Tag Archives: real-estate
Number of million pound properties in UK expected to triple by 2030
The number of million pound properties in the UK will more than triple by 2030 and one in four London homes will cost £1 million or more by 2030, new research shows. Yet less than 1% of properties in the North East, Yorkshire and Humber, the North West, Scotland and the East Midlands will be in this price bracket, according to the study from Santander Mortgages. Also, by 2030 the average property price in the UK expected to double, surpassing the half a million pound mark with prices set to soar to as much as 16.5 times average incomes. Today, less than half a million homes in the UK are valued at £1 million or more, says the research done partnership with economist and London School of Economics professor of economic geography Paul Cheshire. It says that 25% of housing stock in London is expected to be valued at £1 million or more, rising to 70% in two London boroughs, highlighting a stark geographical divide. Overall, the average UK property price, which currently stands at £283,565 is expected to increase 23% by 2020 to £349,3000. Fifteen years from now in 2030, the average UK property price will have almost doubled with a 97% increase, surpassing the half a million pound mark at £557,444. While property prices are expected to soar, predictions suggest that incomes will not keep pace, resulting in an overall decline in affordability. At present in the UK, the average property price is 7.9 times the average income, but by 2030, this is expected to hit a multiple of 9.7. Again, this trend is elevated in London, where prices are currently 11.5 times incomes and predicted to rise to an eye-watering 16.5 by 2030. ‘Property price inflation will tip many existing home owners into the million pound price bracket but could also price some aspiring buyers out of the market if they don’t have the right support. The current property market is buoyant and the deals available to new and existing owners are extremely competitive, so those wishing to buy or move shouldn’t be put off,’ said Miguel Sard, managing director of mortgages, Santander UK. ‘Regardless of the price point a buyer is considering, our advice remains the same; do your research, find a mortgage provider that offers competitive rates and a range of products to ensure that the right deal is secured, and above all, ensure the repayments are affordable,’ he added. Cheshire pointed out that by 2030 the divide between housing haves at the top and the have nots at the bottom will be even wider than it is now. ‘More owners will enjoy millionaire status, as homes that many would consider modest fetch seven figure prices in the most sought after areas,’ he said. ‘Property price inflation is beneficial for existing owners who will see their net-wealth increase, but it will make entering the market more difficult still for new buyers, further highlighting the importance of… Continue reading
Positive start to 2016 for Spanish prices with two indices showing growth all round
The residential property market in Spain has started 2016 positively with the latest figures showing that the average value of housing increased in January. The latest data from property appraisal company Tinsa, shows that the Balearic and Canary Islands have seen prices rise the most, up 5.4% month on month and 3.2% year on year. While overall prices increased by 2.9% compared to December 2015 and are up 1.1% year on year. Prices in large cities increased by 2.9% year on year while priced on the Mediterranean Coast rose by 1% and in Metropolitan areas they increased by 0.8%. But in smaller towns the market is not doing as well, with average prices falling by 2.2% year on year although there was a small rise month on month. It also shows that since the peak of the market in 2007, the average property prices is still down by 41% but there are regional variations. For example, since the peak prices are down 48% on the Mediterranean Coast, down 44.2% in large cities and down 43.5% in Metropolitan areas. The gap is less in the Balearic and Canary Islands, with an accumulated decline of 29.1% from peak while in smaller town they are down 37.3%. Property portal Fotocasa’s latest data is also positive. It shows that the average price of second hand housing in Spain increased by 0.3% month on month in January, taking the average price to €1,623 per square meter. However, year on year this index is still showing an average decline in prices of 0.3%. It also shows that since the peak in 2007 average prices are down 45% and 12 of Spain’s 17 regions have registered price declines in excess of 40% since the peak. In a Rioja prices are down 54.7% since 2007, in Castilla-La Mancha by 52.2%, in Navarra by 52.1%, in Aragón by 51.4%, in Murcia by 50.1%, in Valencia by 47.8%, in Catalonia by 46.6%, in Asturias by 45.6%, in Madrid by 44.7%, in Andalucía by 42.7%, in Extremadura by 41.6% and in Cantabria by 40.1%. In January average prices increased in 10 regions. The biggest rise was in the Canary Islands with growth of 2.1%, followed by Aragón up 1.2%, Valencia up 1%, Andalucía and Catalonia both up 0.9%, Castilla-La Mancha, Navarra and La Rioja all up 0.8%, the Balearic Islands up 0.2% and Asturias up 0.1%. In contrast, Extremadura recorded the biggest fall in prices with a decline of 1% in January, followed by the Basque Country down 0.9%, Galicia down 0.6%, Cantabria down 0.5%, Castilla y León and Murcia both down 0.4%, and Madrid down 0.2%. The Basque Country remains the most expensive of Spain’s regions, with an average price of €2,730 per square meter, followed by Madrid at €2,197 and Catalonia at €2,064. The regions with the most economical second hand housing prices are Castilla-La Mancha at €1,058 per square meter, Extremadura at €1,100 and Murcia at €1,145. The index also shows that 30 of the 50… Continue reading
Some urban homes values in the US outpacing traditional suburbs
Homes values in some urban areas in the United States are outpacing the value of homes in the suburbs in most top tier metros, new analysis has found. City life is gaining in popularity and high-end condos are popular in Boston, Washington, D.C., Seattle, and other cities with fast changing downtowns, according to a report from real estate firm Zillow. It points out that homes in the suburbs, a longstanding symbol of the American Dream, have typically been worth more, on average, than homes in urban areas. While that is still true in much of the country such as Nashville, Cincinnati, Ohio, and Richmond in Virginia, elsewhere things are changing. The change is most marked in in Boston, Washington, D.C., and San Francisco where the mean value of urban homes has recently surpassed the mean value of homes in suburban areas. And urban homes are gaining ground in Denver, Phoenix, and Chicago. The shift reflects demographic trends of millennials delaying family life and choosing condos, and shifting preferences, as people seek walkable neighbourhoods with urban amenities, the research suggests. It has vast implications for low income people who have traditionally lived in cities to be near services and employment. Zillow recently found that, in San Francisco and Seattle, high income people are making shorter commutes to downtown, while low income people are traveling much further to get to work in the urban core. Zillow based its analysis of urban and suburban home values on a survey of how people define their own neighbourhoods as either urban, rural, or suburban and then used characteristics of those places to extrapolate the results and define ZIP codes all over the country. By looking at home values within those areas, Zillow could see how home values have fared in each type of place over the years. ‘This trend, in part, reflects home buyers' changing preferences, as they seek amenity-rich, dense and walkable areas that are often closer to their workplace,’ said Zillow chief economist Svenja Gudell. ‘In the future, this lifestyle trend will change some suburbs as we know them, and they'll start to feel more urban as buyers move further from city centres in search of affordable housing in communities that still feel urban,’ she added. Nationally, suburban home values grew 5.9% in 2015, while urban home prices increased by 7.5%. In 1997, urban home values grew at 3.8%, slower than suburban values which grew 4.1% that year. On a per square foot basis, home values for urban areas are way up, indicating that people are willing to pay more for less space to live in the city. In Washington, D.C., for example, urban homes in 1996 cost 6% more per square foot than suburban homes. Today, they cost 41% more per square foot. Continue reading
