New homes in London:number of new-build starts drops to almost half pre-Brexit level as uncertainty bites

https://www.primelocation.com/for-sale/property/london/

Brexit uncertainty is still holding back private developers’ plans, with the number of new London homes down more than a fifth in the first nine months of the year. Work began on 13,843 flats and houses between January and September — 21 percent fewer than the 17,604 total for the same period last year, according to the latest figures from analysts Molior London.

In 2015, the year before the EU referendum, work started on 25,470 homes in the first nine months, close to double the current rate of the building.

This year’s fall was particularly marked in Zone 2 where there were just 1,868 starts, and in the suburbs.

In Zones 3 to 6, there were 9,533 starts, down 20 percent on the same period last year.

The good news is that sales figures suggest buyers are returning to the market.

Across London in the third quarter of the year, private house sales by developers topped 5,000, for the first quarter since the start of 2018.

Savills and Dexters are among the top London estate agents who can confirm this welcome surge in sales towards the end of this year.

Chelsea Waterfront, the redevelopment of the former Lots Road Power Station, reports huge sales activity, with 50 percent of buyers being British.

Robin Gevell, senior marketing manager at the Hutchison Property scheme, said flats worth a total of £250 million have been sold at the site, with almost four times as many deals struck since September as in the preceding nine months.

Mr. Gevell said: “The Brexit cloud hanging over the market has meant that sales over the last two years have been slow.

However, over the last three months, the situation has changed completely and we’ve seen a big hike in sales at our Chelsea development.

“More interestingly still, this isn’t just overseas investors taking advantage of the weak pound, but a variety of British buyers looking for a unique property with a renowned postcode.

“We anticipate sales to continue to flow as the industry gains its confidence back, and we’re looking forward to seeing the year out by welcoming residents into their new homes.”

https://www.homesandproperty.co.uk/property-news/buying/new-homes/new-homes-in-london-number-of-newbuild-starts-drops-to-almost-half-prebrexit-level-as-uncertainty-a134936.html

London house prices:average cost of a home continues to drop at a slower rate as Brexit and General Election turmoil drags on

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

Property prices in London fell for the 19th month in a row, although at a slower pace than during the summer as home buyers started to sense “the end of the beginning” of Britain’s political turmoil.

The average cost of a home in the capital fell 0.4 per cent to £474,601 in the year to September, according to the latest figures from the Land Registry. The last year-on-year rise in London house prices was in February 2018.

“A surprising aspect perhaps of these figures is that there hasn’t been more of a reduction in view of the recent political turmoil,” said former Royal Institution of Chartered Surveyors Residential Chairman, Jeremy Leaf.

“But what we are finding on the ground is relief that the end of the beginning at least may soon be in sight for Brexit uncertainty. This is resulting in more realism and release of some pent-up demand in expectation of some post-election improvement in activity.”

House prices fell in 20 out of 33 London boroughs, with the biggest drops seen in the two most expensive boroughs — City of Westminster (12.3 per cent), where the average house price is now £897,000, and Kensington & Chelsea (11.4 per cent) where prices fell to £1.23 million.

First-time buyers bought the biggest proportion of homes, reflected by homes in the sector seeing the smallest price falls of 0.1 per cent, bringing the average price paid for a first home in London to £415,618.

However, property experts pointed out that, despite many months of falling house prices, homes have not necessarily become significantly more affordable for many, with high prices underpinned by high demand and lack of supply.

“More subdued numbers from the Land Registry come as no surprise, given the political uncertainty which continues to rage, and values are holding up remarkably well considering,” said Mark Harris, chief executive of mortgage broker SPF Private Clients.

“London is still seeing the lowest annual growth in prices as the capital falls more into line with the rest of the country. While this is welcome for those trying to buy in the capital, let’s not get carried away as it is still difficult to afford property in London and the South-East.”

Josef Wasinski, co-founder of Wayhome home ownership consultants, said: “For many aspiring homeowners, the dream of buying a home is increasingly out of reach. Even if you have a salary that sits above the national average, the gap between that and house prices just remains too wide for some.”

The biggest increase was in the City of London where house prices rose 12.1 per cent, although the low number of residential transactions in the borough means average figures are often skewed by one or two sales.

The other biggest rises were in Hounslow (6.1 per cent), Hackney (5.4per cent), and Newham (4.1 per cent).

https://www.homesandproperty.co.uk/property-news/london-house-prices-average-cost-of-a-home-continues-to-drop-at-a-slower-rate-as-brexit-and-general-a134791.html

x

Peckham takes top spot:house price growth in London's hipster hotspot outpaces every UK district

https://www.primelocation.com/to-rent/property/peckham/

Twice Peckham has been named London’s coolest neighbourhood and this month came 11th in a survey of the best urban districts in the world.

Forty years ago, Peckham was one of Europe’s most deprived inner-city areas. Today, as exclusive research for Homes & Property reveals, house prices there have outpaced every district in the UK, scoring the greatest price growth since records began in 1995.

The study by Knight Frank and its head of research, Tom Bill, trawling through nearly 25 years of Land Registry figures, shows SE15 values have exploded by 1,082 per cent.

The high cost of property in the capital has pushed demand into south-east London, “driving the rejuvenation of areas like Peckham and beyond as house price growth ripples outwards from the centre”, explains Tom Bill. 

For generations Peckham had a reputation for poverty, crime and high unemployment. Yet in 20 years it has become a hipster hotspot, attracting artists and musicians to its hot nightspots.

Twice it’s been named London’s coolest neighbourhood and this month came 11th in a survey of the best urban districts in the world.

Journalist and author Liz Hoggard bought the “smallest and cheapest flat” she could find when she moved to Peckham in 1999.

Her street, Bellenden Road, has transformed since then and now has a grocers where the produce is arranged like a still life, a butchers and an independent bookshop, Review. It’s frequently dubbed “artisanal heart of Peckham”. 

When Hoggard moved in, the council was part way through a regeneration which included the futuristic Stirling Prize-winning public library designed by Will Alsop.

Part of that focus was also on improving street furniture so they harnessed local talent, asking renowned artists Antony Gormley and Tom Phillips to design the traffic bollards and lamp posts.

Today, there are art galleries galore. “It’s very entrepreneurial too,” adds local resident, Holly Kirkwood. “From microbreweries to independent shops which everyone supports, Peckham is a self-sufficient community which is very live-and-let-live.” 

Passionate campaigning

Credit for this reincarnation goes to the community. Eileen Conn is the founder of Peckham Vision, a group that rescued key buildings and spaces around Peckham Rye station.

They include the Bussey Building; the Old Waiting Room; Peckham multi storey car park with its popular rooftop bar Frank’s Café and Peckham Levels, and PeckhamPlex — all of which contribute to Peckham’s special identity.

When many of these buildings were earmarked for demolition, Conn challenged Southwark council to rethink its plans.

Standing in busy Copeland Park — an industrial site that was set to be flattened for a tram depot but is now home to local businesses and pop-ups — she says: “Since 2005, the group have campaigned to highlight reuse and restoration. Existing buildings are a record of the local social and visual history — they affect the sense of place and identity of an area.”

Peckham Vision’s methodology is to underline that demolishing buildings produces hundreds of tons of waste and carbon emissions.

“We’ve proved it’s possible to find new, economically vibrant purposes for existing buildings. ”

Price pressure

Many original families have capitalised on their soaring property values and moved out.

“Few young people today can afford to rent, let alone buy a house,” laments Conn. The average price of a property is just under £550,000 according to Rightmove.

Accessibility has been key. The Overground’s arrival in 2012 linking Peckham to Surrey Quays encouraged an influx of successful professionals and young families, pushing up standards in local primary schools.

“Million-pound houses sit cheek-by-jowl with council estates, but communities interact through events,” says Zohra Huda of local estate agents Gareth James, who adds the next area to be “revamped” will be north of Queens Road Peckham.

Alongside the sourdough bakeries and trendy eateries are long-standing markets, cafés and Peckham stalwarts Khan’s Bargain and M.Manze pie and mash shop.

Last year, London’s first dedicated Afro hair and beauty hub, Peckham Palms, opened in a space for firms relocated during the station renovation.

“It’s essential everything is done to protect and preserve this mix and diversity,” says Liz Hoggard.

https://www.homesandproperty.co.uk/property-news/peckham-house-price-growth-in-londons-hipster-hotspot-has-outpaced-every-uk-district-since-1995-a134491.html

How has Brexit affected London house prices?New builds are the only home type with rises in every borough since 2014

http://www.lowcarbonbuildings.org.uk/property-market-and-finance/03/2018/upmarket-london-properties-renting-for-record-highs/636/

New homes have risen more quickly in price than existing properties in every borough in London over the past five years, new analysis reveals today.

It shows that across the capital as a whole, new builds have gone up in value by an average of 25.3 per cent since 2014, while older “second-hand” flats and houses have increased by 20.6 per cent.

The findings suggests the “premium” buyers expect to pay for newly built properties remains intact, even after they have been lived in for several years.

The biggest gap is in the City of London where new-build prices have gone up 12.5 per cent more than those of existing stock.

The next biggest new-build gaps are in Redbridge, Camden and Lambeth. The smallest gap over the five-year period is in Kingston, at only 3.1 per cent.

The pattern is broadly the same over a 10-year period, with new builds outperforming older stock in all but five boroughs and by six per cent across London as a whole.

Since the EU Referendum in 2016, prices of existing properties have fallen by 2.1 per cent but new builds have edged up by 1.6 per cent.

The new-build property market has been hugely boosted by the Government’s Help to Buy scheme, which provides interest-free equity loans of up to 40 per cent on new properties worth up to £600,000. However, today’s findings raise fears that prices have been artificially elevated and could slump after Help to Buy is phased out between 2021 and 2023.

Michael Stone, founder of London agents Stone Real Estate, which carried out the analysis, said: “While new-build homes often come under fire due to the price premium involved, it’s abundantly clear that they have proven to be the best bricks-and-mortar investment option over the past 10 years when it comes to holding value.

“Despite the bumpy ride of Brexit uncertainty over the past few years, new-build property values have increased in every region of the UK, while existing stock has failed to keep pace, or in some cases, even seen a decline.

“This is largely due to build quality and condition. With new builds you can be sure the property is modern, structurally sound and energy-efficient, which are all features a buyer will look for.”

https://www.homesandproperty.co.uk/property-news/how-has-brexit-affected-london-house-prices-new-builds-are-the-only-home-type-with-rises-in-every-a134316.html

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

Best areas in London for home buyers:where first-timers, second steppers and 'forever' house-hunters should start their search

https://www.zoopla.co.uk/for-sale/flats/london/

New research published today charts a typical Londoner’s property journey, highlighting the locations attracting the most interest from first-time buyers, second steppers, and “top of the ladder” buyers searching for big family homes.

We start off wanting a not-very-expensive flat in a leafy north London village, then take the second step to a smallish house in the same area, and finally cross the river to buy the “forever” home, according to the study by Rightmove.

Top London areas for first-time buyers 

The three most popular locations identified by the study for a starter home — defined as anything from a studio to a two-bedroom flat — are far north of the river: Kentish Town, Stoke Newington and Highbury.

These are clearly not the most expensive, established north London postcodes but flats in top-choice Kentish Town are about a third cheaper than those in Hampstead, two miles away.

“We get loads of first-time buyers who have been renting in Camden, Islington or Primrose Hill, and when they buy they just move up the Northern line,” says Charlie Cockcroft, director of Dexters estate agents.

“They like the fact that the style of house is very similar, and you have got the Tube and London Overground.”

Kentish Town is also within walking distance of Hampstead Heath and has some great pubs including The Vine and The Lord Palmerston, while Parliament Hill’s lido and tennis courts are up the road.

Grimy and traffic-choked, Kentish Town Road is a minus. Cockcroft agrees but says change is happening. “We have got a Gail’s Bakery now, and a Franco Manca pizza restaurant, and that is an improvement, We need more high-profile brands.”

Stoke Newington and Highbury are also key areas for first timers, along with Dalston — technically in east London but in fact just south of Stokey. The only exception to the north London rule is affordable Forest Hill in SE23, the least expensive of the top five.

Top locations for second-steppers

Buyers trading up the ladder have an affection for north and north-east London. Highbury, Dalston and Kentish Town are the top locations for three- or four-bedroom homes. 

South London regeneration zone Elephant and Castle is a slightly surprising entry in fourth place. But alongside thousands of new flats and billions being spent on new facilities, plus fabulous Zone 1 transport links, the Elephant has larger properties, old and new, for families.

Top of the wish list is likely to be one of the amazing Georgian houses in West Square, for which you can expect to pay about £2.5 million for a four-bedroom home. While West Square is a five minute walk from Elephant and Castle station, Tom Floyd, sales manager of Winkworth, says residents tend to claim they live in “north Kennington”.

For a more budget-friendly option, Floyd recommends an early Victorian terrace house in a road such as Henshaw Street. A three-bedroom, 1,100sq ft house here would set you back between £850,000 and £900,000.

“Buyers tend to be young families in their early thirties selling a flat somewhere like Borough, not ready to move much further out and wanting their children to be able to stay at their schools,” says Floyd.

There are also three-bedroom flats at Elephant Park, the new homes at the heart of Elephant and Castle’s rebirth. Lendlease is currently  selling a 1,247 sq ft triplex here for £1.2 million. At The Levers, another new development, in Amelia Street, Hastings International has a three-bedroom 976sq ft apartment priced at £750,000. Floyd says a three-bedroom period flat — Charleston and Larcom streets, both in SE17 towards Walworth, are recommended — would cost between £600,000 and £700,000.

Where buyers find their forever homes

Buyers searching for plenty of space, with five bedrooms or more, are looking south-east towards Forest Hill for affordable large period houses and green spaces. On the downside Forest Hill lacks a heart, so locals need to go to either East Dulwich or Peckham because local restaurants and bars are a bit boring.

Javaid Ahmed, sales manager of Kinleigh Folkard & Hayward, divides Forest Hill into three zones. The most expensive is around the fabulous Horniman Museum, where a five-bedroom Edwardian house or a Thirties semi would cost about £1.2 million.

Houses around Honor Oak Park are a little smaller, and you could buy a Victorian terrace for about £900,000.

The best value is around Stanstead Road, towards Catford and further from the station, where a Victorian property would cost £800,000 to £850,000. In East Dulwich, five minutes’ drive away,  a five-bedroom house would cost about £1.4 million.

“Around Horniman Gardens there is a nice sense of community, the primary schools are good and it feels safe and calm,” says Javaid Ahmed.

It is also a very easy commute, with trains to the city taking 15 minutes.

Top-of-the-ladder family house buyers also go to Islington for a gorgeous Georgian, Camberwell which has fabulous enclaves of Georgian townhouses, Stoke Newington and, back in north London, Holloway.

https://www.homesandproperty.co.uk/property-news/best-areas-in-london-for-home-buyers-where-firsttimers-second-steppers-and-forever-househunters-a132166.html

What will happen to your house price? As latest figures show we're in a rollercoaster property market, here's our guide to what to expect, wherever you live and whatever you own

https://www.zoopla.co.uk/for-sale/flats/london/

After years of stability, Britain is facing property price mayhem. Prices are starting to seriously wobble in some parts of the country, but storming ahead in others.

Just this week, official figures revealed that in London, once the darling of the housing market, prices are now falling at their fastest rate since the financial crisis of 2008.

Yet up in the North-West, growth is solid at 3.4 per cent.

Meanwhile, regions scattered up and down the country report prices increasing by more than 13 per cent, and falls of nearly 10 per cent.

So how on earth are buyers and sellers supposed to make sense of what is happening?

For most people, buying a house is one of the most important financial decisions they will ever make, which is nerve-racking enough.

But with political uncertainty around the country's next Prime Minister, a potential General Election and concerns around how Brexit will play out, buyers are even more rattled than usual and this is impacting prices.

Far fewer sales are going through. And those that do are rarely for the original asking price. Buyers want a discount to recognise the extra risk they are taking in an uncertain market.

There will always be some people who have to sell as a result of what estate agents refer to as the three 'Ds' — divorce, death and debt.

But more potential sellers who do not have to move are opting to stay in the hope that prices recover when the country has some certainty regarding its political future.

What is going on in London?  

House prices in the capital are falling at their fastest rate in a decade, dropping 4.4 per cent in the year to May.

This is largely because prices have soared more there than in any other part of the country since the 2007-08 financial crisis, which means they have further to fall.

Even with property prices falling, it still typically costs an average of £457,471 to buy a house in London — almost twice the UK average at £229,431.

In fact, it is now so expensive many first-time buyers have given up and are sticking to renting. Even just raising a 5 per cent deposit would require someone to save nearly £23,000.

Meanwhile, families have been deterred from moving up the property ladder because of high stamp duty charges.

New stamp duty rules in 2014 pushed up the cost of moving for anyone buying a house worth more than £937,500. 

But even those purchasing properties worth £500,000 — which is not far off the average property price in London — face a £15,000 tax bill. 

Our stamp duty calculator shows how expensive some bills could be and works out how much a move would cost you.

London was also once considered the buy-to-let capital. But with the average yield earned by landlords lower as a result of high property prices, it has also been worst hit by a punitive clampdown on landlords' profits.

Foreign investors are also starting to wonder if London is quite such an attractive destination as it once was — particularly in the present political climate.

However, with the pound falling against the euro and dollar, there may still be bargains for foreign investors.

The new property hotspots  

All eyes are on the North-West and the Midlands. By region, the North-West recorded the highest annual house price growth at 3.4 per cent in the year to May 2019. Close behind is the West Midlands, where prices increased by 2.7 per cent, according to the Office For National Statistics (ONS).

The North-West has been transformed in recent years, with Liverpool voted European City of Culture and the regeneration of Salford Quays in Manchester.

Meanwhile, the Midlands' economy has been boosted by big firms such as HSBC opening offices and warehouses in the region.

HS2, the high-speed railway which, it is planned, will connect London to towns in the Midlands and the North, is also helping to boost prices.

In fact, there has already been an exodus from London as families search for more affordable housing, with flexible working and better broadband making it easier for people to work from home.

Despite this, there are some towns and cities elsewhere in the country where house prices have done even better. 

In England, West Somerset saw prices jump a huge 13.9 per cent over the year to May, while West Devon recorded an 11.1 per cent rise.

Back in the North-West, Craven and Burnley saw prices rise by 10 per cent, and Derbyshire Dales by 9.4 per cent. Halton in Cheshire recorded a 8.3 per cent rise.

Also in the top ten for house price growth were Forest Heath, Suffolk, at 9 per cent, North Devon at 8.7 per cent, Barnsley at 8.3 per cent and Forest of Dean, Gloucestershire, at 8 per cent.

At a country level, Wales saw the largest annual price growth at 3 per cent.

And the places round the country with slow growth

By country, England recorded the slowest annual price growth, with prices up just 1 per cent in the year to May. Within England, London saw the biggest drop in the prices, followed by the North-East, where prices were down 0.7 per cent year on year.

The area, which has the lowest average house price at £128,000, is also the only English region yet to surpass its pre-economic turndown peak.

Higher than average unemployment rates mean that, despite the cheaper houses on offer, many people in the area still cannot afford to buy.

Enticing people from elsewhere in the country to buy in the area is also difficult with the best-paid jobs tending to be in the South.

On a city and town level, Barnet in North London recorded the biggest drop, with prices down 9.2 per cent, followed by the City of London with an 8.3 per cent decrease.

In fact, of the ten regions with the biggest drop in prices, four were in the Greater London area, including Southwark and Kingston upon Thames.

Also in the bottom ten were Rutland in the East Midlands, where prices were down 7.7 per cent, Mole Valley, Surrey, with a 6.5 per cent drop, Northumberland a 6.4 per cent fall, Windsor and Maidenhead down 6.1 per cent, North Hertfordshire down 5.8 per cent and Pendle, down 5.5 per cent.

What about buy-to-let?

The buy-to-let bubble has well and truly burst.

In 2015, the Government announced a major clampdown on buy-to-let amid fears that landlords were pushing up property prices for first-time buyers.

Today, anyone buying a property that is not their main home has to pay an extra 3 per cent stamp duty charge — or £14,000 on a £300,000 property.

Unsurprisingly, the hefty new charge has had the desired effect.

When buy-to-let was at its peak in 2007, around 183,000 mortgages were approved to landlords looking to invest in new properties each year.

Now, fewer than 70,000 a year are doled out, according to figures released by UK Finance — the trade association for the UK banking and financial services sector.

Existing owners are also fleeing the market each month after their profits were hit by a series of stringent new tax rules.

For example, as of 2020/2021 landlords will no longer be able to deduct all the interest they pay on their mortgage from the rental income they declare to the taxman.

They will instead be able to claim a 20 per cent mortgage interest tax credit, but many higher earners may find that they no longer break even.

Landlords can also no longer write off some of their tax bill for 'wear and tear' to their property.

The good news is that there are still some opportunities to make money — typically in areas with low property prices and strong demand for rentals.

The Northern Powerhouse cities of Newcastle, Liverpool and Hull have all seen strong growth in buy-to-let lending, according to UK Finance.

Why more families are staying put and renovating

 There has been a surge in the number of people opting to improve their existing home instead of moving.

Many of these are growing families who have been put off buying a bigger home by soaring stamp duty bills.

So instead they are adding extra bedrooms with a loft conversion or more living space with a kitchen extension and conservatory.

Others who have put off moving until prices stabilise are looking to smarten up their existing home with a fresh coat of paint or a new bathroom.

Recent figures from John Lewis' Partnership Card show that spending in DIY stores was up 18 per cent in the first five months of the year compared to the same period in 2017.

People who are remortgaging in order to fund these projects have been helped by low mortgage rates, which mean they can release cash from their homes without increasing their monthly payments by much, if at all.

In fact, the number of borrowers taking money out of their properties by remortgaging is at its highest for more than a decade.

Home improvements are also the second most popular reason for releasing cash with an equity release loan, according to Age Partnership, the Leeds-based retirement specialist.

Experts say that many older homeowners are using the money to convert bathrooms or put in stair lifts so that they can remain in their existing home rather than downsize.

What does the future hold for house prices?  

It is widely expected that house prices will continue to wobble for the remainder of this year.

And if we leave the European Union without a deal on October 31, the Treasury-funded Office for Budget Responsibility has warned that prices could fall by up to 10 per cent between the start of this year and 2021.

There are also fears that should mortgage rates increase from current record lows, homeowners may struggle to keep up with repayments or find it harder to buy in the first place.

This in turn could see prices fall even further.

But experts say there is no need to panic. Many claim the market is just correcting itself after prices rose too high, making homes in some places unaffordable.

They add that anyone moving house who doesn't quite get the price they want when they sell, will make a saving on the new home they buy.

It is only those leaving the market and moving into care, for example, who really stand to lose out.

As property expert and buying agent Henry Pryor said: 'There is still a market for those who want to buy and sell. Just proceed with caution.'

https://www.dailymail.co.uk/news/article-7262709/We-examine-happen-value-property-UKs-rollercoaster-market.html