Posts with tag: average house price

Less Than Half of Property in London is Priced at the Average Value or Below

Published On: May 26, 2016 at 8:39 am

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Less Than Half of Property in London is Priced at the Average Value or Below

Less Than Half of Property in London is Priced at the Average Value or Below

Less than half of all property in London is priced at the average value or below, according to the latest research into the capital’s housing market by online estate agent eMoov.co.uk.

The average house price in London now exceeds £500,000, making living in the capital as unaffordable as ever for a typical homebuyer.

eMoov has analysed the current total housing stock level for each London borough, comparing this to the amount of stock listed for £550,000 or less. The agent then calculated this as a percentage of total stock.

The study found that in total, less than half (46%) of housing stock in the capital is for sale at the average London property price or less.

The six worst areas where affordability is concerned are within prime central London. Just 6% of the properties for sale in Kensington and Chelsea are below £550,000, followed by 7% in Westminster, 14% in Hammersmith & Fulham, 14% in Camden, 22% in Wandsworth and 25% in Islington.

In a further 13 of the capital’s boroughs, just 50% or less of their housing stock is listed for the average price or lower.

Offering hope for the average buyer are the following boroughs: Barking and Dagenham, where 97% of its housing stock is £550,000 or less; Bexley at 91%; Havering at 84%; Sutton at 79%; Croydon at 79%; Newham at 78%; Greenwich at 72%; Redbridge at 72%; Lewisham at 66%; Hillingdon at 65%; Enfield at 65%; Waltham Forest at 64%; Bromley at 61%; and Hounslow at 57%.

Amount of stock currently listed for the average price or less

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The founder and CEO of eMoov, Russell Quirk, comments: “It’s no surprise to anyone that the majority of London is unobtainable to many from a property point of view. However, this research highlights just how out of reach the capital actually is for UK homebuyers, even for those with the sizeable budget of £550,000.

“When you talk about the average cost of buying in the capital being over half a million pounds, the mind really does boggle. Regardless, for many, the average house price is a benchmark, a milestone, on just what they need to have in the bank to live in a certain area. But this average price masks the true cost of living in the capital or even where in the capital you can live for that matter.”

He adds: “When you consider that even with that sort of healthy budget, you would have to restrict your property search by removing more than half of the properties currently for sale in the capital, it really highlights how little £550,000 can get you in the London market.”

House Prices Will Not be Affected by EU Referendum Claim Homeowners

Published On: May 25, 2016 at 8:34 am

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House prices will not be affected by the EU referendum, according to homeowners.

Recent research by estate agent Knight Frank found that UK household sentiment remained positive in May, despite political uncertainty surrounding next month’s EU referendum.

House Prices Will Not be Affected by EU Referendum Claim Homeowners

House Prices Will Not be Affected by EU Referendum Claim HomeownersEU referendum.

The firm’s latest House Price Sentiment Index shows that 25.6% of the 1,500 households surveyed believe the value of their home has risen over the past month, while just 3.6% say that house prices have dropped.

The results give an index rating of 61.0, which, although higher than the 60.1 recorded in April, is still below the peak set two years ago of 63.2 in May 2014.

Household sentiment grew among all age groups, except the over-55s.

Households in the South East are the most confident that house prices will increase in the next 12 months, with an index rating of 79.5, followed by 78.2 in London.

Around 5.4% of UK households plan to purchase a property in the next year, up from 5.0% in April.

The Head of UK Residential Research at Knight Frank, Grainne Gilmore, comments on the findings: “The steadiness of the headline House Price Sentiment Index during such political uncertainty over the EU is a reflection that the fundamentals of the market remain unchanged – there is still an imbalance between demand and supply of housing, and for those with access to deposit payments, mortgage rates are still near record lows.

“However, there has been some softening in sentiment among those aged 55 and over – the age group who have the largest equity stake in the UK housing market.

“While the sentiment reading for this group is still one of the highest, indicating they expect prices to rise, there has been a notable fall from last month, indicating that the current economic and political climate is affecting some corners of the market.”

A recent report from the National Association of Estate Agents and the Association of Residential Letting Agents mirrors the sentiment of the Knight Frank study, suggesting that house prices will rise whether we stay in the EU or not.

As a landlord, how do you think prices will change as a result of the referendum?

House Prices Would Rise Whether We Stay or Leave the EU

Published On: May 23, 2016 at 10:52 am

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House prices would rise whether we vote to stay in or leave the EU, according to a report from the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). However, the organisations believe that price increases would be slower if we leave.

They estimate that if the UK votes to remain in the EU on 23rd June, the average house price would be £303,000 by 2018.

House Prices Would Rise Whether We Stay or Leave the EU

House Prices Would Rise Whether We Stay or Leave the EU

However, if the UK instead votes to leave, the average price would rise to £300,800, a difference of £2,200.

The difference would be more marked in London, at £7,500.

The report claims that the slower rate of growth in the event of a Brexit would be caused mainly by less investment in London, foreign companies relocating from the capital, and reduced demand for commercial and residential properties.

The study, compiled by the Centre for Economics and Business research, says that while a Brexit could cause a labour shortage in the housebuilding sector, it may help first time buyers onto the property ladder through lower house prices.

The report adds that while there would be no immediate impact, rent prices could fall as a result of reduced demand. It points out: “Currently, private renting is a more popular choice among UK residents born in non-UK EU countries than for UK born individuals.”

The Managing Director of ARLA, David Cox, believes that a fall in rents could create more housing issues: “The fact that rent costs would face downward pressure is both a blessing and a curse. While renters should face fair and reasonable prices, landlords need to be able to at least break even on any outgoings they have, such as a mortgage.

“If demand eases to such an extent that landlords cannot recuperate costs, we’ll likely see a mass exit from the market, which would then just have the opposite effect on demand as supply falls, and we’d be back to square one.”

Mark Hayward, the Managing Director of the NAEA, comments on the report: “Unfortunately, it’s not as simple as saying that Brexit would have a positive or negative effect on the property market.

“We might like to believe, for example, that the ease in demand and lower prices will allow first time buyers a route into the market, but any transactions may be put off for the short term until the period of uncertainty is over.”

Separately, ratings agency Moody’s has reported that a vote to leave the EU would result in lower house prices, which would benefit first time buyers. The firm also claims that London’s property market would be the most affected by a Brexit and that landlords could struggle to pay their mortgages due to falling rental demand.

What Will the Average House Price be in 2030?

Published On: May 17, 2016 at 10:55 am

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Using figures from the last 15 years, leading online estate agent eMoov.co.uk has revealed what the average house price will be in England, Scotland and Wales in 2030.

The study, into the future of the UK property market, also breaks down prices in London by each borough.

eMoov analysed house price growth between 2000 and 2015, finding that the average property value has soared by 84% over the last 15 years. Using the same increase, the firm has projected how much the average home in London, England, Scotland and Wales will cost over the next 15 years.

London

Unsurprisingly, London took the top spot in terms of highest property value by 2030, with an average home in the capital costing over £1m in 15 years’ time.

What Will the Average House Price be in 2030?

What Will the Average House Price be in 2030?

eMoov has also broken London down by borough to show which places will be the cheapest and most expensive by 2030.

For those looking to get onto London’s property ladder in the next 15 years, the best borough to look at is Barking and Dagenham, which is currently the most affordable place to buy a property in the capital. However, the definition of affordable is somewhat different in 2030, with the average house price in the borough expected to be over £450,000, compared to £246,000 today.

At just under £1.9m, Kensington and Chelsea has long been the most expensive borough in London to buy a home. But by 2030, even the wealthiest of buyers may struggle to purchase a property, with a typical price of £3.4m.

England

By 2030, the average house price in England could shoot up to £457,433 – close to the current asking price in London. Based on the current market, just three places in England will offer an average house price below £280,000 in 15 years’ time – Merseyside at £275,074, East Riding of Yorkshire at £277,411 and Durham at £279,985.

Excluding London, 12 counties in England will also be home to an average house price over £500,000. Property in Dorset, East and West Sussex, Kent, Essex, Berkshire, Surrey, Oxfordshire, Hertfordshire, Buckinghamshire, Cambridgeshire and Rutland will command over half a million pounds on average.

Wales 

The current trend of Londoners moving to the surrounding areas of the capital may soon become a national trend of English homeowners moving to Wales.

In 2030, the average house price in Wales is expected to hit £307,712; although pricey, still £150,000 cheaper than England. Just one part of the country, Monmouthshire (£442,141) will have an average house price over £400,000.

Scotland

Similarly, English homeowners may also look to move to Scotland. Of the three countries studied, Scotland will have the cheapest average house price in 2030, at £297,222. Edinburgh will continue to drive the market, with the highest price of £432,468. Aberdeenshire is the only other Scottish location to break through the £400,000 mark.

At £200,600, North Lanarkshire will offer the cheapest house price to Scottish buyers in 15 years’ time.

The CEO of eMoov, Russell Quirk, says: “The past 15 years have seen extreme growth in the price commanded for UK property, as well as a crash as a direct result of this inflated growth. Although this research is only a projection of what may happen by 2030, it is safe to assume that with prices continuing to spiral beyond affordability, history could well repeat itself.

“Although rising prices are always good news for current homeowners, it’s extremely worrying to look at the difficulty many have in getting on the ladder at the moment, let alone with a price jump of 84% by 2030.

“This map highlights just how dangerous this current artificial inflation of the market could be in the long run, it’s not just London that will become beyond the reach of the average UK homebuyer, the issue will spread the length and breadth of England, Scotland and Wales.”

Landlords Pushing Up the Price of First Time Buyer Homes

Published On: May 16, 2016 at 9:56 am

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Have buy-to-let landlords pushed up the price of first time buyer homes? Rightmove’s latest data seems to suggest so.

Aspiring first time buyers have been left with a property “famine” after landlords rushed to beat the 3% Stamp Duty surcharge at the beginning of the year.

Landlords Pushing Up the Price of First Time Buyer Homes

Landlords Pushing Up the Price of First Time Buyer Homes

Although Chancellor George Osborne claimed that his crackdown on the buy-to-let sector would open up the market to first time buyers, it appears that the opposite has occurred.

Rightmove’s House Price Index for May found that the flood of landlords rushing to beat the 1st April Stamp Duty deadline has left fewer properties on the market, particularly in the lower end sector.

The average price of a first time buyer home – properties with two bedrooms or less – has surged by 6.2% over the past month, to £194,224. This is the greatest monthly increase recorded for this sector since February 2012.

Overall, the average asking price across all sectors has risen by 0.4% since April, and 7.8% annually, to £308,151.

For first time buyers, the greatest annual increase in house prices was seen in Croydon, Greater London, where prices rose by 18.6% to £297,770.

Outside the capital, Dartford experienced an 18.5% jump to £244,310, while Luton’s average price was up to £186,900.

There have, however, been some price drops. The largest, 7.5%, was in Llandudno, where the average price is now £145,703.

The Director of Rightmove, Miles Shipside, comments: “Buy-to-let investors have had a bricks and mortar feast between the Chancellor’s announcement in November and the tax deadline at the end of March, and the result is a famine of suitable property and higher prices. First time buyers are still eager to secure some of the very limited suitable supply in many parts of the country.

“Estate agents have perhaps been focused on getting investor sales through to completion before the tax hike, and some may have been surprised by the continuing momentum and scarcity of stock to meet ongoing demand.”

He adds: “The net effect is eye-watering increases in asking prices in some towns, and is further stretching first time buyers’ affordability, even though they are competing against fewer buy-to-let investors in the market.”

House Prices in London Almost Double to a Whopping £600,000

Published On: May 12, 2016 at 10:39 am

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The average property in London has broken through the £600,000 mark, as house prices have almost doubled in the capital since 2009, according to data from LSL Property Services.

The firm, which owns Your Move and Reeds Rains estate agents, reports that house prices in England and Wales have risen by 8.9% since April last year, to reach an average of £298,030.

The figures, based on Land Registry data, show that property values have hit new peaks in nine out of ten regions. The North East is the only part of England where prices are lower than before the downturn of March 2009.

House Prices in London Almost Double to a Whopping £600,000

House Prices in London Almost Double to a Whopping £600,000

In London, prices have continued to surge, with the average property value increasing by 11% over the past year, to £600,625.

In eight London boroughs, average prices are double what they were during the credit crisis in 2009. The area with the greatest increase is Waltham Forest, where prices are up by a huge 113% over the last seven years. The average property in the area now costs £430,704.

The Director of Your Move and Reeds Rains, Adrian Gill, claims that some of the more affordable parts of the capital have experienced the steepest increases in prices, as residents search for cheaper homes.

“These kinds of huge hikes in home values in London mean that Sadiq Khan will now face a serious challenge to deliver his promise of increased affordable housing in the city,” says Gill.

The new Mayor of London has promised to deliver a series of measures that will aim to resolve the housing crisis.

The LSL report states that the average price of a home in England and Wales is edging closer to £300,000, after rising by 1% over the month and by 50% over the last seven years.

“This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy-to-let and second homebuyers,” explains Gill. “However, after an exceptional March, there is a severe shortage of properties on the market, with fierce competition between buyers for each available property.”

LSL reports that there were 20,000 fewer sales in April, as demand fell in the weeks following the introduction of the 3% Stamp Duty surcharge on buy-to-let properties and second homes.

This is reflected in the latest report from the Royal Institution of Chartered Surveyors (RICS), which shows that demand has fallen for the first time in more than a year.

Figures from HM Revenue & Customs (HMRC) also reveal a large spike in home sales during March, as landlords rushed to purchase buy-to-let properties ahead of the higher tax rate.

The RICS believes that reduced demand from buy-to-let landlords appears to be the main cause of a decline in new buyer enquiries.