UK House Prices Experience ‘Reverse Ripple’

Recent commentary from a UK-based estate agents suggest that British house prices are experiencing a ‘reverse ripple’ effect, as Central London loses its influence over the rest of the nation.

Defying convention

Traditionally, UK house price rises originate in Central London. The heart of our capital is home to some of the biggest businesses and wealthiest individuals on earth, so demand for Central London property has been high historically. This pushes up Central London residential property values, sparking a ripple which hits outer London, then South East England and finally the rest of the nation. Continue reading

UK House Price Growth Rises in August

New figures from the Office For National Statistics (ONS) indicate that average UK house price growth increased in the year to August 2016, defying expectations. Richard Carr comments.

Post-Brexit market

uk-housing-richard-carr

UK house price growth increased in the year to August 2016, defying expectations

In June 2016, the UK voted to abandon EU membership (Brexit). Many experts believed that Brexit would curtail the British residential real estate sector. ONS figures for July 2016 seemed to validate this concern. According to the agency average UK house prices expanded by 9.3% in the year to June 2016, falling to a growth rate of 8.3% in the 12 months to July 2016, but the market now seems to be picking up.

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Uk’s average house price is now eight times more than the average wage

London’s housing crisis continues to worsen as the latest research suggest that the majority of housing in the least affordable areas of London is on average eight times the cost of the average UK wage, writes property developer Richard Carr.

London

Richard Carr's luxury home image

The housing value vs wage ratio continues to grow

According to eMoov, London as a whole has average house prices which succeed the average wage by 14 times!

Unsurprisingly, both London and Kensington top the list with the average property price at £1.2m. The price of property in the borough is a ridiculous 46 times the average wage of £26,624 and the nation’s biggest gap in wage to property ratio by a long way.

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Property supply on the up as more new homes enter the market

Despite the trials and tribulations that many developers and house builders face in the UK, supply in the country’s housing market reached its highest level since March this year, writes property developer Richard Carr.

Supply

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Property supply on the up – but will it continue?

The number of new homes available to buyers increased by 41% in August, which is the highest level experienced by estate agents since March 2016 when there was an average of 54 properties registered per branch.

This has resulted in there being an increase in the number of first time buyers with the National Association of Estate Agents (NAEA) reporting that the number of sales made to new property owners increased in August from 25% of total sales in July to 28%.

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What Are The Most Profitable Student Buy-To-let Cities In The UK?

Investors can accrue strong returns from buy-to-let. Some markets are more lucrative for buy-to-let investors, with recently released data indicating that renting to students can provide significant returns, writes Richard Carr.

Changing British market

The Guardian writes that buy-to-let investors earned average returns of 1,400% from 1996, when specialist buy-to-let mortgages were first introduced, until the end of 2014. However according to What Mortgage, the British government has recently introduced a number of measures which could make buy-to-let a less profitable investment strategy for UK-based investors.

But a study conducted by property crowdfunding firm Property Partner indicates that letting property to students can still prove lucrative. Buy-to-let investor interest in this market usually crests at this point in the year, as students are moving through the housing system before starting university, providing landlords with many opportunities to attract tenants. Continue reading

UK Rents Rise Significantly in July 2016

New figures indicate that average British residential property rental values rose significantly within the year to July 2016.

Renter’s culture

Many Britons are finding it increasingly hard to step onto the property ladder. According to Letting Agent Today, Tony Williams of property consultancy Building Value recently noted that at present, “the house price to earnings ratio remains around 5.5 times against a long term average of 4.25 times.”

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Strong Fundamentals to Support UK Property Growth

Previous research shows that despite Brexit, the UK’s housing market remained strong in June 2016. A new study from CBRE, a leading commercial property adviser, indicates that sturdy economic fundamentals will support British house price growth throughout 2016.

Encouraging price growth

Property Wire writes that CBRE sees current British house value growth of 5.1% as encouraging. The commercial property adviser added that UK residential property prices should expand by an average of 3% in 2016. In the second quarter of 2016, house price growth was strongest in the Outer Metropolitan area (12.4%) and London (9.9%), but weakest in the North (1%), year-on-year.

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House prices rise for the fifteenth quarter in a row

The UK’s house prices have now risen 15 quarters in a row and are now up some 36.6% since the height of the financial crisis in the spring of 2009, writes property developer Richard Carr.

Growth

Richard Carr House Price increase

Can house price increases ever be moderated?

During the second quarter of 2016 house prices in the United Kingdom increased by 1.8% on the previous three months and a massive 8.5% based on the same period a year earlier.

As a result, the typical house price of a standardised UK property rose to a record figure of £215,582 from £211,868.

Despite the country wide increase, there’s still huge disparity throughout the regions. For example, London house prices have increased more than double the UK average and nearly four times greater than in Northern Ireland.

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One in Five London Homes Worth At Least £1m

New figures suggest that one out of every five homes in the UK’s capital city of London is worth at least £1m, writes property developer Richard Carr.

Expensive housing market

Richard Carr's £1m London homes

London homes

London is the UK’s most populous and crowded city. People from around the world flock to London because it is the heart of the UK’s economy, as well as a premier global financial and technology hub. There is an increasingly strong demand for a dwindling supply of living spaces in London, meaning that its average house prices have experienced extraordinary growth in the past few years.

The latest index from the Office for National Statistics (ONS) reports that the average London house price grew by 14.5% in the year to April 2016. The ONS has implemented a new formula to determine its average UK residential property values,  so the average London house price is actually lower for April (£470,000) than it was in March under the old system (£552,000). Despite this change, average London residential real estate values continue to hover around the half million mark.

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