Posts filed under ‘Property values’
The number of homeowners in Britain who can claim to be ‘property millionaires’ now stands at 484,081, almost 50 per cent higher than last year, according the latest research from Zoopla.
The latest Property Rich List 2014 from Zoopla shows the 10 most expensive streets in Britain have seen property values grow 12.9 per cent in the last year, compared to the rest of the country where average values have risen by 6.6 per cent over the same period.
The growth in property values at the top end of the market has also helped increase the number of streets with an average property value of more than £1m by almost a third in the past year to 10,613. Just under a third of the streets with average property values over £1m are located in London (3,744).
There are now 12 streets with average house prices of more than £10m, all of which unsurprisingly are in London. The average property on Kensington Palace Gardens, the most expensive street, is now worth £42,730,706 – 162 times the value of the average British home, which is currently valued at £263,705, according to Zoopla. For this price, you will be able to count the Sultan of Brunei as your neighbour on this exclusive ‘Billionaires Row’.
The Boltons in SW10 takes second place on this year’s property rich list with average house prices standing at £26,570,341, and Grosvenor Crescent in SW1 rounds out the top three with average property prices of £22,293,470. Outside of the capital, the most expensive street in Britain is Sunninghill Road in Surrey, where the average home is currently worth £5,605,067. The two most expensive towns outside London are both in Surrey, with average house prices in Virginia Water at £1,186,262 and Cobham at £1,003,400.
W8 (Kensington) remains London’s most prestigious postcode, with average property prices in the area of £2.78m. Neighbouring SW7 (Knightsbridge), the next most expensive area in the capital, has average values of £2.48m, while property values in third-placed SW3 (Chelsea) stand at £2.37m. The rest of the top 10 is dominated by areas in South West, West and North West London.
Zoopla’s Lawrence Hall said: “London boasts all of Britain’s 20 priciest addresses. Prime properties in the capital have long been a magnet for the super-wealthy looking for a safe investment asset. For the lucky few who can afford these stratospheric price tags, the fabulous mansions on streets like Kensington Palace Gardens and the Boltons are offering very strong returns.
“However, you don’t need to be a billionaire to get a chance to own the crème de la crème of property on offer. In Wales and the North East, you can still snap up a prime property in the region’s most desirable streets for little over £1m.”
Important Update: 29/09/2013
The second phase of the Help to Buy scheme is now being launched three months earlier than originally planned. For the most recent Help to Buy information please click here and see our most recent articles.
Original article below:
There appears to be a fair amount of mixed opinion about the Government’s Help to Buy initiative, the second phase of which is due to be launched in January 2014, writes Kerry Butters of Hunters Estate Agents.
Some critics feel the scheme will push up property prices so much it will cause a ‘bubble’, while George Osborne maintains this won’t happen due to strict rules when it comes to borrowing.
There’s little doubt that the first phase of Help to Buy has already had an effect on the market, with Taylor Wimpey reporting record order levels for the first half of the year. While the builder only sold 5,191 homes in the first three months of the year – a 2 per cent rise on 2012 – orders increased by a massive 42 per cent, boosting profits by £1.3bn.
How does the scheme work? It allows home buyers to purchase a property with just a 5 per cent deposit, with an additional 20 per cent being supplied in the form of an equity loan from the government. The additional 75 per cent is then borrowed via a mortgage.
Help to Buy is intended to strengthen the economy by allowing families who would otherwise have to find a 20 per cent deposit to get on the housing ladder.
Rising house prices have led to concerns about Help to Buy creating a bubble that will lead to a crash. But the Council of Mortgage Lenders says improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. It claims that we have seen the strongest performance for mortgage lending since 2008.
However, it adds that while the pace of first-time buyer activity is approaching a quarter of a million per annum, this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels.
It would suggest there’s a long way to go before we have to worry about the bubble bursting, despite a reported 8 per cent rise in the cost of homes, the fastest in three years. This is according to Taylor Wimpey and supported by figures from the Halifax.
Anyone purchasing a home is eligible, subject to credit status and if the property isn’t one a second home, shared ownership (housing association scheme or similar) or more than £600,000.
There’s no upper income limit and it applies to new and existing properties, so is open to those selling their home as well. The second phase is also known as the mortgage guarantee scheme and the guarantee is not made to the buyer, but the lender.
How long does the scheme run for? It’s set to run until 2017, although there are concerns this won’t be enough time or incentive to overcome the current UK housing shortage in some areas of the country.
The Government must place a real focus on new homes, so that demand doesn’t outstrip supply. The first phase of Help to Buy addresses this as only new homes are eligible for the scheme.
“The mortgage market is open for business, and it is clear that government support has helped to create more favourable market conditions for home-buyers. Lenders, whether they choose to participate in the guarantee scheme or stay outside, will continue to do their utmost to meet households’ needs for mortgages, but always in a way that is responsible,” said CML director general Paul Smee.
Some experts have expressed the opinion that as the first phase of the scheme was proving successful in increasing lending to first-time-buyers, the second isn’t really necessary. This is especially the case as phase one has been proven to be a model that’s enjoying success in boosting new builds, while the second phase will encourage existing owners to ‘cheat’ when moving up the property ladder by getting cheaper finance.
In all, Help to Buy appears to be having a positive effect on both the housing market and first-time-buyers. Despite the criticism, the Government is firmly committed to the scheme now and has managed to get the market moving again.
For those interested in Help to Buy, it could represent the only real chance they have of getting a foot on the ladder. Bearing that in mind, will negative reports from the media have any impact on the success of the scheme? I doubt it, especially since it’s seen such a positive impact on the industry so far.
Kerry Butters writes for Hunters Estate Agents.
Elizabeth Hurley and Shane Warne’s alleged break-up is raising questions about what will happen to their £6m country estate.
The pair bought the property – Donnington Hall in Ledbury, Herefordshire – for cash last year. It has stables, a private lake and tennis courts.
Headlines today suggest there could now be a fight for the property if the separation is officially confirmed as neither Liz nor Shane are reportedly willing to let go of the 13 bedroom property.
Liz Hurley and Shane Warne’s family home
Donnington Hall is a far cry from Hurley’s childhood home, understood to be a relatively modest detached four bedroom property in Basingstoke, last sold for £415,000 in 2001 and now estimated to be worth more than £600,000.
She stepped up the property ladder in 2000, buying a detached property in Basingstoke – which was sold six years later for £850,000.
Former Basingstoke home of Liz Hurley honoured by property website Zoopla.co.uk with a Purple Plaque
David Beckham and Gordon Ramsay have cemented their friendship with the opening of a new restaurant in an upcoming corner of South East London.
Union Street Café is due to open on Monday, September 16, with an official launch party in the following weeks that is likely to see most of the Beckham and Ramsay clans in attendance.
Zoopla has been given an exclusive sneak preview of the stunning venue, designed exclusively by Russell Sage.
The feel of the interiors is undisputedly ‘relaxed urban’, with suggestions that the waiting staff may wear Converse footwear – while the menu will be Mediterranean.
The opening of the restaurant comes amid the transformation of the once run-down derelict confines of SE1.
The area rests in the shadows of the recently erected and now iconic Shard building, with businesses such as Murdoch’s British newspapers and Zoopla now calling it home.
The area certainly has a buzz about it, and so it is unsurprising that house prices are high. Extremely smart two bedroom flats can reach as much as £2m.
The average value of a flat in SE1 is £542,732, with a typical detached property in the region of £730,387, according to Zoopla.
Jonathan Harris, director of mortgage broker Anderson Harris, said: “The Shard has lifted the whole area and had a positive knock-on effect. People visit and then go for dinner locally afterwards, which is good for local restaurants and the art scene has also improved as artists move from Shoreditch.
“There are pockets of wealth developing which we haven’t seen in the past and this is increasingly attracting new buyers, investment and improved transport links to the area.”
Two bedroom flat for sale in SE1 for £2m
Two bedroom house for sale for £849,500
Two bedroom house for sale for £699,950
As a nation we’re obsessed with property and property values. We want to know what prices people paid, current asking prices and we’re constantly keeping an eye out for our dream home. However, we’re spotting an increasing trend of homeowners not only tracking the market value of their own home but also keeping an eye on the value of their neighbours’ properties.
We firmly believe here at Zoopla that there is a clear advantage to staying ‘in the know’ when it comes to property. Knowing when to buy or sell and how much to pay or ask for is the key to a successful property transaction and can avoid the pitfalls of overpaying or being stuck for longer than expected.
Our latest research shows that homeowners’ obsession with house prices and monitoring the value of their homes shows no sign of waning. We give homeowners and buyers the tools to super charge their knowsey tendancies by providing free property value estimates on every UK home along with over 17 million sold prices. With information as a valuable commodity, those ‘in the know’ about local house prices and trends are likely to have a significant advantage when transacting in the property market.
The latest data reveals that homeowners in Harpenden, Pinner and Reigate are the ‘knowsiest neighbours’ in Britain (in other words, those most in the know about local property values) whilst residents in Aberystwyth, Birkenhead and Saltburn-by-the-Sea are the least ‘knowsey neighbours’ (least bothered about keeping track of local property prices).
We’ve also unearthed the ‘knowsiest street in Britain’, Newton Road Birmingham, B43, where residents regularly checked the value of their own homes and neighbouring properties on Zoopla.co.uk more frequently over the past 12 months than anywhere else in the country. The data from Zoopla also shows that ‘knowsiness’ increases with property values with most of the ‘knowsiest’ streets and areas having property values well above the national average.
Areas with ‘Knowsiest neighbours’ in Britain
|Rank||Location||Average Property Value|
Source: Zoopla.co.uk (February 2012)
Areas with least ‘Knowsey neighbours’ in Britain
|Rank||Location||Average Property Value|
|3||Saltburn-by-the-Sea, North Yorkshire||£128,561|
|5||Wednesbury, West Midlands||£106,470|
|9||South Shields, Tyne & Wear||£116,972|
|10||Salford, Greater Manchester||£120,491|
Source: Zoopla.co.uk (February 2012)
‘Knowsiest neighbours’ in Britain
|Rank||Street||Average Property Value|
|1||Newton Road, Birmingham, B43||£191,080|
|2||Uxbridge Road, London, W5||£413,219|
|3||Burrells Wharf Square, London E14||£310,682|
|4||The Avenue, London, E4||£292,044|
|5||Battersea Park Road, London, SW8||£335,213|
|6||Torbay Road, Harrow, HA2||£305,443|
|7||Kingston Road, London, SW19||£331,385|
|8||Scarisbrick New Road, Southport, PR8||£163,909|
|9||Loughborough Road, Nottingham, NG2||£194,330|
|10||Chase Side, Enfield, EN2||£280,486|
Source: Zoopla.co.uk (February 2012)