Greenwich and Waltham Forest are currently the best London options for renters looking for a mix of rental affordability and job prospects, according to international rental marketplace Spotahome.
It analysed data on current job opportunities within five miles of each London borough. On average, it found that there are currently 11,280 jobs per borough.
There is, however, a far higher level of job opportunities in 11 boroughs, where you can currently find between 25,740 and 29,631.
Spotahome found Westminster to have the most job opportunities on offer, with almost 30,000 within five miles of the borough.
Lambeth also ranks high with 29,546 current roles available, along with the City of London (29,045), Camden (28,875) and Islington (28,788).
However, due to their largely central locations, 10 of the 11 boroughs with the most job opportunities within five miles are also home to an average rent above that of the London average.
Both Waltham Forest (26,490) and Greenwich (25,740) have a considerable level of available job roles within five miles of each borough. With an average rent of £1,476, Greenwich is only marginally higher than the London average, while Waltham Forest comes in 7% more affordable at £1.352.
UK and Ireland Country Manager of Spotahome, Nadia Butt, commented: “Despite a Government U-turn on returning to our physical workplaces, many tenants heading to the capital continue to be motivated by the availability of work and the ability to rent within a commutable distance to their workplace.
“As with most aspects of living in London, a higher level of job opportunities within a short distance does command a higher level of rent, however, for those that do their research this doesn’t have to be the case.
“Both Greenwich and Waltham Forest offer everything you could want when renting in London. Both boroughs are home to relatively affordable rental prices, an abundance of green space, social amenities and great transport links.
“In what are currently tough times for those searching for a job, they also offer the greatest wealth of employment opportunities within a five miles radius.”
Table shows the current level of job opportunities advertised within five miles of each borough and the current average rent
Halifax has released its latest House Price Index, revealing that house prices continue to rise. Mortgage approvals have also increased, reaching the highest levels since October 2007.
Russell Galley, Managing Director of Halifax, comments within the report: “The average UK house price is now approaching £250,000 after September saw a third consecutive month of substantial gains.
“The annual rate of change will naturally draw attention, with the increase of 7.3% the strongest since mid-2016. Context is important with the annual comparison, however, as September 2019 saw political uncertainty weigh on the market.
“Few would dispute that the performance of the housing market has been extremely strong since lockdown restrictions began to ease in May. Across the last three months, we have received more mortgage applications from both first-time buyers and homemovers than any time since 2008.
“There has been a fundamental shift in demand from buyers brought about by the structural effects of increased home working and a desire for more space, while the stamp duty holiday is incentivising vendors and buyers to close deals at pace before the break ends next March.
“It is highly unlikely that the housing market will continue to remain immune to the economic impact of the pandemic. The release of pent up demand and indeed the stamp duty holiday can only be temporary fillips and their impact will inevitably start to wane. And as employment support measures are gradually scaled back beyond the end of October, the spectre of increased unemployment over the winter will come into sharper relief.
“Therefore, while it may come later than initially anticipated, we continue to believe that significant downward pressure on house prices should be expected at some point in the months ahead as the realities of an economic recession are felt ever more keenly.”
Read Halifax’s full House Price Index report here.
Property industry reactions
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, has commented:“The property market has been basking in its own economic microclimate lately, characterised by a relative feeding frenzy for larger, more expensive homes.
“That’s unusual. Historically, the market has traditionally looked to first-time buyers for an indication of direction. However, it is existing homeowners with the buying power to spend more who have been driving house price growth over the past couple of months, fuelled by a desire for more space.
“The share of transactions being taken up by more expensive properties has grown and this role reversal has been responsible for the steep upward lurch in valuations. Increases in prices at this end of the property food chain have a disproportionate effect on house price statistics.
“There will be a flip side though. When this extra demand for larger homes starts to return to normal, the annual rate of growth overall could sit down as quickly as it stood up. That said, demand is likely to continue to outweigh supply and significant outright falls in prices for any property category remain unlikely nationwide.
“The only caveat to that is the end of the furlough scheme. The Chancellor has been choosing his words carefully and seems deeply opposed to pulling the rug out from under the jobs market. That would be the biggest near-term source of weakness and it remains a larger threat than Brexit.”
Lucy Pendleton, property expert at independent estate agents James Pendleton, has said: “The often-frothy Halifax index has lived up to its reputation and is pushing the bounds of credibility here.
“However, it underlines just how much the housing market has become the economy’s iron lung of late, while its other vital signs flash amber at best.
“The market’s rate of climb has been as steep as it has been artificial so don’t expect this to last. The three main drivers remain in play for now — homeowners moving to larger properties, stamp duty relief and pent-up demand, which is still being felt because of delays to the conveyancing and mortgage approvals process.
“Buyers at the upper end of the market are confident but not careless, and owners of poor-quality stock are having to increasingly watch from the sidelines as their properties sit on the market for extended periods. This is a house price boom fuelled by aspiration, not loose money.”
Despite house price growth, mortgage approvals continue to rise
Marc von Grundherr, Director ofBenham and Reeves, commented: “It’s now abundantly clear that the market has not only shrugged off any pandemic induced symptoms but has also well and truly waved goodbye to the prolonged uncertainty caused by Brexit.
“Of course, any knee-jerk restrictions imposed by the Government in the coming months could result in a case of one step forward, two steps back where price growth is concerned.
“It’s therefore imperative that we allow the industry to remain operational to service the overwhelming levels of buyer demand seen in recent months. Failing to do so could leave many buyers in lockdown limbo and cause house prices to plateau.”
James Forrester, Managing Director ofBarrows and Forester, commented: “Yet further signs of a monumental market revival and one that continues to be fuelled by heightened levels of buyer demand. The questions is how much fuel is left in the tank?
“It’s very likely that we will see this strong level of growth sustained as we see out the remainder of the year. However, with the furloughs scheme coming to an end, this could be the final swan song before a period of muted market activity.
“The Government has played its hand in anticipation of this with the promise of 95% mortgages for those struggling to get on the ladder. However, even a 5% deposit may prove financially unviable for those struggling to find work.
“So, while the outlook is certainly a bright one at present, there may well be dark clouds on the horizon. There’s no doubt the market can weather this storm, but its the duration and initial damage of that storm that remains to be seen.”
Hugh Wade-Jones, Managing Director ofEnness Global Mortgages, commented:“Homebuyers continue to take advantage of great mortgage rates where they can and this is allowing them to buy bigger and better with more space both indoors and out. Naturally, these homes command a higher price tag and this is helping to contribute to a much more buoyant rate of house price growth.
“This is certainly a trend that’s being led by the top end of the market and by those with the financial stability to transact on these larger homes at the drop of a hat.
“As this demand is met and starts to subside we will see these huge levels of top-line house price growth follow suit and a more ‘normal’ market landscape return.”
Colby Short, Founder and CEO ofGetAgent.co.uk, commented: “Home sellers continue to benefit from the uplift in buyer demand spurred by the current stamp duty holiday, with sold prices up across the board on a monthly basis with the exception of Scotland.
“This is being driven by the more affordable regions of the UK where the price threshold of £500,000 and the resulting stamp duty saving is more abundant and this is a trend that should remain consistent right through until next April.”
Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “It’s quite easy to get carried away with the huge house price growth being shown at the front end of the transaction process via mortgage approvals and asking prices. However, the reality is that the market is moving at a far slower rate where actual sold prices are concerned.
“Although prices have still gained positive ground, this likely to be a temporary hoorah and there is a very strong chance that this growth will recede rapidly come April once the sun has set on the stamp duty holiday.”
Adam Pigott, CEO ofOpenBrix, commented: “We’ve seen a huge boost to market sentiment as a result of the current stamp duty holiday and it seems as though a second adrenaline shot may be administered in the form of a potential 95% mortgage for struggling homebuyers.
“Should this be the case, house price growth should remain consistently strong although it’s yet to be seen to what extent the end of the furloughs scheme may dampen this appetite.
“Until this impact is felt, the market continues to fire on all cylinders and we are a world away from the catastrophic declines that many predicted at the start of the year.”
In yesterday’s speech, Prime Minister Boris Johnson announced plans for 95% home mortgage loans for young, first-time buyers to ‘help turn generation rent into generation buy’.
Mark Hayward, Chief Executive of NAEA Propertymark, comments: “We welcome the Prime Minister’s comments today which shows a positive change in tone by promoting a generation of renters to become a generation of buyers. We encourage lenders to come on board and support this initiative to enable first time buyers to enter the property market by future proofing the financial burden many face.”
“We want to see intent become action quickly so that first time buyers can make the most of the current stamp duty holiday and continue to stimulate the housing market.”
James Forrester, Managing Director of Barrows and Forrester, comments:“Today’s (6th October) announcement will no doubt excite a nation of aspirational homebuyers who have already been sent into a frenzy over the prospect of paying no stamp duty.
“However, for Boris Johnson to claim this will help fix our broken housing market is not only laughable but quite frankly an insult to those who find themselves priced out of homeownership.
“The cause of the dire situation we find ourselves in is the Government’s sustained failure to build enough affordable housing year in, year out.
“The inadequate supply of housing to meet demand is one of the driving factors that has caused house prices to spiral and to continue to mask this failure by further fuelling demand is irresponsible.
“Instead, their time would be better spent reallocating wrongly classified green belt land so it can be utilised for housing and preventing the big housebuilders from drip-feeding housing supply in order to keep their profits up.”
Marc von Grundherr, Director of Benham and Reeves, comments: “Creating two million more homeowners is a lovely bit of rhetoric for Boris to fuel market sentiment, but it comes with a clear and obvious problem. Where are they going to live?
“Yes, the affordability of homeownership is a problem at present and providing buyers with a foot up via a smaller deposit will help many to overcome this hurdle. In the more inflated markets such as London, it reduces the deposit required by some £25,000 and so the initial saving is notable.
“However, we’re simply not building enough homes and the Government’s head in the sand approach to this burning issue is going to bring about problems when those securing these new mortgages actually look for a home.
“Unless we address this, we will see house prices continue to climb ever higher as a result of this new initiative, to the detriment of those it’s ironically supposed to help.”
Islay Robinson, Group CEO ofEnness Global Mortgages, comments:“While the UK is facing tough economic times this further boost to homebuyer demand should ensure that activity remains strong and house price growth remains buoyant.
“This will not only maintain the health of the regular market but it will also cause a ripple effect that will benefit sellers across the board, even at higher price tiers.
“The UK and London, in particular, remains the pinnacle of homeownership for many high-end international buyers. While this demand has been stifled due to Brexit and the restrictions of the current pandemic, we’ve seen international buyers return as confidence has built in the core segment of the market.
“Ensuring this activity remains strong and prices continue to increase will bring further interest from foreign shores and this will help boost the UK economy on a number of fronts, not just through healthy property price growth.”
Craig McKinlay, New Business Director at Kensington Mortgages, comments: “The ‘Generation Buy’ scheme will be, in effect, a replacement for Help to Buy. Only a few lenders are dipping in and out of the high LTV market at present with ‘flash sales’ due to sheer demand – so this should reassure some lenders to enter more permanently and support first-time buyers.
“However, for others, the scheme could lead to further capacity issues for those being selective with their offering to manage demand. On the whole though, like the introduction of Help to Buy in 2013 helped boost confidence and ease lenders back into the small deposit market, we hope this scheme will do the same.”
Homebuyers are spending as much as £527,500 more to get their desired house number, according to research from property platform OpenBrix.
The research shows that the largest property premiums are generally paid for even numbers, accounting for 13 of the top 20 areas in England and Wales.
Highest even number property price premium locations
Homes in Westminster with even house numbers sell for an average of £2.787m. This is £527,000 more than the average price of £2.260m paid for odd-numbered properties in the same area.
Also on the top 20 list of areas with the highest property premiums paid for even house numbers are:
The Isles of Scilly (£290,000)
Hammersmith and Fulham (£127,000)
Camden (£113,000)
South Bucks (£81,000)
Hackney (£61,000)
Oxford (£39,000)
Eden (£34,000)
Ealing (£33,000)
Kingston (£28,000)
Wandsworth (£25,000)
Kettering (£22,000)
Worthing (£20,000)
Highest odd number property price premium locations
Homes with odd numbers in Kensington and Chelsea are at an average of £3,400,000, which is £400,000 more than the highest paid for an even number in that area.
Merton is home to the next largest premium for odd-numbered homes, with home buyers paying £51,250 more than even-numbered properties. Tunbridge Wells (£35k), Richmond (£30k), Epping Forest (£29k), Tower Hamlets (£25k) and Uttlesford (£25k) are also some of hottest spots for odd-numbered property price premiums.
Adam Pigott, CEO of OpenBrix, commented: “It would seem that generally across England and Wales an odd or even number makes a marginal difference to the price paid for a property and for many homebuyers it probably doesn’t register as a pro or con when searching for their dream home.
“In fact, there’s a 50/50 split between the number of areas that command a higher price for both odd and even numbers.
“However, on a more regional level, we seem to favour even numbers where the 20 highest price premiums are concerned. It may be a coincidence, however, many people do have strong views on certain numbers and the superstitions surrounding them.
“It’s well-document that the number 13 can command a far lower price and it would seem the same goes for both odd and even numbers, although homebuyer preferences change from one area to the next.”
Table shows the top 20 areas with the biggest premiums between the average sold price for odd and even house numbers in the last 12 months
Annual house price growth recorded in the Nationwide House Price Index is at 5% for September, which is the highest rate since September 2016.
Robert Gardner, Nationwide’s Chief Economist, comments within the Index report: “UK house prices increased by 0.9% month-on-month in September, after taking account of seasonal effects, following a 2.0% rise in August. As a result, there was a further pick up in annual house price growth from 3.7% in August to 5.0% in September – the highest level since September 2016.
“Housing market activity has recovered strongly in recent months. Mortgage approvals for house purchase rose from c66,000 in July to almost 85,000 in August – the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.
“The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown
Lucy Pendleton, Co-Founder of independent estate agents James Pendleton, comments: “This is the peak but there will be no collapse.
“Three planets aligned to produce this stellar growth. Pent-up demand from lockdown has been followed by a wave of activity from those who realised they wanted a bigger property, and all this was dealt an extra dose of encouragement by the stamp duty holiday.
“It can’t continue forever though, and it’s very likely indeed that we won’t see a higher annual growth rate this year. That said, prices and a good rebound in transaction levels should hold up more than usual into the autumn because of the delays buyers are still experiencing over mortgage approvals, surveys and conveyancing. We’re still telling buyers that if they can get a mortgage offer confirmed within three weeks of survey then they’re doing well.
“The market is strong but some vendors have mistakenly started to believe any property in any condition will sell. Those vendors have got the wrong end of the stick. Quality homes are selling but buyers are not being reckless and won’t pay top dollar for properties that need a lot of money spent on them.
“London appears to be bucking the national trend with healthy price growth across the spectrum, right through from homes being snapped up by first-time buyers to properties selling for over £1 million. The reason that’s happening in the capital is because its first-time buyers are typically older, and they are normally more secure in their jobs and further along in their careers.”
The Government is seeking views on proposals to raise energy performance standards for the private rental sector (PRS) in England and Wales.
The consultation includes information on proposals to introduce changes to the sector to help meet energy efficiency targets. The Government states that it is committed to upgrading as many PRS homes as possible to an Energy Performance Certificate (EPC) rating of C by 2030.
The Government’s plans include:
Reducing energy bills and increased comfort for tenants and supporting delivery of our statutory fuel poverty target of EPC C by 2030
Potential property value improvements for landlords
Delivering carbon emission savings over Carbon Budgets 4 and 5, making progress towards our net zero target
Timothy Douglas, Policy and Campaigns Manager for ARLA Propertymark, has commented on the consultation: “On the face of it these proposals simply do not take into account the state of the UK’s housing stock.
“We all want to see more energy efficient homes, but the new rules and requirements must be realistic and achievable. Landlords and their letting agents are already taking the brunt of tax changes and many are providing support to tenants with COVID related arrears.
“A simplified exemptions regime and additional financial support must be made available otherwise the measures in their current form, will not be achievable and that would mean further reductions in the supply of rented accommodation available.”
Martyn Reed, Managing Director of Elmhurst Energy has commented: “As the Government has acknowledged, the PRS has some of the worst performing properties with 67% of PRS homes currently rated less than EPC band C.
“This move to improve the energy performance of PRS homes, began two years ago with the regulations stipulating that PRS homes should meet EPC band E. Elmhurst always believed that this was just the start of the journey and are pleased to see that the Government are considering a tightening of restrictions to not only improve the energy performance of PRS homes but also to reduce fuel poverty.
“Elmhurst’s Domestic Energy Assessors are well placed to help in this area, as they can identify the current energy rating of a property for landlords and property agents and can recommend potential improvements/next steps.”
