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Just Two London Boroughs with Average House Price Under £300,000

Published On: July 30, 2015 at 8:47 am

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Just Two London Boroughs with Average House Price Under £300,000

Just Two London Boroughs with Average House Price Under £300,000

The average London house price has increased by 9.2% in the past year, hitting £481,820, according to Land Registry.

The data is based on transactions during the month of June, revealing that every London borough recorded property price growth in the last 12 months.

Barking and Dagenham, East London is the most affordable borough for buying a property in London, with an average price of £278,604.

Bexley, South East London, is the only other London borough with an average house price under £300,000.

The London Borough of Newham has again recorded the highest annual price rise, of 16%, with average property prices now £306,386.

Prime property hotspot, Kensington and Chelsea, has experienced the lowest annual growth in the past year. Despite a rise of just 0.7% over 12 months, the average price in this borough is still the most expensive in the capital, at £1.3m.

 

 

 

 

 

 

 

 

 

 

 

London is the Third Most Expensive City to Live in

Published On: July 29, 2015 at 5:32 pm

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London is the third most expensive city in the world to live in, according to new research.

Beating London are wealthy cities in the Cayman Islands and Switzerland, revealed figures from Expatistan, which uses crowdfunded data to create a cost of living index for a number of world cities.

London came third in the study, behind Grand Cayman and Zurich.

The research also revealed that London has the second most expensive public transport in the world, the third highest utility costs and the fifth most expensive theatre tickets.

It is the second most expensive city in Europe, after Zurich, and the most expensive in the UK.

The most expensive cities to live in around the world

London is the Third Most Expensive City to Live in

London is the Third Most Expensive City to Live in

Position

 City

Country/Area
1 Grand Cayman Cayman Islands
2 Zurich Switzerland
3 London UK
4 Geneva Switzerland
5 New York City USA
6 San Francisco USA
7 Washington DC USA
8 Bern Switzerland
9 Hong Kong China
10 Singapore Singapore

Contrastingly, Madras in India is named the least expensive city to live in in the world. The bottom of the list is predominantly made up of small cities in Eastern Europe.

The cheapest city to live in within Western Europe is Lisbon, Portugal, which has a cost of living index of 127 compared to London’s 308.

London has dropped down the list in the past year, from its number two spot in July last year.

Compared to other UK cities, London is significantly more expensive – 36% more than Manchester, 38% above Glasgow and 40% pricier than Belfast.

After London, the most expensive UK city is Aberdeen, which has high rents and house prices due to its position as a centre for Britain’s oil industry in the North Sea.

Although the data is not good news for Londoners, it comes as no surprise.

In June, London rents reached a peak, making them over double the national average. In May, Oxford Economics revealed that it expects the average London house price to be £1m by 2030.

A study by Liverpool Economics, on behalf of four London borough councils, has also found that if the Government implements its plans to extend the Right to Buy scheme to housing association tenants, rent prices will be pushed even higher.

 

North East house prices to double by 2030

Published On: July 29, 2015 at 4:32 pm

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Forecasts released today by lettings firm KIS suggest property prices in the North East of England will rise by nearly double during the next fifteen years.

Predictions

According to the predictions, the average price of a home in the North East will rise to £277,558 by 2030-nearly double the cost of a property in the area today. Data suggests that the value of homes in the area will increase by an average of £76660 per year over the fifteen-year period, with year-on-year growth at 2.6%.[1]

If the forecasts are accurate, in five years, the cost of an average North East home will be £187,344, 14% more than today. In ten years, homes in the region will cost £229,655.[1]

Experts suggest that nationally, house values will rise at an increased rate of 19% to £341,455 by 2020 and 35% to £429,259 by 2025. National trends have seen prices accelerate further away from the North East over the past decade. In 2005, the average property price of a home in the North East was 30% cheaper than the national average. Now, that number has risen to 42%, with the gap expected to rise to 49% over the next fifteen years.[1]

Alarmingly, research from Oxford Economics earlier this year also predicted that the average cost of a home in the capital will exceed £1m by 2030.

North East house prices to double by 2030

North East house prices to double by 2030

Good news?

Ajay Jagota, founder and Managing Director of KIS, said, ‘if anything, these figures could be a little on the conservative side. Oxford Economics are predicting annual house price growth of roughly 2.6% a year over the next 15 years-but our research showed prices rising by 11% alone last year.’[1]

However, Jagota believes if the data is accurate, ‘this could be very good news for the North East. Wages are currently rising at 2.7% a year, so if house prices are rising at a slightly lower rate, that would see North East homes becoming progressively more affordable over the next 15 years.’

He went on to note, ‘what’s really striking is how national prices are accelerating away from us. In 1995, the typical North East home cost £19,000 less than the UK average. Today it costs £115,000 less. By 2030, the gulf will have widened to £260,000.’[1]

‘By 2030, the average London home will not only set you back over £1,000,000, it’ll cost you over £700,000 more than the average North East one.

If London wages can’t keep up with that surge, it is more than possible the North East could benefit from a ‘reverse brain drain’, where more and more people and businesses are unable to afford to base themselves in the capital and begin to look towards our region.’[1]

Concluding, Mr Jagota said, ‘this strengthens the case for increased devolution for the region, especially if it includes greater powers to develop our regional economy and infrastructure and to develop new housing to meet the growing need.’[1]

[1] http://www.propertyreporter.co.uk/property/north-east-house-prices-to-double-by-2030.html

 

Priced Out Londoners Should Move to Wellingborough

Published On: July 29, 2015 at 4:31 pm

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Londoners priced out of the spiralling property market should move to Wellingborough in Northamptonshire, according to Lloyds Bank.

Lloyds has studied commuter towns to determine the most affordable places to buy a home within an hour’s commute of the capital.

Homes in Wellingborough sell for an average £160,245 compared to £722,000 in central London.

On average, those working in London that are happy to commute an hour each way save £450,000 on their house price, found Lloyds, although their annual season ticket costs almost £5,000.

Behind Wellingborough, Lloyds found that Kettering, Peterborough, Chatham, Luton, Basildon and Swindon are the most affordable commuter towns, where average property prices are all under £200,000.

Mario Bartella, owner of an estate agent in Wellingborough that shares his name, says that the town has experienced a significant rise in buyers priced out of London’s housing market, particularly those from North London.

He states: “I’d say three or four out of every ten sales transactions are people who used to live and work in London but now commute into town from here.

“I have got clients who have sold a one-bedroom flat in London, bought a four-bed detached house here and still had money left over.”

Most affordable commuter towns

Position

 Town County

Average house price
1 Wellingborough Northamptonshire £160,425
2 Kettering Northamptonshire £177,584
3 Peterborough Cambridgeshire £182,114
4 Chatham Kent £183,140
5 Luton Bedfordshire £186,752
6 Basildon Essex £194,260
7 Swindon Wiltshire £195,212
8 Sittingbourne Kent £202,915
9 Northampton Northamptonshire £206,087
10 Rugby Warwickshire £209,320
Priced Out Londoners Should Move to Wellingborough

Priced Out Londoners Should Move to Wellingborough

Bartella says that London commuters often favour four-bedroom, detached houses on new built estates, located around a mile away from the centre of Wellingborough, where prices range from £225,000-£300,000. He says they usually use bicycles to travel to and from the station.

He adds: “It currently takes 50 minutes by train into St Pancras and it will be even quicker when a new non-stop train service starts next year.”1

For the average £160,245 house price, buyers in Wellingborough can find a three-bed semi-detached house with a garage or a good size Victorian terrace in the town centre. Bartella says they could even buy a small detached home.

Closer to London, house prices rise significantly.

Commuters with a 40-minute train journey into central London – including those living in Reading, Stevenage, Sidcup and Billericay – pay an average property price of £349,000. However, this is still £373,000 or 52% lower than the price of a home in London zones 1 and 2. An annual rail pass costs £3,499.

20 minutes away from the capital, commuters in towns such as Ilford, St Albans and Croydon can find a house that costs almost £321,000 less than in central London.

In some cases, commuters to central London can live in areas with higher average house prices than in the capital.

Those living in Beaconsfield pay an average property price of £921,516, with an annual rail pass of £3,788.

Nearby in Gerrards Cross, buyers pay an average price that is £32,525 higher than central London’s average.

The Lloyds research reveals that in other parts of the country, unlike the norm in London and the South East, commuters to some major cities pay more than if they lived in the city centre.

For those commuting to Britain’s second and third largest cities, Birmingham and Manchester, house prices are often more expensive outside the city.

The average house price in Birmingham is around £162,000. However, some towns with a 40-minute train journey away – including Walsall, Wolverhampton, Coventry, Burton upon Trent and Leamington Spa – have a higher average price of about £175,000. Commuters from these towns also pay an average annual rail pass of £1,900.

This is the same for some towns around Manchester, such as Warrington, Chorley, Huddersfield and Macclesfield, which have a higher property price of £168,000 compared to £151,330 in the city centre.

1 http://www.theguardian.com/money/2015/jul/28/priced-out-of-london-move-to-wellingborough-says-lloyds-report

Ex-Met Police Headquarters to Become Five-Star Hotel

Published On: July 29, 2015 at 3:29 pm

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An Indian billionaire has bought Great Scotland Yard from Galliard Group for £110m.

The building was once the home of the Metropolitan Police until 1890. It is now being transformed into a luxury five-star hotel.

Yusuffali Kader, who runs the Abu Dhabi-based corporation, Lulu Group International, will take ownership of the premises once the renovation is complete.

The Whitehall site is already 30% finished after Galliard purchased the 125-year lease for the Edwardian, grade II-listed property in 2013.

As well as being the headquarters of the Met Police for 61 years, it has also been the headquarters of the British Army Recruitment Office and Royal Military Police. Until 2004, it was used as the Ministry of Defence Library.

Kader is one of India’s richest men, overseeing the many interests of the Lulu Group, including supermarkets and food processing.

Due to open in early 2017, the 92,000 square foot hotel will be named The Great Scotland Yard. The most expensive suite could cost around £10,000 per night.

Lulu has contracted Steigenberger Hotel Group to operate the hotel once it opens.

The Great Scotland Yard will have seven storeys and two basement levels. Work on the interior will begin in March 2016.

Managing Director at Galliard Homes, Don O’Sullivan, says: “All that has been retained of the grand original Edwardian Great Scotland Yard building are the outer facades.

“The entire insides of the building have been ripped out and Galliard Homes has dug down two levels underground to create a vast basement complex under the building.

“The building is also being extended to the rear and increased by several floors. This is a huge redevelopment project.”1

1 https://www.propertyinvestortoday.co.uk/breaking-news/2015/7/former-met-police-headquarters-sold-for-110m

Nearly half of tenants don’t attend ‘checkout’

Published On: July 29, 2015 at 3:10 pm

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Nearly half of tenants living in England and Wales do not attend the ‘check out’ at the conclusion of their tenancy agreement, according to new figures.

Checkouts

The checkout process involves landlords or letting agent representatives recording the condition of the property and comparing it to that of when the tenancy agreement started.

Data taken from a report by the Deposit Protection Service shows that despite their recommendation, only 48% of the 8,035 tenants questioned said that they had attended. Nearly 46% of those that did not attend said that either they had not been invited or they were not informed of the date or time.[1]

Julian Foster, managing director of the Deposit Protection Service said, ‘checkouts are one of the most important stages of any tenancy. By viewing the property and discussing its condition together, tenants and landlords can resolve problems quickly and help prevent longer disputes, for instance, over the return of the deposit.’[2]

‘It’s vital that landlords enable tenants to attend-and that tenants go along when invited,’ Foster added.[3]

Nearly half of tenants don't attend 'checkout'

Nearly half of tenants don’t attend ‘checkout’

Tips

As a means of helping the checkout process to go smoothly, the Deposit Protection Service has released their top tips to assist landlords:

  • take along a report from the check-in. The first stage of making sure your check out process is successful is to carry out an inspection that is agreed by the tenant on the state of the property when he or she arrives. Bring the resulting report to the check out as a reference point for both your inspection and the discussions
  • Make sure you invite tenants in writing and with sufficient notice. It’s important you have a record of the invitation so its existence cannot be disputed afterwards; and tenants should be given a reasonable chance of being able to attend
  • Make sure the tenant understands the process. Explain that this is his or her chance to put forward their case regarding the state of the property
  • It’s sensible to include a description of the process in your written invitation, and give them an opportunity to ask questions when it starts
  • Consider the use of an inventory clerk. These are professionals who understand best what needs to be recorded when tenants arrive – and how best to assess and demonstrate change at the end of the tenancy. If you do use their services, make sure the tenant understands their role
  • Be safe. It is of course extremely unlikely that a check out will provide a risk to your safety, but make sure someone else knows where and when it is taking place and if you have any concerns, bring someone else along
  • Take your time and be thorough. Although confrontation can be difficult and it can feel awkward to be touring your property that has acted as someone else’s home –you are making life more difficult for both you and your tenant if you do not cover every aspect of your check in list properly, or later on refer to an issue that wasn’t noticed during check out
  • Make notes. In particular, record any of your tenant’s admissions or any agreements you reach. Ask your tenant to sign and date the notes. Make sure they receive a copy of these soon after check out takes place. As ever emailing a copy helps demonstrate that you were in touch.
  • Bring a camera and take photos of any damage or anything else contentious. Digital cameras work best because they have a date stamp, which helps demonstrate when the photos were taken. Explain in your invitation that you may take photos during the visit
  • Use video evidence where appropriate. Demonstrating that equipment is no longer working, for example, may most easily be achieved using a video. However, most often photos provide the best form of evidence, as adjudicators can study the image more easily
  • Carry out the check-out before any repair works take place. Although it seems obvious that evidence of the damage will help demonstrate your case, unfortunately the rush to overcome problems ready for the next tenant sometimes means opportunities to record them are missed[4]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/half-of-tenants-do-not-attend-check-out