Posts tagged ‘London’
A garage in West London is on the market for £300,000, it has been revealed.
In the latest sign of London’s property boom, the garage is valued at more than the average price of the British home.
Property in the capital has risen on average by almost 10 per cent during the past year or almost £47,000 to more than £533,000.
During the same period, the average British property has risen 5.5 per cent or almost £14,000 to nearly £260,000.
The garage is in the prestigious London area of Kensington and is nestled in a quiet mews moments from Hyde Park.
It occupies only the ground floor, covers a total of 240 square feet and has space for two cars.
Rory Penn, partner of Mayfair estate agency VanHan, said: “Parking spaces in prime central London are without doubt the most unrecognised investment opportunity. Some have risen by 100 per cent in value in just two years and this trend shows no sign of abating.
“For example, secure underground parking spaces in Knightsbridge can cost around the same as a good house in many UK postcodes.
“There is a huge lack of supply and many high-net-worth individuals living in London’s most desirable addresses require parking for their car collections or staff.
“They will often pay any price for this, due to the convenience, making them an incredible mid-term investment if you purchase and flip it on for a profit.”
Garages for sale:
1. End of terrace garage in private cul de sac in Kingston Upon Thames for £23,500
2. Garage set within a secure development on the Battersea riverside for £75,000
3. Garage in a residential road in the heart of Wandsworth for £55,000
The housing market recovery is losing steam, but prices are expected to continue rising as the supply of properties remains tight, economists said today.
A number of indicators have pointed to a slowdown in housing market activity during the past month, with new buyer enquiries and mortgage approvals both dipping, Capital Economics said.
But it added that the number of homes being put up for sale had continued to fall, leading to market conditions remaining “very tight”.
As a result, it expects prices to continue to rise during the coming months.
Matthew Pointon, property economist at Capital Economics, said: “The housing market recovery looks to be losing a little steam, with a number of indicators dropping back over the past month.
“While that may in part reflects the poor weather, it could also be a sign that the pent-up demand that has been released in recent months is now tailing off.
“That said, while the recovery no longer appears to be accelerating, further rises in both prices and activity are likely.”
The group pointed out that the latest output indicators suggest the economy is continuing to grow at a robust pace, while inflation is falling and incomes are rising, meaning the squeeze on real earnings may be coming to an end.
It added that although the Royal Institution of Chartered Surveyors had said the balance of surveyors reporting a rise in new buyer enquiries had eased for the third month in a row, new sales instructions declined at a faster rate.
It said this suggested the imbalance between supply and demand would continue, putting further upward pressure on house prices.
At the same time, the average property took just 7.9 weeks to sell in March, the joint shortest time since the middle of 2007, reflecting the tight market conditions.
But there is considerable regional variation, with properties in London typically selling within three weeks, while those in Wales took an average of 12 weeks to find a buyer.
Capital Economic’s analysis is likely to ease concerns that a bubble is building up in the property market.
Nationwide recently reported that house prices had risen for the fifthteenth consecutive month in March, while Halifax said annual house price inflation was rising at its fastest rate for nearly six-and-a-half years, although it reported a price fall on a monthly basis.
But figures from the Bank of England showing a fall in mortgage approvals for house purchase during February have helped to ease concerns that a runaway market was developing.
Meanwhile, the Council of Mortgage Lenders today published data on postcode lending for the second time.
The figures, which cover the third quarter of 2013, measure outstanding lending by Barclays, HSBC, Lloyds Banking Group, Nationwide Building Society, Santander UK, RBS, and Clydesdale and Yorkshire Bank, which together represent around 73 per cent of the total mortgage market.
The figures showed that outstanding mortgage debt owed to participating lenders totalled £897.2bn at the end of September last year.
Unsurprisingly, mortgage debt was highest in London at £229.52bn, followed by the South East at £162.35bn.
At the other end of the scale, homeowners in the North East collectively owed just £26.12bn, while those in Wales owed £28.6bn.
Bob Pannell, chief executive of the CML, said: “With data covering outstanding lending rather than new flows, there are only small changes since the last quarter.
“It is likely to take some time before any discernable changes or trends emerge from this quarterly data series.”
Is London experiencing a property bubble? Buyers make £100,000 in three months with off-plan properties
Buyers are making £100,000 in three months on new build London flats that have not even been completed, it has been revealed.
In the latest evidence of a property bubble in the capital, buyers are making six figure sums on homes that do not even exist.
One buyer bought a two bedroom new build flat in Carlton Vale in north west London just before Christmas for £400,000. She moves into the flat next week once the building has been finished. She explained it has now been valued at £500,000.
But she was not the first ‘owner’ of the property. It was a resale flat, meaning it had a previous owner – one who had already made £60,000 since building first began more than a year ago.
Buying off-plan can be seen as high risk as prices may go down as well as up. It means buyers could potential face negative equity – where the price of their home is less than their mortgage – by the time they first step foot into the property.
Carlton Vale is one of a growing number of ‘property pockets’ in London that have seen values rise sharply.
It is nestled between Queen’s Park and Kilburn Park, and near the prestigious Maida Vale. Average prices have risen more than 12 per cent in the past year to £417,760.
Jonathan Harris, of mortgage brokers Anderson Harris, said: “Off-plan purchases nearly always carry the risk that the value will drop after purchase as the initial gloss fades away.
“This aspect is heightened by the ‘bubble’ as the danger is that market values will drop, potentially leaving a purchaser with a property that is worth significantly less than they paid for it.
“There is also the risk that your mortgage is no longer sufficient to complete a purchase that you are committed to, leaving you to make up the shortfall yourself or worse still losing your initial deposit.”
If you think London property is overpriced, wait until the middle of the century when an average small flat in the capital could set you back £36m, if the latest forecasts are to be believed.
In less than 40 years, prices could be 24 times as expensive, if current growth rates in the capital continue.
London Central Portfolio said prices would continue in London for at least the next few years due to demand and lack of supply.
Hugh Best, LCP investment director, said: “The average price in prime central London is now £1.5m, and has been growing at 9 per cent a year, which we think is firmly sustainable. They have been growing at that level for 40 years and we see no reason for that to change.”
However, he added that at some point, prices would become unaffordable even for wealthy foreigners.
He defined the prime market as Kensington & Chelsea, and Westminster.
London’s property market has soared in value compared to the rest of the country, with the average price rising almost £40,000 during the past year to £519,138.
In contrast, the typical value of a home in England has risen £11,190 to £256,285 during the past year.
Adrian Anderson, director of mortgage broker Anderson Harris, said: “A price tag of £36m is a truly eye-watering figure and if this is considered to be a reasonable forecast for the price of an average small flat, it goes to show how spectacular house-price growth is in the capital.
“Unless enough property is built to house the growing population, only the richest will be able to afford to live in London which will cause real issues when it comes to filling all those jobs which are so essential to the running of the city.”
Which are the most popular properties in February so far? Valued from £70,000 to £90m and located in a variety of places – from London to Birmingham – here are the most viewed properties on Zoopla.
1. An impressive 21 bedroom home in Mayfair for £90m. Found in one of the most exclusive areas of London, this is Britain’s most expensive terrace for sale. It has been completely refurbished, and includes seven reception rooms, a garden, garage and a swimming pool.
2. Six bedroom detached house in Cirencester for £1,750,000. Celebrity interior designer Laurence Llewelyn-Bowen is selling his Cotswold mansion – dubbed poshington Manor – to move back to London.
3. Two bedroom flat in Cheshire for £100,000. This modern, ground floor apartment is in a popular location Northwich and comes with double glazing, gas central heating, communal gardens and allocated off road parking.
4. Five bedroom apartment at One Hyde Park for £68m. This 9,000 square foot flat is in one of the most iconic blocks in London, boasting views of both Knightsbridge and Hyde Park, and a 65 metre hallway.
5. Three bedroom terrace house in Birmingham for £70,000. This property is in the street made famous by TV’s Benefits Street. It has dropped three places from last month.
6. Four bedroom detached house in Crewe for £350,000. With its leopard print wallpaper in the hallway, this property is ideal for buyers looking to tap into their wild side.
7. Nine bedroom property in London for £38m. This mansion is in The Bishops Avenue – one of London’s most expensive residential roads – and comes complete with separate staff accommodation.
8. Three bedroom terrace house in London for £1,250,000. A refurbished home within a popular development on Wapping High street, just downstream from Tower Bridge and St Katharine Docks.
9. Nine bedroom detached home in London (POA). A rare opportunity to restore this Grade II listed house in Kensington, which extends to 20,000 square foot. Full planning permission has been granted for the works to include a separate cottage, tennis court and garden pavillion. Up one place on last month.
10. Two bedroom flat in London for £164,950. This property in SE20 is in need of modernizing and is offered chain free for a quick sale.