Tag Archives: house
Average prime property prices in London up £260 a day in 2014
Average prime London property values rose by £260 a day over last year, and Balham saw the biggest leap as prices jump by 21% over the 12 months period, new data shows. Overall the majority of property market gains in London were made in first half of 2014, and prices dropped 1.6% during the final three months of the year, the first quarterly fall since the second quarter of 2011. The data from the latest London Property Monitor report from Marsh & Parson, also shows that supply of Prime London property for sale increased by 26% in last three months of 2014 and the New Year has seen an uplift in demand, with 13 buyers to every available property in January. The average Prime London home has risen in value by £95,000 in the past year but in Balham they have jumped £152,000 over the same period. With property prices in outer prime areas of the capital typically 25% lower than the wider prime London average, stronger demand for more affordable homes has pushed the rate of house price inflation up in these kind of suburban areas. Indeed, house prices in outer prime London climbed 9% during 2014, compared to a 4.3% annual increase in prime central areas. Balham is favoured by first time buyers and young families and the growth in this area was followed by Brook Green where property values are now 19% higher than a year ago. In contrast, average prices in exclusive prime central enclaves of Kensington and Holland Park have grown 8% in the past 12 months. ‘The prestigious prime property bastions of Kensington, Chelsea and Holland Park will always command worldwide appeal from buyers, however, everyday demand for more affordable homes has catapulted Balham and other outer prime corners of the capital onto the map,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘Londoners are increasingly willing to compromise on a central location in return for more living space and manageable price tags, and as a result the price growth seen in these green village suburbs has overtaken the Goliaths of London property this year,’ he added. So, a breakdown of the figures show that throughout prime London prices now average £1,572,342, up 6.4% year on year but down 1.6% month on month. In prime central London they are £2,199,531, up 4.3% annually but down 2.1% month on month. And in outer prime London average prices are £1,180,348, up 9% year on year but down 1.1% month on month. However, the majority of this house price growth occurred in the first half of 2014, and in the last three months, prime London property values declined 1.6%. This is the first quarterly price drop witnessed for three and a half years, as the market corrects after remarkable growth seen throughout the first half of 2014 . A 26% uplift in the supply of prime London properties… Continue reading
New scheme launched to boost self build in the UK
A new scheme that will enable more people to build or customise their own homes in the UK while also helping local authorities with land to develop has been launched. Designed to de-risk the process of obtaining mortgages for self built and custom built properties, it allows local authorities with land to develop to both attract buyers and retain control over developments until completed. Based on the existing local authority mortgage scheme, which has already been successfully used by 100 local authorities, the Custom and Self Build Scheme (CSB) has been launched by Capita Asset Services and Lloyds Banking Group. It will also help local authorities meet the government’s Right to Build agenda. Right to Build will see a ‘vanguard’ of 11 local authorities working with local developers and relaxed planning regulations to create new homes. ‘The Custom and Self Build Scheme tackles a number of issues head on. For those wishing to build their own homes, access to mortgages has always been a challenge because lenders, not unreasonably, insist on staged payments,’ said Cecilie Booth, director at Capita Asset Services. ‘For local authorities, either those leading developments or with land to develop, this scheme reduces risk and guarantees that buyers will have agreed finance in place. Importantly it will help to tackle the need for new homes and according to government estimates, up to 100,000 custom built and self built homes could be created over the next decade,’ she explained. Under CSB individuals wishing to self build or custom build a home in one of the participating local authority areas will apply for a mortgage and, once agreed, the deposit, for as little as 5% will be paid direct to the local authority. The local authority will fund the cost of the build to completion at which point, the mortgage will be provided by the lender, covering the build costs, which will be fully repaid to the local authority. Once the house has been built, homeowners will simply have a mortgage on a custom or self built property. ‘Improving the supply of housing across the country is crucial for maintaining a sustainable market, and this scheme will increase the options available for those looking for a new house,’ said Stephen Noakes, mortgage director at Lloyds Banking Group, the first lender to take part in the scheme. Eamonn Colman, affordable solutions director for Countrywide plc, said that the firm’s full range of property services serve as crucial support mechanisms to help facilitate the building of much needed new build stock. ‘Our national ability to provide land for redevelopment, as well to supply mortgage, conveyancing and surveying services to assist home buyers is an important part in helping more people to achieve their dream of building a new home,’ he pointed out. ‘Exploring innovations such as the Custom and Self Build Scheme that sustainably help to increase supply into the market are crucial in order to help meet current levels of demand,’ he added. Continue reading
Prime country house price growth in the UK slowing, latest data suggests
Price growth in the prime country house market lost some of its momentum in the latter half of 2014, with property values increasing by just 0.5% during the second half of the year. This compares to growth of nearly 3% over the first six months of 2014, according to the latest prime property analysis from real estate firm Knight Frank. The annual change in prime property prices in 2014 was 3.4%, in line with the firm’s forecast for the year. The number of prime country house sales in 2014 was 3% higher than in 2013 and prime country house prices are forecast to increase by 2% in 2015. According to Oliver Knight, of the firm’s residential research team, the countdown to the 2015 general election, tighter mortgage lending and the prospect of an interest rate rise, all contributed to slower price growth in the second half of 2014. ‘More restrained price growth in recent months reflects what has happened in the mainstream market, with the Nationwide House Price Index having eased for the fourth consecutive month in December. Any slowdown in the wider market is likely to have an impact on buyer sentiment in the prime markets,’ he explained. ‘In spite of more moderate prices rises, market activity has remained robust. The number of prime country house sales completed by Knight Frank in 2014 was 3% higher than the previous year and 24% higher than in 2012, indicating that demand remains strong,’ he said. He also pointed out that reforms to stamp duty, announced by Chancellor George Osborne during the Autumn Statement, sparked a flurry of activity in early December as prime property buyers looked to move ahead of the rate change. Under the new rules, buyers of homes valued at more than £937,500 face higher stamp duty charges. As a result, the day prior to the new rules coming into force, was the busiest day of 2014 for the prime country market in terms of transactions levels. ‘It is possible that the prime sector of the market may take some time to absorb the changes as a result of the higher upfront cost of moving, with harder negotiations between buyers and vendors likely,’ said Knight. He also explained that prime country house prices are still trading at a large ‘relative’ discount to prices in London, having experienced several years of static or modest growth since the end of the financial crisis and prime prices remain 16% below the previous market peak. Also, price performance is increasingly dependent on property type. While the average cottage increased in value by 6.8% in 2014, manor houses rose by just 1.4%. ‘We are forecasting average price growth of 2% across the prime country market in 2015, but do not rule out some areas of outperformance, especially in key commuter towns,’ Knight concluded. Continue reading
