Posts with tag: London property

Demand for property in London rises

Published On: July 15, 2015 at 4:01 pm

Author:

Categories: Landlord News

Tags: ,,

Homeowners in London have been buoyed with the news that demand for property in the capital has risen for the first time this year. What’s more, new figures show that the average London home value has hit the £500,000 mark.

Climbs

A report from online estate agent eMoov.co.uk suggests that demand for homes across the boroughs of the capital rose by 7% since March. Despite this, demand is still down 15% on the same period twelve months ago.[1]

‘It doesn’t surprise me that despite the market cooling in some of the capital’s more prestigious boroughs, house prices in London have continued to rise,’ commented Russell Quirk, founder of eMoov. He feels that, ‘it’s long been accepted that London is one of the most expensive cities to live in the world, let alone the UK, but now that the average house price has tipped above the half a million mark, it really highlights how out of control the property market has become here.’[1]

Quirk states that, ‘the main factor in price growth is always demand and our latest Property Hotspots Index found that of all the London boroughs, demand has increased across the board by 7% on average since March, having steadily declined since this time last year.’[1]

Demand for property in London rises

Demand for property in London rises

Exodus

However, Mr Quirk went on to say, ‘the fact that house prices outside of London and the South East have continued to increase by 5.2% shows that the London exodus for more affordable property in continuing.’ He concluded by noting that this is, ‘hardly surprising given the new London average and the resulting ripple effect, as buyers search for a realistic way to get on the UK property ladder.’[1]

[1] http://www.propertyreporter.co.uk/property/demand-for-london-property-increases-for-the-first-time-in-a-year.html

Property Prices in London Suburbs Up Almost 20%

Published On: July 8, 2015 at 1:55 pm

Author:

Categories: Property News

Tags: ,,,,

The Outer London boroughs of Barking and Dagenham, Brent, and Sutton have experienced property prices rising almost 20% in the past three months.

Property Prices in London Suburbs Up Almost 20%

Property Prices in London Suburbs Up Almost 20%

Prices in the Essex borough of Barking and Dagenham were up 19% in the last three months, compared with the same period last year. In Sutton, prices increased by 18% and Brent saw prices grow by 17%, according to Nationwide’s house price index for June.

House prices dropped by 0.2% in June, taking the annual rate of price growth to a two-year low. The market could be slowing down after a boost following the general election.

The average house price decreased to £195,055 last month, from £195,166.

Year-on-year prices rose by 3.3%, compared to 4.6% growth in May, the research found.

Chief Economist at Nationwide, Robert Gardner, says: “This maintains the gradual downward trend that has been in evidence since mid-2014.”

However, buyers will be pleased, as Gardner reports that wage growth is beginning to catch up with the pace of property price rises.

He elaborates: “House price growth continues to outpace earnings, but the gap is closing, helped by a pickup in annual wage growth, which moved up to 2.7% in the three months to April from 1.9% at the start of the year.”1

In the capital, property price growth has matched or beaten that around the UK in the last nine months and the annual rate of growth is the second highest in the country.

In a separate report covering the three months to the end of June, Nationwide revealed that the average house in London cost £429,711, a 7.3% rise on the previous year. However, the speed of growth had slowed significantly from the 12.7% recorded in 2014.

1 http://www.independent.co.uk/news/business/news/london-house-prices-property-in-suburbs-barking-brent-and-sutton-up-almost-20-in-three-months-10359915.html

 

Prime London property prices up…and down

Published On: July 7, 2015 at 4:33 pm

Author:

Categories: Property News

Tags: ,,

The latest analysis from real estate firm Savills has provided good news for London’s prime housing market, revealing that property values rose by 1.6% in the three months to the end of June. However, further investigation suggests that levels are still down 0.7% from last year.

Restricted

An increase in stamp duty rates and stock levels remaining unsold led to values becoming restricted following May’s general election. In addition, the report suggests that caution amongst buyers at the top end of the market is also high, with net price growth rising by just 0.3% for the capital’s prime central market. House prices in this market were also found to be 4.3% down year-on-year.[1]

‘The stamp duty increases introduced in December 2014 mean they now also looked fully taxed, despite mansion tax fears being confined to history,’ commented Lucian Cook, head of UK residential research at Savills.[1]

Cook seems to have a point, with homes worth in excess of £2m across the rest of the prime London market seeing values dip by an average of 0.9% over the past twelve months. More positively, prices rose by 2.4% in the three months to June.[1]

Prime London property prices up...and down

Prime London property prices up…and down

Gaps

‘In the early part of the year we could put buyer reluctance to commit down to political uncertainty pre-election,’ Cook continued. ‘Only now is the dual effect of taxation at the top end of the prime market and mortgage regulation at entry level becoming clear.’[1]

Cook went on to note that, ‘these constraints are keenly felt by buyers, while some sellers are clinging to expectations that values can keep on rising. That has created a gap in price expectations in parts of the market which is likely to hold back any recovery in transaction levels.’[1]

‘With those transactions having been suppressed prior to the election, it seems inevitable that high value sales will have peaked, at least in the short term, in 2014. That means current constraints on the market could have a negative on impact on stamp duty receipts from most expensive housing upon which the Treasury has become increasing reliant,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/london-prime-property-market-2015070710720.html

 

 

House Prices in Every London Borough

Published On: June 9, 2015 at 1:56 pm

Author:

Categories: Finance News

Tags: ,,,,

The average cost of buying a home in London has increased by 10.9% in the last year to reach £474,544, according to recent Land Registry data.

The highest annual price growth was in the East London Borough of Newham, at 17.2%. The lowest was recorded in Kensington and Chelsea. Hackney experienced the strongest month-on-month price rise of 2.1%, taking the average to £616,004.

Barking and Dagenham is the most affordable borough to buy a property, with an average price of £274,173.

Average property prices in London boroughs

Borough Average house price Annual change Monthly change
Barking and Dagenham £274,173 13.3% -0.5%
Barnet £464,645 15% 1.3%
Bexley £287,732 14.9% 0.1%
Brent £428,558 13.1% 0.2%
Bromley £388,896 16% 1.1%
Camden £825,082 10.2% -0.2%
City of Westminster £990,896 6.4% -0.4%
Croydon £328,282 15.8% 1.1%
Ealing £459,637 12.6% 1.6%
Enfield £335,967 16.3% 1.5%
Greenwich £357,194 15.6% 1%
Hackney £616,004 14.8% 2.1%
Hammersmith and Fulham £784,613 9.3% -0.5%
Haringey £491,472 10% 0.2%
Harrow £380,073 16% -0.1%
Havering £311,689 10.4% 0.3%
Hillingdon £335,450 15.7% 0%
Hounslow £361,336 11.4% 0.7%
Islington £671,321 10.9% 0.6%
Kensington and Chelsea £1,317,323 4.4% 0.4%
Kingston upon Thames £421,480 10.2% 0.3%
Lambeth £534,304 11.9% -0.5%
Lewisham £391,510 16.4% 1.4%
Merton £466,919 11.6% 0.3%
Newham £295,306 17.2% 0.4%
Redbridge £363,318 14.7% 0.4%
Richmond upon Thames £622,233 10.6% -0.4%
Southwark £549,488 11% -0.1%
Sutton £321,026 13.6% 0.8%
Tower Hamlets £492,585 14% 1.3%
Waltham Forest £359,329 10.9% -1.8%
Wandsworth £576,155 9.9% -0.2%

 

 

Foxtons Could Face £42m Legal Bill for Charging £616 for Changing a Light

Published On: June 9, 2015 at 9:57 am

Author:

Categories: Finance News

Tags: ,,,,

London estate agent Foxtons could soon face a huge legal bill of up to £42m after it charged a landlord £616 for changing a light fitting.

This could be the most expensive light replacement ever, which could lead to the stock market listed agent being sued by thousands of landlords.

Foxtons Could Face £42m Legal Bill for Charging £616 for Changing a Light

Foxtons Could Face £42m Legal Bill for Charging £616 for Changing a Light

Foxtons used a subcontractor, Maintenance1st, to conduct the work at Dr Chris Townley’s rental property. He was billed £550 plus £66 VAT, but later discovered that Maintenance1st had charged much less.

Dr Townley is a law lecturer at King’s College London and signed up to Foxtons to let and manage his London investment in 2011.

In 2013, he received a bill for the repair but demanded a refund after finding that the work was substandard. Maintenance1st disputed this and did not offer a refund.

Foxtons then grudgingly put Dr Townley in touch with Maintenance1st, which revealed that its charge was £412.50.

When Dr Townley challenged the agent on the price difference, it admitted to adding £137.50 commission, 33% of the subcontractor’s charge. Dr Townley then found out that Maintenance1st had paid Foxtons an undisclosed commission for carrying out the work.

Furthermore, Foxtons charged Dr Townley an ad hoc management charge of 10% + VAT, as the invoice was over £500. However, the bill only exceeded this amount because of Foxtons’ 33% fee.

In total, Dr Townley paid Foxtons £203 in fees, a 49% mark-up on the original £412.50 bill.

Leigh Day solicitors has sent Foxtons a letter of claim, which is served before legal proceedings. The claim states that the hidden commission was not covered in Dr Townley’s contract.

The firm believes that thousands of other landlords will also be entitled to compensation from Foxtons, with the claims reaching £42m.

Dr Townley comments: “When I first heard there was a commission I was not happy, but thought it may be 2% or 3%. When I found out the real amount I thought it was shocking.”1

Solicitors think Foxtons is wrong for failing to declare a conflict of interest, as it receives commission from contractors as well as from landlords. Foxtons says its charges are clear and Maintenance1st is not involved in the legal dispute.

1 http://www.thisismoney.co.uk/money/news/article-3113604/Estate-agent-Foxtons-risks-huge-legal-bill-charging-616-fix-light.html

One-Bedroom Home Goes on Market for £3.75m

Published On: June 8, 2015 at 9:56 am

Author:

Categories: Property News

Tags: ,,,

On a quiet street in Knightsbridge is Tutti Frutti, the one-bedroom property with a huge price tag.

Londoners will be quite aware that you don’t get much for your money in the capital, but this house takes the crisis to another level, as it has gone onto the market for a huge £3.75m.

The extravagant home could be the world’s most expensive one-bedroom house due to its massive asking price.

Described as an “exquisite bijou mews house”1, the property was designed by interior decorator Federica Palacios. The walls and floor of the garage are purple and the kitchen has been painted in bright stripes.

Over three floors, the home surprisingly boasts a double garage, utility room, reception room and shower room. However, it does have just the one bedroom, which is unconventional for any house.

At £3.75m, the property is around ten times more expensive than the average home in London and just half the price of Wentworth Woodhouse stately home, which is 150 times bigger.

The 1,200 square foot home was put on the market by Jeremy Davidson Property Consultants and is being sold with the furnishings and fittings. It is a short walk from Harrods and Hyde Park.

Property expert Henry Pryor says that Tutti Frutti would be a perfect home for pop star Prince or the ideal headquarters for portal Zoopla.

Pryor continues: “Either would surely be delighted to find themselves in this violet Knightsbridge den. It is in one of the most fashionable parts of London, close to the best shops, the coolest restaurants and would surely make some trustafarian daughter very happy.

“Most people would opt for two years at the Savoy Hotel, which the Stamp Duty alone would pay for. But no doubt there is someone with the decorating taste of Peter Stringfellow who will fall in love with the location and the style.”1

1 http://www.mirror.co.uk/news/uk-news/see-worlds-most-expensive-one-bedroom-5803850