Tag Archives: sales
London announces more council owned land for new home building
London is leading the way in the UK in terms of releasing land for new housing development and encouraging institutional investment in the city’s residential property market. Boris Johnson, the Mayor of London has pledged to release all City Hall-owned land for development by the end of his Mayoral term in 2016 and almost all these sites are now up for development. They include the regeneration of four former hospital sites and industrial land at Greenwich Peninsula and Barking Riverside. Around 50,000 homes will be delivered on City Hall's land interests. In the latest announcement a total of 3,500 new homes, a school and a park will transform a disused Parcelforce depot in east London on a 10 hectare site in Stephenson Street, Newham. It will also include nearly 30,000 square feet of retail space. The development will provide homes to buy and rent, including a significant proportion of shared ownership and purpose built private rented homes. More than 1,200 of the 3,500 homes will be affordable. It is part of the Johnson's wider push to strengthen institutional investment in the residential market in London, with City Hall initiatives aimed at boosting both shared ownership and purpose built private rent. ‘This huge chunk of disused land will be put to the best possible use, creating a whole new neighbourhood including 3,500 much needed new homes, a new school and a park. This ambitious development will help to further the continuing transformation of east London as part of our Olympic legacy,’ said Johnson. Chairman of the Berkeley Group Tony Pidgley, said that the Stephenson Street development will be a new village for London. ‘It will have all the qualities that a successful community needs: shops, workspaces and a school, links between neighbours, a beautiful park where people can play and great transport connections. Above all, this site will create homes for people regardless of their age, background or income. It will be a place for everyone,’ he added. A key part of the Mayor's Housing Strategy is to encourage institutional investors, such as pension funds and insurance companies, to invest in housebuilding. This includes efforts to support extended leases and more stability for tenants as well as top quality, well designed, new developments. Some 132,000 properties have now signed up to his London Rental Standard, which sets out basic duties for landlords to ensure a higher-quality experience for the city's tenants. These plans sit alongside efforts to boost home ownership for low and middle income households, with the Mayor exceeding his manifesto commitment by helping 52,000 Londoners into low cost home ownership through his First Steps scheme with plans to help a quarter of a million Londoners over the next decade. The latest development is subject to planning approvals. Following a planning application in 2016, a site start is targeted for early 2017 which would see the first homes delivered in the summer of 2018. Stephenson Street was acquired by the Mayor through… Continue reading
Existing sales fall in October in the United States
Existing home sales in the United States fell by 3.4% in October to a seasonally adjusted annual rate of 5.36 million from 5.55 million in September, the latest data shows. All four major regions of the country saw no gains in sales. However, despite the decline sales are still 3.9% above a year ago at 5.16 million, the figures from the National Association of Realtors also show. According to Lawrence Yun, NAR chief economist, the sales cooldown in October was likely given the pullback in contract signings in the previous couple of months. ‘New and existing home supply has struggled to improve so far this fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets,’ he said. ‘Furthermore, the mixed signals of slowing economic growth and volatility in the financial markets slightly tempered demand and contributed to the decreasing pace of sales,’ he pointed out. ‘As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago,’ he added. The median existing home price for all housing types in October was $219,600, which is 5.8% above October 2014 when it was $207,500). October's price increase marks the 44th consecutive month of year on year gains. The data also shows that total housing inventory at the end of October decreased 2.3% to 2.14 million existing homes available for sale, and is now 4.5% lower than a year ago. Unsold inventory is at a 4.8 month supply at the current sales pace, up from 4.7 months in September. The share of first time buyers increased to 31% in October, up from 29% both in September and a year ago. NAR's annual Profile of Home Buyers and Sellers, released earlier this month, show that the annual share of first time buyers fell to its second lowest level since the survey began in 1981. All-cash sales were 24% of transactions in October which was unchanged from September and down from 27% a year ago. Individual investors, who account for many cash sales, purchased 13% of homes in October, unchanged from September but down from 15% a year ago. Some 62% of investors paid cash in October. Distressed sales, foreclosures and short sales, declined to 6% in October, which is the lowest since NAR began tracking them in October 2008 and own from 9% a year ago. Some 5% of October sales were foreclosures and 1% were short sales. Foreclosures sold for an average discount of 18% below market value in October, up from 17% in September, while short sales were discounted 8% compared to 19% in September. ‘All-cash and investor sales are still somewhat elevated historically despite the diminishing number of distressed properties. With supply already meagre at the lower end of the price range, competition from these buyers only adds to the list of obstacles in the… Continue reading
World Heritage status boosts property values
Living near a world heritage site in the UK might mean putting up with a lot of tourists but it certainly helps property prices with new research showing homes in these locations are worth 27% more. Whereas the average UK home is valued at £284,127, properties in or near locations with World Heritage Status awarded by UNESCO status can carry a heftier price tag of £77,993, according to research from property portal Zoopla. The Orkney Islands are the UK’s most affordable World Heritage Site to buy a property near while homes near the Palace of Westminster and Westminster Abbey are the most expensive. Homes close to the Neolithic monuments in Orkney currently cost an average of £130,169, coming in at 178% less than the average house price near to a World Heritage Site in the UK at £362,120. UNESCO sites in Bradford and Liverpool are the least expensive urban sites. Saltaire, an industrial village from the second half of the 19th century within the city of Bradford is the most affordable urban site with a typical property here costing £155,868. Liverpool’s Maritime Mercantile City, includes the Albert Docks and the largest collection of Grade I-listed buildings anywhere in the UK, has a typical property price of £167,771. Zoopla analysis found the longer an area has enjoyed World Heritage Status, the higher the property values are, as the area reaps the economic benefits. The first 10 UK locations to be granted World Heritage Status between 1986 and 1987, including Bath, Stonehenge and Blenheim Palace, have an average value of £424,873, compared to just £274,611 for the locations chosen since 2000. In July of this year the Forth Bridge in Scotland became the UK’s latest World Heritage Site. Located between Edinburgh and Dunfermline, average homes in the area currently cost £202,011. The traditional World Heritage Sites in London are the most expensive to live near. Properties in the proximity of the Palace of Westminster and Westminster Abbey are comfortably the priciest heritage location in the country, with a typical value of £1,715,292. ‘Bradford and Liverpool offer fantastic opportunities for potential buyers to live in cities which have shaped world culture,’ said Lawrence Hall of Zoopla . ‘Britain’s World Heritage Sites have contributed massively to our history and our research shows that living near to one can add significantly to a property’s value. Looking at the most recent site to gain World Heritage Status, home owners near the Forth Bridge could expect to see property values increase in future, as the full benefits the award brings to the area begin to be felt,’ he added. Continue reading
