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London House Price News: Confidence in housing market on the up

Wed, 25 Apr 2012 12:42:37 +0100

Confidence in the housing market is increasing despite the current economic climate.

The Halifax’s latest Housing Market Confidence tracker found that one in three people feel that house prices nationally are set to rise, almost double the number which predicted a fall.

Londoners remain the ones who are the most confident, followed by the East of England, the South West and the South East.

Some 71 per cent also predicted that the cost of renting in the private sector will also rise in the next year, with just two per cent believing there will be fall.

Martin Ellis, housing economist at Halifax, said: "It is encouraging that the level of consumer confidence in the housing market continues to improve, albeit from a very low base.”

And London house prices are likely to increase further when public transport improvements are completed.

Steven Herd, managing director at MyLondonHome, recently said that the Cross Rail network in particular will provide a significant boast to the housing market.

London House Price News

London Property News: London property is recession-proof

Tue, 27 Mar 2012 16:49:13 +0100

Property in prime London locations has largely been unaffected by the economic downturn of the past few years.

Hugh Best, head of investment management at London Central Portfolio, believes that while home values in many parts of the country have fallen or stagnated recently, London house prices have bucked the trend by seeing healthy increases.

"There are a lot of institutional investors, pension funds, offices as alternative assets,” he said.

“As a result of that and as a result of the fact that it is seen as the safe haven, it is more robust than gold at the moment and we very much expect to see prices continue to go up."

His comments echo those made recently by Yolande Barnes, head of residential research at Savills. She described London as a “safe haven” for property investors as rises in values show no sign of abating.

Mortgage and Home Loan News: Government launches NewBuy Guarantee scheme

Tue, 13 Mar 2012 13:29:19 +0000

The government expects its NewBuy Guarantee to help more than 100,000 first time buyers get on the property ladder.

The scheme has been launched this week with the hope that it will bring together lenders, builders and buyers with smaller deposits.

The thinking behind the NewBuy Guarantee is that it will increase demand in homes which will also give a boost to the house builders and the economy.

Unveiling the plans, Prime Minister David Cameron stated: "Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home.

"We are acting today across the board to make this happen.”

The scheme is set to be supported by the Nationwide, Barclays and NatWest, each of which will make mortgages available up to 95 per cent loan to value (LTV). Santander and the Halifax are expected to join at a later date.

First Time Property Buyers News: Surveyors see jump in first time activity

Tue, 14 Feb 2012 17:11:31 +0000

First-time buyers clambering to take advantage of the stamp duty holiday as pushed house prices up in the past month, claims the Royal Institute of Chartered Surveyors (RICS)

According to the body’s UK Housing Market survey, twelve per cent more surveyors across the country have a rise in sales activity since the beginning of the year compared to the same period in 2011.

A particular driver has been people looking to get on the housing ladder quickly because they wish to avoid paying stamp duty.

As of March 24th, first time buyers will no longer be exempt from the land tax on property purchases for less than £250,000 and surveyors have noted that this has pushed up activity at the lower end of the market.

Michael Newey, RICS housing spokesperson, said: "With first time buyers no longer exempt from stamp duty as of the end of March, it seems that some are looking to purchase homes before the deadline and, as a result, surveyors are relatively optimistic for the coming months.”

The numbers back up figures released this week by the Council of Mortgage Lenders (CML), which showed that the number of people looking for their first home rose sharply in November and December.

London Property Market News: London is a safe haven despite Eurozone issues

Fri, 03 Feb 2012 15:59:41 +0000

Problems in the eurozone have actually strengthened the London property market.

This is according to Yolande Barnes, head of residential research at Savills, who believes that international investors have seen the capital as a safe bet for their money.

And she also feels that London, as the driver in the UK economy, would still perform on domestically generated wealth if the foreign buyers were to leave the market again in the coming years.

“We have seen untoward global events – such as growing crisis in the eurozone and the threat of an Asian slowdown, for example - actually boost London as a ‘safe haven’, wealth preservation destination for global investors,” Ms Barnes said.

The value of prime property in London rose by 13 per cent in 2011.

Properties priced between £2.5 million and £5 million saw the largest growth, increasing by 16 per cent on average, while those valued over £10 million increased by 12 per cent.

London Property Market News: Olympics will lead to London price rises

Fri, 23 Dec 2011 17:57:24 +0000

Next year will be far from easy for estate agents but the London Olympics will create a mini boom in the capital.

This is according to Graham Lock, director of Housenetwork.co.uk, who said that the market is far from buoyant but next summer’s games will lead to a continuation of house price rises.

“For 2012 we're probably going to see another five per cent [price] increase, which obviously has a lot do with the Olympics and London being the spotlight,” he said.

“I think the first six months, you'll see five per cent and then it depends on the legacy of the Olympics - what's going to happen after.”

Recent predictions have also suggested that the hotelier trade will see a major boost in 2012 thanks to the Olympics.

Mark Blick, managing director of brokerage consultancy Soric International, said in October that the UK remains a strong place for hotels to operate in and many individuals and firms will reap the rewards after next year’s big sporting event.

London Property to Rent: Now is the time to buy rental property

Tue, 22 Nov 2011 16:59:00 +0000

Now could not be a better time for landlords to add to their portfolio of rental properties, claims one specialist.

Iqbal Hussain, property consultant at Knight Knox International, believes that a slight slowdown in the housing market opens a whole host of investment opportunities to cash buyers.

He said: "At the moment, I would say that it is the best time to buy. With banks not lending much, those that have got the cash available can take advantage.

"For anyone who has got cash…it is a good time to purchase anything."

He added that even for those looking to raise funds on a mortgage, the market is picking up and deals are out there for those prepared to look around.

Figures released by the Council of Mortgage Lenders (CML) show that buy to let lending grew by 16 per cent in the third quarter of this year and was at its highest level since the onset of the credit crunch three years ago.

London Property to Rent

London Property Market News: Time is right to buy in London

Thu, 17 Nov 2011 17:57:05 +0000

Now is still a great time to invest in a buy to let property in London, says the Association of Residential Letting Agents (ARLA).

Figures released by the body show that 60 per cent of its members have seen an increase in enquiries for rental properties in the past two years.

Additionally, the period in which properties are unoccupied between rental contracts has fallen sharply, with an average of just 2.7 weeks now.

"Three-quarters of our members are reporting that demand for rental property is outstripping supply and, with rental returns currently at five per cent, anyone thinking about investing a property to rent could be well-placed to consider their options in the coming months," said Ian Potter, operations manager at ARLA.

Mr Potter added that the services of a professional residential letting agent should be sought out by anyone moving into the buy to let market.

Earlier this week Malcolm Harrison of the Tenancy Deposit Scheme said that using a professional lettings agency is one of the best things both tenants and would-be landlords can do if they wish the rental period to be a successful one.

London Property Market News

London Property Market News: Capital gains for those that play it safe

Fri, 11 Nov 2011 16:40:07 +0000

London is a haven for people looking to make a safe investment in bricks and mortar, says a leading property magazine.

Richard Bowser, editor of Property Investment News, said that capital remains a magnet for those looking for a solid long-term venture as values have risen by an average of nine per cent each year despite an otherwise gloomy economic climate.

He added that the rental market also shows no signs of slowing down with yields up by some 23 per cent on average over the past two years.

Mr Bowser feels a major factor in the London property market at present is the influx of cash-rich buyers from other countries.

He said: "Many overseas buyers have also been attracted, as they are buying with greatly increased purchasing power as a result of the 25 to 30 per cent decline in the pound against most global currencies since early 2007."

A particular area of interest for those from overseas is properties in the £1 million-plus market. According to figures released last month by Lloyds TSB, there were 3,375 purchases in London for that price or more during the first six months of 2011.

London Property Market News

London Property News: Capital continues to drive property market

Wed, 02 Nov 2011 11:58:35 +0000

London property continues to be the driving force in the housing market, according to data released by the Agency Express Property Activity Index.

Nationally the number of properties sold in October rose by 7.5 per cent compared to the previous month, while the amount of new ‘For Sale’ listings recorded jumped up by 0.8 per cent.

But the capital claimed the top spot for property boom yet again, posting sales rises of 29.4 per cent on September.

In terms of for sale listings, the south-east region saw an increase of 5.5 per cent.

Another area doing well in terms of sales is the West Midlands, which enjoyed a 28.8 rise in property take up, while central England was up 12.1 per cent.

Stephen Watson, managing director, Agency Express, said: “These figures reveal some encouraging signs for many regions and cities across the UK and should go some way to installing a little more consumer confidence in the housing market.”

The capital remains a buoyant market for prospective landlords also. Last month research conducted by Townends suggested that void periods for property to rent in London were practically non-existent.

London Property News

London Property News: Capital drives £1 million property boom

Tue, 25 Oct 2011 12:05:59 +0100

The number of properties being sold for £1 million or over is now at the highest level since the market peaked in 2007, according to Lloyds TSB.

The first six months of 2011 saw 3,375 sales of £1 million or more, up ten per cent from the same period in 2010.

London property prices were the key factor in the rises, with sales accounting for 79 per cent of the total figure at 2,163.

The west London district of Kensington and Chelsea accounted for the largest number of sales but purchases in North London shot up as well, with Barnet, Camden and Islington all fairing well.

"The number of homes sold for at least a £1 million has increased significantly over

the past year in marked contrast to the rather more subdued picture across the rest

of the housing market," Suren Thiru, Lloyds TSB housing economist, said.

She added that a strong demand from wealthy overseas-based buyers, coupled with a shortage of properties at the top end of the market, had been the driving factor in the figures rising.

Despite the boom at the top of the market, figures released by the Nationwide show property values nationally rose by just 0.1 per cent in September.

London Property Market News

London Property News: Greeks flock to security of London property market

Fri, 21 Oct 2011 10:12:17 +0100

With their own economy continuing to flatline, growing numbers of Greek nationals are opting to put their money into London property investments, it has been reported.

Over the past couple of years, property industry experts have noted a marked rise in the number of cash-rich foreigners snapping up assets in the capital, for example UAE residents purchasing flats and houses for sale in Maida Vale and Belsize Park.

Now, the Evening Standard has revealed that Greeks are the latest group to join in the rush for homes in the city, citing Knight Frank figures that show they have invested a collective £250 million in the residential property sector over the last 12 months alone.

Furthermore, this trend is set to continue as wealthy Greeks look to move their money so as to avoid ongoing efforts to boost the national coffers through higher taxes.

Meanwhile, Australian action man Hugh Jackman has become the latest big-name celebrity to be linked with a new London home after he told the website findaproperty.com that he regrets giving up the property he once owned in Pimlico.

London Property Market News

London estate agents News: Overseas buyers dominate luxury end of market

Tue, 18 Oct 2011 13:44:45 +0100

The number of cash-rich overseas buyers putting money into the luxury end of the London property market has continued to rise over the past few months, it has been revealed.

Newly-published figures show that the number of properties being sold for £5 million or more totalled 262 over the first nine months of the year.

This compares with the figure of 200 recorded for the same period of 2010, showing even the highest London property prices are not deterring high-wealth individuals from buying in the capital.

Notably, Savills, which has compiled these latest figures, has also revealed that overseas buyers now account for 65 per cent of all the sales completed in this top end of the sector, with most of them keen to buy in Mayfair, Knightsbridge and Belgravia.

Additionally, the figures show buyers from the Middles East and the former Soviet Union to be the best-represented at this end of the market, while growing numbers of buyers from North Africa are also now putting serious money into the London residential property sector.

Just last month, a report released by Savills revealed London to be one of the ten most expensive global cities to live in, though Hong Kong trumped it to the number one spot.

London House Price News

London House Price News: House prices 'will undergo sharp swings'

Fri, 14 Oct 2011 09:59:23 +0100

London house prices, as well as those in other areas of the UK, could be subjected to "sharp swings" this year because of various factors, PricedOut has stated.

Matt Griffith, spokesman for the campaign organisation, commented that Britain's housing market tends to behave like "a rollercoaster".

"This volatility is underpinned by its two most important factors - a very unhealthy record of house building and a mortgage industry that has specialised in excesses, both during the boom and during the credit crunch," he noted.

"These two issues will continue to leave the UK vulnerable to sharp swings in prices."

Mr Griffith argued that the government should address the causes of this volatility by increasing support to house building and tackling the UK's "dysfunctional" planning permission system.

His remarks come after a Centre for Economics and Business Research report predicted that the market's recovery will stall this year, leading house prices to fall 1.7 per cent on last year's values.

London House Price News

London Property Market News: Supply is set to increase

Fri, 14 Oct 2011 09:00:45 +0100

Now is a good time to look for high end property sales and rentals as more supply is set to come onto the market.

This is the view of property expert Nigel Ellis, who said: "My experience is that there are more people perhaps beginning to think that now is the time to take the profit and take advantage of the situation.

"The attitude is, 'I will stick it on at a high price and if I don't sell then I don't mind because the mortgage isn't killing me'," he explained.

Therefore, as more supply comes onto the London property market, prospective homeowners will have a larger choice and sellers might be more willing to negotiate.

Mr Ellis' remarks come after research showed the top end of the London property market is appealing to international investors as much as the domestic rich, so price performance is being capped by global economic and wealth trends as well as by national factors.

London Property Market News

London Estate Agents News: Small properties 'in high demand'

Fri, 30 Sep 2011 12:07:09 +0100

Owners of one and two-bedroom flats and houses for sale in Queen Park, London, could be in an advantageous position because such property is currently experiencing high demand.

Naomi Heaton, chief executive of the London Central Portfolio, explained: "This is not only because it is the most attractive to the astute investor who recognises that the smaller properties are in short supply and are therefore very quick and easy to rent, it is also because the increase in prices has forced more people into this bracket who previously might have been able to target larger units."

However, she noted, many larger properties remain unsold because their owners are in no particular hurry to sell and prefer to hold out for price increases.

Ms Heaton's remarks came after research from Knight Frank revealed prime London property prices rose 0.6 per cent this month, nudging annual growth up to 11.4 per cent.

London Estate Agents News

London Housing Market News: High end sales 'witnessing significant gains'

Tue, 20 Sep 2011 15:12:33 +0100

High end property sales and rentals could be a good aspect of the market for well-off house hunters to consider, according to IPINglobal.com.

Peter Mindenhall, writer and researcher at the website, noted: "High-end or 'prime residential property' in London has seen some significant gains over the past couple of years - some 31 per cent since 2009, despite the recession."

Despite the impressive-sounding figures, he pointed out that the turnover of property sales at this level is "markedly less" than what the media term as 'average' priced residences.

"The volume of buyers able to purchase in this price bracket is significantly less of course, but when the overall market is falling and interest rates are at an all-time low, it's not unusual to see a rise in the volume of sales," Mr Mindenhall remarked.

In turn, this supports and increases asking prices of high end property over time, particularly in London and other high-demand locations.

"As a result the high-end market is almost self-perpetuating, which - if you can afford it - makes it an ideal investment in the current market," the property expert added.

London Housing Market News

London Property to Rent: Affordable housing in London could address crisis

Wed, 31 Aug 2011 16:57:08 +0100

More affordable housing in London is needed to address the current housing crisis.

Simon Nunn, assistant director of the National Housing Federation, told the BBC Wake Up To Money podcast that the UK is experiencing a "broken" housing market because of the "fundamental problem [of] lack of supply".

"Last year we built fewer homes in this country than at any point since the 1920s. That impacts across the board on the housing market," he noted.

"It means that people who aspire to home ownership, especially first time buyers, are locked out of the market."

According to the organisation's research, the 4.5 million people currently on the waiting list for affordable housing will have their hopes dashed, while in the private rented sector, tenants will face rent rises of 20 per cent in the next five years.

"We're often considered to be a home-owning society and a home-owning democracy and that process seems to be in reverse at the moment," Mr Nunn added.

London Property to Rent

London Rental Property News: London home ownership 'set to decline'

Tue, 30 Aug 2011 16:47:30 +0100

Now could be a good time to be a landlord with property to rent in Hocroft Estate, London, as research shows the private rented sector is predicted to be hit by high demand in the next decade.

A survey by the National Housing Federation pointed out that large deposits, rising London house prices and strict UK mortgage lending criteria have worked to lower home ownership levels in the capital in recent years.

The research also found that the majority of people residing in London will rent by 2021, with owner occupier numbers falling from 51.6 per cent to 44 per cent by the same year.

Assistant director Kate Dodsworth commented: "At the heart of this crisis is a chronic shortage of new homes.

"Ministers need to make unused public land available to housing associations, local authorities must assess the level of housing need in their area and housing has to be finally treated as a top political priority."

London Rental Property News

London House Price News: Major fluctuations in price 'are not expected'

Mon, 22 Aug 2011 15:17:37 +0100

London house prices could be affected by the recent US credit rating downgrading over the medium term, according to London Central Portfolio.

People searching for flats and houses for sale in Kilburn, London, would do well to remember that property does not react to a volatile market in the same way that stocks and shares do.

Hugh Best, head of investment management at the company, explained: "We don't expect any major fluctuations [to be] caused by the current circumstances on the market.

"But we very much expect it to carry on in an upward trend and we always say [about] the market that it is not a question of getting the timing right but having the time in the market. So time in - not timing."

Mr Best added that it will be "interesting" to see how central London property prices are affected over the next few weeks by the US credit news, but on the whole, house-hunters should not expect any major repercussions.

London House Price News