Tag Archives: construction
Parking spaces with new properties in London can cost an extra 13%
Less than a fifth of new build properties in London include a parking space in the purchase price, compared to 67% for other major cities, new research has found. And this may because they are unaffordable as a parking space with a new home in London adds to the price for a buyer, which can be up to 13% on the price of the property. However, it appears that restrictions from developers often mean only those purchasing two or more bedroom properties even have the option of buying a parking space. The research from Direct Line’s SELECT Premier Insurance suggests that developers are charging an average of 5% of a new property’s purchase price for an accompanying parking space. It gives as an example a parking bay to accompany a new build property in London’s Battersea was being sold for £65,000, some 13% of the property’s £500,000 listed purchase price. In London, researchers found parking spaces were only available and included in the purchase price of a new property 18% yet in major cities outside London including Leeds, Glasgow and Bristol, parking spaces were included in the purchase price of a new property 67% of the time. Restrictions on building parking spaces for new properties mean they have become a desirable commodity. In many cases, developers were found to impose controls even within new build developments, only allowing buyers of large or expensive properties to purchase a parking bay. A new wharf development in Hammersmith for example, only allows parking spaces to be purchased for properties valued at over £1.5 million, while developers in areas of London such as Stratford, Ealing, Greenwich, Elephant and Castle and Wembley Park are restricting spaces in new developments to those buying a property with at least two bedrooms. The same practice is also applied in cities such as Leeds and Nottingham. Where parking spaces cannot be purchased, some developers offer annual permits to rent out parking bays. Spaces in Brixton accompanying new build apartments costing £577,000 were available for just £104 a year, whereas in Bristol, a parking permit to accompany a £425,000 property was available for £1,400. There are huge variations even within cities, in Brighton’s Marina Village a permit for a £775,000 property clocked in at £250 while elsewhere in the City a space accompanying a £410,000 apartment costs £1,000 a year. ‘Restrictions on the number of parking spaces developers can build to accompany new properties make these slots a hot commodity carrying a premium price point. In many new developments, those purchasing studios or one bedroom homes are denied the opportunity to purchase a space as they are reserved for larger properties,’ said Nick Brabham, head of SELECT Premier Insurance. ‘As larger scale residential developments are built in urban city centres, traffic volumes will become an increasing issue and planners may restrict the construction of new parking bays even further, making it very difficult for homeowners with vehicles,’ he explained. Access… Continue reading
Auckland sees residential construction work double in four years
The value of construction in most regions in New Zealand increased in the third quarter of 2015 with Auckland seeing a new high of $943 million worth of residential work, up $107 million from a year ago. Overall building work worth $4.2 billion was put in place in the September 2015 quarter, up 4% on the September 2014 quarter, according to official figures from Statistics New Zealand. ‘The value of building work increased in most regions. Similar to last quarter, residential work grew most in Auckland, while non-residential work grew most in Canterbury,’ said Statistics New Zealand business indicators manager Neil Kelly. In Auckland, a new series high of $943 million worth of residential building work was recorded in the September 2015 quarter, up $107 million from a year ago. The current quarter's value is double what it was four years ago in the September 2011 quarter. After removing price changes and seasonal variations, the national volume of all building activity increased 0.5%, following a 1.6% increase in the June 2015 quarter. Within this, the volume of residential work increased 2.9% while non-residential work fell 2.6%. The volume trend for non-residential building activity grew 0.4% in the September 2015 quarter, a similar level as the previous series high in the March 2006 quarter. Meanwhile, the residential building activity volume trend grew 1.4% in the latest quarter, but the level was still 6.3% lower than the June 2004 quarter peak. The overall building activity volume trend grew to a level last seen 10 years ago in the June 2005 quarter, the previous series peak. Meanwhile, official data also shows that all 16 regions of New Zealand are projected to have more households in 2038 than in 2013 and most territory authority areas (TAs) will also have more households. The Auckland region is projected to account for about half of the national growth in the number of households between 2013 and 2038, increasing from 500,000 to 750,000. Over the same period, the region is projected to account for roughly 60% of New Zealand's population growth. By 2038, some 35% of all households in New Zealand will be in the Auckland region, up from 30% in 2013. Continue reading
House and rent prices set to soar in the UK, outlook report suggests
House prices in the UK are set to soar by 50% and rental prices by over a quarter by 20025, according to an outlook report from two key real estate organisations. At the same time the number of households renting is set to rise by 9% while home ownership will fall by 7%, says the analysis from the Association of Residential Letting Agents (ARLA) and the National Association of Estate Agents (NAEA). Other predictions for the next decade included in the report are that buying a house will continue to get further out of reach for many and drastic action is needed to fix what it calls ‘a broken housing market’. With the average house price currently around £280,000, the ARLA and NAEA Housing 2025 report, compiled with CEBR, predicts house prices will reach an average price of £419,000. It’s even worse news for those living in London where house prices are expected to nearly double in the next decade, rising from £515,000 to £931,000. For those planning to enter the rental market in the next few years, rents are predicted to increase by 27% from a current UK average of £134 per week to £171 in 2025. Again, those living in London will be worse off as they’ll need to pay 34% extra in rent per week by 2025, an increase from the current average of £234, up to £314. Lower home ownership rates amongst the working age population and the ageing of the baby boom generation will continue to drive a decline in the proportion of UK households that own their own home, the report also suggest. Currently around 62% of the working population owns their own home and that could fall to 55% in the next decade. The report says that a declining home ownership rate will boost demand for rental properties, and drive house prices up. The Housing 2025 report also predicts the proportion of private renters in the UK will increase from 20% of households in 2015, to nearly 29% by 2025. ‘Buying and renting a home is a giant step, and is out of reach for many. Rent costs are already growing at a rate that people are struggling to keep up with, and they’re due to become even less sustainable over the next decade, particularly when the new landlord tax sets in, which will put off many would be landlords from entering the market,’ said David Cox, ARLA managing director. ‘If we’re to see the property market lifted out of its current state, we need to help the rental market from top down as well as bottom up, ensuring landlords are not penalised for their choice of income, and they can in turn give tenants the best possible price and service they deserve,’ he added. According to Mark Hayward, NAEA managing director, ongoing house price inflation, combined with low wage inflation, tighter lending restrictions and… Continue reading
