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 latest Halifax House Price Index reports that house prices have fallen for the fourth month in a row. However, there has been a surge in new mortgage enquiries.
The highlights of the Halifax House Price Index include:
On a monthly basis, house prices in June were 0.1% lower than in May
In the latest quarter (April to June) house prices were 0.9% lower than in the preceding three months (January to March)
House prices in June were 2.5% higher than in the same month a year earlier
Russell Galley, Managing Director, Halifax, comments within the report: “Average house prices fell by 0.1% in June as the UK property market continued to emerge from lockdown.
“Though only a small decrease, it is notable as the first time since 2010 – when the housing market was struggling to gain traction following the shock of the global financial crisis – that prices have fallen for four months in a row.
“Activity levels bounced back strongly in June, which is typically the busiest month for mortgage activity in the UK. New mortgage enquiries were up by 100% compared to May, and with prospective buyers also revisiting purchases previously put on hold, transaction volumes rose sharply compared to previous months. However, whilst encouraging, it remains too early to say if this level of activity will be sustained.
“The near-term outlook points to a continuation of the recent modest downward trend in prices through the third quarter of the year, with sentiment indicators, based on surveys of both agents and households, currently at or around multi-year lows.
“Of course, come the autumn, the macroeconomic landscape in the UK should be clearer and the scale of the impact of the pandemic on the labour market more apparent.
“We do expect greater downward pressure on prices in the medium-term, the extent of which will depend on the success of government support measures and the speed at which the economy can recover.”
Managing Director ofBarrows and Forrester, James Forrester, has commented: “Yet another contrasting medical examination of the UK property market and one that shows the impact of an industry-wide lockdown is still lingering with further monthly declines in house price growth.
“However, the positives are that prices remain higher on an annual basis despite the turbulent start to the year. This is a much better indicator of market health and one that should reassure the nation’s home sellers, as well as bolstering the surge of buyer demand that has already flooded the market since lockdown restrictions were eased.
“We’re expecting to see a further boost in the form of a stamp duty holiday tomorrow, and while this has already drawn its critics, it will only act as a positive stimulus for the market in the long-term.”
Managing Director ofEnness Global Mortgages, Hugh Wade-Jones, commented: “More positive news for the UK property market and hopefully the first of a double dose of good news this week.
“Unfortunately, it looks as though the top tier of the market will once again be shown the cold shoulder in terms of any stamp duty relief or otherwise.
“However, we’ve seen a promising increase in market activity in recent months, and this has been driven of late by foreign buyers returning to the top tiers of the market, in particular.
“While domestic activity remains the backbone of the UK property sector, it is this foreign investment that will help spur the market back to full health.
“Although it might take a little while longer to materialise at the top level, it bodes very well for the remainder of the year where overall house prices are concerned.”
Industry reaction to the July Halifax House Price Index
Director ofBenham and Reeves, Marc von Grundherr, commented: “The potential announcement of a stamp duty holiday by the chancellor tomorrow should help lift market sentiment, certainly where buyer demand is concerned. Of course, some are already forecasting that many buyers will hold off now to benefit later, causing a slump in the market as a result.
“While a valid point, it’s unlikely to send a market that is comfortably shifting through the gears into full reverse. The transaction process can be a long one, and it is doubtful that the average buyer will jeopardise their bricks and mortar aspirations, simply to save a few thousand pounds in stamp duty.
“The flip side to this is that with such demand already returning to the market, postponing a purchase until October could see the price of your chosen property increase in value, exceeding the saving you might have made. So any buyers considering such an idea would be ill-advised to take the risk.”
Lucy Pendleton, property expert at independent estate agents James Pendleton, said: “The typically more bullish Halifax index hasn’t disappointed. People remain confident despite the pandemic but the biggest threat to the market at the moment is the posturing going on in government over a potential Stamp Duty tax break.
“The market will seize up if this continues. Ministers more intent on teasing than leading either need to introduce it or ditch it. The flying of kites only encourages people to hold off with their move.
“If they don’t provide clarity, the recovery in the market, which by the Halifax’s reckoning is still powering ahead, will be put in doubt.
“Two things have so far characterised the residential market since it reopened in mid-May. First, there were the overzealous bargain hunters who came crashing in demanding huge discounts and were quickly beaten back.
“We’re not hearing from that type of buyer anymore. Second, we’ve noticed a lot of buyers and sellers who had been frustrated by the pandemic’s shut down of the country showing huge determination to now get on with their move.
“It just goes to show that moving home is a marathon and not a sprint for most people, a decision often years in the making, and that is underpinning the annual growth still being registered by the Halifax in June.
“This confidence and robust overall demand bodes well for transaction volumes, and sensible offers provide some clue that a broad price correction is not on the cards at the moment.”
Mary-Anne Bowring, group managing director atRingleyand creator of automated lettings platform,PlanetRent, said: “Today’s figures show potential green shoots of recovery with rising mortgage enquiries although it is clear lockdown and prolonged uncertainty are still having their effect and with no clear route out the pandemic yet, the for-sale market is likely to be subdued as buyers and sellers act cautiously and put off major financial decisions.
“This is why government policies aimed at restimulating the housing market need to look beyond first-time buyers and existing owner-occupiers and tap into new sources of demand like buy to let landlords by scrapping the stamp duty surcharge they face.
“With only the private sector predicted to keep on growing and the disruption caused by Coronavirus likely to cause a short-term spike in rental demand, the government could kill two birds with one stone by driving activity and meeting a growing housing need.
“Landlords are also an important source of development finance for housebuilders through off-plan sales and so cutting SDLT for buy to let investors could help housebuilding recover too.”
Lettings management platform Howsy has looked at which areas in the UK have been most profitable for rental yields and house price increases over the last year.
The results show:
Across the UK, the research shows that house prices are up 2% annually, compared to rental yields at 5%.
London has seen an increase of 5% to property values and an average rental yield of 4%.
The North West and South West saw a house price increase of 3% and 4% respectively. Rental yields are at 5% and 4% respectively.
Scotland is the nation home to the highest average rental yield, at 6%.
Northern Ireland has the highest annual house price growth
The full results are in the below tables:
Primary level – nations
Secondary level – regions
Rankings – highest combination value
Founder and CEO of Howsy, Calum Brannan, commented: “As a landlord, it can be easy to get bogged down in the almost immediate financial viability of a buy-to-let investment. Understandable, given the unpredictability of house price growth in the long-term and so the rental yield available is often the only current data available during the decision-making process.
“However, there are plenty of areas across the UK that might not present the best yields nationally but have delivered a substantially larger return where house price growth is concerned.
As the figures show, this isn’t restricted to one area of the market, and this is certainly something to be considered when investing. For the majority of landlords, their portfolio is their pension pot and so while ongoing rental income is essential, keeping an eye on cashing out and the overall value of your portfolio when you do is also advised.”
Estate agent comparison site GetAgent has analysed house prices in 100 seaside towns to find the most and least affordable areas to invest in a UK holiday home.
These results, looking at seaside towns across England, Wales and Scotland, found the average property price to be £264,258. This is 14% higher than the current national property price average of £232,401.
According to the results, the top 10 least affordable seaside areas are:
The Sandbanks in Poole (average house price of £619,431)
Salcombe (average house price of £602,667)
Aldeburgh (average house price of £507,143)
Lymington (average house price of (£482,071)
Dartmouth (average house price of £458,051)
Southwold (average house price of £447,855)
Padstow (average house price of £433,812),
Lyme Regis (average house price of £425,238),
Bigbury on Sea (average house price of £416,965)
Hayling Island (average house price of £400,678)
15 out of the 20 most affordable seaside towns are located in Scotland, making up eight of the top 10 most affordable. Campbeltown is the most affordable, with an average house price of £71,500. This is 69% lower than the UK average house price.
Outside of Scotland, Blackpool is the most affordable in England and Wales (£93,104), along with Newbiggin by the Sea (£99,017).
Founder and CEO of GetAgent, Colby Short, commented: “As a nation, we love to be beside the seaside, as the recent hot weather has demonstrated despite lockdown restrictions remaining in place. However, on average, the cost of living there will set you back above and beyond the wider UK average.
“It’s also clear that the house price ripple effect isn’t just confined to the outer boroughs of London and it’s clear that as a number of seaside hotspots have increased in value, smaller neighbouring towns have also seen the benefit of this overspill in demand.
“If you can’t afford to live in Padstow for example, opting for nearby Wadebridge provides the next best option and while it isn’t cheap in itself, it still provides a serious property price discount in the region of fifty thousand pounds.
“Of course, this heightened demand for these ‘next best’ options will often cause prices to increase and so the downside to this is a reduction in affordability in the long term.
“That said, this process can come full circle and areas such as the Sandbanks that are extremely sought after at the top end of the ladder have since seen demand fall off and prices fall due to an over-inflated market.
“While these areas will always carry an air of prestige and attract a certain type of buyer, in tougher market conditions they are often the first to see the largest corrections in price as demand falls off and asking prices suffer.”
The latest Asking Price Index from Home.co.uk shows that vendors are re-entering the market with higher prices for June.
Home.co.uk says: “Counter to the doom and gloom that has dominated the media recently, vendors who have been brave enough to place their properties on the market are showing considerable confidence and less caution than might be expected.
“However, considering the overall lack of supply (there are only around 40% of the new listings one might expect for the month of May), their bullishness would seem justified.
“Supply was already low a year ago, according to longer-term trends, and the mere trickle of properties entering the market is highly unlikely to surpass demand.
“Moreover, it is clear that there is considerable pent-up demand post-lockdown, so much so that several major lenders have temporarily withdrawn 90% LTV products citing overwhelming demand, especially from first-time buyers.
“The fact is that the market is currently in a state of transition and the new normal is yet to be defined. We anticipate that it will take two to three months for the market to find its new post-pandemic equilibrium.
“Previously, we observed that the UK property market began the year with a plethora of encouraging activity and post-correction regions showed considerable potential for price growth.
“The optimistic scenario would be a return to this positive trend, although demand will certainly be tempered to some degree by a mortgage credit bottleneck and the economic damage sustained by the lockdown cannot be ignored.
“The key question remains ‘How vigorous will be the rebound be?’ Indications thus far suggest the market is taking off with an unprecedented sense of urgency.
“What is blatantly clear is that the situation could have been a whole lot worse. The annualised mix-adjusted average price growth across England and Wales currently stands at +0.8%; in June 2019, the annualised rate of increase of home prices was -0.6%.”
Higher prices reported in Home.co.uk’s June Asking Price Index
Asking Price Index headlines
Supply of new sales instructions ticks up across the UK in May (but is only 43% of the May 2019 total) as the lockdown eases.
Vendors braving the market are confident and are pricing much higher, safe in the knowledge that supply is very low.
Consequently, the mix-adjusted average for England and Wales has jumped 0.7% since the May reading.
The North West and Yorkshire show confident price hikes of 1.5% and 1.3% respectively since last month.
The supply rate of new instructions has recovered the most in London and the least in Scotland.
The best-performing regions, the North West and Yorkshire, show the lowest rises in Typical Time on Market aside from London and have year-on-year price growth comfortably surpassing that of monetary inflation (3.4% and 3.2% respectively).
The total sales stock on the market across England and Wales has increased slightly since last month but is still significantly down; 14% year-on-year.
East of England remains the UK’s worst-performing region with the average asking price 1.7% lower than twelve months ago, although a jump of 0.9% this month shows that confidence is rapidly returning.
Supply in the rental sector across the UK recovers slightly but remains 15% down year-on-year.
