London house prices:property market drops for the 18th month in a row wiping £7,000 off average home in the capital

https://www.housebeautiful.com/uk/lifestyle/property/a26312929/house-price-index/

London house prices have fallen for the 18th month in a row, wiping nearly £7,000 off the value of the average home in the capital.

The property market dipped by 1.4 per cent in the year to August, leaving the average price at £472,753, according to Land Registry figures.

Prices are nearly £3,000 below where they stood in July 2016, the month after the EU referendum. In September 2017, they peaked at £488,527.

House prices fell in 21 of London’s 33 local authority areas, with the biggest drops in Kensington & Chelsea (down 9.1 per cent) and Brent(8.7 per cent lower).

They were down one per cent in inner London and 1.7 per cent in outer London.

The fastest-rising prices were in Hackney, where they went up 5.4 per cent, and Lewisham, which recorded a 3.9 per cent rise.

Jonathan Hopper, managing director of buying agency Garrington Property Finders, said: “While the capital still has the unwanted honour of being the region where prices are falling fastest, prices in the inner boroughs are beginning to settle and historically this is often seen as a precursor to a wider recovery across London.”

On the high street prices rose 1.7 per cent in September, according to the headline measure of inflation, the Consumer Prices Index. This was unchanged on August.

Howard Archer, chief economic advisor to City forecasters EY ITEM Club, said: “If the UK leaves the EU without a deal we believe house prices could quickly sink and drop around five per cent.”

It came as sliding fuel and second-hand car prices kept UK inflation at its lowest for almost three years in September.

https://www.homesandproperty.co.uk/property-news/london-house-prices-property-market-drops-for-the-18th-month-in-a-row-wiping-7000-off-average-home-a134176.html

New 'affordable' homes in Bermondsey:Duke of Westminster's property company resubmits plans for custard cream factory conversion

The Duke of Westminster’s family property company, Grosvenor, got a rap across the knuckles for ‘‘not being good enough” when it submitted plans for its first major London development outside Mayfair and Belgravia and Southwark council threw them out.

https://www.christiesrealestate.com/eng/sales/chelsea-london-lv-eng

Now Grosvenor’s new £500 million masterplan for the former Peek Freans biscuit factory in Bermondsey has more and cheaper “affordable” housing and will be car free.

The original scheme was decisively rejected by the local authority in February when it said couples would need to earn around £30,000 each to afford the lower-cost flats on offer.

In May, however, Sadiq Khan used his powers as London Mayor to consider the scheme, saying it had “potential to make an important contribution to housing and affordable housing supply”.

The developer, best known for owning 100 acres of Mayfair and 200 acres of Belgravia, has increased the proportion of lower-cost housing from 27 per cent to 35 per cent and the average market rent discount from 27 per cent to 46 per cent.

Under the new plans 30 per cent of the affordable homeswill be at social rent equivalent, with a typical discount of 70 per cent to open market levels. The rest will be at discounted market rent with an average discount of 39 per cent.

Simon Harding Roots, executive director, Grosvenor Britain & Ireland, said: “Bringing about positive and lasting change for Bermondsey has always been our focus. However, our original planning application was not good enough. We acted in good faith but it didn’t meet the council’s expectations.

“Since then, we have worked hard to address the clear call from the community, council and Mayor to deliver more affordable housing whilst ensuring the project, and its many other benefits, can become a reality.”

The plans for the factory where Bourbons and custard creams were made for decades, now include 1,548 new homes, up from 1,342 in the original plans and include around 482 lower-cost homes.

However, the requirement for more affordable homes has meant an increase in height of between one and seven storeys for seven of the blocks in the scheme and a reduction in the amount of retail space in order to be profitable, according to Grosvenor.

Phase one of construction would include 359 rental homes, of which 35 per cent by habitable room would be affordable, as well as the delivery of a new 600-pupil secondary school and 8,155sq ft of employment space.

The new plans are now the subject of a consultation lasting until 28 October.

https://www.homesandproperty.co.uk/property-news/new-affordable-homes-in-bermondsey-duke-of-westminsters-property-company-resubmits-plans-for-custard-a133826.html

Best areas for east London new home buyers:price growth tipped for fast-rising hotspots outperforming central London

https://bluecrystallondon.co.uk/tackling-home-identity-fraud-on-on-a-rental-property-london-property-management/

House prices in east London have risen 37 per cent in the past five years, shielded from Brexit by long-term transformation and an unwavering desire to live in the coolest part of town. 

Property values in eastern boroughs have outperformed the rest of the capital since the peak in 2014, according to new analysis by CBRE. The cost of the average house in central London, for example, has edged up just nine per cent over the same period. 

Despite an inevitable cooling-off period in the hot London housing market, compounded by prolonged political uncertainty, homes in the East End continued to “outsell” the rest of the capital, explains Alexandra Cook of Savills.

The top five boroughs by five-year house price growth are all in the east: Barking and Dagenham (51 per cent), Newham (49 per cent), Waltham Forest (44 per cent), Bexley (42 per cent) and Redbridge (41 per cent). Prices have fallen two per cent in Hammersmith and Fulham in that time and nudged down one per cent in Kensington and Chelsea. 

“Buyers get much better value for money in east London and it’s a really accessible market for first-time buyers using Help to Buy,” says Cook. 

Top east London areas for homebuyers

Since the end of the Second World War the bombed-out East End, with its disused docklands, has become the epicentre of London’s regeneration. Sixties housing estates were followed by far grander schemes: the transformation of the Isle of Dogs into Canary Wharf, the construction of London City airport on the Royal Docks and the redevelopment of run-down Stratford to host the 2012 Olympic Games. But it’s still got a long way to go. 

Of the 541 tall buildings in the pipeline for London, according to New London Architecture, the bulk are in Tower Hamlets and Greenwich, while part of the Royal Docks is being turned into the Asian Business Port, which will generate 30,000 jobs and add £6 billion to the UK economy.

House price growth in this neck of the woods is therefore set to continue, outstripping the rest of the capital, says CBRE. Values in the east — defined as Barking and Dagenham, Bexley, Greenwich, Hackney, Havering, Lewisham, Newham, Redbridge, Tower Hamlets and Waltham Forest — will climb by 11 per cent over the next five years, the greatest increase forecast for any London region. 

A Crossrail upgrade for Ilford

House price growth in Redbridge is expected to outpace all other boroughs at 17 per cent as the Olympic effect and regeneration of Stratford spreads. Ilford is being upgraded as part of Ilford station’s redevelopment into a Crossrail hub. A total £7 million is being invested into the town’s other stations and 2,000 new homes will be delivered by 2021.

Architect Mark Ratke has bought a one-bedroom flat at The Paragon, a 141-home scheme in Ilford. Mark had been living in a flat share in Stoke Newington but was drawn to Ilford because of Crossrail. “I saw a future vision for the town and felt it was a good investment. The close proximity to Epping Forest was also important for weekend jogs.” One-bedroom flats at The Paragon priced from £280,000 are available with shared ownership. Buyers can purchase a minimum 25 per cent for £70,000, making the deposit £3,500. Call 020 3369 0365 (paragonapartments.co.uk).

Bexley and Barking and Dagenham complete the top three London boroughs by house price growth forecast over the next five years. 

East London's cool yet dynamic appeal

The appeal of east London is not just about lots of new homes at a cheaper price. The region has retained an intangible coolness that is spreading out from the likes of Hackney and Shoreditch along the train and Tube lines. 

CBRE’s head of residential research, Jennet Siebrits, puts this down to the emergence of the tech scene, bringing with it a new culture to east London which complements the existing one.

“Regeneration may have smoothed some of east London’s rough edges but it has attracted new residents who have helped it maintain its cool reputation — tech workers and creatives. A younger buyer is drawn by the lifestyle as well as by competitive house prices and rents,” says Siebrits. 

Savills is selling a new development just a 15-minute cycle from Silicon Roundabout at Old Street. Prices at Eagle Wharf Road, Hoxton, start from £600,000 for loft-style apartments overlooking Shoreditch Park. Call 020 3911 3648. 

“The people who move into the East End from elsewhere never want to change the vibe,” explains Savills’ Alexandra Cook. “They always want to help retain it. Every day there’s something going on, whether that’s a festival or arts event. We have a cycling culture and residents who are active in the community. It’s dynamic.” 

A nod to the past

Despite the volume of glass and steel towers planned in east London, there are plenty of projects that preserve its architectural heritage by retaining a feel of authenticity. Haggerston Baths is one such scheme. Architects Squire and Partners have submitted plans to convert the derelict Grade II-listed Victorian bathhouse into a community centre. The proposals include transforming the pool room into a gallery, café and gym. 

“Keeping the historic external fabric of the façade, the brick chimney and metal cupola will enhance the character of Haggerston,” says Julia Nicholls of Squire and Partners.

Deptford Foundry is another development designed to reflect the area’s industrial past. The 276-home scheme, comprising eight brick buildings and one tower, sits on the site of a former metalworks dating back to 1831. One-bedroom apartments start from £375,000. Help to Buy is available. Call JLL on 020 3962 3111. 

When it comes to interior design in the east, developers often move away from the traditional look. Telford Homes is launching its new villas at New Garden Quarter in Stratford this month. These upside-down duplexes have bedrooms on the ground floor and large living areas upstairs. Three-bedroom homes start from £725,000. Call 020 3930 2469.

The east of London, which has seen so much change, manages to move forward while celebrating its past and is now entering a new era of regeneration for the next generation.

Olga Derevianchenko bought a studio apartment in EcoWorld’s Aberfeldy Village, Poplar, modelled on the old East India Dock warehouses. Olga says she fell in love with the floor-to-ceiling windows and the view from her balcony of Canary Wharf at night. The scheme has a 24-hour concierge and a gym. Two-bedroom flats from £530,000. Call 0203 993 9158.

Graphic designer Hannah Smith used Help to Buy to purchase a one-bedroom flat in Upton Gardens, the conversion of the old West Ham stadium into 842 new homes by Barratt. “Being so close to the station means I feel safe walking home at night and my commute to London Bridge is really easy,” she says. Prices start from £359,000 for a one-bedroom apartment. Call 0333 3558496.

https://www.homesandproperty.co.uk/property-news/buying/new-homes/best-areas-for-east-london-new-home-buyers-price-growth-tipped-for-fastrising-hotspots-outperforming-a133471.html

London house prices:Brexit uncertainty slashes £13k off the average asking price of homes in the capital in one month

https://www.londonperfect.com/investors/buying-a-property-in-london.php

Political chaos combined with Brexit uncertainty have seen a significant drop in confidence in London’s property market – with average asking prices down by more than £13,000 in the past month, new figures show.

Rightmove’s house price index for September reports a 2.2 per cent fall in asking prices compared to August, the first fall seen at this time of year for nearly a decade. Under normal circumstances the market picks up once holiday season is over and children have returned to school.

But Louis Harding, head of London residential sales at Strutt & Parker said that the exceptional political circumstances have over-ridden traditional seasonal variations. “With the Brexit deadline looming serious sellers have realised that they need to price well to get the deal done.”

There is, however, a ray of hope for those seeking to sell a property in today’s nervous and volatile market.

The time taken for homes to sell has fallen over the past year to an average 69 days, suggesting that lowered prices mean there is still some life in the market.

Rightmove reports that as October 31 approaches, the “deal or no deal” Brexit date, the average price of a home in inner London stands at £739,541, while the average property in outer London is priced at £507,562.

It is the more expensive properties that have seen the biggest asking price falls.

Homes classified as “top of the ladder” — detached houses with four or more bedrooms, and all homes with five or more bedrooms — have seen average asking prices drop by £100,000 in the last month alone, to £1.3 million.

“There is uncertainty over Brexit, the looming threat of a Corbyn government, greater job insecurity, and most bonuses remain a mere shadow of their former selves,” explained buying agent Ed Heaton, managing partner of Heaton & Partners.

“Owners seem to be holding back, awaiting either a more certain Brexit outcome or a market recovery, and perhaps both,” says Miles Shipside, Rightmove director and housing market analyst.
“As we approach yet another Brexit deadline there are signs that the increasing gnashing of teeth is causing some to hesitate.”

Shipside believes that those with strong nerves could take advantage of the weakened market.
“Those who are planning to buy or trade up this autumn and can keep their nerve while others hesitate may find they are in a stronger negotiating position to get a favourable deal.”

Heaton said that he had witnessed some “extremely smart money piling into the London market over the past few months” in the hope of catching it at its weakest point.

Across the capital, a lucky seven boroughs have seen asking prices increase in the past year. However, only Southwark — with an annual increase of 3.9 per cent — has seen an above-inflation rise, to an average of just under £655,000.


Brexit is, of course, not the only issue faced by London’s property market. Another drag on prices is the cost of moving.

According to new research by comparison website reallymoving, the average cost of a move is almost £25,000 once expenses, including stamp duty, agents’ fees, and legal costs, are factored in.
First-time buyers’ stamp duty bills are lower thanks to the exemption on properties worth less than £300,000. However, they still have to find an average of £5,684, according to the study.

To the future and Reuben John, of Fine & Country City Living in east London, believes that a delay in Brexit will mean further price falls. If Britain crashes out of Europe without a deal on October 31 the market will experience “a minimum of three to six months of chaos as we work out where we fit in the world”.


“If we leave with a deal, what will that deal be? In some ways leaving with a deal is the greater unknown of the two at the moment,” he added.

https://www.homesandproperty.co.uk/property-news/london-house-prices-brexit-uncertainty-slashes-13k-off-the-price-of-homes-in-the-capital-in-one-a133446.html

House prices in London:asking prices see growth for first time in two years

https://www.telegraph.co.uk/property/house-prices/asking-prices-london-fall-29pc-dragging-average-uk-property/

Homeowners across London are showing cautious signs of shaking off the Brexit blues, with a renewed confidence in the market pushing up asking prices for the first time in two years.

The average price of a property in the capital stands at £617,94 — or  1.3 per cent more than in August last year — according to the latest Rightmove house price index, published today.

The number of London homes sold during the past month is also up compared to last year, by a significant 5.2 per cent, representing the biggest increase since July 2017.

The research contradicts last week’s UK House Price Index from the Land Registry, which showed sales prices down by 2.7 per cent in the year to June. However, these figures relate to deals being struck back in the new year and therefore do not necessarily present an up-to-date picture of the health of London’s market.

William Drey, a director of estate agent Jackson's in Tooting believes a lack of supply is driving price rises. “We are seeing a large number of first-time buyers in the market, particularly those who have been renting locally for many years,” he said. “This is causing a wave of second-time buyers who are selling their first properties, and they tend to be upsizing within the Tooting, Balham or Clapham area.”

Seasonal slowdown

Asking prices are down marginally (0.1 per cent) month-on-month but a drop is to be expected now that the summer holidays are in full swing. Last year prices dropped 3.1 per cent between July and August.

“Some potential buyers have sat back and watched the price of property coming to the market in the capital falling year on year for the last couple of years, giving many of them little incentive to do anything but sit on the sidelines,” said Miles Shipside, director and housing market analyst at Rightmove, who described the increase as a “strong reason to be cheerful”.

“It’s always hard to spot the bottom of a market, especially in a massive place like London with its myriad local markets,” he added. “However … [if asking prices continue to rise] … buyers might decide to stop sitting it out before prices rise further. That could happen if we have more certainty on our Brexit outcome, and this annual price rise may be an indicator of more market activity to come.”
Marc von Grundherr, a director of London estate agents Benham & Reeves, believes the recent Tory Party shake-up that saw Boris Johnson replace Theresa May as Prime Minister might have helped both buyers and sellers feel more confident. “Having May sat there, almost paralysed, certainly did not help,” he said.

“Having a change in Government, and the feeling that, deal or not, we are coming out of Europe might have made people feel that there is no point in waiting and they have waited so long already they are sick of it.

“I think vendors are definitely more confident than they were a year ago and since there are few people who are really under pressure to sell, there is no reason for price cutting. Prices are certainly not flying, but I don’t see them falling either. We have seen a significant uptick in buyer numbers, and even investors are creeping back.”

Across London, homes in Zone 3 have seen the strongest asking price growth, up 2.8 per cent to an average of £576,709. There is also positive news in central London with prices up by 1.6 per cent in Zone 1 to almost £1.4million, and up 1.8 per cent in Zone 2 to almost £728,000. Growth was more muted in the suburbs, while Zone 6 prices are still falling — down 1.7 per cent year-on-year.


The best-performing boroughs were Southwark (up two per cent), Newham (up 1.6 per cent), and Bromley and Kingston upon Thames, both up 1.3 per cent.

https://www.homesandproperty.co.uk/property-news/house-prices-in-london-asking-prices-see-growth-for-first-time-in-two-years-a132806.html

UK housing market at its weakest point in a decade, says Savills

https://www.onthemarket.com/for-sale/flats-apartments/brighton-and-hove/

The UK housing market is at the weakest point since the global financial crisis a decade ago as Brexit uncertainty puts off buyers, according to a leading estate agent.

Savills, which sells and manages commercial and residential property around the world, said fewer houses were sold in the UK in the first half of 2019 than at any point since the first half of 2009.

The declines have been led by London, where prices have fallen after years of rapid inflation. The average price of London homes sold by Savills fell by 32%, to £2.1m, in the first half of 2019 compared with the previous year, as the company shifted towards less expensive homes to make up for a weakness in “prime properties” – those worth more than about £3m.

Weakness in the UK was mirrored in international markets amid “political instability and slowing global economic growth”, Savills said. In Hong Kong, which has faced weeks of political protests, office investment volumes fell by 34% year-on-year in the period, while the broader Asia-Pacific region remained under the shadow of the trade war between the US and China.

“In Asia Pacific, the imposition of Sino/US trade tariffs has affected investment confidence,” Savills said in a statement to the stock market.

Savills had previously warned it expected profits to decline in 2019, before either the Brexit extension or the Hong Kong protests, disruptions to business in two of its key markets.

Mark Ridley, the chief executive of Savills, said: “In many markets, particularly the UK and Hong Kong, political and economic uncertainty has considerably reduced the volume of real estate trading activity in recent months, although occupier demand remains robust.

“Underlying demand for the secure income qualities of real estate remains high, but these macro uncertainties weigh on investor sentiment and make predictions in respect of near-term market activity difficult to determine with accuracy.”

The company’s total revenues grew 16% year-on-year in the first half to £847m, in part because of growth in non-transactional operations such as facilities management and consultancy.

In the UK, both residential and commercial property sales volumes have been reduced by Brexit uncertainty since June 2016. While prices are still rising on average across the UK, the pace of growth has slowed. Average house prices in the UK increased by 1.2% in the year to May 2019, down from 1.5% in April 2019, the latest ONS figures show.

The uncertainty continued in the first half of the year after the government delayed the scheduled date of Brexit to 31 October, dampening the prospects of a short-term increase in demand for property.

The British commercial market, including retail properties, office space and warehousing, also declined. Savills’ transaction fee income fell by 7% year-on-year in the first half, “reflecting continued Brexit-related uncertainty”, Savills said. It comes at a time when the retail sector faces significant changes to its business model. The move to online purchases has diverted shoppers away from local high streets, resulting in a stream of store closures.

Savills saidits figures indicated commercial property investment activity in greater London was down by 31% year-on-year, while investment in markets outside London fell 33%.

Andrew Allen, the head of global investment research for real estate at Aberdeen Standard Investments, said the range of possible outcomes for investment in British property was “higher than people can remember”, mainly because of Brexit.

He said UK property remained attractive to investors from abroad, particularly as returns from financial assets such as bonds were declining. Financing costs have also fallen as major central banks cut interest rates.


“Despite all the challenges that we see, there is plenty of global capital that wants income,” Allen said.

https://www.theguardian.com/business/2019/aug/08/uk-housing-market-at-its-weakest-point-in-a-decade-brexit-says-savills?

Flipping property:drastic fall in number of Londoners buying and selling on homes for a quick profit

https://hmlandregistry.blog.gov.uk/2018/01/26/how-old-is-my-house/

Current market conditions of stagnating prices, slower sales and higher taxes have made it far harder to make money out of a quick buy and sale.

The number of London homes being bought and sold in a year to make a quick profit has collapsed by more than 80 per cent since the “flipping” boom peaked before the financial crash, according to new research.

Across the capital just 1,240 houses or flats were sold on within 12 months of being purchased last year, a fall of 86 per cent since the 8,380 flipped in 2002.

In some boroughs flipping has virtually disappeared altogether with just six such transactions recorded in Islington and 10 in Camden and Kensington & Chelsea in 2018.

The phenomenon, which contributed to the rapid gentrification of many areas of London, was at its most popular in the early and mid Noughties.

Soaring prices, easy access to mortgage debt, and gazumping made it easy for “amateur developers” to make vast profits from hurried refurbishments of “fixer uppers”.

The craze was fuelled by property shows such as Sarah Beeny’s Property Ladder, showing how buyers could makes tens of thousands of pounds through flipping.

The biggest gains came as prices peaked in 2014 when a flipped property was sold for an average of £115,440 more than was paid for it.

But in the current market conditions of stagnating prices, slower sales and higher taxes have made it far harder to make money out of a quick buy and sale.

Aneisha Beveridge, head of research at agents Hamptons International, which compiled the figures, said: “Between 2000 and 2007 house prices were rising at an average annual rate of 13 per cent, so there were plenty of opportunities for flippers to make profits.

!But following the financial crash price growth has slowed, and this combined with tax changes has meant that generally it’s harder for flippers to make as much of a return as before.”

In Kensington & Chelsea the number of flipped homes dropped more than 90 per cent from 108 in 2004 to just 10 last year.


It was a similar story in Redbridge where numbers fell from 285 to 28 over the same period

https://www.homesandproperty.co.uk/property-news/flipping-property-drastic-fall-in-number-of-londoners-buying-and-selling-on-homes-for-a-quick-profit-a132496.html