Tag Archives: homes
Homes in England near top performing schools cost an average of 16.6% more
The average value of a home within a mile of one the top 50 best performing schools in England is 16.6% higher than average values in the surrounding local authority area, new research shows. Overall Sevenoaks School has the biggest uplift in house prices among the 50 top performing schools, with sales prices in 2014 some 221% higher, according to the analysis from international real estate firm Knight Frank. On a regional basis homes near the best schools in the North East command the largest uplift at nearly 47% while the best value houses around the top 50 schools are found around Scarborough College, where prices of homes within a mile radius are 41%, or £70,094, below the average values in the local authority area. ‘When deciding on a location for their family, parents can place a great deal of focus on the level and quality of education that local schools can provide and as a result good schools can be an important driver of local property markets,’ said Oliver Knight, of Knight Frank’s residential research team. ‘Our research highlights this, showing that in general people are willing to pay a significant premium for a home close to some of the UK’s best schools. However, the size of the price uplift varies and it will be affected by the location and the type of housing stock on offer in a given area,’ he added. According to data from the Land Registry for actual achieved sales prices within a mile radius of Sevenoaks School in 2014, the uplift translates to a premium of £425,291 compared to the average house price in the wider local authority ‘As Sevenoaks School offers pupils the internationally recognised Baccalaureate, it has opened up the town to international buyers which has increased the demand for the housing stock beyond the traditional local and national market. An English education has world wide appeal,’ said Edward Rook, of Knight Frank in Sevenoaks. In London, where property prices tend to be higher and the frequency of public transport means accessibility and the daily commute is less of a factor, the uplift is 4.9%. In the East of England it is 33.5%, in the East Midlands 30.9%, in the North West 29.6%, in Yorkshire and Humber 27.8%, in the West Midlands 25.8%, in the South East 23.9% and in the South West 19.4%. Continue reading
A mansion tax in the UK would mostly affect owners in London and South East
The announcement by the UK’s Shadow Chancellor that the Labour Party will impose a mansion tax on homes over £2 million will put a heavy burden on home owners in London and the South East. Ed Balls has announced that if Labour wins the general election next year the tax will be introduced and the revenue used to increase spending on services such as the NHS. ‘We will do it in a fair, sensible and proportionate way, raising the limit each year in line with average rises in house prices,’ he said. He claimed it was not right that a ‘billionaire overseas buyer of a £140 million penthouse in Westminster will pay just £26 a week in property tax’. Labour would not say how much the mansion tax would raise but the Liberal Democrats who have also raised the idea of a mansion tax calculated it raise £1.7 billion a year, but Labour’s higher bands for homes worth tens of millions could raise more. But with property prices having shot up in the past decade, families who moved into relatively affordable homes could suddenly face huge tax bills because their home has increased in value even if their income has not. Indeed, according to figures from the Halifax House Price Index, a property in Greater London bought for £500,000 in 1994, would now be worth £2,056,381 and according to the Centre for Policy Studies think tank, almost one third of properties worth more than £2 million have been owned by the same people for more than a decade, and around a sixth for more than 20 years. Almost 96% of the mansion tax burden would absorbed by London and the South East with more than 108,000 households nationwide affected by the proposed tax, according to leading property website Zoopla. After conducting analysis of all properties in the UK currently valued at more than £2 million, Zoopla found that in excess of 108,000 households would be liable for the annual levy, at an average of £15,000 each. Properties in London and the South East would account for the vast majority, 95.9%, of the additional £1.63 billion cost with the rest of the country contributing just 4.1%, or £66 million, of the total contribution. ‘The introduction of a mansion tax would disproportionately penalise home owners in London and the South East who are already responsible for the vast majority of property tax take in the UK,’ said Lawrence Hall of Zoopla. ‘With more than 100,000 homes to be affected by this new levy, it is somewhat misleading to call it a mansion tax when many three bed family homes in London and the South East would find themselves caught by it,’ he added. A mansion tax would distort the realities of who own homes in the £2 million plus bracket, according to Nick Leeming, chairman of national estate agents Jackson-Stops & Staff. ‘This will affect people all over the country, not just in… Continue reading
Annual UK residential valuation activity cooled last month, latest research shows
UK housing market valuation activity increased 13% on a monthly basis in August but down 4% compared with a year ago, according to the latest analysis. One reason it is still quieter than a year ago could partly be due to August 2013 being a particularly strong month. John Bagshaw, corporate services director of Connells Survey & Valuation said it was the first time where it was clear the property market was moving into sustained positive territory. ‘Since last summer progress for the housing market is on a new, steadier, and more sustainable track. It’s worth remembering, activity is now up 5% compared to August 2007, so hardly a poor base for future progress,’ he explained. ‘Moreover, initial signs are positive for September and barring unforeseen financial wobbles the housing market is set for solid and sustainable progress through the autumn and into the New Year,’ he added. The firm’s report also shows that first time buyers still represent the largest sub-section of activity, with new buyers representing a 30% proportion of all valuations in August. Compared to July, first time buyer activity increased by 8%. However, a year-on-year fall of 4% in the number of valuations for first time buyers is in line with the drop in total valuations activity compared to August 2013. Home movers already on the property ladder fared better than first time home-buyers in August, in contrast to previous trends. Valuations on behalf of home movers numbered 18% more in August than in July. On an annual basis home mover activity is also in line with an overall fall of 4% since August 2013. ‘Since the recession, those further up the ladder have been more content to stay put in their homes, to stick with the asset they have. Such a strong showing from home movers looking to up-size is a positive sign for sentiment in the rest of the housing market. Meanwhile, first time buyer activity has bounced back well from a particularly strong summer slowdown,’ Bagshaw pointed out. By contrast, remortgaging activity has fallen most sharply on an annual basis, down 5% compared to August 2013. This is despite an 8% increase in the number of remortgaging valuations on a monthly basis, compared to July 2014. ‘Remortgaging is certainly still on the agenda and still makes financial sense for plenty of households. This has just been on the back burner a little over the summer period, when people have other things to think about,’ said Bagshaw. ‘With the return from holidays, and as the back to school mood sets in, house holders may start to reconsider their monthly finances. The long term trend is clear, a higher base rate is on the way. The cheapest mortgage deals are only set to become rarer over coming years, so in the medium term remortgaging activity will reflect that,’ he added. Buy to let… Continue reading
