Posts with tag: London

Where are London’s next buy-to-let hotspots?

Published On: August 31, 2017 at 10:08 am

Tags: buy-to-let London,landlords,London,property in London

Landlords have moved to highlight where they believe to be London’s next buy-to-let hotspot, with regions such as Woodford, Leytonstone and Redbridge proving popular.

The research from Direct Line for Business found that North East London proved a popular pick, with 30% of landlords highlighting this as the best region. This was followed by South East and East London.

Going Underground

Properties located in close proximity to underground stations were found to be the most desirable for landlords. Home located on the Central Line stations were ranked as offering the best investment opportunity, followed by those on the Jubilee and Piccadilly line.

The most attractive London Underground lines for buy-to-let property investment were found to be:

Top 3 Tube Lines	Bottom 3 Tube Lines
Central line	District line
Jubilee line	Circle line
Piccadilly line	Bakerloo line

72% of landlords rank properties with national rail connections as attractive to would-be tenants. London Overground links were seen as desirable by 71% of those questioned.

Bus and tram routes were both seen as less desirable, at 68% and 60% respectively. In addition, landlords were seen about the impact of the HS2 on London’s property values, with 63% of those asked stating that the new transport link will see prices in the capital to rise.

Where are London’s next buy-to-let hotspots?

Confidence

What’s more, the survey revealed that confidence amongst investors in London and the South East is high, with 78% of landlords in these regions planning to expand their property portfolios.

Christina Dimitrov, Business Manager at Direct Line for Business, noted: ‘Landlords across the capital will always be looking for the ‘next big thing’ in property, as there are always trends in demand with people wanting to rent in the latest up and coming area.

“We have seen this before with the likes of Tooting, Bethnal Green and Walthamstow suddenly becoming ‘hot spots’”.

“It’s great to see confidence amongst landlords in the capital at a high, and even more reassuring to know that more than half think Brexit will have a positive influence on the property market.”[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/landlords-identify-londons-next-buy-to-let-hotspots

Property prices in London commuter belt fall

Published On: August 29, 2017 at 11:27 am

Author: Em Morley

Categories: Property News

Tags: London,London commuter towns,propert market,property

Commuter towns in proximity to London are seeing more properties being reduced in price than anywhere else in the UK, according to new research.

Data released by online estate agent House Simple shows that some 33.5% of properties for sale in major towns and cities have been cut in price since they first appeared on the market. One in seven locations have seen 40% or more properties cut in price.

Price Falls

The research from the online agents looked at the number of properties that have seen reductions in price since they were first advertised. The percentage was then compared between February 2017 and August 2017.

In the top ten towns or cities with the greatest percentage growth in cut-priced properties, all are within an hour of central London by train. Reading leads the way with 44% of properties currently for sale here falling in price since they were first advertised.

This is in comparison to 22.8% of properties on the market during February 2017 that saw a price reduction. The percentage of price cut properties here has nearly doubled in six months.

In Basingstoke, 50 minutes by train to Waterloo, some 35.6% of properties currently for sale have been cut in price since they were first marketed. This is in comparison to 19.1% when the research was carried out in February – a rise of 16.5%.

North/South Divide

The analysis reveals a clear North/South divide in terms of cities and towns where there is a growing percentage of price reductions by agents. 11 out of the 20 largest increases occurred in the South or South East.

14 of the 20 towns or cities where the percentage of price reductions has fallen when comparing August to February are in the North or in Scotland.

Across the UK, 18 of the towns or cities covered by the report have 40% or more properties for sale that have slipped in price, in comparison to 8 in February.

In Darlington, 47% of homes currently marketed have dropped in price.

falling real estate prices - conceptual symbol with green arrow

Property prices in London commuter belt fall

Taking Advantage

Alex Gosling, Chief Executive Officer of HouseSimple, noted: ‘The London commuter belt has seen a property price boom over the past decade, as Londoners priced out of the capital’s property market have moved further out to take advantage of cheaper stock and excellent local amenities including highly rated state schools.’

‘As a result, the gap between property prices in many of the commuter towns and prices in central London has narrowed. Anyone looking in some of the most popular commuter towns, 30 minutes from London, may now find that properties aren’t any more affordable. That is putting pressure on local property markets, as buyers may be starting to look further afield for value for money.

For anyone selling a property, have the lowest price you’re willing to take in the back of your mind, and be prepared to negotiate if a strong buyer, someone with finance in place who can move quickly to exchange, makes an offer. Sometimes holding out for an offer that might be a few thousand pounds more, could result in your property sitting on the market for months.’[1]

[1] http://www.propertywire.com/news/uk/commuter-towns-around-london-see-significant-property-price-reductions/

London’s Buy-to-Let Pain Becoming Manchester’s Gain, Expert Insists

Published On: August 23, 2017 at 9:18 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let sector,London,Manchester,property investment

As London’s buy-to-let and property markets begin to dampen, it seems to be Manchester that’s emerging as the winner for investment.

That’s the opinion of one property expert, who notes that uncertainty has been the order of the day in the buy-to-let market for the past year, at the hands of the Government.

London’s Buy-to-Let Pain Becoming Manchester’s Gain, Expert Insists

2016’s shock Brexit vote, followed by a hung Parliament this year, combined with Stamp Duty hikes, the reduction in mortgage interest tax relief, and imminent introduction of tougher lending criteria for portfolio landlords has created an aura of uncertainty and caution in the buy-to-let market.

Surprisingly, the ever-shining star of London even seems to be fading, with house prices down by an average of 0.6%, while private rent prices sit behind the national 12-month growth rate.

So, have the past 12 months permanently dampened the appeal of the UK’s buy-to-let sector? Should buyers be investing their funds elsewhere? Critics are divided.

Jean Liggett, the CEO of Properties of the World, gives her thoughts: “The uncertainty that the UK buy-to-let market has experienced over the past year has undeniably impacted investor confidence, but it seems to be primarily aimed at London.

“With interest rates remaining so low, investors still see the merit in purchasing bricks and mortar, but those seeking maximum returns in 2017 are increasingly looking at other areas than the capital.”

She believes: “By keeping an eye on regeneration plans and new transport links, it is still possible to find great areas to invest in.”

Indeed, despite splutters in the London buy-to-let market, buoyant activity is still being witnessed in other parts of the UK.

Greater Manchester has become a key destination for property investors and, thanks to its high demand from buyers and tenants alike, the city continues to register a strong house price growth rate of 6.7%.

Liggett adds: “As we have seen the capital’s market decline, other UK cities have stepped up and taken its place. London’s buy-to-let pain has become Manchester’s gain!”

Due to its proximity to both MediaCityUK and Manchester city centre, Salford Quays in particular is leading the way when it comes to buy-to-let growth.

2017 marks ten years since major transformation began in the area, kick-started by the BBC’s decision to move many of its jobs from London to Salford Quays. This £650m regeneration project has boosted the area’s credentials for buy-to-let investment, while Manchester has ascended to one of the top ten buy-to-let locations in the UK.

The latest Land Registry data paints a positive picture for Salford, with an average 5.9% increase in house prices over the past year.

Meanwhile, savvy investors will be watching with glee as news of more top class office space being snapped up is announced, suggesting a thriving local economy and growing rental housing demand.

It looks like Manchester is the place to be! Will you move investment there?

London Estate Agent Offering the Chance to Sell your Property for Free

Published On: August 22, 2017 at 8:06 am

Author: Em Morley

Categories: Property News

Tags: estate agent,London,property sales,selling a property

London Estate Agent Offering the Chance to Sell your Property for Free

As it now costs an average of over £9,000 to sell your property in London, one estate agent is offering you the chance to sell your property for free!

Portico London estate agent has created the Portico Property Quiz to help one lucky winner beat extortionate fees.

Those who enter the quiz and score 80% or higher will automatically be entered into a prize draw, with one lucky person winning a 0% fee and a £100 John Lewis voucher.

The majority of the questions are general property knowledge, from the average time it takes to sell a London property to Stamp Duty calculations to a guess-the-price picture round.

The agent has launched the competition at a time when Londoners have to find an average of £9,244 in estate agent fees to sell their properties. This is a huge 414% more than 20 years ago, when the average estate agent fee in the capital was £1,797.

The Managing Director of Portico, Robert Nichols, says: “Everybody wants a quick and easy property sale. Unfortunately, in this market, the time it takes to sell a home can vary greatly, depending on how you sell it and who you sell it with.

“At Portico, we offer a range of unique services to maximise the sale price achieved, from home staging and free handyman work, to an Airbnb management service that enables vendors to earn until their property sells.”

He adds: “We’re excited to be offering one lucky homeowner the chance to sell for free, potentially saving tens of thousands of pounds in estate agent fees. Fancy yourself a bit of a property expert? Take our quiz! https://www.portico.com/blog/our-news/sell-your-home-for-free!”

The full terms and conditions can be found here: https://www.portico.com/blog/our-news/sell-your-home-for-free-tcs

If you’re looking to sell your property in the capital, we hope that you beat the fees and manage to win this great prize!

Property prices near London Olympic Stadium have soared in 5 years

Published On: August 9, 2017 at 11:45 am

Author: Em Morley

Categories: Property News

Tags: house price rises,London,Olympic Games,property near Olympic Stadium

London is currently playing host to the World Athletics Championships, evoking great memories of the superb Olympic Games in the summer of 2012.

Now, interesting new research has examined how average property prices in the 14 postal districts of East London closest to the Olympic Stadium have fared since the Games.

Gold-Medal Rises

The investigation from the Halifax has revealed that average prices in these regions have risen from £286,683 in September 2012 to £470,687 in April 2017- an increase of 64%.

This rise has outperformed London as a whole during the last five years. Since September 2012, the average property price in the capital has risen by £160,986, or 38%, to hit £584,190.

Of the 14 boroughs closest to the Olympic Stadium, Walthamstow saw the strongest growth, with average property prices doubling in five years. Values have risen from £238,348 to £479,421 – a rise of £241,073 or 101%.

Five other regions have seen price rises of over £200,000 in the last five years, namely Homerton, Clapton, Shoreditch, Dalston and Leyton.

Property prices near London Olympic Stadium have soared in 5 years

Regeneration Boost

Martin Ellis, Housing Economist at the Halifax, noted: ‘Hosting the 2012 Games welcomed major regeneration to boost areas close to the Olympic Park in East London. Large scale infrastructure investment in the existing tube networks, an international rail station and now Crossrail have not only created jobs in the area, but improved options for people to move around the capital.’

‘This has enabled home owners in the 14 postal areas closest to Olympic Park to celebrate their own victory as a result, as the average value of their homes has risen by more than £4,000 per month since the Paralympic Games ended in 2012. Not only has this area been reinvigorated as a community, but average property price growth in this part of East London has raced ahead of England, Wales and even Greater London as a result.’[1]

[1] http://www.propertywire.com/news/uk/areas-london-around-olympic-park-see-prices-soar-since-2012-games/

New Home Counties are Emerging as Commuter Belt Spreads

Published On: August 4, 2017 at 9:41 am

Author: Em Morley

Categories: Property News

Tags: commuter belt,Home Counties,London,property market

New Home Counties are emerging in the south and southeast of the country, as the commuter belt grows and outperforms London in terms of house price growth.

These are the findings of the latest study by leading hybrid estate agent eMoov.co.uk, which shows that the Home Counties continue to surpass the capital where house price growth is concerned, with the average property value up by 1.69% in 2017 so far and 5.71% annually.

A slowing London market continues to lose momentum against the more affordable commuter belt surrounding it, with prices only increasing by 0.84% since the start of this year in the capital and 2.96% since the same time last year.

The average house price in London now stands at £481,345, making it continually harder for first time buyers to get onto the property ladder and more feasible to look to the commuter belt to buy their first homes, which is fuelling house price growth across the Home Counties.

In fact, recent research found that one in four young Londoners plan to leave the capital to buy their first homes.

The improvement of transport and infrastructure is helping to fuel this, by bringing the surrounding areas closer to London, which is creating new commuter hubs and opportunities for them to support the regional economy.

New Home Counties are Emerging as Commuter Belt Spreads

As a result, the traditional definition of the Home Counties has shifted and now, many consider those slightly further afield, such as Bedfordshire, Oxfordshire and Hampshire, to be part of the Home Counties.

And it’s not just homebuyers that are causing this shift; high rental competition is also pushing the commuter belt further east.

So far this year

It is, in fact, one of these newer additions that has seen the highest house price growth so far this year. Since the beginning of 2017, Bedfordshire has recorded an impressive 3.69% increase, from an average value of £262,860 to £272,558, followed by Buckinghamshire (+2.87%), which rose from £394,551 to £405,865. Essex places third, with a 2.54% jump since January.

On an annual basis

The same three counties also take up the top three spaces for greatest house price growth over the past year. Essex experienced the best growth rate, of 9.89% year-on-year, seeing prices jump from an average of £275,625 to £302,881. Bedfordshire is close behind, with a 9.41% increase, followed by Buckinghamshire, where property values have risen by an average of 6.98% annually.

The most affordable

East Sussex boasts the lowest average house price across all the Home Counties, at £264,276. Although Bedfordshire and Buckinghamshire have enjoyed similar growth patterns over the past year, Bedfordshire has an average house prices more than £100,000 lower than Buckinghamshire’s, making it the second most affordable of the Home Counties. It is followed by Kent (£279,529), Essex (£302,881) and Hampshire (£307,014).

Even when you factor in the cost of an annual season ticket to commute into the capital by train, homebuyers are still savings hundreds of thousands of pounds by living outside of London.

The Founder and CEO of eMoov, Russell Quirk, comments on the new research: “With London’s prices still out of reach for the average person, a short jaunt to the Home Counties offers a compromise to continue making a London wage, but without paying the price of the capital’s property market.

“Often, living outside of the city also translates to getting more bang for your buck, such as a garden, a car parking spot and more living space in the home.”

He continues: “The rise in popularity of Bedfordshire demonstrates the continual overspill effect of the UK housing market as a whole. In London, when one borough becomes too expensive, the next best but less desirable borough is the next port of call, until that too becomes regenerated and over inflated.

“We’re seeing a similar process in the Home Counties generally, whereby all are proving popular by London standards, but those that have seen stronger price growth already are now taking a back seat, whilst newer more affordable options, like Bedfordshire and Hampshire, emerge as the front runners.”

He adds: “With the approaching launch of Crossrail and the proposed HS2 route, who knows how far the London commuter zone will soon stretch?”

Landlords, it may be wise to start investing in these new hotspots before prices become over inflated in those areas too.