The Buying Agents, a property search company, have given advice on where and what is best to buy for homebuyers and investors this year.
They predict that the New Year will see growth in the market, after the Stamp Duty reforms of 2014.
The Buying Agents Managing Director, Henry Sherwood, describes what different buyers should be looking for:
Where and What to Buy in 2015
This year may see increased competitiveness in the £1m-£1.5m family sector. More homeowners will potentially be putting their London equity into Surrey; however, it is still believed that there will be high demand in central London areas such as Clapham, where homes can be bought for under £1.5m. Family homes can be found in Ealing for less than £1m, and boast lots of outdoor space.
First time buyers
Sherwood advises first time buyers to look outside Cross Rail routes, after prices inflated massively. They are recommended to look to North London, especially Southgate, where there is good infrastructure, such as schools and transport links, and the CR2 route.
Sherwood believes that buy-to-let will return to its traditional values of yields rather than capital growth this year. London investors are advised to look out of central London, where prices are beginning to level out. City Airport, and Royal Docks in Zones 2 and 3 are hotspots.
Areas around the planned £1 billion Asian Business Port will also see high demand from investors.
Liverpool is still regarded the buy-to-let hotspot of the UK, followed by Belfast, where prices are -50% of peak costs, and are just beginning to increase.
Ultra high-net-worth (UHNW) and developers
Developers are concerned over 15% negotiations of some new build projects. At present, however, it is not known whether Stamp Duty changes will affect the uber-prime market. Demand in these parts of London could have already been met.
Developers provide based on demand, and Ibiza, and The Riviera will be high on the list for Europeans, and St Barths in the USA.
“Many London homeowners will want to cash in on their properties and move to the country next year,” says Sherwood. “The majority of these will want to buy around the M25 commuter hubs, with good transport links to the capital.”
Sherwood continues: “Families who still need to get access to the City can however still be confident of getting the best of both worlds in suburban areas like Ealing and Hackney, which offer more outside space at less than £1m.
“Investors really need to keep their eye on Zones 2 and 3 in particular, where opportunities for capital growth and strong yields are abundant.”1