Posts with tag: London

Where to Buy Along the Crossrail Route

Published On: May 23, 2016 at 10:03 am

Author:

Categories: Property News

Tags: ,,,

We’ve all heard of Crossrail and the Elizabeth line, but if you’re searching for your next investment hotspot, where should you buy along the route?

Recent reports from Rightmove claim that asking prices along the Elizabeth line have surged by up to a third in the past 12 months alone, and they’re continuing to rise. Analysts predict that the average house price on the Crossrail route will increase by £133,000 between now and when the line launches in 2018/19.

If you’re looking for a lucrative location to invest in, here are the top spots:

Forest Gate

On the southern edge of Epping Forest, neighbouring Stratford and Leytonstone, is Forest Gate. The area has experienced a significant level of gentrification over the last few years, thanks to the Olympic Games and the Westfield shopping centre. Now, the forthcoming arrival of Crossrail is gentrifying the district even further.

Its transport links are definitely appealing to prospective buyers. The Overground takes commuters to the City of London in just 13 minutes, while the Crossrail route will transport locals to Tottenham Court road in 17 minutes.

The zone 3 location boasts a heap of affordable, Victorian houses and is a popular spot for landlords and first time buyers. The average two-bedroom house price is £275,000. London estate agent Portico expects property prices to rise by 10% by the time Crossrail is complete.

Where to Buy Along the Crossrail Route

Where to Buy Along the Crossrail Route

Tottenham Court Road

Named the epicentre of Crossrail, house prices around Tottenham Court Road have soared by 20% since work on the station began. The area is currently undergoing a huge £1 billion redevelopment project, which will deliver new residential, office and retail space, new squares, paths and greenery, and attract new businesses and customers.

Due to the recent Stamp Duty hike for buy-to-let landlords and second homebuyers, prices have stabilised in the area. However, Portico still predicts slight growth of between 2-5% over the next two years.

Farringdon

Farringdon is set to become one of Britain’s busiest train stations when Crossrail arrives, as it will be the only station from which passengers can reach all three London airports, along with Thameslink and Underground trains.

The Sales Manager of Portico’s Bloomsbury branch, Lucy Adamson, says: “Investing in central London in the areas around Tottenham Court Road such as Fitzrovia and Bloomsbury and towards the City in Farringdon have not been considered risky but rather stable in terms of the potential for assured capital growth in recent years, increasing on average by 5% every year in value.

“The Farringdon area guarantees to produce a good return in rental income, due to the continuously increasing demand to live in central areas close to the commercial and transport hubs and universities – and landlords in the area experience, on average, only one week void period between tenancies.”

The area’s desirability is being driven by Crossrail, which will improve connections to the hotspot from outer London and encourage further investment and economic growth.

Acton 

The areas on the western part of the Elizabeth line have seen huge house price growth, thanks to regeneration and shorter journey times. Infrastructure and redevelopment are making a real difference to Acton, and there are some extremely desirable places to live, such as Poet’s Corner, the Mill Hill Conservation Area, or anywhere along the Bedford Park borders. The area directly around the imminent Crossrail station is also highly sought-after.

Many savvy buyers have already purchased properties in Acton, which has an average two-bed house price of £400,000. Portico expects values to increase by 15-20% by the time Crossrail is complete.

Ilford 

Crossrail will finally put Ilford on the Tube map! Although it is not traditionally an elegant place to live, it is certainly becoming gentrified as a result of the new transport plans. New build apartments, trendy eateries and bars are popping up in the east London borough, signalling a wave of new buyers coming into the area.

It is one of the best value spots in London, with an average two-bed house price of just £280,000 – despite values rising since the announcement of Crossrail. Ahead of the line’s completion, Portico forecasts further price rises of 10%. It believes the area will prosper as a result, making it an ideal location to both live and invest in.

Romford

Romford is increasingly becoming a popular choice for homebuyers, as many are driven out of the capital by soaring house prices. The Essex town offers affordable housing (an average two-bed price of £227,000), a quick commute (trains to Liverpool Street take 20 minutes), and a series of fashionable cafes, delis, bars, and independent shops and boutiques.

House prices have already hit record highs in the area due to infrastructure plans, but Portico expects them to surge even further until Crossrail is fully operational in 2019.

Where will you invest?

What Will the Average House Price be in 2030?

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

Author:

Categories: Property News

Tags: ,,,

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.”

House Prices Aren’t Slowing Down in the Majority of London, Reports Agent

Published On: May 17, 2016 at 8:44 am

Author:

Categories: Property News

Tags: ,,,

Despite recent reports, house prices are not slowing down in the majority of London, according to the latest London Hubs Tracker from estate agent Stirling Ackroyd.

Last month, research suggested that the London property market was running out of steam. However, Stirling Ackroyd’s latest study shows that negative price growth is confined to the capital’s traditional prime market.

The agent found that price decreases were only experienced in the top 25% of London’s property market, which saw an average price drop of 0.6% in the last quarter (Q4) of 2015, or an annual fall of 2.4%.

Contrastingly, the remaining 75% of the capital saw a 2% increase in house prices over the same period, or 8.2% over the year.

Overall, the average London house price rose by 1.6% in Q4 2015, now standing at £533,000. For Greater London, this represents annual price growth of 6.6%.

Out of 272 postcode districts in the capital, just 47 experienced price declines in Q4 2015. However, 32 of these areas fall within London’s prime market.

While postcode districts in the top quarter of the property market have a 48% chance of experiencing price decreases, a huge 93% of postcodes in the rest of the capital have a chance of seeing price rises.

The Managing Director of Stirling Ackroyd, Andrew Bridges, explains: “Luxury no longer means profit – or at least you can no longer presume so. London’s hugely diverse property market is undergoing a serious readjustment, with the traditional old heart of prime London under pressure from many fronts – from a low global oil price and China’s economic slowdown, to Stamp Duty reform and international fears of Brexit.

House Prices Aren't Slowing Down in the Majority of London, Reports Agent

House Prices Aren’t Slowing Down in the Majority of London, Reports Agent

“Yet for most of London’s communities, these factors affecting luxury buyers are less important. There are still too few new homes coming onto the majority of the market compared to demand from a growing population – and the majority of the London market is still in tune with, and restrained, by those fundamentals. Anyone who thinks that London property is synonymous with international jet setters is only looking at a very small part of what London has to offer.”

He continues: “There is also an outwards wave of interest, away from the old peaks of property prices. Within the wider spread of London homebuyers, a growing band of increasingly affluent people can no longer afford the most overcrowded traditional areas of prime London – and this demographic of professionals are redefining the map of the capital’s up-and-coming locations. New, dynamic parts of London are emerging further east, driven by a less traditionally exclusive but highly aspirational clientele.”

Postcode districts within the west and southwest have led the slowdown in prime property prices, found the agent.

Areas within the W postcode area include Kensington High Street, which saw the sharpest decrease in Q4 2015, of 3.1%, or 11.8% over the year. Despite the decline, the area still boasts an average house price of £1,779,000, following a 0.5% increase in the previous quarter.

Notting Hill and Chiswick, also within the W district, also saw significant quarterly price declines, of 2.6% and 1.9% respectively, taking average prices to £1,523,000 and £952,000.

Bridges comments: “London’s luxury postcodes are far from invincible, and while these areas will probably rebound in time, the latest blip should act as a healthy reality check – to dispel any assumptions about the top London locations for rising house prices. Cities shift, and as London grows and evolves, the capital will never be static.

“Old heroes such as Kensington and Hampstead are all feeling the housing market heat, but these places are not the norm. Negative house price growth in certain districts is hiding a more positive picture. Overall, London’s housing market is strong and shows no sign of easing up or losing momentum. Later this year, establishment figures of the property landscape might regain their strength; it may be a simple case of post-June investment rises. Or it might be that underlying demand is changing course, and heading to fresh parts of the capital.”

Experiencing the greatest price increases in the capital are the less traditional postcode areas. Eastern Soho’s W1D led the whole of Greater London for price growth, with a quarterly rise of 7.2% to reach £1,162,057. This would represent an annual rate of 32% if it continued. Not far behind is western Soho’s W1F, at 7%.

In outer London, Sutton’s SM1 saw prices jump by 5.2% over the quarter, matching the growth recorded in Croydon’s CR9, taking the average house price to £391,000 and £345,000 respectively. Close behind is Tottenham’s N17, where the average house price rose by 4.9% to £446,000.

Bridges concludes: “Soho outperforming the likes of Kensington or Notting Hill would have seemed absurd not so long ago. But this is a sign of a changing city, and a changing property market.

“Soho has always seemed at odds with more conventional parts of the West End, offering a vibrant culture more in tune with east London. It now seems to be making a break for freedom with house price growth outpacing its underperforming next-door neighbours. And further afield, a wave eastwards seems to be accelerating, showing the changing nature of momentum across the capital. This surge in prices proves not all of London is refusing to slow down or take a breather – the rest of the capital is racing ahead.”

If you are thinking of investing in the capital, we have the top eight spots to purchase a buy-to-let property.

The Top 8 Spots to Invest in London

Published On: May 14, 2016 at 8:00 am

Author:

Categories: Landlord News

Tags: ,,,,

As the new Mayor of London, Sadiq Khan, is focusing on tackling the shortage of housing in the capital, now is a great time to get a slice of the action.

With two million private tenants currently residing in London, demand for good quality homes from good landlords is set to remain strong.

London estate agent Portico has put together a list of eight buy-to-let hotspots that should deliver both high rental yields and strong capital growth in the future.

  1. Acton

Although Crossrail – the new high frequency railway from London to the South East – isn’t set to launch until 2018, the east-west line is already forming property hotspots along its route. Portico expects property prices to have risen by at least 15-20% in Acton by the time the Elizabeth Line is complete.

Additionally, the nearby Old Oak Common is due to become a hub for Crossrail and High Speed 2. With the regeneration project likely to have a positive impact on the surrounding areas, Acton’s popularity with renters is set to surge.

  1. King’s Cross

Following recent large investment projects in the land just north of the station, King’s Cross is fast becoming a new hotspot for commercial and cultural activity.

The Bloomsbury Senior Sales Consultant at Portico, Lucy Adamson, looks at values in the area: “Property prices are starting to reflect the area’s growing popularity, and the new luxury flats in the recently completed Plimsoll Building are selling upwards of £1,400 per square foot, which is a record high for the area. This is starting to have a positive ripple effect on the surrounding areas as a whole in all directions: north towards Caledonian Road, east towards Angel, and south towards Bloomsbury.

“There are still many opportunities to invest with a view to solid capital growth during the next five to ten years, as further exciting projects are completed, including Google’s headquarters, the large Francis Crick Institute medical research centre, and various other head offices for well-known brands, such as New Look.”

She adds: “I also anticipate that the demand from professional tenants for high quality housing in the local area will sky rocket as a result of the new jobs generated. All of this will add to the existing fact that King’s Cross is in a fantastic central location with one of the best stations for access to multiple transport links across all of London, a connection to mainland Europe in only a few hours via the Eurostar, and all within walking distance of the West End.”

  1. Elephant and Castle
The Top 8 Spots to Invest in London

The Top 8 Spots to Invest in London

Traditionally not the most appealing place to live, things are now changing in Elephant and Castle. Currently going through a £3 billion redevelopment, the landscape in the area is set to be transformed. Both the Heygate council estate and outdated shopping centre will be demolished to make way for 1,200 new houses and around 2,500 new apartments and shops. The regeneration will also involve a new pedestrianised town centre, market square, an integrated public transport hub and new green spaces.

Portico’s Dulwich Sales Manager, Tony Chryseliou, expects property and rent prices to slowly rise in the area: “Elephant and Castle is definitely an up-and-coming hotspot. Several new luxury developments are being constructed as part of the large-scale regeneration project, which are attracting a younger, more affluent demographic to the area.

“It’s also on the cusp of zone 1 and has excellent transport links to the Square Mile, so it’s better to buy now while prices are relatively affordable.”

  1. Oval/Stockwell

It’s good news for Battersea – the area is getting the Tube! The Northern Line is set to be extended to Battersea, with two new stations at Nine Elms – London’s biggest regeneration zone – and Battersea Power Station by 2020. The long-term plan is to extend the Northern Line even further to Clapham Junction, which will likely push up prices in the area even further.

Luke Parle, the Battersea Sales Manager at Portico, comments: “Nine Elms and the new build market in Battersea has taken a bit of a hit recently, possibly as a result of an influx of new builds being offered to the market in one go. This is, however, having a positive outcome for pre-owned homes, specifically anything that is older than 50 years. People who can’t afford new build stock are buying up the older stock in anticipation of long-term capital growth in the area once the new build projects have been finished (circa 2020).”

Although Nine Elms has been hit recently, Oval and Stockwell have really benefitted from being close to the redevelopment zone. Transport links in both areas are great; the only thing that has previous held both spots back is the lack of amenities. However, both have seen a flood of fashionable new cafes, shops and bars open up recently.

  1. Streatham 

Homebuyers are flocking to Streatham, which is much more affordable than nearby Clapham and Balham, and has excellent transport links to London Victoria and a range of good schools.

Over the last 12 months, house prices have risen by 10%, with Portico forecasting a further 5% increase over the second half of the year.

Streatham Hill is also fast becoming the buy-to-let capital of south London, with average rental yields of 4.4%.

The Managing Director of Portico, Robert Nichols, says: “Landlords are now looking at Streatham Hill for a strong return – an area gaining the nickname the Clapham Overflow. Although the area is still cheaper than Clapham, the price divide is getting smaller and we are seeing a large number of renters move into the SW2 area because Clapham has become unaffordable for some.”

  1. Brixton

Brixton became popular as a cheaper alternative to neighbouring Clapham, but now buyers and tenants are moving here because they love it. Not only is it more affordable, but it’s also in zone 2 at the end of the Victoria Line. Brixton is one of the most gentrified spots in London, filled with modern eateries, bars and boutiques. However, locals can still enjoy the cultural treats found within its famous market. The average price of a one-bedroom home here is now around £400,000, with prices set to rise by a further 5% this year – so get in quick!

  1. Archway

While Archway is still a lot cheaper than its north London neighbours, the Camden Sales Manager at Portico, Stephanie Powell, expects prices to increase by at least 5% this year.

Last month, Transport for London (TfL) began work transforming Archway by removing the much hated one-way system in the area, and replacing it with two-way traffic lanes, improved pedestrian crossings and a new central piazza. Work is due for completion by 2017.

  1. Tottenham Hale

Despite having a bit of a rough reputation, Tottenham Hale is becoming a first time buyer hotspot. But there will always be those who cannot afford to buy and must rent instead.

It is still a fairly cheap area to buy and rent – a one-bed property would cost around £300,000 or £1,400 per month. Plus, you can get to the City of London in less than 15 minutes on the Tube and regeneration is starting to smarten up the area.

Tottenham Hale is also undergoing a transport revival, with £110m being spent on a new Tube, rail and bus station, road network improvements and public realm works, which will be completed by 2017. It may also receive a Crossrail 2 station, which would push prices up by a further 10%. Now is definitely a good time to buy!

If you do decide to become a London landlord, make sure you remember to stick to the law and avoid being put on Sadiq Khan’s new rogue landlord database!

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

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

Author:

Categories: Property News

Tags: ,,,

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.

Mayor of London Receives Support for Rent Controls

Published On: May 12, 2016 at 9:21 am

Author:

Categories: Landlord News

Tags: ,,,,,

Sadiq Khan, the new Mayor of London, has received support from property professionals for his campaign to introduce rent controls in the capital.

The average private rent price in London has hit a huge 62% of the typical wage, making housing unaffordable for the average tenant.

Khan is continuing to focus on the capital’s housing crisis, after his mayoral election campaign emphasised the issue that affects many Londoners.

However, Khan’s plans will require the co-operation of central Government to enforce any regulations on the private rental sector.

His measures have been criticised by Shaun Bailey, a Conservative politician elected to the London Assembly, who called them “Soviet-style rent controls”1.

Mayor of London Receives Support for Rent Controls

Mayor of London Receives Support for Rent Controls

Despite this, some property experts have spoken out in support of rent stabilisation measures.

The Head of Residential Research at JLL estate agent, Adam Challis, explains: “This is being described as rent control, but it is more properly described as rent indexing, and, set at the right level, it is completely palatable to investors. It offers a sense of relative certainty over what future rental growth is going to be.”

Richard Donnell, the Director of Research at Hometrack, believes large-scale landlords will accept a measure of control on rents – a finding reflected by a University of Cambridge study for the London Assembly last year.

These measures are often accompanied by longer tenancies, which was included in Zac Goldsmith’s – Khan’s main rival – mayoral manifesto.

However, Lucian Cook, the Director of Residential Research at Savills estate agent, claims: “Anything that involves capping rents may be a double-edged sword.”1 He insists that the fundamental problem lies in the shortage of supply of new homes.

More politically achievable is a London living rent, which Khan says would take the form of rents capped at one-third of the local average income, rather than market rents.

Challis claims this could replace existing affordable rents, which are often required within new developments under planning agreements. Part of Khan’s housing plan is to insist that 50% of all new home developments are affordable.

In the private rental sector, affordable rents can currently cost up to 80% of market rates.

Challis believes: “To implement this on new properties would be relatively easy – it’s already what we do in various forms within the affordable housing spectrum. That’s something that would probably be supported by the local population and by local authorities.”1

Julian Goddard, a partner at property advisers Daniel Watney, thinks there are more serious issues to look at: “My recommendation would be to look at the supply side and take measures to ease the viability of new schemes.”1

The Policy Manager at Generation Rent, Dan Wilson Craw, insists that rents linked to wages should be introduced across the market: “The living rent seems to be spooking a lot of landlords, but it is not big enough for them to worry about – we would like it to be far more widespread.”1

Yesterday, we reported on Khan’s plans to release a new list of rogue landlords. The database would ensure that tenants could check whether a landlord has committed any housing offences.

Do you believe that Khan’s plans will benefit all in London’s private rental sector?

1 https://next.ft.com/content/f432c7aa-16bd-11e6-b197-a4af20d5575e