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London Property Market News: New mayor needs to prioritise affordable housing schemes in London

Tue, 08 May 2012 14:00:57 +0100

Whoever wins the Mayoral election must prioritise the need for affordable housing in London.

This is according to Grenville Turner, chief executive of Countrywide. He believes that the person elected to office needs to ensure that more is done to help people in the capital find a home which is both suitable for their needs and also not too heavy on their pocket.

Mr Turner said that without question London is the “property capital of the world”, but he is concerned that too many people are being priced out of the market in certain regions by investment from overseas.

“We urge the new mayor to recognise the importance of each sector in the London market and place the issue of the shortage of affordable housing in the city high on their agenda,” he said.

He added that restrictions in mortgage lending was another key problem faced by Londoners at present.

London Property Market News

London Property Market News: Vendors need to realistic when selling

Thu, 26 Apr 2012 12:56:39 +0100

While many areas of the UK are seeing healthy property price rises, it’s important to be realistic when it comes to putting your home on the market.

Jane Marr, commercial director of the Little House Company, believes that while the market is still moving some vendors are not helping themselves by setting their asking price too high.

“Determined sellers should be realistic and price a property to sell,” she said.

“Hopefully those who are being unrealistic will drop prices once they see the sort of offers serious buyers are prepared to make.”

She added that movement of homes in some areas is slower than it should be because of price hikes. In particular, first time buyers are finding it difficult to get their first step on the property ladder.

In the South East the average home value is £250,045 according to the Land Registry, making it 9.21 times the average London salary of £27,128.

London Property Market News

London Property Market News: Londoners willing to shell out for homes near stations

Thu, 26 Apr 2012 12:53:24 +0100

A new study by the Nationwide Building Society has found that people looking to buy a property in London are willing to pay as much as £27,000 more for one if it is close to a tube station.

London property prices have remained stable throughout the economic downturn but it seems that home which have easy commuter links are the most desirable.

Nationwide says that homes close to the Circle Line are the most expensive, while those near to Metropolitan line are the cheapest. However, property values in all areas on the London underground network have seen significant rises in the past two years.

Robert Gardner, chief economist at the building society, explained: "People are willing to pay a significant premium to be close to a station and suggests that this premium has increased relative to two years ago."

“A property located 500 metres from a station attracts a nine per cent price premium (approximately £27,000 on a typical London home) over an otherwise identical property 1,500 metres from a station”

London Property Market News

London House Price News: A loft conversion could add significant sums to your home value

Mon, 23 Apr 2012 17:32:31 +0100

No matter what your budget is you can add to your home’s value and desirability with a few simple improvements, the editor of one leading DIY magazine has stated.

Vendors should always think hard about how they can maximise their asking price when putting a property on the market.

Jason Orme, editor of Homebuilding and Renovating magazine, said if you’ve only got a few hundred pounds to spend then redecorating and changing old carpets could be a good move.

But he says if your budget is bigger, then work at the top of the house will significantly add value.

"If you are looking at £10,000 to £30,000 then there is the potential for a loft conversion or small extension. That may well be the way to maximise the value there,” Mr Orme said.

Loft conversions are considered to be ‘permitted developments’ so in most circumstances planning permission is not required. However, if you extend or alter the roof space an application may have to be made.

London House Price News

London Property Price News: Vendors need to be careful when decorating before putting home up for sale

Thu, 19 Apr 2012 15:38:46 +0100

When looking to put your property on the market it often makes sense to first carry out a bit of DIY.

Indeed, a quick spruce up around the place can really add pounds to your home’s value, but doing it to your own individual taste can also have a detrimental effect.

Anne-Maria DeSouza editor of Build It and Home Improvement magazine believes that while a lick of paint here and some new shelves there could be an important step in maximising your properties appeal to potential buyers, if you do it to your own taste you could in fact put people off.

She says that the best thing you can do is consult your estate agent and ask them questions around what can add value, what is popular in the area and “what is going to make buyers give you that extra £2,000 for your home.”

She added: “Any home improvement work is going to add value to your home, but of course you need to offset that with the cost you've laid out to do it.

“You need to think about what you can afford – you're not going to go and put in a £20,000 kitchen if that's something you think won't add value to your home and you don't really use the kitchen anyway – you just need to balance it yourself.

“You need to think about what you're going to use and what people are going to be looking for when you sell on the home, and balance those against each other."

The National Home Improvement Council (NHIC) recently said that the area which usually has the biggest impact when it comes to wooing buyers is the kitchen and your attention should be focussed on making it as presentable as possible.

This is because kitchens are now largely seen as living spaces rather than places to just cook and prepare food so a good kitchen is extremely desirable.

London Property Market News: Transport improvements will boost market further

Thu, 12 Apr 2012 11:37:28 +0100

The value of properties right across London will be boosted further when plans to enhance the capital’s transport links are completed.

This is according to Steven Herd, managing director at MyLondonHome, who believes that schemes, Crossrail in particular, will add pounds to London house prices because one of the key things people look for when buying a home is good commuter links.

“As well as easing many of London's transport headaches, it will also provide access to thousands of job opportunities and encourage regeneration,” Mr Herd said.

“It is sure to have a positive effect on London as a whole. As the Crossrail project does not have direct routes into the south-east the benefits are questionable to the immediate area."

When completed Crossrail will link towns and districts on the western edge of London with station’s in the centre of the capital. It is expected to be completed in either 2018 or 2019.

London Property Market News

UK Property Portal News: City affordability at its best for nearly a decade

Mon, 02 Apr 2012 11:07:06 +0100

Affordability in cities is at its best level for almost a decade, a new study from Lloyds TSB shows.

According to the bank, the average price of a city home stands at £173,202 and is 5.5 times the average person’s annual earnings. This represents the lowest ratio since 2003 when house values stood at 5.3 times the normal person’s income.

Salford, in the North West, is the most affordable city to live in the UK, with an average house price of £102,391. The most unaffordable area is Truro in the South West, where houses cost almost ten times that of the average income in the region. Finding affordable housing in London has also been a problem for many.

“The marked improvement in city affordability is likely to help support demand for those able to enter the housing market,” Suren Thiru, housing economist at Lloyds TSB, said.

“Much of this benefit, however, maybe offset by the continuing difficulties many households face in raising a deposit and uncertainty over the outlook for the UK economy.”

UK Property Portal News

London House Price News: Vendors willing to wait to get the right price

Thu, 29 Mar 2012 10:42:16 +0100

Property vendors are willing to wait longer to find a buyer than ever before.

According to a new study conducted by MeetMyAgent.co.uk, people are happy to wait longer to get the offer they want for their home rather than have reduce their price to entice people in.

Indeed, 41 per cent of estate agents questioned said that they are often showing 10 or more prospective buyers around a property before an offer is accepted.

Ashley Alexander, director of MeetMyAgent.co.uk, believes this is because staying in the property for long is affordable and thus people do not see any reason to rush into a sale.

“Because servicing their mortgages remains cheap, sellers can play a long game. With interest rates expected to remain at their current level for 2012 and on into 2013, this Mexican standoff could continue for some time yet,” he told MyIntroducer.co.uk.

Despite this, 93 per cent of agents said that vendors could make the sales process easier by being at least a little more reasonable with their value expectations.

London House Price News

NAEA News: Vendors need to give their property Streets Appeal

Mon, 26 Mar 2012 16:59:43 +0100

The National Association of Estate Agents (NAEA) is advising property vendors not to just sit back and hope potential buyers come to them.

The body says that buyers have to be drawn in by making their property as appealing as possible.

This includes ensuring that the outside of the property has ‘streets appeal’ by making it as presentable as possible because first impressions can be make or break when it comes to agreeing a sale.

Thinking more like a buyer rather than a seller is also important. This basically means being subtle with your personal items so that the property seems lived in but not cluttered and makes it easier for a buyer to see where they could add their own personal touches.

Painting rooms in neutral colours is another top tip as it will appeal to as many people as possible.

Wendy Evans Scott, president of the NAEA, said: "Sensible pricing is an absolute must to ensure a quick sale, but there are plenty of other small and inexpensive changes owners could make to their property, to help it stand out for all the right reasons."

London Property Price News: Vendors should look to improve their kitchen when selling a property

Thu, 22 Mar 2012 14:23:27 +0000

Extending your kitchen space is a good way to attract potential buyers.

This is according to the National Home Improvement Council (NHIC), which believes that kitchens are increasingly becoming living spaces for families and vendors could be missing a proverbial trick if they don't make theirs as presentable as possible.

"Kitchens are a big influence. They are really becoming the centre of the house. They are becoming an area not just for cooking, but also an area where people can relax. Having a good kitchen is a big selling feature for a house," said Andrew Leech, director of the NHIC.

"Second is the bathroom - people do look at having a really good bathroom - which has appliances that are water-conserving."

He added that he can see a time in the not so distant future where houses have to meet certain energy efficiency guidelines before they can be sold.

London House Price News: Number of people expecting home value rises shoots up

Mon, 19 Mar 2012 14:30:44 +0000

There has been a rise in the number of people which expect to see property prices rise this year.

According to the Building Societies Association (BSA) some 41 per cent of consumers expect home values to go up before the end of December, compared to 33 per cent three months ago.

Those surveyed in the South East were the most confident, with 53 per cent predicting a rise and 14 per cent feeling a fall is on the horizon. The other 33 per cent were unsure either way.

In terms of those looking to get a foot on the property ladder, 12 per cent cited stamp duty as a barrier, while 56 per cent said that they were concerned about their job prospects.

Paul Broadhead, head of mortgage policy at the BSA said: "It is good to see some positive indicators, price change or an expectation of price change can stimulate activity."

He added: "Building societies and other mutual lenders are doing their bit with some increasing lending generally in 2012, a rise in the number of higher loan to value ratio mortgages for first time buyers plus participation in buy to let and alternatives such as shared ownership and self build."

London Property Value News: Surveyors optimistic on home values after excellent February

Tue, 13 Mar 2012 13:31:29 +0000

Expectations for house values remained optimistic during February as the number of transactions continued to rise, according to the latest Royal Institute of Chartered Surveyors (RICS) UK Housing Market Survey.

In the body’s survey for January, 14 per cent more surveyors said that they felt there would be some price falls this year than those which predicted a rise, but the figures for last month show a levelling off with as many now optimistic as those which are pessimistic.

Alongside this, the number of people buying a home rose by almost four per cent on January, suggesting that the increased activity seen in recent months is likely to continue.

Alan Collett, RICS housing spokesperson, said: "With the recent upturn in activity brought on by the end of the stamp duty holiday, it seems that a renewed sense of optimism may be slowly returning to the property market.

“Chartered surveyors' price predictions were more optimistic in almost every area of the country in February.”

UK Property Portal News: City house prices up 382 per cent over 25 years

Mon, 12 Mar 2012 12:59:45 +0000

A new study from the Halifax shows that house prices in the UK’s 66 cities have risen by an average of 382 per cent in the past 25 years.

According to the bank’s Price Index Link, the average home cost stood at £35,209 back in 1986 but is £169,707 today.

But some area’s growth has far exceeded that performance, with Truro up by 550 per cent, Westminster by 522 per cent and Edinburgh by 509 per cent.

The research also shows that new cities have fared well also. In the past 25 years there has been 25 towns granted city status, and collectively these places have posted price rises of 379 per cent. While that is slightly below the figures posted for cities in total it is above the 347 per cent increase for the UK as a whole.

All three of the towns which became cities as part of the Millennium celebrations in 2000 (Brighton & Hove, Inverness and Wolverhampton) have far outperformed growth in their local region since.

However, the towns which became cities as part of the Queen’s Golden Jubilee in 2002 have posted mixed results. Newport in South Wales has outperformed its local region, but Preston, Stirling and Lisburn have, according to the Halifax, “underperformed”.

Martin Ellis, housing economist at Halifax, said: "Cities have typically seen higher house price growth than the UK average over the past 25 years. The majority of cities have also outperformed their region.

“City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas.

“The experience of towns that have been made cities during the past quarter of a century has been mixed. Some have gone on to outperform their region after gaining city status whereas they had underperformed previously. This, however, has not always been the case.”

Some 26 towns have applied for city status as part of the Queen’s Diamond Jubilee celebrations this year. They include Luton, Doncaster, Tower Hamlets in London and Croydon.

London Property Market News: Appearance is key to selling a home

Wed, 07 Mar 2012 13:48:16 +0000

It may sound obvious but presentation is key when it comes to selling a property.

Stuart Law, chief executive at Assetz, concedes that selling a home is rarely an easy process but states that it can be made considerably easier if you work hard to make it "appealing and attractive" to potential buyers.

"When people sell cars they tidy up all of the little marks that they got in the car park, they polish the car and all of the usual things – do the same with your house. Make sure it presents as best it can," he said.

"Don't leave lots of small obvious jobs when people come around to look at the property because they might wander what else needs doing as well."

However, he added that in some cases telling a viewer where further improvements can be made is often a good thing as it allows them to paint a picture in their mind of how they would carry out the work.

UK Property Portal News: Spa towns see mammoth rise in property prices

Mon, 05 Mar 2012 10:15:46 +0000

People who live in spa towns have seen their home values shoot up by an average of 130,000 over the past 10 years.

According to a new study by Lloyds TSB, the average property in the 18 spa towns in England and Wales rose from £146,194 in 2001 to £275,397 in 2011. That works out to be the equivalent of 1,077 a month.

The report also found that considerably greater than in neighbouring locations. Top of the list was Ilkley, where prices are third highest of any spa town in the UK and a mammoth 96 per cent greater the average value in the rest of West Yorkshire.

The most expensive spa town overall is Epsom in Surrey, where an average property will cost you somewhere in the region of £339,231.

Suren Thiru, housing economist at Lloyds TSB, said: "Homes in spa towns continue to command a substantial premium over their neighbouring areas with the quality of life benefits and sense of history that typically characterise such locations still resonating amongst home buyers.

"However, as a consequence of rising property prices, housing market conditions in spa towns have become tougher over the past decade, particular for those looking to get on the property ladder for the first time."

London Property Price News: House values edged up again in February

Thu, 01 Mar 2012 17:09:21 +0000

The housing market continued to buck the current economic trend, with home values right across the UK feeling some kind of value rise.

According to the Nationwide’s House Price Index, the average UK property price grew by 0.6 per cent last month, taking the total level of increases for 2012 to 0.9 per cent.

The figures may not sound a lot, but they do show that the housing market is still moving forwards and some regions' values are moving in greater margins than others.
Indeed, house prices in some parts of London have risen by around 2.7 per cent, according to subsequent research from Knight Frank.

And that’s not the only good news.

Robert Garner, Nationwide’s chief economist, said: "Measures of activity in the housing market have also picked up, with the number of housing transactions rising by 23 per cent year on year in January and the number of UK mortgage approvals - a leading indicator of sales - up 36 per cent.”

London Property Market News: Crossrail will increase home values in London and nearby towns

Wed, 29 Feb 2012 17:35:50 +0000

London properties close to the new Crossrail line will see a significant increase in their values.

This is according to George Hankinson, managing director of London Central Portfolio, who believes that the new line, when completed, will add pounds onto prices as good transport links make homes more desirable.

He also believes that towns outside of the capital will benefit as getting to work more easily will enable many people to travel in from the suburbs.

"I think for the everyday commuter, if they can get into London in half the time that they normally do, then that's definitely going to spike prices in those areas,” he said.

“If you live around an hour away outside of London and there's going to be a new station, then there will definitely be a corresponding uplift in prices if people can get into London quicker."

Crossrail is expected to be completed in either 2018 or 2019.

RICS News: Rural commercial property values soar to record levels

Fri, 24 Feb 2012 13:42:39 +0000

Demand for commercial property is rural areas is surging and prices have reached record levels for the third period in a row.

According to the Royal Institute of Chartered Surveyors (RICS) the average price of rural commercial land and dwellings (including farms) rose by an average of £6,514 per acre in the second half of 2011.

The body said that a significant imbalance between current demand and a lack of stock was driving the increase in value and it shows no signs of slowing down this year.

"It would seem that this trend is set to continue over the next twelve months. However, the outlook is slightly more mixed for farmland which is more geared towards the residential sector, reflecting the broader national housing picture," said RICS spokesperson Sue Steer.

Respondents said that they expect demand for residential property in green belt areas to also remain strong, but said it is unlikely to rival the valuation increases seen in the commercial sector.

London Property Market News: London property is a safe investment

Thu, 23 Feb 2012 11:26:48 +0000

Investors see the London property market as a safe haven for their capital, rather than a place they can make a quick buck.

According to Ed Mead, director of Douglas & Gordon, while there are yields to be had in the capital, it’s the safety of the market which is drawing people in.

"Investments at the moment are not necessarily about getting an enormous rate of return; it is about not seeing your capital value being destroyed. That is the principal draw for central London property,” he said.

“You are not buying for investment; you are buying because it is a very good defensive play.”

He added that property in central London seems to be practically bulletproof when it comes to market volatility and people who have invested there recently are now seeing a solid, if not massive, return on their capital outlay.

Yolande Barnes, head of residential research at Savills recently described London as a “safe haven” in property value terms.

London Property Market News: Overseas buyers hot up competition in central London

Tue, 21 Feb 2012 14:43:48 +0000

Competition for property in prime London locations is fierce, according to property consultancy Cluttons.

A rise in the number of buyers from overseas has lead to a 25 per cent drop in the number of stock available.

Such is the height of the demand that properties in areas such as Chelsea and South Kensington have seen sales agreed within one hour of going on the market, often after just one viewing has been arranged.

On top of that, the demand is leading to many homes being sold for more than the initial asking price.

Charlie Noel-Buxton, partner for residential sales, said: “House hunters in Prime Central London, starved of options, are going to great lengths to secure a property when it comes onto the market, particularly those on the most desirable roads."

According to Hampton International's recent London property report, cash buyers from the former Soviet Union are the most active in the market, closely followed by wealthy business people from the Middle East.