Posts with tag: London

Asking prices across London are being cut in order to draw sales

Published On: July 26, 2017 at 11:46 am

Tags: housing market,London,London property market,property in London

A number of vendors in London have moved to reduce the asking price of their properties by tens of thousands of pounds, with the housing market continuing to stall.

The most recent data from online estate agent HouseSimple.com indicates that 35.3% of properties on the market have seen a price reduction this month. This data is based upon Zoopla’s price reduction statistics for all 32 London boroughs.

Borough Cuts

45.8% of properties in the borough of Richmond upon Thames have seen price cuts –more than any other borough in the capital. On the other hand, Newham saw the lowest proportion of price reductions at 25.7%.

HouseSimple.com Chief Executive Alex Gosling, noted: ‘These figures only support the view that the London property market has run out of steam. Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next.’[1]

Asking prices across London are being cut in order to draw sales

Mr Gosling went on to observe: ‘What’s unusual about the level of discounted properties is that It would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply.’

‘There are actually plenty of buyers looking, but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision,’ he concluded.[1]

The table below indicates how all regions have performed in July, in comparison to February:

Borough	% listings reduced in price – Feb 2017	Total listings – July 17	No. of listings reduced in price – July 17	% of listings reduced in price – July 17
Barking & Dagenham	26.6	538	151	28.1
Barnet	29	4046	1280	31.6
Bexley	23	684	224	32.8
Brent	29.5	3434	1193	34.7
Bromley	31.4	1844	749	40.6
Camden	31.6	2545	884	34.7
City of Westminster	30.1	3451	1170	33.9
Croydon	28.2	1771	657	37.1
Ealing	33	2724	1031	37.9
Enfield	28.2	1656	559	33.8
Greenwich	22.7	1292	361	27.9
Hackney	26.5	1531	462	30.2
Hammersmith & Fulham	35.6	1705	592	34.7
Haringey	30.5	1367	528	38.6
Harrow	33.3	1753	710	40.5
Havering	24.3	1260	472	37.5
Hillingdon	33.9	1693	716	42.3
Hounslow	34.02	1696	717	42.3
Islington	29.2	1659	547	33
Kensington & Chelsea	35	2433	871	35.8
Kingston upon Thames	32.9	1359	616	45.3
Lambeth	31.5	3295	1191	36.2
Lewisham	29.7	1651	586	35.5
Merton	31.1	1614	615	38.1
Newham	22.6	2233	573	25.7
Redbridge	26.2	1181	394	33.4
Richmond	36.6	1576	721	45.8
Southwark	28.6	2804	826	29.5
Sutton	28.3	955	346	36.2
Tower Hamlets	23.9	3515	981	27.9
Waltham Forest	30.7	1211	397	32.8
Wandsworth	31.2	3869	1393	36

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/property-asking-prices-slashed-across-london-as-market-stalls

Independent Shops Replace Waitrose-Effect in Terms of House Price Premiums

Published On: July 26, 2017 at 9:21 am

Author: Em Morley

Categories: Property News

Tags: amenities,homebuyers,house prices,London

High streets filled with independent shops have replaced the Waitrose-effect in terms of adding house price premiums, according to estate agent Marsh & Parsons.

Independent shops are magnets for homebuyers, who are prepared to pay a premium in London for the privilege of living nearby, the agent found.

A street filled with vibrant, independent shops is now a more desirable amenity than the presence of a Waitrose. In the past, the so-called Waitrose-effect of having the supermarket in close proximity attracted a house price premium. Today, homebuyers would rather have the culture and character of independent shops in their neighbourhoods.

Marsh & Parsons has identified nine London streets where independent shops dominate and properties nearby command an average price premium of 10% more than equivalent homes further from such amenities:

Independent Shops Replace Waitrose-Effect in Terms of House Price Premiums

Chiltern Street, W1

Bars and restaurants in the area include The Bok Bar and Blandford Comptoir, while the Atlas Gallery is also close by.

Brecknock Road, N19

Future & Found is a popular shop in the neighbourhood, while The Pineapple also draws in buyers.

Fortess Road, NW5

Independent boutiques in this district include SK Vintage and Jessica de Lotz Jewellery.

Salusbury Road, NW6

The Iris Fashion boutique and Queen’s Park Books are just a couple of the reasons that house prices here cost more than the average.

Shoreditch High Street, E1

The Arts Club, Bull in a China Shop and Andina London are all popular restaurants and bars in this location.

Caledonian Road, N7

Around this area, Shillibeer’s, Kokeb and Hemingford Arms are all attractive to buyers.

Marylebone Road, NW1

In Marylebone, Margaret Howell, Gallery 1930 and Daunt Books are all reasons to buy here.

Queens Gate, SW7

Boosting house prices on this street are Royal Spades and Chic Elegance.

Golborne Road, W10

Potential buyers in this neighbourhood will enjoy Snaps & Rye, Lisboa Patisserie and Phoenix on Golborne being close by.

The Sales Director of Marsh & Parsons, Alex Lyle, says: “The predominance of chains in the high street has often meant that one is indistinguishable from another. People crave character and a street brimming with independent food shops, fishmongers, pubs with their own micro-breweries, bike shops, clothes shops and bookshops are a major draw.

“This adds great character to an area and is a major plus point. We have identified the new Portobello Roads – which 25 years ago helped put Notting Hill on the map. In an increasingly homogenous world, people seek diversity in their surroundings – a specialist coffee shop, a bespoke hat shop or a great world food restaurant can prove a real attraction to buyers. And that has taken over from the Waitrose-effect.”

Landlords, use these findings when considering your next property investment – young tenants will also be attracted to an area boasting independent shops, so find a great hotspot to boost your chances on the lettings market.

If you’re looking to make improvements to your properties, these renovations are the most profitable: /landlords-renovation-projects-profitable/

Landlord Licensing Consultancy is Successful at Awards Show

Published On: July 24, 2017 at 8:09 am

Author: Em Morley

Categories: Landlord News

Tags: Business,landlord licensing,London

Landlord Licensing Consultancy is Successful at Awards Show

An independent landlord licensing consultancy, London Property Licensing (LPL), is pleased to announce its success at the FSB London Business Awards 2017, which has been supporting and rewarding exceptional small businesses across the UK for over 40 years.

At a gala dinner and awards ceremony held last week at the Emirates Stadium, LPL was a finalist in three separate categories: the Property & Construction Business of the Year award, a category open to building and construction companies, estate agents, surveyors and architects; Professional Services Business of the Year; and Micro Business of the Year.

Since launching in 2015, the landlord licensing consultancy’s website has established itself as an essential free information resource for the property industry. It provides a unique service, by mapping out the complex array of property licensing schemes across every London borough.

The LPL website is backed by an expert housing regulation consultancy service that helps landlords and letting agents achieve compliance, including a licence application handling service, which operates throughout the London region.

The Managing Director of LPL, Richard Tacagni, comments on the firm’s success: “Our latest research indicates over 225,000 private rented homes in London need licensing, yet far fewer applications have been submitted. This presents a huge compliance risk to landlords and letting agents who may find themselves operating outside the law.

“By mapping out the licensing schemes across every London borough, we are increasing knowledge and awareness of the requirements, whilst offering a licence application handling service for those who require assistance.”

He adds: “Driving up standards in the private rented sector is central to everything we do, and so I am delighted and humbled that the FSB has recognised our innovative business support service in this way.”

Congratulations to LPL!

Remember that our friends at Just Landlords have been nominated for Best Landlord Insurance Provider at this year’s Insurance Choice Awards. Vote for them by clicking the link below – you could win £1,000:

Property Buyers in London Most Likely to be Gazumped

Published On: July 19, 2017 at 9:43 am

Author: Em Morley

Categories: Property News

Tags: gazumping,homebuyers,London,property sales

Property buyers in London are the most likely to be gazumped out of their purchase, found the latest research by online estate agent eMoov.co.uk.

Property Buyers in London Most Likely to be Gazumped

The agent asked 1,000 UK homeowners whether they were gazumped during their most recent property purchase. The results found that in the last two years, an over-inflating market has seen the practise of gazumping rise from 13% in 2015 to 36% in 2017.

Of the 36% of respondents who have been gazumped, the regional breakdown is as follows:

Although the capital’s property market has seen the largest wobble in buyer interest following the Brexit vote and more recent General Election, London buyers are still the most likely to be gazumped, with 35% of them saying that they have been pipped to the post on their most recent property sale.

Over the last two years, the average house price in the capital has surged by 17%, which could be an influential factor in the increasing number of homeowners being gazumped, which is up from 17% in 2015.

The South East has the second highest rate of gazumping, at 16%, with both this region and London also home to the highest average house prices of all UK areas.

However, the North West (9%), West Midlands (7%), and Yorkshire and the Humber (6%) have seen the next highest levels of gazumping, despite having much lower average house prices.

eMoov also asked those that have been gazumped which was the nearest major city to where they lived. Outside of London, the next highest level of gazumping was in Manchester, at 27%, Birmingham, at 26%, Leeds, at 23%, Cardiff, at 20%, Brighton, at 19%, and Southampton, at 19%.

The Founder and CEO of eMoov, Russell Quirk, responds to the findings: “Unfortunately, it would seem the practise of gazumping is once again becoming more prominent, as market values continue to climb higher. Traditionally, it becomes rife in over-inflated markets, where high demand and higher prices push buyers to resort to dirty tactics in their desperation to secure the property they want.

“In the last few months, the market across the UK and London has cooled, due to levels of uncertainty with the addition of a fall in stock levels, but, despite this, there are pockets of the capital, and elsewhere around the UK, that have remained hot where buyer demand is concerned.”

He continues: “This is demonstrated by some of the more affordable regions of the UK also seeing some of the largest levels of gazumping, such as the North West and the Midlands. The London market remains the most cutthroat by a long shot, however, buyers are still being gazumped nationwide, from Manchester, Liverpool, Newcastle, Leeds, Brighton, Reading and Cardiff.”

One in Four Young Londoners Plan to Move out of the Capital

Published On: July 19, 2017 at 8:11 am

Author: Em Morley

Categories: Property News

Tags: first time buyers,house prices,London,property market

One in four young Londoners are planning to buy their first home outside of the capital, according to a new survey into the sentiment of the region’s young residents.

The cost of living was the main reason cited by 27% of respondents, who believe that it would be too expensive to purchase their first home in the capital.

A further 6% of 25-34-year-old Londoners said they would put down roots elsewhere to give themselves and their future families a better quality of life. Another 8% of the 2,007 young Londoners questioned plan to move out of the capital for “other reasons”.

Excluding the 42% of respondents who answered, “I haven’t thought about this yet”, the results were even stronger. A total of 74% said they will buy their first home outside of London for one of the above reasons.

One in Four Young Londoners Plan to Move out of the Capital

However, one in ten young Londoners said their love for the city would keep them there, while 4% cited “other reasons” as the main factor for staying in the Big Smoke.

The Director of Online Mortgage Advisor, which commissioned the survey, David Bird, says: “The stats from this survey evidence the sentiment that we’ve recognised in our own customers over the past couple of years. The number of first time buyers coming to us with enquiries about mortgages on properties outside the capital is on the rise, and we expect to see this continue as more and more people consider themselves to be priced out of London.

“In light of these results, we’ve created a tool called Is The Grass Greener?, which compares every single UK city, as well as London boroughs, to help first time buyers discover where they can get the most for their money and a quality of life that suits them. We’ve analysed both Government data and national statistics on a number of factors, including house price, crime rate, schooling standards and even the price of a pint!”

Using the tool, prospective first time buyers can see that Liverpool beats Wandsworth – a London borough with a population that is predominantly in its 30s – on statistics such as house prices, average first time buyer house price and cost of living. Manchester also has an average house price that is £429,201 cheaper than Wandsworth’s and has a higher capital growth rate.

The London Borough of Lambeth, which has a similar age demographic to Wandsworth, loses out to other cities, including Bristol, which has a much better crime and safety rate, along with lower petrol prices. According to UKCrimeStats, Bristol has a crime rate of 7.28, while Lambeth’s score is 15.16. This is based on crimes per 1,000 resident individuals.

Mark Homer, the Co-Founder of property education firm Progressive Property, comments: “Many younger Londoners want to live outside the capital as house prices become more detached from incomes, meaning that monthly payments and the deposit required to obtain a mortgage makes living in the capital unaffordable. This, coupled with the fact that many areas around London are still playing catch up with property prices, which have not risen as much since the credit crunch in areas around London as they have within, making these areas more affordable.

“Train services are also becoming quicker, with the East Coast Main Line, Crossrail and HS2 reducing journey times to the city, making commuting a viable option even from locations which were previously discounted as commuter locations. As the population of London grows, this trend is likely to continue, meaning areas surrounding London are likely to experience higher than average house price growth.”

Rose Jinks, of Landlord News and Just Landlords, explains how the change is affecting the private rental sector: “It’s not only first time buyers that are leaving the capital; landlords too are looking to other parts of the UK for high tenant demand and better rental yields.

“This should mean that those moving from London to other thriving cities should find an abundance of suitable rental properties before they can get onto the housing ladder themselves. Investing in large cities outside of the capital can therefore provide a win-win situation for all involved in the property market.”

However, she urges: “As ever, we encourage all landlords that provide rental housing to consider their tenants when setting rent prices, keeping the property safe and complying with rules and regulations governing the private rental sector. This will drastically improve the lives of those unable to buy their own homes.”

Outer London boroughs driving property price growth in the capital

Published On: July 18, 2017 at 10:53 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,house price values,London,London property values

Property prices in London have started to show a recovery since the economic downturn, with prices in some regions doubling during the period.

This has been driven by growth in outer boroughs, according to new research released by Lloyds Bank.

Rises

Average property prices in Greater London have risen by 59% from £362,641 in 2009 to £578,381 in 2016. This was in comparison to growth of 31% across England and Wales as a whole during the same timeframe.

In the City of London, prices have doubled since 2009 to £908,759. This was closely followed by the borough of Waltham Forest, which saw a rise of 97% to £433,105.

On the other hand, Tower Hamlets has seen the worst performance in the capital since the financial crisis, with average property prices rising by 54% between 2009-2016.

Prime Stagnation

The capital’s prime boroughs of the City of London, Westminster and Kensington and Chelsea saw an average increase of 80% between 2009-2014. However, there has been only small growth during the last two years.

Prices in the City of London almost doubled between 2009-2014, from £455,020 to £894,046 – a rise of 97%. Values also rose by 86% in Westminster and by 74% in Kensington and Chelsea. Since then, prices have barely shifted, with a rise of just 2% in City of London and Westminster.

Indeed, the largest growth in the last two years has been seen in London’s outer boroughs. These regions have recorded typical growth of 19% over the period, in comparison to just 4% for prime boroughs and 12% for inner boroughs. 9 of the top 10 growth areas during the same two-year period are within outer boroughs.

Outer London boroughs driving property price growth in the capital

Olympic Gains

Newham and Barking and Dagenham, the two boroughs most impacted by the financial downturn, are now recording substantial growth. The Lloyds report suggests that this is due largely to the regeneration of the regions following the magnificent 2012 Olympic Games.

Average house prices have increased from £269,529 in 2014 to £356,638 in 2016- an increase of 32%. Barking and Dagenham saw an increase of 32%, to £285,129.

Andy Mason, Mortgage Director at Lloyds Bank, said: ‘The financial crisis saw average house prices in London generally remain stable during 2007 and 2009. Following the crisis, the growth in average prices in prime boroughs outpaced other areas in London by nearly double to create its own distinct market.’[1]

‘More recently, our analysis is showing house price growth in outer London boroughs is increasing at a greater pace than inner London boroughs. Average house prices in the most expensive areas are starting to flatten, whereas London’s most affordable areas are showing healthy growth,’ he continued.[1]

Concluding, Mr Mason observed:’ A possible explanation for this is the ongoing legacy from the 2012 Olympic Games and that outer borough areas like Newham will benefit from the Crossrail link to the City due for completion at the end of 2019.’[1]

[1] http://www.propertywire.com/news/uk/prices-london-recovered-economic-downturn-led-outer-boroughs/