D_Property

Average prices in the prime central London property market reached a new high of £1,818,262 in 2016 with the market rallying in the final quarter of the year, a new analysis suggests.

Indeed, in the final three months of the year prices in this sector increased 14% quarter on quarter and overall the year ended with prices up 3.75%, according to data from the Land Registry.

However, sales were down substantially with only 3,330 during the whole year, the lowest number on record and a fall of 29% over the previous year. But the fourth quarter recorded 118 sales, a 19% increase over the previous quarter. But this was still down 33% compared to the fourth quarter of 2015.

In Greater London average prices reached £584,694, down 3% compared to the beginning of the year but up 5.7% overall over the previous year. Sales also remained low in this sector, down 29% compared to the same quarter in 2015, down 6.3% fall on the previous quarter and a 21% year on year.

‘Having taken a big knock following last April’s new additional rate stamp duty and the shock of Brexit, evidence of a recovery in prime central London in the fourth quarter is positive news,’ said Naomi Heaton, chief executive officer of residential experts London Central Portfolio which analysed the statistics

‘As an international buying market, the weakness in sterling combined with the Trump effect and increasing instability in Europe, appears to have drawn investors back to prime central London as a safe haven asset class. The uptick has been led, in particular, by Kensington and Chelsea which saw a 24% quarterly increase in prices,’ she added.

But she pointed out that sales activity was equivalent to just 64 a week, the lowest number on record and half the volume registered just two years ago but Heaton believes that there is reason for optimism.

‘Sales volumes saw a recovery at the end of last year. Whilst transactions remain significantly down for the year as a whole, lower even than the depths of the credit crunch, it is notable that there was a 19% increase in sales in the fourth quarter compared with the previous quarter, albeit from a very low base,’ she explained.

‘This is notable as it is bucks the seasonal trend where volumes typically tail-off in the quieter pre-Christmas period. It is our expectation that sales numbers will continue to harden gradually as the initial shock of Brexit and tax changes wash through,’ she added.

In Greater London, the fall in transactions was also marked, down 29% in the fourth quarter compared to the same period in 2015. Whilst annual price growth was more positive, up 5.7%, average prices took a hit across the year, finishing 3% lower than in January.

‘Despite Government initiatives to support buyers with reductions in basic rate Stamp Duty and their flagship Help to Buy scheme, it appears the domestic market is still struggling. Salary caps on mortgage lending, which do not reflect the ratio between house prices and earnings, are hampering buyers to get on the housing ladder and their ability to trade up. This has been exacerbated by the failure to meet affordable housing targets, a trend which shows little sign of reversing,’ Heaton concluded.

Source: www.propertywire.com

March 23, 2017
cabin-1763512_1920

Average prices in prime central London market reached a new high in 2016

Average prices in the prime central London property market reached a new high of £1,818,262 in 2016 with the market rallying in the final quarter of the year, a new analysis suggests. Indeed, in the final three months of the year prices in this sector increased 14% quarter on quarter and overall the year ended with prices up 3.75%, according to data from the Land Registry. However, sales were down substantially with only 3,330 during the whole year, the lowest number on record and a fall of 29% over the previous year. But the fourth quarter recorded 118 sales, a 19% increase over the previous quarter. But this was still down 33% compared to the fourth…
March 23, 2017
houses-690060_1280

Single people in UK finding it impossible to buy a home

One in four young people in the UK feel it will be impossible to buy their own home without a partner as they need the joint income to be able to afford a property, new research has found. On average, 45% of young couples living together rent a home and 44% own a home jointly and 22% move in together to save money and will wait four year before deciding to buy, according to the research from Post Office Money. With the average price of a starter home for a first time buyer having increased by 7% or £12,785 over the last year to £183,385 joint average earnings of £50,000 is needed as the average annual…
March 22, 2017
eu-1473958_1920-1

When Brexit became reality: British pound and property after March 29

The UK’s Prime Minister, Theresa May, finally confirmed March 29 as the day when the country will officially trigger Article 50 and therefore kick off the process to leave the EU for good. After the date had been confirmed yesterday, the Sterling experienced a minor decline in value against the US Dollar and the Euro. The Brexit law itself was made final last week, when the Queen granted royal assent for the Brexit bill. The Pound Since last week, a lot of analysts voiced their opinion that this initial drop in Sterling may happen. They were, however, also fairly confident that the decrease was more of a knee-jerk reaction with very little long-term effects rather than…
March 22, 2017
castle-1374916_1920

Up to 10 new homes in every UK village would solve rural housing crisis

Building up to 10 new homes in every village in the UK over the next five years would help solve the current housing crisis and provide much needed properties for rural communities, a new report suggests. There is often a lot of argument about building new homes in rural areas but the communities themselves point to a severe shortage of affordable new homes for local people. Now a report from land brokers Aston Mead Land and Planning suggests that over 300,000 new homes could be provided if planning permission was given for between five and 10 properties in every village. The firm says that not only would this provide homes where they are needed but it…
March 21, 2017
houses-1150022_1920

House price growth increased across the UK in first weeks of 2017

Average house prices in the UK increased by 6.2% in the 12 months to January 2017, up from 5.7% in the year to December 2016, according to the latest official figures to be published. The average UK house price was £218,000 in January, some £13,000 higher than in January 2016 and £1,000 higher than December 2016, the data published by the Office of National Statistics also shows. Overall the figures show that the strong growth in the housing market, which began at the end of 2013, is continuing. But the average annual price growth is still below the average of 7.4% seen in 2016. The main contribution to the increase in UK house prices came from…
March 21, 2017
house-1407562_1920

60% of buy-to-lets are bought mortgage free

New figures have now revealed that the amount of landlords buying properties in cash has reached new record levels. Letting agent Countrywide has revealed that 61% of buy-to-let purchases in the UK last month were made without a mortgage. Overall, the highest level of cash transactions was found in England’s North, which is seen as a direct reflection of the lower prices. In more detail, Countrywide’s index for January showed figures of 70% in the North-West, 68% for Yorkshire and the Humber and 67% in the North East. Further down south, however, landlords have to rely more heavily on mortgages. Overall, only 42% of house sales in London are financed with no mortgage needed. Countrywide also…
Restricted Content
The contents of this website are intended only for investors from certain qualifying classes (“High Net Worth Individuals” and “Self-Certified Sophisticated Investors”). To access the full contents of the site you must first register in one of these categories.
Please confirm that you are a suitable investor before proceeding. If you are unsure whether you meet the specific criteria or not, you can check the definitions here.
Will be back soon