £5,533,000 and Prince Consort Road at £5,281,000. Away from these two prime central locations, Parkside in Merton in south west London is amongst the 20 priciest streets with an average price of £6,355,000. Parkside is followed by West Heath Road in Barnet, north London at £5,199,000, and Anhalt Road in Wandsworth at £4,686,000. Outside of London Icklingham Road in Cobham in Surrey is the most expensive with an average property price of £3,094,000. The next most expensive in the region is Moles Hill in Leatherhead at £3,085,000, Harebell Hill in Cobham at £3,041,000, Abbots Drive in Virginia Water at £2,937,000, Fishery Road in Maidenhead at £2,821,000 and Wildernesse Avenue in Sevenoaks at £2,167,000. Poole in Dorset is the only area outside the South East that ranks near the top. Sandbanks Road is the most expensive with an average house price of £2,493,000 followed by Western Avenue at £2,433,000 and Haig Avenue at £2,200,000, all of which are in Poole. Newton Road close to the Cambridge Botanic Gardens is the most expensive street in East Anglia with an average house price of £1,853,000 but million pound residencies in northern England are not far behind. The most expensive streets outside southern England are concentrated in the area south of Manchester. Castle Hill in Macclesfield has an average property value of £1,662,000, followed by Macclesfield Road in Alderley Edge at £1,499,000, Torkington Road in Wilmslow at £1,330,000 and Goughs Lane in Knutsford at £1,299,000. The most expensive streets not in southern England are Lyndon Road in Oakham in Rutland at £1,363,000, Tiddington Road in Stratford-upon-Avon at £1,349,000, Rutland Drive in Harrogate at £1,191,000 and Graham Park Road in Newcastle at… Continue reading
