Tag Archives: africa
UK house prices up in May but annual growth is slowing
House prices in the UK increased by 0.6% in May as a steady upward trend in values continued but there are signs that growth is slowing. Quarter on quarter prices were up 1.4%, slightly below April’s 1.5% but this was the lowest since November 2015 when it was also 1.4%, according to the latest index from lender the Halifax. Also, the May rise of 0.6% largely offset Aprils fall of 0.8% and Martin Ellis, Halifax housing economist pointed out that the quarterly figure is a more reliable indicator of the underlying trend in the housing market. Prices in the three months to May 2016 were 9.2% higher than the same three months in 2015 so the annual movement was the lowest it has been since last autumn. The index shows the average price now reaching £213,472. According to separate research from the Halifax property prices per square metre have risen by 432% in Greater London against a national average increase of 251% over the past two decades. Although London dominates the country's list of most expensive property locations on a per square metre basis several areas outside southern England fetch a higher property price per square metre than the national average of £2,216. These are Solihull, Leamington Spa, Altrincham Edinburgh and Harrogate. ‘Low interest rates, increasing employment and rising real earnings, continue to support housing demand. The strength of demand, combined with very low supply, is causing house prices to rise at a brisk pace in quarterly and annual terms,’ Ellis explained. ‘Increasing affordability issues, caused by a sustained period of higher than earnings house price growth, should curb housing demand and result in some slowdown in house price growth as the year progresses,’ he added. The figures are published at a time when demand is still outpacing supply, according to Ian Thomas, director of online property investment company LendInvest. ‘The resilience of house price growth is remarkable. Even now that the stamp duty stampede of the first quarter is behind us, and with the uncertainty of the European Union referendum result dampening activity, house prices are still holding up,’ he said. ‘There simply aren't enough houses being built. The latest disappointing house building data make this abundantly clear. The Government’s dream of one million new homes by 2020 simply isn’t realistic without a fundamental change of approach,’ he pointed out. ‘As a result, house prices will continue to rise. Investors will continue to enjoy great returns from putting their money into property, while aspiring home buyers face a tricky time getting the sums to add up in order to move up the housing ladder,’ he added. However, Rob Weaver, director of investments at property crowdfunding platform Property Partner, believes the slowdown in growth is quite dramatic. ‘The house price volatility around April’s stamp duty hike has made 2016 a difficult year to predict. But the yoyo effect looks like it’ll settle, at least until all the uncertainty over the EU referendum ends,’ he said. ‘Activity in… Continue reading
Families pay almost £44,000 extra for home in good primary school area
Families in the UK are having to pay a price premium of almost £44,000 to buy a property near the best performing primary schools, new research has found. Many parents want their offspring to get the best start in life and they are prepared to move home to make sure they are in the catchment area for those first crucial years at school. According to the research by online estate agents HouseSimple, the average premium paid is £43,773 to be in the catchment areas for the top 50 state funded primary schools across England that received the highest rating by Ofsted in its latest report. The research revealed that average property prices in streets that are close to these best schools are 18% higher than average property prices for the area postcode. Of the primary schools commanding the biggest premiums to live near to, more than half are in the South of England. The schools adding the biggest premium to local property prices are St Luke’s Primary School in Brighton and Hove and Crowland Primary School in Haringey, adding 45% or £151,121 and 44% or £193,816 respectively. But according to HouseSimple figures, there are some areas offering better value to live close to outstanding schools. Properties surrounding The Mayflower Primary School in Essex, Henry Cavendish Primary School in Lambeth and Highfields Primary School in Leicester have recently sold without buyers having to pay a hefty premium. ‘Many parents will go to great lengths to get their children a place at the best local state funded primary school. But there is a price to pay for the best free schooling,’ said the firm’s chief executive officer Alex Gosling. ‘Private education is out of reach for many families, which is why there is high demand for places at top rated state primary schools. But there aren’t enough places to go around, which has led property prices in the catchment areas of popular primary schools to rocket in recent years,’ he explained. ‘Attending an outstanding state school can offer an education as good as, if not better, than paying to go private, but with property prices close to the best state schools commanding average premiums of 18%, paying the price to live close by certainly doesn’t equate to a free education,’ he added. Continue reading
Brexit vote creating lethargy in prime central London property market
There are signs of lethargy in the prime property market in central London ahead of the vote on the future of the UK in the European Union, according to a new research report. But beyond the distraction of the EU referendum there are signs that demand is strengthening, according to the research from international real estate firm Knight Frank. Overall annual growth in the prime central London property market slowed to 0.1% in May, the lowest since October 2009 and the Brexit effect means demand is subdued even where asking prices have fallen 10% or more. On top of this the number of active buyers to available properties has halved over the last year and Tom Bill, head of London residential research at Knight Frank, described it as a price sensitive market. ‘Demand remains relatively subdued but in a change from recent months, the primary cause in May was the Brexit vote rather than new rates of stamp duty. Indeed, there are overlapping layers of uncertainty affecting supply and demand that are difficult to differentiate but which produce a cumulative impact,’ Bill explained. ‘There has been a discernible Brexit effect on the UK economy as decisions are delayed and the London property market is no exception. Buyers and sellers are postponing decisions because of the prospect of entering unchartered economic and political territory,’ he said. ‘The market has become price-sensitive due to higher levels of stamp duty, but an indication of the Brexit effect is that demand in May has remained subdued even for properties where asking prices have fallen by 10% or more,’ he pointed out. He also pointed out that demand was already more restrained as a result of the impact of two stamp duty increases in the space of 18 months and the ratio of active buyers per available property in prime central London has fallen to 4.8 from 10 over the last year. However, despite the looming referendum, there are signs underlying demand is strengthening, according to Bill as buyers drop asking prices to reflect higher transaction costs. The number of transactions between January and the middle of May was flat this year compared to 2015. Meanwhile, viewings increased 31% between January and April versus last year, suggesting a degree of pent-up demand. Overall, prices have grown 2.4% over the last two years and it has been three and a half years since annual growth was last above 10% in October 2012. A breakdown of the figures show that in the 12 months to May 2016 prices have increased 7.4% in Islington, by 6.3% in the City, by 1.9% in Mayfair, by 1,7% in Kensington, by 1.3% in Tower Bridge and by 0.3% in Riverside. Prices remained unchanged in St John’s Wood and Marylebone but fell by 7.5% in Knightsbridge, by 4.8% in Hyde Park, by 4.6% in South Kensington, by 3.5% in Chelsea, by 1.7% in Kensington, by 1.5% in Notting Hill, and by 0.2% in Belgravia. The report also points out… Continue reading
