Posts tagged ‘London’
House prices hit a new record high in August but the booming London market showed signs of slowing down, figures revealed today.
The average cost of a home in Britain rose by 0.6 per cent during the month to stand at £274,000, according to the Office for National Statistics.
The annual rate of growth was unchanged from the previous month at 11.7 per cent, as the housing market recovery continued to ripple out across the country.
London remained the key driver of growth, with prices in the capital soaring by 19.6 per cent year-on-year.
But property values in London dipped by 0.1 per cent during the month to stand at £514,000 or 39.5 per cent above their pre-crisis peak.
In the South East and the East annual house price growth picked up slightly to 12.3 per cent and 11.6 per cent respectively, while it was 9.6 per cent in Northern Ireland and 9.3 per cent in the South West.
But growth was more subdued in other regions, with prices edging ahead by just 3.8 per cent year-on-year in the North East, while they were 4.7 per cent higher in Wales and 5.6 per cent up in the North West.
Property values are now above their pre-crisis peaks in London, the South East, East, South West, East Midlands and West Midlands.
“For six regions of the UK, average property prices achieved on completion are yet to match their pre-crisis score.”
Meanwhile, estate agent Knight Frank forecast that the cost of a home would rise by only 3.5 per cent in 2015, as the market pauses for breath.
In regional terms, the group expects house price gains in all areas of the country to be in the 3 per cent to 5 per cent range.
The South East is expected to see the strongest gains at 5 per cent, while growth will be slowest in the North East, North West, Yorkshire & the Humber and Wales at 3 per cent.
Despite the predicted slowdown in growth next year, the group still expects house prices to rise by a cumulative 18.2 per cent in the five years to the end of 2019, which would represent a 12 per cent gain in real terms.
The prediction comes amid growing evidence that the property market is beginning to cool as more homes come on to the market.
At the same time, survey evidence suggests demand is reducing as potential buyers are put off by the high house prices currently being demanded by sellers and the prospect of interest rate rises next year.
Mortgage lender Halifax last week said annual house price inflation may have peaked at 10 per cent, although it still reported a 0.6 per cent price gain for September.
Nationwide reported a 0.2 per cent fall in property values for the same month, with annual growth also slowing.
House prices hit a new record high in September, as property values passed their pre-crisis peak in a fourth region of the country, research revealed today.
The average cost of a home in the South West rose to £241,927 during the month to stand 0.6 per cent higher than before the housing market correction, according to LSL Property Services.
London, the South East and East Anglia are the only other regions of England and Wales in which house prices have risen above their previous highs.
But in other parts of the country prices continue to lag behind their pre-crisis levels.
Property values in the North have the most ground to make up, with values still 8.3 per cent or £13,400 below their March 2008 high.
In Wales the typical cost of a home is 6.8 per cent lower than before the market downturn, while prices in the North West and Yorkshire and the Humber are 5.8 per cent and 5.5 per cent lower respectively.
By contrast the typical home in London now costs £578,377, 47.3 per cent more that it did when prices previously peaked in 2008.
Across England and Wales as a whole the value of the average home reached a new record of £275,820 in September – £26,440 more than in the same month of 2013.
But there were further signs of a cooling in the property market, with prices rising by just 0.5 per cent during September, the lowest increase since November last year.
There was also a fall in the annual rate of growth, with this easing to 10.6 per cent, down from 10.7 per cent in July, the first decline recorded since May 2013.
The slowdown was most pronounced in London, where property values edged ahead by just 0.1 per cent.
David Newnes, director of Reeds Rains and Your Move estate agents, said: “September saw the lowest monthly increase in property prices in 2014 so far, as a new spell of market adjustment sets in for the autumn.
“But while price growth dulls, activity in the market is still vibrant, and total house sales completions are up 16 per cent year-on-year in September.”
Chartered surveyor e.serv also reported a pick up in market activity during September, with the number of mortgages approved for house purchase increasing for the first time in three months.
A total 65,469 mortgages were in the pipeline for people buying a property, 2 per cent more than in August, although the figure was 1.8 per cent lower than in September 2013.
Within the total, 11,600 loans were for people borrowing 85 per cent or more of their property’s value, the second highest level since June 2008.
It was also the tweentieth consecutive month during which high loan-to-value lending has increased on an annual basis.
Richard Sexton, director of e.surv, said: “Approvals declined over the summer, as demand dropped off over holiday season.
“The changes introduced in the Mortgage Market Review also took a few months to settle down.
“But looking ahead, the road looks steady. We are still a way off where we should be, but there are reasons to be optimistic.”
A bed ‘hanging’ above the front door, a staircase above a kitchen worktop and a living room floor defined by built in storage are just some of the creative ideas found in a one bedroom London property covering less than 200 sq ft.
It is currently the most viewed property on Zoopla, having received more than 150,000 hits in the last 30 days.
It covers a total area of 188 square foot, managing to include kitchen and living areas, as well as a shower room and mezzanine sleeping level.
Winkworth, the agents handling the sale, described the terrace property as a ‘unique one bed house presented in great condition throughout’.
It suggests the property would make an ideal buy to let or pied-a-terre.
The property is situated in Richmond Avenue, which is a highly sought after residential road in Barnsbury. The bars, boutique shops and restaurants on Upper Street are just a short distance away.
The area has good transport links, with the closest tube being the Northern line’s Angel. Kings Cross is also nearby and provides an array of tube links across London.
The average price of a home in Richmond Avenue has risen more than £220,000 in the past year to £1,736,942.
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.”
Plans for a ‘floating village’ in London will include the right for homeowners to extend their properties, it has been revealed.
The village in London’s Royal Docks was announced by the Mayor Boris Johnson earlier this year, with the aim of transforming the 15 acres of water with homes, restaurants and bars.
And today, the Mayor’s office exclusively told Zoopla that anyone who buys a property on the site will be able to apply to the borough for planning permission.
“Homeowners would have to apply to the borough for planning permission as per normal procedures when people want to build extensions,” a spokesman for the Mayor’s office said.
With the city running out of places to live, the project is seen as a welcome addition to the capital, with London’s Mayor Boris Johnson describing it as having ‘the potential to become one of the most sought after addresses in the capital”.
A total of 50 homes are expected to be built, with their bases being constructed off-site and then transported by water into place – the planning application for which will be submitted to Newham Council in the spring next year.
A floating walkway will lead back to land, where the city plans a much larger development with tens of thousands of homes.
In the past, the Royal Docks have serviced hundreds of cargo and passenger ships each day. But they have not been in use for several decades and so it is hoped that the floating village will restore London’s docklands to their former glory.