This article by the Property Wire on October 9th, 2013 reveals the large part of cash buyers in driving the recovery in the UK's property market.
Cash
buyers are driving a large part of the property market recovery in the
UK, much more than buyers with a mortgage, according to new research
from residential property services company Hamptons International.
In the first half of this year, more than a third, 35%, of house
sales in England and Wales were made by cash buyers. This represents an
increase of 11% compared with the same period in 2012 and the number of
people buying with cash today is at its highest point since 2008.
At
a time when mortgage availability is improving and confidence in the
property market is returning, Hamptons International’s research suggests
that the number of cash buyers in 2013 has grown at a much faster rate
than mortgages.
Of the additional 20,000 property sales in the first half of 2013
compared with the same time last year, Hamptons International estimates
that 70% can be attributed to cash buyers with a 13,600 or 11% increase
in cash sales and just 6,300 or 3% increase in mortgaged sales.
‘Contrary
to popular belief, much of the recovery in house sales in recent months
has been driven by increased cash buyer activity rather than simply
increases to mortgage lending,’ said Johnny Morris, head of research at
Hamptons International.
‘While there is no doubt that increased
mortgage activity helps to improve sentiment and increase liquidity in
the market, the growth of cash buyers in the market has overtaken that
of mortgage buyers,’ he added.
The South West has the highest proportion of cash buyers at 39% in
the last 12 months compared with an average of 33% across England and
Wales. By contrast, London on average has the smallest proportion at
just 24% although this figure rises to 60% in Prime Central London. The
average price of a house in the South West is £173,000, in London is
£386,000 and in prime central London is £935,000.
‘Many cash
buyers are downsizers planning to take advantage of the capital locked
away in their properties. The South West has both the highest rate of
owner occupation in England and the highest proportion of older age
groups in its population,’ explained Morris.
‘London on the other hand, has the highest property values in the
country and while cash transactions in prime central London are more
commonplace than anywhere else in the country, less than seven per cent
of London sales over the last 12 months happened in this market,’ he
added.
Article Source: http://www.propertywire.com/news/europe/uk-property-cash-buyers-201310098328.html
Showing posts with label property values. Show all posts
Showing posts with label property values. Show all posts
Thursday, 10 October 2013
Monday, 30 September 2013
House Prices Up 5% as Boom Goes Nationwide
This article by Giles Sheldrick of Express on September 28th, 2013 reveals the recovery in the housing market has finally spread across the whole of the UK.
All regions saw year-on-year price
rises this month - the first time this has happened since 2007. In a
further sign of economic revival, prices are now rising at their fastest
rate for five years, according to the Nationwide building society.
The value of the average property has jumped by five per cent in the past year - equivalent to £8,163 or about £680 a month or £22 a day.
It means the average house is now worth £172,127 - its highest level since 2008. Economist Howard Archer said last night: "The hugely encouraging thing about these figures is that we are starting to see price increases across all areas of the country, not just London and the South-east.
"It's very good news and boosts hopes of an overall improvement in economic activity across all regions.
"We are at a very early stage but the economy is now genuinely looking a lot healthier and there are signs we are seeing a proper recovery after several false dawns."
The price rises reported by Nationwide are largely driven by southern regions of England but all regions recorded growth in the third quarter of the year. Northern Ireland, for example, recorded its first increase in prices since 2007.
Manchester saw a 10 per cent increase in prices and Newcastle-upon-Tyne eight per cent. But the gap between average property values in the North and the South has widened to a new high, topping £100,000 for the first time.
A house in the South of England is typically 74 per cent more expensive than one in the North. Prices in southern regions have risen by 6.1 per cent year-on-year - almost double the 3.1 per cent rise seen in the North. Although the figures will be warmly welcomed by millions of homeowners, average prices are still 7.5 per cent below the 2007 level.
Experts last night predicted the housing market would have fully recovered from the credit crunch by the end of next year, with prices increasing a further two per cent this year and then by seven per cent in 2014. In London, property prices are already eight per cent above their 2007 peak.
David Newnes, director of LSL Property Services, said: "The credit bottleneck which pent up demand after the financial crisis is finally starting to be cleared, which is why sales, prices and first-time buyer numbers have improved so rapidly.
"It has been like opening a shaken can of cola. You get the initial fizz of activity, then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom."
Meanwhile, figures from the Land Registry for August yesterday showed the biggest annual house price rise since November 2010, although this was a comparatively modest 1.3 per cent.
Article Source: http://www.express.co.uk/news/property/432776/House-prices-up-5-as-boom-goes-nationwide
The value of the average property has jumped by five per cent in the past year - equivalent to £8,163 or about £680 a month or £22 a day.
It means the average house is now worth £172,127 - its highest level since 2008. Economist Howard Archer said last night: "The hugely encouraging thing about these figures is that we are starting to see price increases across all areas of the country, not just London and the South-east.
"It's very good news and boosts hopes of an overall improvement in economic activity across all regions.
"We are at a very early stage but the economy is now genuinely looking a lot healthier and there are signs we are seeing a proper recovery after several false dawns."
The price rises reported by Nationwide are largely driven by southern regions of England but all regions recorded growth in the third quarter of the year. Northern Ireland, for example, recorded its first increase in prices since 2007.
Manchester saw a 10 per cent increase in prices and Newcastle-upon-Tyne eight per cent. But the gap between average property values in the North and the South has widened to a new high, topping £100,000 for the first time.
A house in the South of England is typically 74 per cent more expensive than one in the North. Prices in southern regions have risen by 6.1 per cent year-on-year - almost double the 3.1 per cent rise seen in the North. Although the figures will be warmly welcomed by millions of homeowners, average prices are still 7.5 per cent below the 2007 level.
Experts last night predicted the housing market would have fully recovered from the credit crunch by the end of next year, with prices increasing a further two per cent this year and then by seven per cent in 2014. In London, property prices are already eight per cent above their 2007 peak.
David Newnes, director of LSL Property Services, said: "The credit bottleneck which pent up demand after the financial crisis is finally starting to be cleared, which is why sales, prices and first-time buyer numbers have improved so rapidly.
"It has been like opening a shaken can of cola. You get the initial fizz of activity, then it flattens. What we're seeing is a relatively normal market correction, not a quick transition from a recession to a boom."
Meanwhile, figures from the Land Registry for August yesterday showed the biggest annual house price rise since November 2010, although this was a comparatively modest 1.3 per cent.
Article Source: http://www.express.co.uk/news/property/432776/House-prices-up-5-as-boom-goes-nationwide
Monday, 26 August 2013
Do Wind Turbines Impact Property Values in the UK?
In this article Mark Benson of PropertyCommunity.com on August 24, 2013 covers what could be the possible impact of wind turbines to UK's property values and speculations states that it could lead to a fall in property prices.
The subject of wind turbines has taken centre stage over the last few days with news that the UK government has commissioned a report into how wind turbines impact the value of property in their vicinity. The very fact that the UK government, along with many other governments around the world, has over the last few years been actively pushing the introduction of more wind farms could put the authorities in a very tricky situation if the rumours are correct.
There is speculation that the forthcoming report, which may or may not be made public, will confirm that billions of pounds have been wiped off the value of properties in the UK located in the vicinity of the ever-growing number of wind farms. There is speculation that the Department for the Environment is actively looking to publish the report as soon as possible while the Department of Energy and Climate Change has attempted to block its release.
Concerns about UK property values
The problem for many people is the fact that by definition wind farms are located in some of the more rural areas of the UK which offer enough wind power to make an investment worthwhile – thereby leading to a direct impact upon rural property values. It is not quite clear whether the impact upon properties in the vicinity of wind farms is similar across-the-board or whether certain areas are impacted to a greater degree.
Quote from PropertyForum.com : “The gap in home values in the UK between London and the South East and the rest of the country is widening, according to new research.”
If you take a step back and look at the situation, many of the more rural areas of the UK host some beautiful homes with matching scenery. For many people it is the tranquil nature of life in rural Britain which adds to the value of many country homes. Therefore, if you are looking out across a raft of wind farms the impact is very different and few people would be willing to pay extra for a view of these enormous renewable energy projects.
What will the government do?
The reality is that the UK government, along with many other governments around the world, has signed up to a variety of legal obligations with regard to renewable energy. David Cameron has already confirmed that we are likely to see a reduction in the number of onshore wind farms with a potential increase in the number of offshore wind farms. While this will be music to the ears of many across rural Britain who were concerned about the potential for wind farms to be built in their vicinity, it will do nothing to help those who have seen a major impact upon their property values already.
While this is all speculation at the moment, a number of newspapers have covered a rumoured situation whereby a property priced at £700,000 fell by around £250,000 in value once plans were approved for the building of a wind turbine. This kind of impact is unlikely to be replicated right across the board but there will be many situations where the demand for rural property is impacted by planning approvals for wind turbines. Is this now something else we need to take into consideration when looking at the acquisition of a property?
Article Source: http://www.propertyforum.com/property-in-the-uk/do-wind-turbines-impact-property-values-in-the-uk.html
The subject of wind turbines has taken centre stage over the last few days with news that the UK government has commissioned a report into how wind turbines impact the value of property in their vicinity. The very fact that the UK government, along with many other governments around the world, has over the last few years been actively pushing the introduction of more wind farms could put the authorities in a very tricky situation if the rumours are correct.
There is speculation that the forthcoming report, which may or may not be made public, will confirm that billions of pounds have been wiped off the value of properties in the UK located in the vicinity of the ever-growing number of wind farms. There is speculation that the Department for the Environment is actively looking to publish the report as soon as possible while the Department of Energy and Climate Change has attempted to block its release.
Concerns about UK property values
The problem for many people is the fact that by definition wind farms are located in some of the more rural areas of the UK which offer enough wind power to make an investment worthwhile – thereby leading to a direct impact upon rural property values. It is not quite clear whether the impact upon properties in the vicinity of wind farms is similar across-the-board or whether certain areas are impacted to a greater degree.
Quote from PropertyForum.com : “The gap in home values in the UK between London and the South East and the rest of the country is widening, according to new research.”
If you take a step back and look at the situation, many of the more rural areas of the UK host some beautiful homes with matching scenery. For many people it is the tranquil nature of life in rural Britain which adds to the value of many country homes. Therefore, if you are looking out across a raft of wind farms the impact is very different and few people would be willing to pay extra for a view of these enormous renewable energy projects.
What will the government do?
The reality is that the UK government, along with many other governments around the world, has signed up to a variety of legal obligations with regard to renewable energy. David Cameron has already confirmed that we are likely to see a reduction in the number of onshore wind farms with a potential increase in the number of offshore wind farms. While this will be music to the ears of many across rural Britain who were concerned about the potential for wind farms to be built in their vicinity, it will do nothing to help those who have seen a major impact upon their property values already.
While this is all speculation at the moment, a number of newspapers have covered a rumoured situation whereby a property priced at £700,000 fell by around £250,000 in value once plans were approved for the building of a wind turbine. This kind of impact is unlikely to be replicated right across the board but there will be many situations where the demand for rural property is impacted by planning approvals for wind turbines. Is this now something else we need to take into consideration when looking at the acquisition of a property?
Article Source: http://www.propertyforum.com/property-in-the-uk/do-wind-turbines-impact-property-values-in-the-uk.html
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