South East London prices set to outperform rest of capital

https://www.zoopla.co.uk/to-rent/property/london/south-east/

Property prices in south east London are set to rise faster than much of Greater London thanks to significant regeneration throughout the area, a new market research report suggests.

There are more than 31,000 homes are in the planning pipeline, with some areas set to see dramatic changes to their dynamics and streetscape, according to the analysis from real estate firm JLL.

For example, the masterplan at Canada Water and Surrey Quays will create a new urban centre, and a change of focal point which will significantly enhance its appeal and profile. The Old Kent Road corridor is also set for dramatic change. This neglected area, with the A2 as its domineering spine, has seen a spate of planning applications where an array of towers scattered along its route will alter the streetscape, skyline and demographics.

As well as these new changes, other parts of south east London, such as Greenwich and Deptford, North Greenwich and Elephant and Castle will continue to blossom into even more vibrant and appealing London neighbourhoods.

JLL points out that the area is also set to benefit from enhanced transport infrastructure. The proposed Bakerloo Line extension could be delivered as early as 2028 with the current preferred route extending the line from Elephant and Castle, down the Old Kent Road to Lewisham. This would significantly improve public transport access along the Old Kent Road where there is presently little tube connectivity.

‘South East London is full of characterful and contrasting neighbourhoods. From established enclaves such as Blackheath to fast evolving districts in Greenwich, Deptford and Elephant and Castle,’ said Graham Lawes, director of South East London residential at JLL.

‘It is also thrilling to see new neighbourhoods being planned and developed. Canada Water, for example, will see an even greater transformation as the British Land scheme takes shape, while the Old Kent Road area will change steadily as new developments spring up along this historic route into and out of London,’ he explained.

‘The plethora of new developments and the more modern feel to the area is also attracting new people into South East London, providing a greater depth of housing demand and in turn, a more eclectic mix of residents,’ he added.

According to Neil Chegwidden, director of residential research at JLL, certain areas, such as Canada Water and Surrey Quays, are likely to experience even stronger growth in the medium term.

‘As a result of the ongoing transformation of South East London, as well as the pricing advantage compared with many other more established and perhaps more fashionable areas of London, we expect residential prices and rents to grow at a faster rate over the next five years relative to much of Greater London,’ he said.

https://www.propertywire.com/news/uk/south-east-london-prices-set-to-outperform-rest-of-capital/

UK house prices:regional home buyers defy Brexit while London property market continues to drop

https://www.propertysecrets.org/index.php/tag/london-property/

The average price of a home in Greater London has been slashed by 2.5 per cent over the last 12 months.

London house prices continue to fall while values in the North and the Midlands are rising, significantly outperforming the South. 

The most buoyant market was Wales, where asking prices grew 4 per cent, followed by 3 per cent in the West Midlands, 2.6 per cent in the North East and 2.1 per cent in the North West, according to the latest Rightmove asking price index.

Rightmove analyst Miles Shipside said the majority of the UK had “defied Brexit" as buyers are more concerned with their own housing needs than with the country’s political chaos.

“Activity breeds activity and a greater choice of fresh properties in the likes of Wales helps to spur buyers into action, especially if they have a property to sell."

"This in turn adds another new listing that might then tempt another buyer, in a virtuous circle. And in much of the rest of the country, despite the ongoing political uncertainty, agents are reporting that the lure of the right property at the right price still attracts good interest,” Shipside explained.

Across the UK asking prices have nudged up 0.1 per cent over the last year to £308,290 with the negative London picture holding back overall growth.

House prices fall in London

The average asking price of a home in Greater London has been slashed by £16,157 (or 2.5 per cent) to £621,589 over the last 12 months to May.

Asking prices also fell in the South East (by 1.1 per cent) and were sluggish in the East and South West with 0.9 per cent and 1 per cent growth respectively.

Annual house price changes in London

All but two London boroughs have new sellers asking less on average than a year ago. Only Barking & Dagenham and Bexley — the capital's two cheapest boroughs — held their value year-on-year.

“Their housing stock gives some of the cheapest options for those with stretched affordability and on a tight budget but needing to be in London,” said Shipside.

Jack Kypri of Harpers & Co said: “I wouldn’t jump the gun and say that Bexley is doing amazingly well, but we haven’t slid like other areas, either – we’re holding firm."

"We have good quality stock and we’re like a mini, affordable Blackheath. We’ve got four grammar schools and great transport links into Charing Cross, but the place is pretty and full of nice wine bars and delis. It’s a pleasant place to live.”

“I think it’s because there is less talk about Brexit. Things have calmed down now; they all went away for Easter, the sun is shining, people are cutting the grass in their gardens, the country seems slightly less tense,” he added.

Cheaper, outer London — where great stretches of regeneration are delivering new homes — has performed better than the central zones with annual growth rate of 0.9 per cent to £522,351.

Asking prices in inner London were 3.8 per cent cheaper than a year ago with the average price now £762,044.

Marc von Grundherr, of Benham & Reeves, said: “it’s three-speed market with outer, more affordable areas doing one thing, luxury another and the mainstream market doing something different again.

“That said, here at the coal-face, we are seeing increased activity from potential buyers with applicant registrations up quite significantly year on year. We are now seeing the bottom of the London market, whichever one you pick.”

The time it takes to sell has dropped dramatically in the capital from 89 days in January on average to 74 in May.

“The time it takes to sell has sped up because asking prices have also fallen. Finally sellers’ expectations and prices are aligning,” said Becky Fatemi, founder of Rokstone Properties. “Now prices are more realistic the serious buyers are out looking."

https://www.homesandproperty.co.uk/property-news/uk-house-prices-regional-home-buyers-defy-brexit-while-london-property-market-continues-to-drop-a130536.html

Brexit: leaving the EU could help London's first-timers get on the property ladder

https://www.homesandproperty.co.uk/property-news/brexit-latest-eu-departure-could-help-londons-firsttime-buyers-get-on-the-property-ladder-a102336.html

As the referendum leave vote potentially causes the housing market to take a tumble, it could mean relief for first-time buyers trying to get a foot on the capital's property ladder. 

On Friday we got the decision Londoners very clearly didn't want. London is an open, cosmopolitan city that embraces diversity. I am proud to live here. This national turn inwards the vote represents has left many Londoners reeling and how we proceed from here will have deep  implications for the city's property market.

But importantly, this is not 2008 and the turmoil in markets could be good news for young buyers desperate to get on the property ladder;  the possibility of cheaper house prices combined with continuing historically low financing may be just the tonic they need following last night's shock.

The crash of 2008 was a cash-buyers dream. For everyone else it was a nightmare. London’s property prices fell by half and there were bargains galore. Unfortunately, the majority of Londoners had to watch from the sidelines.  Banks were in trouble and mortgages were hard to get. For those who could access lending, the prospect of sweeping redundancies stalled many buying ambitions. In the end it was investors from the UK and abroad who helped drive a steady recovery in the capital’s property market while much of the rest of the country’s property scene  stagnated.

This time will be different. Last night’s decision is not a global crisis, but a home-grown shock. There will be fall out, but how much and for how long depends on how well we negotiate our exit. If the Treasury’s Brexit forecast is correct, house prices could tumble by up to 18 per cent as a result of the exit vote.

This will not be welcome news for home owners, but neither is it a catastrophe. London’s house prices have seen double digit growth for years. Even a 20 per cent fall is likely to leave many Londoners only setting their price expectations back a year or so.

What does seem likely is that there will be no quick fix. Exit negotiations will take years. After that we need to see how we fare in our brave new world. No market likes uncertainty. Just the lack of clarity generated by the referendum vote itself caused the biggest fall in the number of people seeking to buy a property since the financial crash.

For London’s desperate buyers, a protracted cooling of prices could be the opportunity they’ve been waiting for. Mortgage rates are low,  and unlike 2008 financing looks set to remain available.  Should trouble arise, Governor  Mark Carney has already said that the Bank of England is standing ready to provide £250bn in additional funding to keep the system moving.

Further liquidity measures can also not be ruled out. All this should mean that if prices do moderate as the Treasury expects, all Londoners (not just cash buyers) will be in a much better position to pounce.

In contrast, our international friends may not be as keen or able to jump in. Immigration concerns were at the forefront of the exit campaign.

If this leads to a dampening of foreign demand for London living, it is likely to be another downward pressure on house prices – particularly in the prime districts. But this could also mean that Londoners' concerns about apartment blocks being snapped up by foreign investors and being left empty, will begin to dissipate.  This would be good news for buyers and renters alike.

Last night's momentous decision will impact London’s property market for some time. For property owners it is likely to mean a lengthy  period of uncertainty and challenge. And as we progress down what will be an unfamiliar road, things may get much worse before they get better.

However,  for those plucky Londoners who are willing to take the plunge, potentially more affordable housing alongside accessible and cheap financing may provide some welcome opportunities and relief.

https://www.homesandproperty.co.uk/property-news/brexit-latest-eu-departure-could-help-londons-firsttime-buyers-get-on-the-property-ladder-a102336.html

Liverpool, Leicester and Manchester are the cities posting the biggest house price increase, as the South is hit by high costs

• Liverpool saw the average price of a home rise 5.7% during the past year
• It is followed by Leicester at 5.3% and Manchester at 5.1%, revealed Zoopla
• It compares to 1.7% across the country as a whole during the past year

https://www.rightmove.co.uk/property-for-sale/Liverpool/auction.html

Property prices have risen by more than five per cent in Liverpool, Leicester and Manchester in the last year, while cities in the South languish behind, new research shows.

Liverpool saw the average price of a home rise 5.7 per cent, followed by Leicester at 5.3 per cent and Manchester at 5.1 per cent.

The average increase in cities across the country during the past year was a more modest 1.7 per cent, according to property website Zoopla - the lowest level for seven years.

It stems from weaker demand due to a lack of affordability and the higher cost of moving home, Zoopla said.

In particular, the South has been hit as the slowdown in London ripples outwards, even extending to Bristol in the South West.

Price growth in southern cities ranges from a drop of 0.6 per cent in Oxford to an increase of 2.2 per cent in Bristol.

Uncertainty about Brexit has been a compounding factor, with households delaying their decisions about moving home.

The increase in values in northern cities has been attributed to rising employment rates and more accessible price levels, which are rising from a lower base.

Prices in Glasgow and Liverpool are still only just above the price levels seen during the credit crisis of 2008.

Liverpool and Glasgow have recorded the highest increase in housing sales since 2015, with transactions up 19 per cent and 12 per cent respectively.

On average, property sales increased eight per cent across all cities in northern England in the three years to 2018.

It prompted experts to suggest considering northern cities if you're house hunting and do not need to be in London or the South East.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: 'When it comes to property prices, regional differences can be significant. 

'London and the south of England have seen considerable property price rises to the extent that many first-time buyers are struggling to buy, particularly if they don't have assistance from the Bank of Mum and Dad. 

'Other parts of the country look to be more attainable from a property ownership point of view, with thriving cities such as Liverpool and Glasgow attracting those priced out of the south. 

'These cities have subsequently seen greater price growth recently but because it is coming off a lower base, they are still relatively affordable. 

'If you don't have to work in London, these northern options may be worth exploring.'

Richard Donnell of Zoopla added: 'The housing cycle continues to unfold at different speeds across British cities. London has led the overall market along with Cambridge and Oxford.

'While sales in London are down 20 per cent on 2015 levels, prices are flat over the last 12 months. 

'The signs of firmer pricing we recorded last month have continued into March with fewer London postcodes registering price falls. 

'More realistic pricing and better value for money for potential buyers means sales volumes have stabilised.

'Cities across southern England are 18 to 24 months behind London. House prices have increased significantly ahead of earnings in recent years causing the rate of price growth to now slow due to weaker demand and lower sales volumes. 

'Price growth is set to remain weak as affordability levels start to re-align with what buyers are prepared to spend.

'House prices and sales volumes continue to increase in regional cities outside southern England. 

'Prices in these cities have recorded modest gains over the course of the last decade and affordability remains attractive. 

'As employment levels and incomes rise, households have the confidence to bid up the cost of housing, with four cities registering price growth of 5 per cent or more per annum.'

https://www.dailymail.co.uk/property/article-6954599/Liverpool-Glasgow-biggest-house-price-increases-reveals-Zoopla.html