Tag Archives: election
English regions start to outpace house price growth in London
House price growth in the South East and East Anglia has overtaken London for the first time in four and a half years, according to the latest index covering England and Wales. Overall, across England and Wales, house price growth picked up on a monthly basis in April, climbing 0.2% but the annual rate of property price growth has halved since last summer, down to 5.3% in April. The data from the LSL index shows that the average house price is now £275,961, a new high for this year and excluding London the annual growth is 4.1%. The data also shows that in the first quarter of the year sales were down 10% but the firm expects that to change as the political uncertainty that affected the market in the run up to the general election disappears. ‘Annual price growth is still cooling, but mainly due to some recent negative monthly price rises. The direction of travel is clear and accelerating and most importantly, momentum is picking up where it was lacking before,’ said Richard Sexton, director of e.surv chartered surveyors. ‘By contrast, annual price rises in London have fallen sharply. As a result, the capital has been knocked off its perch by the South East and East Anglia, who have now edged ahead of London with the strongest year on year increase in property values of all regions across the country, at 7.1% and 6.9% respectively. In contrast, annual growth in London has shrunk from 9% in February to just 6.8% in March 2015,’ he pointed out. ‘This is the first time for nearly four and a half years that London has not been leading the pack in terms of regional house price growth, as higher stamp duty rates take some of the shine off high end properties in prime central areas,’ he added. The data shows, for example, that in the City of Westminster, where the average property is now worth £1,382,965, prices dropped 5.2% during the month of March, as pre-election speculation of a mansion tax put a dampener on enthusiasm for the most exclusive London homes. London also saw the sharpest decline in completed home sales between the first quarter of 2015 and the same period a year ago, falling 16.5%. ‘Election uncertainty has now vanished, so arguably London’s unique property market could see a fresh boost. But this mansion tax effect is one for the very top of the market. Away from the prime hotspots, affordability is still the biggest factor holding back further price rises and owning a London home is still more of a dream than even an aspiration for millions,’ said Sexton. ‘The head start that the housing market in London has traditionally exercised over the rest of the UK is retreating, and more of an even playing field is emerging instead. Average property values also hit new highs in greater Manchester and Birmingham, as demand in… Continue reading
UK house prices up in all regions in April, latest RICS index shows
General election uncertainty saw new instructions fall and house prices rise in all parts of the UK in April, according to the latest report from the Royal Institution of Chartered Surveyors. House prices were driven up again in April as the data showed the third consecutive monthly decline in supply with new instructions falling at their fastest rate since May 2009, the RICS residential market survey shows. While 33% more surveyors saw prices rise in April, the highest reading since last summer, new instructions slipped to a net balance of -21%, the eighth consecutive drop in the last nine months. Moreover, the flow of second hand stock onto the market dropped in most parts of the country. Alongside this, for the first time since August 2014, respondents reported an increase in prices in every area of the UK due to the shift in tone in the London market, where 28% more respondents saw prices rise compared with 6% more surveyors in March who saw house prices fall. Near term member expectations for prices and sales continue to point to relatively modest gains, but 72% of members expect prices to rise over the course of the next 12 months. Meanwhile, in the lettings sector, there is no slowing in the growth of tenant demand, which is helping to underpin higher expectations for rents. Although anecdotal evidence suggests that these trends may have in part been a result of uncertainty ahead of the election, they are also reflective of deeper underlying problems, the report points out, adding that the downward trend in owner occupation rates across the country is a visible sign that affordability constraints bite ever deeper, as does the squeeze on household budgets from higher rents. ‘It is conceivable that the decisive outcome to the election could encourage a pick-up in instructions to agents and ease some of the recent upward pressure on house prices, but it is doubtful that this will be substantive enough to provide anything more than temporary relief. Alongside an increased flow of second hand stock, it is absolutely critical that the new government focuses on measures to boost the flow of new build,’ said Jeremy Blackburn, RICS head of UK Policy. ‘The affordability and availability of homes in the UK is now a national emergency and addressing this crisis must be the priority for the new government. The last time we were building 300,000 homes was in 1963 under Harold Macmillan’s Conservative government, which utilised both public and private building,’ he pointed out. ‘We need a coherent and coordinated house building strategy across all tenures. This should include measures that will kick start a supply side revolution, such as mapping brownfield, addressing planning restrictions and creating a housing observatory to assess the underlying economic and social drivers of housing and provide the impetus for solutions,’ he added. He concluded that introducing demand side measures such as extending Right to Buy will not see the Conservatives deliver on their promise… Continue reading
Rich West Africans now buying in London’s prime property sector
Russians and the Chinese are known to be keen buyers in London’s prime property market but now investors from West Africa are entering this prestigious market. Prime London estate agent, Harrods Estates Mayfair Office, is reporting a surge in demand from West African buyers in Mayfair with a 40% rise in sales of luxury property to the nationality in the last 12 months and up 400% compared with the previous year. Shirley Humphrey, director at Harrods Estates, explained that the firm has seen a considerable increase in demand from West African’s looking to purchase a pied a terre in Mayfair. The majority are looking to spend between £2.5 million and £6.5 million on a two or three bedroom apartment, where they can stay when visiting London on business or for pleasure. As with many international buyers, West Africans are seeking apartments in luxury developments, which offer 24 hour security, concierge and spa facilities. ‘Family is very important to them and they prefer to cluster buy more than one apartment in the same building so that they have somewhere for their children, parents and grandparents to stay,’ said Humphrey. She pointed out that Mayfair is seeing resurgence over the coming years, with an array of new luxury developments in the pipeline and the return of many commercial buildings put back to residential use. The area has long appealed to British nobility, aristocracy and high society as well international wealthy individuals from around the world, including Middle Eastern, Chinese, Indian and Russian buyers. ‘Mayfair offers a village lifestyle in a fantastic central location. The excellent shopping on Mount Street and Bond Street, fantastic restaurants and five star hotels, contribute to the areas popularity and with Hyde Park and Knightsbridge a short stroll away, many of our clients love the location as both an investment and lifestyle choice,’ explained Humphrey. ‘West African purchasers are drawn to living north of Hyde Park or just off Park Lane on Upper Grosvenor Street or Mount Street and prefer period buildings with newly refurbished luxury interiors which they can move straight into. Although they are buying property as an investment, the key thing for West Africans is owning a home in London which they can use for a minimum of a few months of the year,’ she added. Continue reading
