Tag Archives: election
Positive outlook for sales and lettings markets in south and east London
The sales and lettings market in the South East of London are set to be buoyant in the coming months due to high demand, according to a new analysis report. There has been a notable migration of buyers from parts of North and West London setting up home in the Royal Borough of Greenwich thanks to it being comparably good value for money, according to the report from JLL. The associate director at the firm’s Blackheath office, Graham Lawes, said that this, coupled with high local demand, is fuelling the prices and momentum is set to continue throughout the year. ‘For City workers, the accessibility to Canary Wharf is a huge attraction. Young professionals and high earners are drawn to the area thanks to the addition of new boutiques, high end restaurants and bars opening in the historical borough. Families are also attracted to the Royal Borough thanks to its excellent local schools with impressive Ofsted reports,’ he explained. He pointed out that it is widely regarded that parts of the South East of London will see prices rise beyond the national average and that there is a huge disparity from one side of London to the other. The imminent arrival of Crossrail will add to this. ‘Blackheath and Greenwich will continue to attract interest but I anticipate Lewisham (SE13) Charlton (SE7), Woolwich (SE18), Plumstead (SE18), and Abbey Wood (SE2) to see the largest growth percentages over the next year as properties there are excellent value,’ added Lawes. The area’s rental market has also been strong, according to Charlotte Russell, assistant lettings manager of JLL’s Greenwich office. ‘This year, the rental market in Greenwich and Blackheath has been particularly strong for one and two bedroom properties. These properties have achieved up to 18% increases in rents year on year in some areas, largely due to relocation for employment into Canary Wharf and the City,’ she said. ‘Such relocations have positively impacted the rental market, particularly now that Greenwich is offering riverside developments to match Canary Wharf, and this has increased both the popularity of the area and spectrum of tenants. Additionally, we are seeing more people staying in their properties longer term with minimal void periods between tenancies,’ she explained. Looking ahead to spring, the firm anticipates that the rental market will remain buoyant, particularly going in to the warmer months, when tenants prefer to move with riverside living likely to remain popular with potential tenants. ‘We hope that new developments such as Platinum Riverside, Greenland Place, Peninsula Tower, and the ever growing Royal Arsenal Riverside in Woolwich, will keep the market in good supply as the demand increases,’ added Russell. In the City and East London property sales market there is likely to be a focus on what happens with Canary Wharf with the estate being sold to a Qatari led bid and planning passed to develop Wood Wharf. But in the… Continue reading
Residential property prices in England and Wales up 1.3% in January
Home prices in England and Wales increased by 6.7% year on year in January and were up 1.3% month on month, according to the latest land registry figures. This takes the average property value in England and Wales to £179,492 compared with the peak of £181,101 in November 2007. A breakdown of the figures shows that London experienced the greatest increase in its average property value over the last 12 months with a rise of 12% while the North West experienced the greatest monthly rise of 2.6%. The North East saw the lowest annual price growth with a rise of just 0.1% and Yorkshire and the Humber saw the largest monthly price fall of 1.5%. The data also shows that the most up to date figures available reveal that the number of completed house sales in England and Wales decreased by 19% to 68,107 compared with 83,726 in November 2013. The number of properties sold in England and Wales for over £1 million decreased by 18% to 869 from 1,060 a year earlier and repossession volumes in England and Wales decreased by 47% to 687 compared with 1,286 in November 2013. London was the region with the greatest fall in repossession sales. Peter Rollings, chief executive officer of Marsh & Parsons, explained the figures confirm that house price growth regrouped in January after an underwhelming end to 2014. ‘All the fundamentals are in place to help the market get back into its stride, and stamp duty savings and competitive mortgages rates are already enticing buyers and sellers to the market and upping demand,’ he said. ‘This is good news for the wider housing recovery, which at the moment is still largely restricted to the South East as many other regions have a long way to go before they are within sights of the towering annual growth witnessed in the capital. In these places, access to Help to Buy and more affordable properties are the key stimulants invigorating demand at the entry level,’ he pointed out. He also pointed out that on a monthly basis, the London market is back to more reasonable conditions after the whirlwind of last year, allowing buyers some valuable let up from cut throat market conditions. ‘A greater supply of properties on the market is music to the ears of London home buyers, and this optimism is feeding into a healthy demand. A feel good factor at the culmination of the general election should get the top tiers of the property market moving again as the uncertainty clears, and this is likely to mitigate any shortfall in the meantime,’ he added. According to Nick Leeming, chairman of Jackson Stops & Staff, the statistics reflect market sentiment from two to three months ago, when the London market was cooling but the country market relatively stable. ‘It is not surprising therefore that, while London showed an annual increase of 12%, January’s figures showed a small decrease and this… Continue reading
CML reaffirms what needs to be done for UK home lending markets after election
The Council of Mortgage Lenders has reissued its election manifesto aimed at political parties ahead of the forthcoming vote in the UK in May. It highlights many of the issues for people in different tenures in today's housing market and sets out the challenges to be addressed in delivering effective housing solutions for the future. ‘The mortgage market is a £1.2 trillion industry, and housing a key electoral issue. This is our combination to the political debate. Whoever is in power after the election will have to show they can create a joined up and cohesive housing strategy for all housing tenures,’ said Paul Smee, director general of the CML. ‘The UK housing market is really a set of local markets, so there are especial challenges in delivering a focused long-term plan, but it is crucial for the wellbeing of citizens, and the growth of the economy and lenders are keen to play a positive role,’ he added. The manifesto gives a lender's perspective on what actions need to be taken to tackle the most important problems facing the market, Focusing on the needs of the old, the young, and the in-betweeners, it recommends creating a comprehensive house building plan to increase the supply of housing in all tenures. It also suggests the promotion of shared equity/shared ownership as a permanent tenure and addressing the regulatory stumbling blocks that relate to lending into retirement as well as promoting better pathways between the mainstream mortgage market, lifetime mortgages, and downsizing. The manifesto suggests work needs to be done to ensure new housing supply fully reflects the needs and aspirations of an ageing population and the need to identify any unintended consequences of regulation on credit worthy mortgage holders. It wants whoever wins the general election to work with the industry to develop a more effective safety net against the risk of change in household circumstances and make sure that policies affecting all tenures, such as welfare reform, are holistic and align with private sector markets. Continue reading
