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London property prices have risen in last 20 years by over 400%
Property prices per square metre have risen by 432% in Greater London against a national average increase of 251% over the past two decades, according to new research. 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 locations are given as Solihull and Leamington Spa in the West Midlands, Altrincham in the North West, Scotland’s capital, Edinburgh and Harrogate in Yorkshire, according to the report from UK lender the Halifax. It points out that there has been a substantial gap widening in property prices per square metre between southern England and the rest of Britain over the past 20 years. This has continued since 2011 with London gains nearly double that of the rest of the country. The borough of Kensington and Chelsea remains Britain's most expensive neighbourhood, with an average price of £11,321 per square meter. Despite dropping 1% lower than last year, it is more than five times the national average of £2,216. Kensington and Chelsea, along with Westminster at £10,552 are the only areas in Britain with an average price above £10,000 per square meter followed by Camden at £9,012. Some 17 areas, all in Greater London, have an average price in excess of £5,000 per square meter with the borough of Merton in South West London the latest addition to this group since last year. Half of the 10 most expensive towns outside southern England are in the West Midlands. Solihull, with an average price of £2,661 per square meter and Leamington Spa at £2,645 are the two most expensive towns. The other West Midlands towns that made the top 10 include Sutton Coldfield at £2,113, Bromsgrove at £1,970 and Stourbridge at £1,943. Meanwhile, five places outside southern England have average prices per square meter above the national average of £2,216. In addition to Solihull and Leamington Spa, these include Altrincham in the North West at £2,634, Edinburgh at £2,355 and Harrogate at £2,342. The research found that nowhere in Britain had an average price below £1,000 per square meter but Airdrie in Scotland had the lowest average price at £1,019, less than a tenth of the average price per square metre in Kensington and Chelsea. Six of the 10 towns with the lowest prices per square metre are outside England. There are four in Scotland with Airdrie at £1,019, Lanark at £1,040, Coatbridge at £1,071 and Kilmarnock at £1,120. Two are in Wales with Llanelli at £1,028 and Neath at £1,065. The four English towns with the lowest house prices on a per square metre basis are all in northern England with Scunthorpe at 1,036, Accrington at £1,055, Hartlepool at £1,062 and Wallasey at £1,067. ‘House price per square metre can be a useful comparison measure as it helps to adjust for differences in the size and type of properties between… Continue reading
Property supply stagnates in UK, as new property listings slow
Property supply stagnated in the UK in April, with new property listings across the country rising just 0.5% compared with the previous month, the latest supply index shows. This comes on top of a 4% fall in supply recorded in March, according to the date from the index from HouseSimple which tracks the number of new properties marketed every month in more than 100 major towns and cities across the UK and all London boroughs. Although more than half, some 60%, of towns and cities actually saw an increase in supply last month, in many areas the increase was marginal and some of the UK’s most populated towns and cities experienced large falls in new property listings in April. New property listing dropped the most in Inverness, Scotland, down 29.1%. Supply was down 22.6% in Hereford, down 22.3% in the London borough of Wandsworth, down 19.2% in Rugby, down 18.6% in Chichester and down 16.9% in Ipswich. London did not see much of a change with listing down by 0.8% while the biggest increase was in Bexley with a rise of 58.9%, in Winchester new listings were up 35.6%, up 25.4% in Southport, up 24.5% in Maidstone and up 23.1% in Chelmsford, up 21.2% in Bradford and up 20.9% in Swansea. In the rest of London Ealing saw a rise in new listings of 43.4%, Tower Hamlets up 37.2%, Greenwich up 27.6%, Barnet up 25.7%, Westminster up 18.4% and Lambeth up 15.1%. However, more than half of London’s 32 boroughs saw a month on month decline in supply, highlighting the ongoing shortage of new properties being marketed in London. ‘Although 60% of UK’s towns and cities saw an increase in property supply in April, these rises weren’t nearly material enough to make a dent in the stock shortage. There’s simply not enough new stock coming onto the market to meet demand,’ said Alex Gosling, the online estate agents’ chief executive officer. He pointed out that April saw the stamp duty hike on second homes at the start of the month feed through to a massive rise in the supply of rental properties. ‘The residential sales market could do with a similar spurt in supply. However, there is a possible knock on effect for the sales market,’ he said. ‘with an expected drop off in buy to let investors purchasing properties because of the 3% surcharge on second homes and buy to let properties, this may help to redress slightly the demand supply imbalance, offering first time buyers in particular opportunities to purchase, until the supply tap is turned on again,’ he explained. But any hope of a prolonged period of rising supply could be affected by uncertainty over the referendum on the future of the UK in the European Union which is just a month away. ‘We may well see a spike in supply in May as home owners try to sell their properties before the vote on 23 June, but supply could well dry up… Continue reading
New analysis suggests Brexit vote is affecting prime central London lettings market
The lettings market in prime central London has weakened rental as tenants capitalise on the current economic uncertainty including the upcoming referendum on the future of the UK in the European Union. The latest analysis report from specialist residential investor advisors London Central Portfolio (LCP) says that the rental market is reflecting a slowdown as a result of economic strains. It shows that whilst new lets have seen consistently positive rental upticks over the last five consecutive quarters, averaging a 5.5% increase overall, the market is beginning to subdue, according to the published statistics. Against a backdrop of falling stock markets, a collapse in oil prices and Brexit uncertainty, new lets have achieved just a 0.3% increase over the last quarter. This has been exacerbated by the predictably quieter Easter and May bank holiday period. The analysis, however, shows that re-lets are showing a significantly weaker picture, with a 1.2% fall in rents over the last quarter, following a fairly static picture over the course of the year. The report says that this is due to applicants being attracted to brand new properties, without any sign of previous use, coupled with a significant uptick in rental stock available. This has increased by 26.7% from 23,039 to 29,198 in the last three months, attributable to a reduction in transactions in the sales market which has led to more properties being available for rent. ‘The overall suppression in rents reflects a market dynamic which was conspicuous during the credit crunch, as tenants capitalise on economic uncertainty to leverage up their bargaining power. This has been compounded by companies cutting their relocation budgets in the face of global instability and, in some cases, delaying relocations in the run up the EU referendum,’ said Naomi Heaton, chief executive officer of London Central Portfolio. ‘In light of the current market conditions, landlords may need to be more flexible to accommodate the higher negotiating power of applicants and to prevent void periods which may erode any increase in rent ultimately achieved. For as long as this cycle lasts, landlords also may need to be more open to remedial and upgrade works between tenancies,’ she explained. ‘A slowdown in the re-let market has been compensated by continued positive renewal increases by tenants in situ. With Landlords often able to achieve contractual rental increases, above that which can be achieved in the open market, average rental growth of 3.3% in the last quarter has been seen in contrast to the softer market elsewhere,’ she added. The report also points out that despite the somewhat gloomy picture generally, corporate belt tightening means that small one and two bedroom properties are reinforcing their position as the hardest working sector of the market. Appetite for these mainstream rental properties remains strong, with void periods down to just 23 days on average. For these properties, the area around Marylebone, Fitzrovia… Continue reading
