Posts with tag: first time buyers London

Average Price of a First Time Buyer Home in London Rises by £28,000

Published On: August 17, 2015 at 4:55 pm

Author:

Categories: Finance News

Tags: ,,,

If anyone wondered if London’s first time buyers are struggling, new research can confirm that they are. According to Savills, the price of an average starter home in the capital has risen by £28,000 in a year.

This means that buyers priced out of full ownership and looking for a shared ownership deal still need £67,000 for a home, up £7,000. This is for a quarter share in a property.

Savills suggests that first time buyers stay away from Hammersmith and Fulham, Lambeth, Barnet and Ealing. All four boroughs have experienced a 20% increase in the price of starter homes in the last year; this is more than double the London average.

Average starter home prices in London

Borough

Average price April 2014-2015 Average price April 2013-2014

Annual change

Barking and Dagenham £180,000 £162,000 11.1%
Bexley £203,000 £177,000 14.7%
Havering £215,000 £189,000 13.8%
Croydon £218,400 £191,995 13.8%
Newham £220,250 £185,000 19.1%
Sutton £233,000 £195,000 19.5%
Enfield £238,000 £210,000 13.3%
Redbridge £240,000 £222,500 7.9%
Greenwich £247,000 £215,000 14.9%
Lewisham £250,000 £214,625 16.5%
Hillingdon £250,000 £220,000 13.6%
Waltham Forest £250,000 £220,000 13.6%
Hounslow £250,000 £225,000 11.1%
Bromley £257,000 £231,000 11.3%
Harrow £273,000 £249,950 9.2%
Brent £275,000 £250,000 10%
Merton £299,713 £297,500 19.9%
Ealing £299,950 £250,000 20%
Barnet £300,000 £250,000 20%
Kingston upon Thames £305,000 £269,950 13%
Tower Hamlets £309,746 £272,000 13.9%
Haringey £310,000 £259,950 19.3%
Southwark £320,000 £265,000 20.8%
Lambeth £330,000 £275,000 20%
Hackney £336,350 £297,500 13.1%
Richmond upon Thames £390,000 £330,000 18.2%
Wandsworth £401,625 £350,000 14.8%
Islington £410,000 £347,625 17.9%
Camden £470,000 £420,000 11.9%
Hammersmith and Fulham £480,000 £400,000 20%
City of Westminster £572,625 £485,000 18.1%
Kensington and Chelsea £740,000 £623,750 18.6%

As starter home prices in Hammersmith and Fulham have grown from £400,000 to £480,000, a quarter share would be £120,000.

Average Price of a First Time Buyer Home in London Rises by £28,000

Average Price of a First Time Buyer Home in London Rises by £28,000

In Lambeth, a quarter share would cost a first time buyer £82,000, £75,000 in Barnet and £35,000 in Ealing.

Associate director in Savills’ residential research department, Sophie Chick, says that increasing prices and lender demands for high deposits have caused many prospective first time buyers to be trapped.

She comments: “They cannot find the deposit, but with the current low interest rates, owning a home is often within affordable levels.”1

Barking and Dagenham is the only borough where a property costs less than £200,000. A typical first time buyer property is £180,000, up from £162,000 a year ago. A quarter share in a starter home is now £45,000, up £4,500 in the past year.

Kensington and Chelsea is still the most expensive area for a starter home.

The data is based on the annual change in the average price of a first time buyer home in the year to April. These are the most recent figures available.

1 http://www.homesandproperty.co.uk/property-news/news/london-house-prices-average-price-first-time-buyer-home-has-risen-ps28000-year

The Capital’s First Time Buyers Look to South East London

Published On: July 21, 2015 at 12:55 pm

Author:

Categories: Landlord News

Tags: ,,

South East London is attracting first time buyers who are priced out of other parts of the capital. The boroughs of Bromley, Bexley and Greenwich account for a quarter of all of London’s first time buyers, according to Experian.

One in four buyers are joining London’s homeowners in parts of the capital stretching from Greenwich Peninsula to Crystal Palace.

Experian, an information services firm, found that 23% of first timers find a home in the cheaper parts of East London, such as Havering, which accounts for around 13% of first time buyer sales. Newham, Tower Hamlets and Barking and Dagenham are also popular.

Other areas that put buyers on the property ladder include Sutton, accounting for 9.07% of sales, Hillingdon at 5.37% and Croydon at 4.99%.

A tiny amount of house hunters find their first home in Kensington and Chelsea, at 0.08%. In Westminster, Camden and Hammersmith and Fulham, just over 1% of first timers can buy a home.

London’s top boroughs for first time buyer flats

Borough

Amount of first time buyers Average price Annual price change

Monthly price change

Bexley 16.06% £289,750 14.1% 0.4%
Havering 12.95% £315,683 10.9% 1.2%
Sutton 9.07% £327,010 14.5% 1.2%
Bromley 5.38% £387,524 13.1% -0.2%
Hillingdon 5.37% £335,354 13.7% -0.6%
Croydon 4.99% £334,729 15.9% 1.9%
Greenwich 4.2% £364,619 14.5% 2%
Barking and Dagenham 3.51% £277,044 13.6% 1.9%
Newham 3.19% £301,368 17.5% 1.6%
Tower Hamlets 3.07% £495,748 13.1% 0.1%
Hounslow 2.51% £369,642 13.3% 1%
Kingston upon Thames 2.37% £426,440 10.2% 1.4%
Hackney 2.08% £624,603 13.6% 0.9%
Waltham Forest 1.82% £363,776 9.6% 0.6%
Lewisham 1.74% £399,425 15.3% 1.2%
Merton 1.49% £471,833 10.6% 0.9%
Barnet 1.47% £463,626 13.9% -0.2%
Richmond upon Thames 1.42% £623,630 8.9% 0.1%
Enfield 1.34% £340,654 15.1% 1.3%
Redbridge 1.33% £358,580 13% -0.9%
Haringey 1.03% £503,468 10.3% 1.6%
Harrow 0.87% £380,110 14% 0.3%
Southwark 0.84% £554,035 10.3% 0.4%
Islington 0.82% £674,598 10.4% 0.6%
Wandsworth 0.66% £580,655 7% 0.5%
Ealing 0.61% £459,081 12.4% 0.2%
Brent 0.56% £431,532 13.5% 0%
Lambeth 0.46% £534,768 7.8% 0.5%
Camden 0.38% £806,239 6.3% -1.2%
Hammersmith and Fulham 0.38% £769,308 5.5% -1.1%
City of Westminster 0.29% £967,400 2.7% -0.4%
Kensington and Chelsea 0.08% £1,364,033 5.6% 2.4%
The Capital's First Time Buyers Look to South East London

The Capital’s First Time Buyers Look to South East London

Bexley

Bexley’s strong appeal to young families priced out of more central parts of London could be the cause of its performance in the study.

In the most recent Family Hotspots report from Family Investment, Bexley was named the best place to bring up a child in London. This is due to its open spaces and good grammar schools, including Beths Grammar School and Bexley Grammar School, which were rated outstanding by Ofsted.

Managing Partner of Robinson Jackson estate agents, Kevin Wooder, says that most first time buyer families find their starter home in Bexleyheath, which has good schools, a thriving high street and good commuter links.

Locals can reach Cannon Street in 33 minutes and Charing Cross in 37 minutes. An annual season ticket costs £2,188.

Compared to the rest of London, homes are also affordable. Wooder says that a 1930s three-bedroom semi-detached house costs between £370,000-£440,000. A three-bedroom Victorian terrace is priced at around £320,000-£330,000.

Wooder comments: “Young families are moving into the area. It has a very good selection of schools, the infrastructure is good and it is affordable compared to other London boroughs.”1

Crystal Palace

Crystal Palace is a perfect area for those still wanting to stay close to central London. A large part of Crystal Palace is within Bromley, but it also crosses over into Croydon and Southwark.

Branch Manager at Wooster & Stock, Zoe Matheson, says: “Everybody knows about the park, but Crystal Palace has rapidly become a really cool place. It has lots of lovely restaurants and boutiques and a cocktail bar recently opened.”1 

A food market, unique house building, gorgeous views of the City and the antiques shops of Church Road are also boosting Crystal Palace’s reputation. The town itself boasts grand Victorian properties, which have mostly been converted into large flats.

A two-bedroom flat costs around £350,000, although larger flats overlooking the park sell for up to £650,000.

The area has received a boost from the extension of the East London line in 2012, bringing direct links to Docklands. There are railway services to Victoria and London Bridge that take under half an hour. An annual season ticket costs from £1,508.

Greenwich 

The historic Greenwich Village is an appealing area to house hunters, but two-bedroom flats cost around £500,000 and houses can cost millions. Greenwich Peninsula is more realistic and is still within walking distance of the shops and restaurants of Greenwich Park.

The Peninsula, home of the O2, was named as the solution to London’s housing troubles around the year 2000. And it has finally come into the limelight with two-bedroom flats priced at around £300,000.

Greenwich Peninsula is close to the North Greenwich tube station, in zone 2 on the Jubilee line, just one stop from Canary Wharf and four stops from London Bridge.

Critics claim that Greenwich Peninsula seems unfinished as developments are still forming, but the lifestyle is already improving.

1 http://www.homesandproperty.co.uk/property-news/affordable/homes-buy-bromley-bexley-and-greenwich-why-first-timers-are-flocking-south-east-london

 

 

South East London Property Guide

Published On: May 30, 2015 at 1:13 pm

Author:

Categories: Property News

Tags: ,,,

South East London is emerging as one of the best parts of the capital for first time buyers, as 15,000 starter homes have been bought in this area in the last year, revealed Hamptons International.

The highest levels of demand have been felt in areas furthest from central London, such as Beckenham, Crystal Palace and Bromley, where it is still possible to buy a house with two or more bedrooms for less than £300,000.

For first time buyers wanting to stay closer to the centre, one-bedroom flats in areas such as Brixton and Surrey Quays are the most popular.

Head of Research at Hamptons International, Johnny Morris, comments: “For some first time buyers, it’s simply a case of finding a home that they can afford. But an increasing number are choosing to skip a step in their housing journey, looking for a bigger home they can stay in for longer.”1

The following areas in South East London offer the best value and lots of potential for buyers:

Beckenham, Zones 4/5 

Beckenham has nice shops, cocktail bars, good schools and a village feel. Young professionals and families are moving to the area, not too far from the City.

Average price of a flat*: £313,790

* Property prices from Zoopla

Brixton, Zone 2

Brixton Village, featuring cool bars and restaurants, has made the area one of the trendiest spots in London.

Average price of a flat: £375,954

Bromley, Zone 5 

This town is 12 miles from central London and has been promised huge investments, marking a bright future.

Average price of a flat: £277,709

Camberwell, Zone 2

Beautiful architecture with an urban lifestyle makes Camberwell appealing to young professionals and families.

Average price of a flat: £340,182

Catford, Zone 3

Eight miles from central London, Catford has a strong community, popular schools and well-priced homes.

Average price of a flat: £235,012

Dulwich Village, Zone 2

There aren’t many parts of London that feel rural, but Dulwich Village has that vibe, with Georgian houses, cottages, good schools and independent shops.

Average price of a flat: £387,274

Greenwich, Zone 2

Historic Greenwich will soon see a new 24-hour community and 15,000 new homes.

Average price of a flat: £424,676

Kennington, Zones 1/2

Kennington has been redeveloped, bringing in an eclectic group of residents. The new Damien Hirst gallery adds culture.

Average price of a flat: £429,701

Lee, Zone 3

House hunters have previously overlooked Lee, but the area has a good community spirit, fascinating history, good schools and good value Victorian properties.

Average price of a flat: £251,356

Lewisham, Zone 2 

For commuters, fast trains are attractive, while families look for homes in the conservation areas. If buyers are quick, they can get in on London’s next big Tube project.

Average price of a flat: £309,826

Nunhead, Zone 2 

Between East Dulwich and Peckham, Nunhead has a neat high street and prospering local festivals.

Average price of a flat: £316,943

Peckham, Zone 2

Peckham is young and exciting in parts, but also has a solid scene of good cafes, bars, shops and schools.

Average price of a flat: £316,943

Penge, Zone 4

Investors and young professionals are taking advantage of Penge’s low property prices, train links and fast commute.

Average price of a flat: £242,372

Vauxhall, Zone 1

For buyers with larger budgets, Vauxhall is having an artistic renovation, providing a creative place to live that’s close to the West End.

Average price of a flat: £1,484,560

Woolwich, Zones 3/4

Commuters and investors are looking to Thames-side town Woolwich for its new redevelopment opportunities.

Average price of a flat: £272,440

1 http://www.homesandproperty.co.uk/area-guides/greater-london/area-watch-property-guide-south-east-london#1

Average First Time Buyer Home in London is £300,000

The average price paid for a property by a first time buyer in London has exceeded £300,000 for the first time.

In the rest of the UK, the average price for the same buyer is just £155,782.

First time buyers in the capital must also raise a deposit of over £67,000, compared with £25,890 elsewhere.

Average First Time Buyer Home in London is £300,000

Average First Time Buyer Home in London is £300,000

Data from Your Move and Reeds Rains indicates that although the average starter home in London is now £304,205, around 9,100 first time buyers purchased a home in the capital in the first quarter (Q1) of 2015.

This figure was 11,700 in Q1 2014, but the average starter home was £266,497 then. However, the amount of first time buyers is likely to grow again, as high-end buyers tail off.

The latest House Price Index from Land Registry reveals that property prices in the capital are beginning to steady, at a slight 0.2% rise in the last month.

However, this will not help aspiring buyers, who saw a huge increase last year, meaning the annual price rise is 11.3% and the average house price is £462,700. This is two and a half times the average value in England and Wales of £178,007.

London’s resilient prices mean that outer areas, which offer better value for money, are benefitting from more buyers. More expensive boroughs of the capital are barely seeing rises above inflation.

The best performing areas of the capital in the last year were Newham, up 19% to an average of £291,364, and Greenwich, up 18.8% to £353,926.

The worst area was Kensington and Chelsea, where average prices increased 5.2% to just under £1.3m.

The borough saw the highest property price growth during the coalition government, at just under 48% in five years. Two other Conservative areas, the City of London and the City of Westminster, experienced increases of over 40% in the same period.

Just three Labour constituencies were in the top ten property price performers, Tooting and Islington North, both up 38.2%, and Tottenham at 35.7%.

The only places surpassing London’s rises are the commutable and fairly inexpensive areas of Thurrock, Hertfordshire and Reading, which have all experienced increases of 13%.