British property prices up £20,000 in a year

HOUSE values have surged ahead by £20,000 in the last 12 months, Britain’s biggest building society announced yesterday.

       London house prices reached a record high in September[GETTY]

The price of a typical home across the UK rose to £188,810 at the end of the third quarter of 2014 - a rise of £19,845 on the same time frame in 2013.

Values were up 10.5 per cent on the same three months - July, August and September - last year and up 1.5 per cent compared with the previous three months, according to the Nationwide.
Every region across the UK recorded year-on-year house price gains, from 21 per cent in London to 4.3 per cent in the north of England.
At £401,072 on average, London house prices reached a new record high in September and now stand at 31 per cent above their 2007 pre-financial crisis peak in the capital.
Across major towns and cities, St Albans in Hertfordshire was named as the top performer. Prices there leapt by 24 per cent over the last year to reach £479,497 on average meaning values in the cathedral city have increased at a faster annual pace than those typically seen across London.
Cambridge and Belfast have seen year-on-year price growth which has matched London, with both cities recording annual increases of 21 per cent. The average house price in Cambridge is £423,904, while in Belfast it is £188,240.
Monthly figures, however, showed values falling back from August’s record high.
Often cited as more volatile than the quarterly trend, September’s fall of 0.2 per cent was the first month-on-month decrease in more than a year.
Year-on-year house price growth slowed to 9.4 per cent in September, from 11 per cent in August. Year-on-year price growth had previously been hitting double digits since April, according to the building society’s study.

Stephen Smith, director at the Legal & General Mortgage Club and Housing, said: “Although the rate of growth has slowed slightly house prices have still increased over the past year.
“Outside of London prices are progressing more steadily and at an altogether more sustainable pace.
“To have greater overall stability in the housing market we need to build more houses. This is particularly true in areas such as London, where the lack of supply has placed significant upward pressure on prices over the past year.
“With party conference season upon us and an election on the horizon it’s crucial that politicians and government give the issue the attention it deserves and take steps to increase supply sooner rather than later.”
London and southern England are continuing to drive house price growth with an annual price increase of 14.4 per cent recorded in London’s surrounding commuter belt areas, a 13.2 per cent rise in south east England and 11 per cent growth in East Anglia.
The South West of England has seen property values push up by 9.2 per cent annually.
Property values in Scotland have seen a 5.2 per cent increase over the last year, taking the average price there to £142,288. Prices in Wales have risen by five per cent to reach £144,096 while those in Northern Ireland have jumped 10.2 per cent to £119,782.
Robert Gardner, Nationwide’s chief economist, said low interest rates and the strong labour market “suggest that underlying demand is likely to remain robust”.
In the North West of England, prices have pushed up by 6.1% annually, while those in Yorkshire and Humberside have seen a 5.5% rise. In the West Midlands and East Midlands, prices have increased by 8.6% and 7.8% respectively.
Newcastle was named as the worst-performing city, with a four per cent annual price increase taking average values there to £182,506. It was followed by Coventry, Leicester, Cardiff and Manchester on the worst-performing list.
Values in Coventry have edged up by five per cent year on year, while in Leicester they have increased by six per cent and in both Cardiff and Manchester they have lifted by seven per cent.

Source: www.express.co.uk

 

 

 

House prices nearing 2007 peak, says new report

The South West and North West saw the biggest monthly price drop

The average house price in England and Wales is now £177,824, according to figures from Land Registry out today. The November 2007 peak was £181,383.

Its latest report suggests house prices in August were up one per cent compared to July and 8.4 per cent to the same period last year, although property indices vary in estimating growth and average house prices.
"Another surge in house prices means even more young people and families left watching their dreams of a stable home own slip further out of reach," said Campbell Robb, Shelter’s chief executive. "People across the country anxious to put down roots are instead finding themselves stuck in the 'rent trap', moving from one expensive and unstable rental property to the next, with little hope of saving enough for a home of their own. Politicians need to start meeting people halfway by taking real action to build the affordable homes we desperately need."
As in previous months, London saw the largest monthly increase at 2.7 per cent, while the South West and North West saw the biggest monthly price drop (0.1 per cent). The number of properties sold in England and Wales for more than £1 million in June jumped 34 per cent to 1,135 from 848 in June 2013.
Richard Sexton, director of e.surv chartered surveyors,  said that London was 'acting like the packhorse' for the property market, pulling up prices across the rest of the UK.
"The capital is a different species to the rest of Britain. Many other regions have only just found their legs, and are still moving very slowly," he said. "London’s market has already broken free from the rest of the field, with prices thundering forward at twice the pace of the rest of the country. Anything that can help improve affordability in the priciest areas must be considered."
James Hall, director of London estate agent Fishneedwater agreed, saying that the London market had moved 'from wobble to warp drive'.
"Any fears of cooling have been forgotten as price inflation continues to crank up to breathtaking heights," he said. "Supply is strong as sellers decide that now is the time to cash in, and, despite tougher lending conditions, demand is still shows no signs of dwindling. Elsewhere in the country, there is a greater sense of sanity, with steady rates of growth now spreading even to the areas worst affected by the crash.
The Land Registry's latest figures show that in June the number of completed house sales in England and Wales increased by 11 per cent to 73,158 compared to June 2013.
Brian Murphy, Head of Lending at Mortgage Advice Bureau said: "The housing market is now well accustomed to news of rising property prices, with a steady recovery from post-credit crunch lows being made over the past year. However, a considerable annual increase in property transactions combined with a sustained trend of falling repossessions suggests consumers are coping well with this change as the wider economy improves."
Mark Harris, chief executive of mortgage broker SPF Private Clients, added that with Mark Carney warning earlier this week that the first interest rate rise is getting closer, borrowers should not be complacent.
"While the Governor of the Bank of England pledged that increases would be 'limited and gradual' borrowers must still plan ahead and ensure they can afford their mortgage now  and in the future," he said. "Five-year fixed rates in particular are good value and provide certainty for the medium-term."

 source: www.independent.co.uk

Average House prices in England and Wales up 8.4% year on year

Average house price in England and Wales increased 1% in August to reach £177,824, according to the latest index from the Land Registry.

The data also shows that prices have increased by 8.4% year on year and are now not far from the peak of £181,383 in November 2007.

Overall over 82,600 residential properties in England and Wales lodged for registration in August ranging from £13,000 to £24.5 million.

The biggest price increase was in London with a year on year rise of 21.6% and London also experienced the greatest monthly rise with growth of 2.7% in August.

The North East saw the lowest annual price growth with a rise of 3% and both the South West and the North West saw the most significant monthly price fall of 0.1%.

The most up to date figures available show that during June 2014 the number of completed house sales in England and Wales increased by 11% to 73,158 compared with 66,123 in June 2013.

The number of properties sold in England and Wales for over £1 million in June 2014 increased by 34% to 1,135 from 848 in June 2013.

Jonathan Hudson of West End estate agent Hudsons Property, pointed out that while London is well beyond the average price in 2007, it is interesting to see the rest of the country is almost there too.

‘However, with London and the South East making up the majority of the average prices, it shows some parts of the UK are someway adrift, still more so than this figure suggests,’ he explained.

‘The annual 8.4% increase in August will be from transactions agreed a few months earlier, so it will be interesting to see how these figures match up in a few months’ time, due to a drop in buyers in the last quarter compared to the recent boom years,’ he added.

He also pointed out that while some areas in the UK are still struggling with regards to getting close to the average price of 2007, with the economy moving in the right direction, and with stricter lending, hopefully repossessions will decrease further,’ he said.

Source: www.propertywire.com

OAP property boom: One in 12 over-60s owns second home as 'grey savers' buy-to-let

Savers in their sixties are driving a buy-to-let boom by investing their nest eggs into bricks and mortar in the hope of rich rewards.

The ‘grey pound’ has helped push up the number of loans for rental properties, according to official figures.

The figure has soared by 58 per cent in less than two years and by 17 per cent in just the last month, said the Council of Mortgage Lenders.

Older savers have been badly hit by poor returns as interest rates remain low. In contrast, rents have increased and rates on buy-to-let mortgages have fallen.

Other research from insurer LV= reveals that one in 12 Britons aged over 60 now own a second home.

This age group owns a quarter of the nation’s £4.01trillion property wealth, equivalent to an estimated value of £993billion.

Peter Gettins, of mortgage broker London & Country, said: ‘These figures mirror what we have seen with more amateur landlords jumping on the buy-to-let bandwagon.’

Ray Boulger, of mortgage experts John Charcol, said: ‘Buy to let is a very attractive proposition for many savers when they sit down and do the sums.

‘And interest is only going to rise, particularly when new pension rules allow more retirees to access the cash in their retirement pots. It’s likely then that we’ll see even more investors start to look at buy to let.’

Buy to let was once the domain of professional property investors.

But plummeting savings rates and poor payouts on pensions have led many older people to dabble in property and become first-time landlords.

The cost of taking out a buy-to-let mortgage has fallen. In June 2013, the average two-year rate for purchasing a property to rent out was 4.23 per cent.

Today, however, it is 3.76 per cent, according to financial data specialists Moneyfacts. Average five-year rates are also down to 4.04 per cent from 4.46 per cent.

Meanwhile, average monthly rents in England and Wales have risen 2 per cent since July 2013 to £753 a month, said LSL Property Services.

Landlords can reap a return of 5.1 per cent while the average rate on a savings account offers a miserly 0.66 per cent.

They can also see their investment rise in value as property prices head up, meaning a potential windfall if they decide to sell. Since April, those wanting to buy a home to live in themselves have faced tougher checks on their income and spending patterns.

But these stringent rules do not apply to buy-to-let mortgages. A number of banks and building societies have even made it easier to take out such a loan.

Many offer mortgages to self-employed customers, have increased the number of loans borrowers can take out and removed the upper age limit so more OAPs can invest.

Instead of having to pay off their mortgage by the age of 75, pensioners can have a buy-to-let loan until they are 85. There are now 1.57million homes in the UK with a buy-to-let mortgage and many more rental properties which are owned outright.

The figures from the CML show that 9,600 loans were taken out in July, up from 8,200 the previous month. In January 2013, the figure was only 6,060.

However, Mr Gettins sounded a note of caution. ‘But while buy to let is very much booming, my timid inner mouse is a little concerned such dramatic growth can turn into bubble-type behaviour,’ he said.

Source: www.dailymail.co.uk

UK houses and shares top pick for investors

INVESTORS are more optimistic about British shares and housing than any other asset class – including emerging market stocks, a study by Lloyds showed today.

UK property far and away led the rankings, indicating investors belie­ved the house price resurgence still has a long way to run.

The survey asks investors how they think an asset will perform over the next six months.

Lloyds sentiment index gave a score of 38 per cent to UK property – indicating the proportion of investors who are positive to­wards property out­weigh those who are downbeat on the assets by a margin of 38 per cent.

Despite the enormous popularity of British property, the rank­ing is down three percentage points on last month’s survey, indicating some of the heat might at last be leaving the booming market.

British equities were the second most popular asset class, with a net balance of 33 per cent of investors feeling positive on shares.

And investors ranked emerging market stocks in a distant third place, with a net balance of 16 per cent.

By contrast investors are increas­ingly negative towards the Eurozone.

The sentiment score on Eurozone shares dived seven percentage points to minus 28 per cent, the steepest fall of any investment option.

Japanese shares are also relatively disliked, with a score of minus one per cent.

Positive feeling in the UK “can be attributed to a far more positive outlook for UK GDP growth as well as the recovery of the UK economy as a whole that we have witnes­sed, particularly in the last 12 months or so”, said Ashish Misra from Lloyds Bank Priv­ate Banking.

“While we have continued to see a month-on-month decrease in UK property, this still continues to be the highest-scoring asset class in our universe and reflects a more stable housing market across the UK.”

Source: http://www.cityam.com/

Prosperity launches a new development - New Priestgate House

New Priestgate House, Peterborough, Cambridgeshire

East of England, Peterborough sits 80 miles north of London, and continues to capitalise on its reputation as a long term sustainable growth area. 

Described as one of England’s ‘most interesting places to live’, it has an incredibly vibrant arts, culture and heritage community with levels of activity not typically found in communities of comparable size, thanks to a year-round events and festival calendar.

Already a key player within the 'London-Stanstead-Cambridge-Peterborough Corridor'- a priority growth area defined by CLG, Peterborough's investment opportunities have been widely documented on an international scale, with a number of high profile businesses relocating to the area. Eight years into a fifteen year, £1 billion redevelopment, the city's transformation grows from strength to strength; its efforts validated by a massive rental demand - currently outweighing supply by 2:1. There’s every indication that rental demand within this region will continue to hold its strength, which is why we think this property investment could be a good opportunity for our clients.

High grade residential development - 'New Priestgate House' is well situated to take advantage of multiple amenities within walking distance, including the popular Queensgate Shopping Centre and mainline railway station. 

Offering a mix of 7 one bedroom and 29 two bedroomed apartments, all homes will offer contemporary open plan living and dining space with oversized windows (where possible) ensuring maximum natural light. With hard wood veneer floors and stainless steel sockets throughout, these high grade finishes combined with custom built kitchens, integral appliances and stylish bathroom designs come as standard for Prosperity clients, offering a home with style, luxury and comfort.

'New Priestgate House' is located on Bourges Boulevard, a vibrant part of the city set to be transformed as part as part of the Council’s commitment in creating a "gateway" into Peterborough. The £4.5 million spend will see the widening of the central reservation, landscape upgrades as well as the creation of two pedestrian crossings between the Crescent Bridge roundabout and Bright Street for pedestrians and cyclists. 

Peterborough Train Station can be reached in just 3 minutes via a newly erected bridge walk, where all-day direct services to London Kings Cross can be reached in just 45 minutes. Further services include Cambridge in 49 minutes, Birmingham in 1 hr 20 mins, as well as many more direct UK destinations.

• Type: 5 storey residential conversion
• Location: Peterborough, Cambridgeshire
• No of Units: 36 apartments – mix of one and two bedroom
• Guide prices at point of sale: £132,995 – £189,995
• Predicted yield at point of sale: 7.43% – 9.37%

Download the Brochure

Contact Prosperity

Peterborough

Peterborough is a medieval city with a population of 183,600 residents, a wider catchment of over 800,000 people and is set to be England’s fastest growing city by 2025 (McKinsey Report 2011).

The city enjoys excellent transport connections: London is just 45 minutes away by train and the rest of the UK is accessed quickly via the A1M, A14 and the A47 interchange. The international market is within easy reach too, with five airports situated within a 75 minute drive.

Peterborough is the UK’s top commuter city and has a vibrant workforce with a younger working population than the UK average. It has a pioneering skills vision which matches training provision with the needs of city businesses to ensure the local workforce is skilled in areas demanded by industry.

Peterborough is the number one city for housing stock growth (Cities Outlook 2012) and has an excellent house price to earnings ratio index. The city also boasts award-winning business parks and excellent commercial buildings at affordable rates.

Peterborough’s environment capital is long-standing and strong. The city is home to the UK’s largest cluster of environmental businesses – 380 and rising – and with partners like IBM, has developed the Peterborough Model, an internationally recognised system for visualising city-wide environmental performance. The city is currently building one of the UK’s largest low-carbon housing developments and is intending to build a new BREEAM Excellent sustainable skills centre right in the heart of the city.

Peterborough plays host to a number of leading financial institutions – Handelsbanken, Clydesdale, Barclays, Royal Sun Alliance, Travelex, Diligenta and BGL – the name behind the Meerkat – and global manufacturers like Caterpillar Perkins, Dresser-Rand and Redring Xpelair.

5 Reasons to Invest in Derbyshire

1. World Class Businesses

Derbyshire is the location of choice for a number of international businesses; there is a significant presence of many well known leading brands in the County. The fact that Derbyshire has been chosen by international business leaders, high standards, a highly skilled workforce and quality clusters have developed.

Global giants including Rolls Royce, Toyota, Nestle and JCB demonstrate the calibre of companies that have already invested in Derbyshire.

2. Central Location

The county’s central location, combined with unrivalled motorway, rail and airport access makes it one of the most attractive investment propositions in the UK. With 9 million people residing within 20 miles of its boundary and 80% of the population within 4 hours drive, there are fantastic opportunities for businesses to access to people, skills and markets.

The county is served by an extensive network of motorways and major roads as well as direct rail links to London, Birmingham, the North West and the North East. For international travel, four major airports are within easy reach, the closest of which is Nottingham East Midlands – the second largest air freight hub in the country after Heathrow.

3. 5 Major Cities on the Borders

Derbyshire has access to a wealth of opportunity with 5 major cities surrounding the County: Manchester to the west, Sheffield to the north, Nottingham to the east and Leicester and Birmingham to the south. Access to these cities brings major benefits to businesses based in Derbyshire; through markets, skills and talent, supply chains and customers.

4. Available Land and Property

A major advantage to Derbyshire is the amount of available land in excellent locations. Available sites located on key arterial routes as well as those in more rural settings provide investors with options in any business sector.

5. Outstanding Place to Live and Work

From being the heartland of the industrial revolution, the area has transformed itself into a thriving modern economy surrounded by the breathtaking scenery of the world-famous Peak District National Park. There is an excellent quality of life on offer to people locating in Derbyshire whether it is for easy access to city life or for a rural retreat.

Survey suggests location is still vital when buying a home in the UK

Everyone has heard of the phrase location, location, location, but new research reinforces that when it comes to selling a property it is indeed true.

Location is the most important factor when deciding to purchase a home, according to a recent consumer property survey by online estate eMoov.co.uk.

The emphasis for today's property buyers is location and it is more important than the property itself, with 74% stating that they would prefer to be in the perfect area rather than the perfect home.

Neighbours are also an important factor with nine out of 10 of people surveyed saying that they care who their neighbours are.

Good transport links in the surrounding area were considered important by 77% of those surveyed. As long as there are good transport links, people don't tend to mind having to commute with just 44% of people stating that local job opportunities are important.

The importance of school catchment is less of an issue than most would think, with just over half of people surveyed stating it as an important aspect for their next purchase.

‘It's a bit of a cliché, but location still remains as the most critical requirement for people's next property move. Whether people want an idyllic village, perfect school catchment, house price rise or transport links, our research shows people are always willing to compromise on the property in favour of the location,’ said Russell Quirk, the firm’s chief executive officer.

The survey also asked buyers what items are most important and nearly half wanted a utility room but 93% a garden and 90% said that a parking space was an important factor.

Bathrooms vary in their level of importance depending on their location within the house. Some 65% said a downstairs bathrooms was important but only 35% said that an en-suite in a master bedroom was vital in their property choice.

Good News For Property Investors In Peterborough

There has been a buzz surrounding Peterborough for some time, following announcements of various development plans taking shape in and around the city. Peterborough, which was previously best known for having good transport links to bigger and brighter nearby cities, is undergoing a huge period of regeneration with a recent announcement made by Peterborough City Council declaring that UK and overseas investors are backing an impressive £130million regeneration plan.

Read more at the BBC here;

The redevelopment plan will see several key areas of the city centre set to be rejuvenated which will undoubtedly deliver new jobs, homes and outlooks for people living in Peterborough and generate interest from outsiders hoping to take advantage of our 45 minute commute to central London.

Another boost for the cities image was being crowned the fastest growing city in the UK, followed closely by Milton Keynes, which has helped to enhance the confidence of local, national and overseas investors in the cities potential to deliver.

Based on figures collected last year, and as reported by the BBC, the annual change in house prices in Peterborough is up 10.8% compared to national average of 6.84%. When this growth is coupled with house prices which are below the national average and a strong demand for rental properties, Peterborough offers profitable buy to let solutions.

With all of these exciting plans and projects in the pipeline and to take advantage of a city on the up, we believe that now is the time to invest in Peterborough!

Source: belvoirlettings

Investors backing Peterborough's £130m regeneration plan not divulged

A council has announced a £130m regeneration plan for its city centre but has refused to divulge the names of its investors.
Conservative-led Peterborough City Council said "a mix of UK and overseas investors" would "deliver much needed new jobs and new homes".

The council's Liberal Democrats are asking for "transparency" about the sources of the investment.

'Innovative' investment

The council will set up the Peterborough Investment Fund, into which it will put property and land assets, in equal partnership with long-term investors.

The council's director of growth and regeneration Simon Machin said: "I can't give you names at the moment, but as with any investment the investors in it can change at any time.

"What it means is that about £130m of new investment...in a UK-managed investment fund would bring forward a number of key city-centre regeneration sites to deliver much needed new jobs and new homes."

The council added that land transferred to the fund would be sold at the full market rate and be subject to planning permission.

Liberal Democrat council leader Nick Sandford: "We're told that some of [the investors] may be governments of foreign countries and some are private individuals, but when we asked a bit more about this fund we were told it's been based in an off-shore tax haven.

"We are dealing with public funds here, so some degree of transparency about where this money is coming from is actually important."

Conservative leader Marco Cereste said: "In this very difficult financial climate, when government is giving less and less funding to local authorities, we need to come up with innovative new ways of attracting big investment into Peterborough."

The first building work could start in early 2016.

Peterborough's £130m regeneration plan

- Fletton Quays would be redeveloped first to provide new council offices, followed by South Bank
- The council would invest £3m in "up-front costs" which would be refunded from the fund at a later date
- Housing would be built on car parks including those at Wirrina, Pleasure Fair Meadow and Bayard Place
- The central library could move to the Town Hall, which would become a "hub" for council services

Sources: http://www.bbc.com/news/uk-england-cambridgeshire-26229020
http://www.bbc.com/news/uk-england-cambridgeshire-26327419

Nottingham property market on boil as more homes are sold and prices rise

THE number of houses sold in Nottinghamshire has jumped 13 per cent in one year, according to new figures from the Land Registry.

Data shows that 905 homes were sold in March, compared to 800 the year before.

It also gives the average price for a house sold in May at £124,472 (up 5.1 per cent from £118,452)) and the average sale price for a detached property at £191,063, also up 5.1 per cent from £181,822 last year.

Figures from Experian's Property Index show that from 2013 to 2014, the number of homes that entered the market for sale in the East Midlands valued at over £500,000 rose by more than ten per cent. Houses for sale in the second highest price band (£250,000 to £500,000) increased by 20 per cent.

But the statistics also reveal that the number of homes entering the market for sale valued below £100,000 decreased by nine per cent.

Rob Clark, associate of Savill's estate agents in the city, said one of the reasons for an upturn in sales is because sellers have become more realistic about what their property is worth.

He said: "The market was certainly moving in the first quarter of this year and there was a short burst in new properties valued between £400,000 to £600,000 coming on to the market. I think people had more confidence in the market after it stabilised at the end of last year.

"I think there has also been an upturn in the sale of properties. One reason for this could be because sellers, who have had their property on their market for a year or more, are becoming more realistic about what their house is worth. When new and fresh houses come on the market, it makes it more competitive and sellers have to be in line with that in order to sell."

Dan Bennett, associate director of Chesterton Humberts in the city centre, said: "There have been a few more properties coming on the market valued at over half a million, and they have probably increased by ten per cent in the East Midlands. I think that is because the market is moving more quickly so it gives them more confidence to sell.

"However, from our experience in the past couple of months, we have felt there is a shortage of houses coming to the market in all sorts of price ranges. I think some sellers are holding back because they see the market going up and feel if they wait a bit longer the value of their house will rise more and they will get more money."

Source: Nottingham Post

British Expat Investment in Affordable UK Homes up 60%

According to a new report, the UK has seen a huge increase in overseas investors seeking and purchasing properties under £70,000.

Find UK Property, an agency specialising in sourcing UK property for overseas investors have analysed their sales figures over the six months from January to June 2014 and recorded an increasing trend for overseas investment in properties at the lower end of the market.

Foreign Investor Interest Extends Outside London

It is well-known that London's prime markets are particularly targeted by overseas investors but the price tags are way beyond the reach of the majority. The increase in overseas investment in the more affordable range has been attributed to the rising number of enquiries from UK Nationals living overseas (Expats), investment from whom has increased by 60% during the first half of the year.

The UK has long been considered a safe haven for property investment by overseas buyers. With buying processes being transparent and well-regulated, long term title ownership in the UK is very clear cut. London has traditionally held the most appeal for foreign investors however, this may be about to change.

Rental Yields and Capital Appreciation Higher Elsewhere in UK

Senior Marketing Consultant at Find UK Property, Andy Noble says: "High London property prices and low rental yields are forcing ordinate overseas investors to look elsewhere as London is not affordable. The low prices, overall good value and high rental yields offered by property outside London in areas such as Lancashire has resulted in increased [investor] interest".

He added: "Our best-selling house costs just £54,995 and delivers 8% rental yield. The same 2-bed house on the outskirts of London could cost over £250,000 and deliver around 3% rental yield. Thus, for the price of 'one' house in London, an overseas investor could get 'five' similar properties in the Lancashire area, have double the rental yield of around 8%, potentially greater capital growth and more future flexibility in that some properties could be re-sold whilst others retained."

Increased Confidence in UK Property Markets

Earlier this year, research from Lloyds Bank uncovered a strong appetite for property among British expats, with 38% planning to buy a new property in the coming two years with a view to renting it out for a regular income. 71% of expat owners of rental properties in the UK have tenants in them at all times.

Director of Lloyds Bank International Banking, Richard Musty commented: "Confidence in the UK property market is very strong. Our recent Investor Sentiment Index in March showed that consumer sentiment for UK property had growth by 50 percentage points since March 2013, so it's not a surprise that Brits abroad are looking back home. While we welcome this investment in to Britain, it's important that expats consider all their options and think about a range of investments in their portfolio and not just property."
Weak Pound Provides Valuable Opportunities for Foreign Investors

For many expats, the relatively weak pound also makes the UK property market even more attractive – their Euros or US Dollars now buy them more pounds that they would have done a few years ago. A £300,000 property is now approximately 25% cheaper to a European buyer than it was in 2007, prior to the financial crisis.

Musty said: "UK property prices are strengthening and British expats don't want to miss out on this investment opportunity. Our research shows that huge numbers of expats are now ready to take the plunge as they look to benefit from high rents and a relatively weak pound. With that in mind, any potential investor must make sure that they get the right advice before deciding to invest back in to the UK."

Expats based in the UAE (65% of expats), France (37%) and Switzerland (29%) are the most likely to buy in Britain, which may be related to geographic proximity or restrictive local laws in place for purchasing property in some countries. For example, 72% of those in the UAE already own a UK property – the highest in the survey.

Expats buying more affordable property in the UK

British expats are increasingly buying property in the UK, but they aren’t splashing out, with the most popular investments in the £55,000 to £70,000 range, research has found.

According to Find UK Property, a company that specialises in finding properties for overseas investors, sales to British expats have increased by 60% in the first half of this year.

Its data also shows that sales to expats and to non-UK nationals of properties worth £70,000 or less had risen by 55% compared with the first half of last year. Many are opting for properties that come with management and guaranteed rents.

Part of the reason is that the UK property market is regarded as a safe haven for buy-to-let types of investment with well-regulated selling laws and clear title ownership.

Buyers are also looking beyond London, which is generally too expensive for this level of investment. The most popular purchase is a two-bedroom house at £54,999 with a rental yield of 8%.

A comparable property in London would cost over £250,000 with a rental yield of just 3%. Andy Noble of Find UK Property also pointed out that less expensive properties often have greater potential for capital growth, and also give investors greater flexibility.

Source: www.expatbriefing.com

Record sales of £110 million since start of year for Derby estate agent

A DERBY estate agent is reporting record sales – of £110 million – since the start of the year.

Hannells' six branches in Derby have experienced a renaissance in activity this year as the economy recovers from the downturn.

These record sales are despite speculation over a possible housing "bubble" and that the Bank of England's Monetary Policy Committee may raise interest rates, either at the end of 2014 or early in 2015.

"Most agents would be happy to sell in a year the amount of Derby properties we sell in a month and it's because of our commitment to constantly improving and our presence in the city." says Hannells managing director, Benjamin Brain

He believes that the current levels of activity are not signs of a bubble and that a rise in interest rates will not spook homebuyers.

"We're confident that the interest rate rises towards the beginning of 2015 will have a minimal impact on the local market. Many experts are predicting tiny increases which is great news for the economy as a whole. Lately, there have been some negative headlines about the property market. However, headlines can be deceiving. When there has been talk of the market slowing down, here at Hannells we've just had our best month of the year so far."

Source: Derby Telegraph

Want to live close to a station? That'll be an extra £42,000

 Home buyers are willing to pay a 10pc premium for a property that is close to a tube, railway or tram station - particularly in London where these homes attract up to £42,000 more.

Nationwide Building Society has conducted research into how proximity to a tube or railway station impacts property prices in London, Manchester and Glasgow as part of its latest House Price Index.

It found the impact is most marked in London, where being located 500m from a station attracts a 10.5pc price premium over an otherwise identical property 1,500m from a station.

This is equivalent to approximately £42,000 based on the value of the typical London home.

In Manchester, the premium on a typical property that is 500m from a station is 4.6pc, or £8,300, while in Glasgow it is 6pc, or £9,400.

Robert Gardner, chief economist at Nationwide, said: “London homebuyers’ willingness to pay a greater premium for being close to a station compared with those in Greater Manchester and Glasgow probably reflects the greater reliance on public transport in the capital, with residents less likely to drive."

“London also has the densest network of stations and services, with 94pc of properties within 1.5km of a station, compared with 72pc in Greater Glasgow and 69pc in Greater Manchester.”

London

Excluding the City of London, Camden is the borough best served by the tube and rail network, with 85pc of properties within 500m of a station.

While Camden has always benefited from a high density of tube stations, it has also recently seen improved rail services thanks to London Overground. However, it is also one of the most expensive areas of the capital, with average prices currently around £843,000.

Havering, Bexley and Barking & Dagenham are amongst the least connected boroughs, with fewer than 20pc of properties within 500m of a station. Average house prices tend to be lower in these areas, but this also reflects that they are further away from central London.

Which tube lines have the highest house prices?

The Circle line serves the capital’s most expensive areas taking in much of central London and also parts of west London. Average house prices are over £800,000 in areas where the nearest station is on the Circle line.

Average house prices are least expensive where the nearest station is on the Metropolitan line. This probably reflects that the line stretches towards the outer suburbs, with only a short section in central London.

Manchester

In Greater Manchester, 69pc of properties are within 1,500m of a station. The areas best served by the network include the City of Manchester, Trafford and Tameside, where over half the properties have a station within 1,000m.

A property located 1,000m from a station commands a 2.0pc premium, at 750m this increases to 3.2pc and for a property 500m from the station the premium is 4.6pc.




Glasgow

Glasgow has the largest network of suburban railway lines in the UK outside of London, however the premium people are willing to pay to be close to a station is more modest.

A property located 1,000m from a station commands a 2.6pc premium, at 750m this increases to 4.2pc and for a property 500m from the station the premium is 6.0pc.




In the Greater Glasgow area, 72pc of properties are within 1,500m of a station. The districts best served by the network include Glasgow City, Inverclyde and West Dunbartonshire, where over 80pc of properties are within 1,500m of a station.

Glasgow city proper is extremely well served, with around 60pc of properties no more than 500m from a subway or railway station.

Source: The Telegraph

Average prices in England and Wales up 1.7% last month

Average house prices in England and Wales increased 1.7% last month compared with June to reach £175,653, according to the latest official data from the Land Registry.

Annual price growth was 7.2% in July and it means that prices are less than £10,000 below the peak of £181,442 in November 2007.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months was London with a rise of 19.3% and London also experienced the greatest monthly rise of 3.3%.

The North East saw the lowest annual price growth with at 2% while Yorkshire and The Humber saw the most significant monthly price fall of 0.6%.

The most up to date figures available show that during May 2014 the number of completed house sales in England and Wales increased by 10% to 72,900 compared with 66,325 in May 2013.

The data also shows that the number of properties sold in England and Wales for over £1 million in May 2014 increased by 32% to 1,032 from 779 in May 2013.

According to David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, price growth has stabilised as more housing stock becomes available and also in the wake of tighter lending regulation introduced earlier in the year.

‘There is still a lot of ground to make up in the volume of sales happening, House prices have stabilised in many regions and have still not matched the heights reached before the crisis. London may routinely grab the headlines, but Help to Buy and higher available LTV lending are indispensable in parts of the country where recovery remains subdued,’ he pointed out.

Peter Rollings, chief executive of Marsh & Parsons, believes that the starkly different figures for London should not cause concern. ‘London has always been an anomaly, a few steps ahead of the curve, and while the London market is now stabilising following a whirlwind few months of growth, parts of the UK are still waiting for the housing market recovery to ramp up,’ he said.

He also pointed out that after months of talks of a housing shortage, particularly in London, supply levels are making a comeback. ‘In the current calmer climate, sellers are emboldened to take their next step up the ladder and put their homes on the market, which is refreshing the choice available to buyers and relaxing the competition. This will spur on sales, but also ease house price rises to healthy and attainable levels, sustaining steady upwards growth for the remainder of the year,’ he added.

Duncan Kreeger, director of lender West One Loans, pointed out that prices are rising fastest where there are jobs and the economic recovery is taking hold most strongly. ‘The urgent next step will be for supply to catch up. Everyone knows we need to get more homes onto the market, but the real squeeze is even sharper in Britain’s centres of employment,’ he said.

‘From London to Aberdeen or the East Midlands, the fire of economic growth needs homes for a growing workforce and if that isn’t tackled we’ll all be poorer as a result,’ he explained and added that it’s clear a lack of supply is making the property market more volatile.

‘More up to date figures show that going into the autumn prices are cooling significantly. What we need is a more effective and more sustainable property market that can supply the volume of homes we all need. But that market would also support steadier and gradual house price growth,’ he said.

‘Developers are scrambling to keep up and more imaginative planning rules are proving useful too. But finance is the real bottleneck, restraining the number of new sites. Lenders need to play their part in all this, and support the conversions and ground-up projects alike that can get more people moving into their new home,’ he added.

According to Nick Leeming, chairman of national estate agents Jackson-Stops & Staff, London is clearly still the engine room driving the property market, with international buyers continuing to want to invest in the capital as a base.

‘The intelligence from our 44 offices nationwide is that the ripples from the capital are making a difference in some areas, particularly those within commuting distance of the capital. However, we must remember that there are two distinct markets here and any likely rise in interest rates should take into account the regional variations in the strength of their recovery,’ he said.

‘Some of our offices have also reported a slowdown as a result of the Mortgage Market Review. The government and the Bank of England must be careful to continue to nurture the recovery of the market outside London,’ he concluded.

Source: www.propertywire.com