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

House prices in London:new figures reveal average sold prices have fallen at the fastest rate since 2009

https://www.sothebysrealty.com/eng/sales/london-en-gbr

House prices in London have fallen at the fastest rate since the effects of the financial crisis took hold in August 2009, according to new figures released today.

The Office for National Statistics (ONS) has revealed a 4.4 per cent drop in the year to May, with the average sold price of a home in the capital now standing at £457,471. The dramatic plunge has wiped £21,000 off average prices in the capital and is the 15th consecutive month of year-on-year falls.

In the previous month of April, prices dropped by a comparatively modest 1.7 per cent in the same 12-month period.


The data relates to properties purchased in the early months of the year, amid a backdrop of ongoing political turmoil and Brexit uncertainty.

Nationally, house prices rose by 1.2 per cent in the year to May, to £229,431, down from 1.5 per cent in the year to April.

"This reduction is largely being driven by price falls in London which tends to feel the impact of political unrest more acutely than other regions of the UK," says Paul Smith, CEO of haart estate agents.

"As we edge ever closer towards the October 31 deadline, and indeed the prospect of a potential no deal scenario, we can perhaps expect a further decline to London house prices over coming months, but thereafter more positive headlines."

London house prices: borough breakdown

Two London boroughs saw huge falls, with prices down by £51,267 (9.6 per cent) in Barnet and by £66,432 (8.3 per cent) in the City of London.

Significant falls were also seen in the boroughs of Southwark (5.8 per cent), Kingston-upon-Thames (5.6 per cent), Islington (5.5 per cent) and Harrow (5.4 per cent).

Just seven of London's 33 boroughs saw an increase in average sold prices in the past 12 months. In north London, prices in Haringey were up by more than £33,000 following a 6.1 per cent boost in the year to May. The east London borough of Hackney saw similar growth, with values up by 5.7 per cent.


Newham, Barking and Dagenham, Hounslow, Waltham Forest and Brent also recorded positive growth amid the sharp falls seen across the rest of the capital.

https://www.homesandproperty.co.uk/property-news/buying/house-prices-in-london-new-figures-show-average-sold-prices-have-fallen-at-the-fastest-rate-since-a132081.html

London house prices:tentative signs of property market 'bottoming out', says Rightmove

https://www.urbanspaces.co.uk/property-search-results/properties-for-sale-in-london

The time it takes to sell a home has stopped slowing, while asking prices across the capital are levelling out.

Average asking prices across the capital levelled out from June to July, falling by a mere 0.2 per cent to £617,941, compared to an average dip of 0.6 per cent in the same period for the past five years.

In January this year, homes were taking an average of 89 days to sell - the slowest time period recorded in the past 12 months. The July figures show this has now returned to the same pace as a year ago, with properties shifting within 67 days on average.

Rightmove’s analyst Miles Shipside describes this as “a further sign that stability is returning."

Typically during the spring selling season there is a glut of homes coming to the market causing a fall in prices as supply outstrips demand. However, this year there has been an 18 per cent fall in the number of homes for sale due to what Savills’ Lucian Cook calls the “protracted political hiatus.”

Brexit uncertainty, the Conservative leadership race and the high cost of moving house continues to encourage people to improve, rather than move.

There are fewest homes being put up for sale in travel zones 1 to 3, with 20 per cent fewer new sellers this month compared to the same period 12 months ago.

“With the limited fresh choice for buyers and the substantial price drops that we have seen since the peaks of a few years ago, there are tentative signs of the market bottoming out,” says Shipside.

Signs of recovery in prime central London

There are very tentative indications of recovery in London’s luxury core.

Asking prices edged up 0.3 per cent to £1,328,388 from June to July and 0.2 per cent compared to this time last year. In Zone 2, the marketed value of a home rose 0.7 per cent month-on-month.

“In London we are starting to see green shoots of recovery, with latent demand kicking in, international investors taking advantage of the weaker Sterling and a sense Brexit will be sorted one way of another with new political leadership,” says Dean Clifford, co-founder of the developer Great Marlborough Estates.

Signs of growth in London's outer areas

Perceived as more affordable, asking prices have risen by 2.3 per cent in travel Zone 6 from June to July and 1.1 per cent in the past year.

The pipeline of large new-build developments such as Barking Riverside, popular with young first-time buyers, is keeping the market turning over on the periphery of the capital.

The strongest sub market in London was Kingston with asking prices rising 3.7 per cent year-on-year to £632,790, followed by Bromley and Waltham Forest.

Tower Hamlets was the weakest pocket with asking prices falling 7.4 per cent from July 2018 to July 2019 and 1.2 per cent from June to July this year. Sales were also turgid in Merton and Lambeth.

“In central London affluent vendors don’t necessarily need to liquidate their assets and can sit tight until they think they can get the right price for their property. Many are renting out these properties until the market strengthens," explains Becky Fatemi, founder of Rokstone Properties in Marylebone.

"However, Lambeth and Merton are domestic family markets where people have to move for schooling and more bedrooms as their brood grows. They are cutting the price in order to shift their homes.”

House prices across the UK

The price of property going on sale across the UK has fallen 0.2 per cent (£656) to £308,692 from June to July — the first time prices have seen a monthly fall this year.

The number of homes coming to market has fallen 7.8 per cent compared to the last spring/summer season and it’s taking 62 days to sell a home, up from 56 days this time last year. The volume of deals being agreed is down 4.6 per cent compared to 12 months ago.

“The current political climate means that the crucial ingredients of confidence have been impaired, and that is causing some potential buyers and sellers to hesitate. With record employment, low interest rates and good mortgage availability, buyers have a lot in their favour apart from the lack of political certainty,” says Shipside.

There are, however, more properties on the market outside of London than at any other time in the last four years so buyers entering the market after the traditionally quiet summer season should have plenty of choice.

The most active property pockets are in the major cities in Scotland and the West Midlands.

The average time it takes to sell a home in Scotland is 43 days, compared to the national average of 62. Prices have nudged up 1.3 per cent month-on-month to £157,941. In the West Midlands is takes 55 days and prices are up 2.5 per cent annually to £200,338.

https://www.homesandproperty.co.uk/property-news/buying/london-house-prices-tentative-signs-of-property-market-bottoming-out-says-rightmove-a131971.html

Britain’s holiday rental market looks set to boom this summer

https://www.independent.co.uk/news/business/news/london-house-price-growth-uk-average-housing-market-first-time-2008-brexit-a7500061.html

The holiday rental market in this country looks set for another busy summer as the weak pound persuades millions to opt for a staycation.

The fall in the UK pound since the Brexit vote three years also means Britons get less for their money abroad.

Meanwhile, more tourists than ever before are visiting the UK. VisitBritain figures show that 2018 was a good year for inbound tourism to the UK, with spending by overseas visitors to
the UK reaching almost £27bn.

The strength of the UK tourist industry is paying dividends for holiday property owners, according to Bournemouth-based holiday letting agency, Bournecoast Holiday Agents, which reports that holiday lets are on the rise.

It has been known for a long time that owning a holiday let can be very advantageous in the holiday letting industry. Not only can it provide a potentially lucrative additional income for buy-to-let landlords, but it also offers certain tax advantages to holiday let owners.

There are specific requirements a property needs to meet in order to be classed as a furnished holiday let, such as its availability, actual bookings and level of furnishings.

Capital allowances can be claimed on a furnished holiday let property. This means the cost of kitting out a holiday property to a luxury standard (and in return, increasing the potential rental income) can be deducted from pre-tax profits. This is not an option available for long-term rental properties.

Income generated from a furnished holiday let property is classed as ‘relevant earnings’ which means a landlord can also make tax-advantaged pension contributions.

If the landlord should come to sell the furnished holiday let property, they may be able to claim certain Capital Gains Tax reliefs. These are unavailable to long-term rental properties and include Entrepreneur’s Relief, Roll-over Relief and Hold-over relief.

If a landlord shares the ownership of the furnished holiday let with their husband or wife, profits can be flexibly distributed between them both for tax purposes.

With long-term rental properties, profits would be distributed according to the official ownership split (e.g. if they owned 50% of the property, they would share 50% of the profits). With a FHL property, they can portion the profit however they decide.

A self-catering property which is available for short-term lettings for more than 140 days in any given year, is subject to Business Rate property tax. Since all furnished holiday let properties must be available to let for a minimum of 210 days, they fall into this category. However, this isn’t necessarily bad news as the landlord can claim Small Business Rate Relief, which can be up to 100%, dependent on what area you are in.

Des Simmons, Bournecoast’s managing director, said: “The holiday let market has gained considerable momentum over the past year, as evidenced by the growing number of lenders now offering mortgages suitable for this type of investment.”

Phil Wadham, director of Elite Financial, added that “the range of products for holiday letting is improving and more borrowers are thinking it’s a market to look at.”

https://www.landlordtoday.co.uk/breaking-news/2019/6/britains-holiday-rental-market-looks-set-to-boom-this-summer

Price growth and activity in the UK property market remains subdued, says latest index

http://theconversation.com/england-expects-40-of-new-housing-developments-will-be-affordable-why-cant-australia-94581

House price growth in the UK remained subdued in June, up 0.5% compared with the same month in 2018, and up just 0.2% month on month to an average of £216,515, the latest lender index shows.

The index report from lender the Nationwide says that new buyer enquiries and consumer confidence in the housing market was also subdued. But Robert Gardner, Nationwide’s chief economist, pointed out that indicators of housing market activity, such as the number of mortgages approved for house purchase, have remained broadly stable.

‘Housing market trends are likely to continue to mirror developments in the broader economy. While healthy labour market conditions and low borrowing costs will provide underlying support, uncertainty is likely to continue to act as a drag on sentiment and activity, with price growth and transaction levels remaining close to current levels over the coming months,’ he said.

A breakdown of the data shows that Northern Ireland remained the strongest performing nation in the second quarter of 2019 with annual price growth rising to 5.2%, from 3.3% in the previous quarter. Wales also saw a pick up to 4.2%, from 0.9%.

Price growth in Scotland was more subdued, at just 0.4% year on year and England remained the weakest performing home nation, with prices essentially flat compared with a year ago.

Looking across England, the Outer Metropolitan was the weakest performing region in the three months to June, closely followed by the Outer South East, with annual price declines of 1.8% and 1.6% respectively.

Prices also fell in London for the eighth quarter in a row, though the annual pace of decline moderated to 0.7%, from 3.8% in the first quarter. Moreover, prices in the capital are still only around 5% below the all-time highs recorded in the first quarter of 2017 and around 50% above their 2007 levels. By comparison, UK prices are only around 17% higher over the same period.

Elsewhere in England, annual price growth remained relatively modest in the second quarter with Yorkshire and Humberside the best performing region with a 3% rise year on year. House price growth across Northern England. The North, North West, Yorkshire and Humberside, the East Midlands and the West Midlands averaged 2.1%, remaining ahead of that in the South with London, Outer Metropolitan, Outer South East and East Anglia recording a 0.7% fall.

‘These trends are not entirely unexpected, however, as they follow several years of sustained outperformance in London and the south, which left affordability more stretched in these areas,’ Gardner said.

Kevin Roberts, director of the Legal & General Mortgage Club, pointed out that slower house price growth and the current low interest environment has encouraged many prospective buyers to make their first step onto or up the property ladder. ‘Increased competition from lenders has also driven mortgage rates down, helping many to secure finance,’ he said.

According to Sam Mitchell, chief executive officer of online estate agent Housesimple, the resilience of the housing market in the face of Brexit uncertainty is ‘remarkable’ and a reflection of the underlying more favourable economic factors like low unemployment and low interest rates.

‘Importantly, these latest figures indicate that the North/South divide is becoming ever more stark. While London and the South East are being hit by political uncertainty and a punitive stamp duty regime for second home ownership, Northern regions are experiencing consistent growth. At Housesimple, we’re also seeing markets in the North, where affordability looks to be more reasonable, continue to perform well with plenty of buyers and sellers active,’ he explained.

The second half of the year is likely to see continued steady but slow growth, according to Mike Scott, chief property analyst at estate agent Yopa. ‘London and especially South East England may still have further to fall, but unless the wider economy takes a turn for the worse there is little risk of any significant house price falls outside the overheated South East corner of the country,’ he said.

https://www.propertywire.com/news/uk/price-growth-and-activity-in-the-uk-property-market-remains-subdued-says-latest-index/