Posts tagged ‘London’
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.
Families are being forced out of the capital as figures show there are no houses for sale in Central London with a garden costing less than £500,000, it has been claimed.
It is the latest evidence of the struggle families in London face to find an affordable home.
Soaring property prices mean many families have been priced out of the capital and are forced to move further afield, spending hours commuting to work every week.
Zoopla shows less than 20 residential properties listed for sale in Central London in this price bracket with a garden. All of the properties are flats and a garden is defined as a balcony or patio rather than a lawn area.
It compares to an average increase of property values in England of almost £16,000 to £256,975.
Cheaper and more spacious property is available in outer London. But families’ options are still limited, with fewer than 900 homes for sale in all of London having a garden and costing less than £250,000.
Zoopla shows a total of 890 houses listed for sale in London that have a garden and are under the £250,000 Stamp Duty threshold – where buyers must pay 1 per cent of the price in tax. The thresholds jump significantly above £250,001, starting at 3 per cent and rising to 7 per cent for those properties costing more than £2m.
The majority of these homes are terraced properties, with just 10 being detached.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “While rising house prices are welcomed by homeowners, much of the increase in prices is due to the serious lack of housing stock on the market.
“This is particularly true towards the bottom rung of the ladder where there are precious few family homes with gardens coming up for sale costing less than £250,000.
“Families are being forced to buy further and further afield in order to get a reasonably-sized home with a garden at an affordable price.”
London properties for sale with a garden for £250,000:
The sharp rise in property prices in London during the past year means many buyers are seeking alternative ways of getting on – or moving up – the property ladder.
One option is to buy a property in need of updating, taking a property that is below market value and modernizing or extending as and when your budget allows.
Estate agents say it can be a workable option, but suggest starting with something small and manageable.
It comes as the average value of a home in the capital rises to more than £510,000, up more than £35,000 during the past year.
Far from being overlooked, renovation projects in Balham are attracting up to 50 prospective purchases per property, according to estate agents Hamptons International. And they certainly don’t need to be a wreak as they may be attractive due to their potential to be extended instead.
Sophie Norris, of the Balham branch of Hamptons International, said: “Properties in need of renovation in Balham are extremely popular and can often attract more attention than properties which are ready to move into.
“Previously, interest in properties in need of renovation would be predominantly from developers or amateur property developers, but with demand in the area outstripping supply more and more, buyers are choosing to take on a project in order to secure their dream home.
“However, premium prices are consistently being paid for renovation projects, which leave minimal room for short term profit and therefore push developers out of the equation,” she added.
Projects under the £1m mark are the most popular as buyers are keen to save on Stamp Duty.
In London, there are more than 9,250 properties valued at between £500,001 and £1m, the bracket where buyers are required to pay 4 per cent in Stamp Duty. It compares with Stamp Duty of 5 per cent for properties values at between £1m and £2m.
Properties for sale in London requiring updating:
1. Three bedroom semi-detached house in Merton Park, SW19, for £850,000
2. Three bedroom semi-detached house in Feltham, TW13, for £250,000
3. Three bedroom semi-detached house in Tooting, SW17, for £550,000