Connect with us

Current

Average property asking price in the UK hits third of a million pounds

Voice Of EU

Published

on

The average asking price for a home put up for sale in the UK has hit a third of a million pounds, according to a new report.

Asking prices for homes for properties newly listed for sale  across Britain jumped by over £5,700, or 1.8 per cent, over the past month to a new ‘all-time high’ of £333,564, as buyers rushed to snap up homes with more space, according to Rightmove. 

Family homes with three or more bedrooms have become like ‘gold dust’ in many areas, especially in parts of the north, where demand ‘continues to massively exceed supply’, pushing up prices, the property portal said.

Pushing higher: Asking prices for homes have again hit new record highs, Rightmove said

Pushing higher: Asking prices for homes have again hit new record highs, Rightmove said

Average asking prices increased by 6.7 per cent compared to March 2020. This is the closest month for comparison as the property market, and Rightmove’s index, were suspended for most of April and May last year.

The numbers are striking, but average asking prices are very different to the final price a home ends up being sold for. A property is only ever really worth what a buyer is prepared to pay for it.   

Still, with demand from buyers so strong and supply not keeping up, the time taken to sell a home has reached yet another record low of 45 days, according to Rightmove.

The demand and supply imbalance is strongest in northern regions, where a shortage of larger homes is contributing to push prices higher. 

Average asking prices in the North West have climbed by more than 11 per cent since March last year, while in Yorkshire & the Humber by over 10 per cent, shortly behind Wales, which saw the biggest price increase at 13 per cent. 

In previous market upturns London has generally led the way, but prices are now virtually flat in the capital, having risen just 0.2 per cent since pre-lockdown – although, as Righmove stresses, there are widely varying local markets within the capital. 

The time taken to sell a home has reached yet another record low of 45 days Rightmove said

The time taken to sell a home has reached yet another record low of 45 days Rightmove said

The fast rise in prices in the north and languishing valuations in London means that the price gap between these regions has shrunk to its smallest in eight years. 

While the gap remains very large, with average prices in London still 2.9 times higher than those in the north, this ratio is now at its smallest since 2013, Rightmove said.

‘Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions,’ said Rightmove’s director of property data, Tim Bannister.

And added: ‘It is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north. 

‘The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas. 

‘So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London.’  

Family homes are ‘like gold dust’ 

The number of larger homes available to buy has shrunk significantly during the pandemic, Rightmove said.

Rigthmove gives the example of the North East, where agents last month had almost 60 per cent fewer ‘second stepper’ homes – which are mostly three-bedrooms – for sale than in the same period in 2019.

The situation is similar in Scotland, where ‘top of the ladder’ homes with four or more bedrooms is down 65 per cent compared to before the pandemic.   

This has translated in higher asking prices across the country, with top of the ladder homes having increased on average by 10.8 per cent over since March last year, second steppers homes by 7.9 per cent and first-time buyers’ homes by 5.4 per cent. 

Price shifts: 'Top of the ladder' homes have seen the biggest rise in asking prices

Price shifts: ‘Top of the ladder’ homes have seen the biggest rise in asking prices 

In contrast, London’s available stock is down 20 per cent and 24 per cent respectively in these sectors, ‘so while supply is still limited it is more closely matched to demand’. 

‘Another important factor driving the higher demand and quicker average time to sell in the north is that more of their sellers are intending to buy and stay local, whereas many Londoners are looking to move out,’ explains Bannister. 

Rightmove’s research among those intending to sell in the next 12 months shows that an average of 84 per cent in the north are looking to move locally, compared to only 52 per cent in London. 

‘The pandemic has changed many aspects of what people want from their homes, and the pricing pendulum is swinging away from London towards the north,’ Bannister added.  

Tomer Aboody, director of property lender MT Finance, added: ‘Londoners who have always craved city life are now less fussy about being at the centre of things and are willing to compromise on location in order to find that elusive space. 

‘This, in turn, is pushing asking prices up in other regions at the fastest pace in years, exceeding London in terms of percentage increase in values. 

‘Although prices are still much lower in the regions than in London, those averages are rising as demand shifts outwards.’

Regional patterns: Average asking prices in the North West have climbed by more than 11 per cent since March last year, while in Yorkshire & the Humber by over 10 per cent, shortly behind Wales, which saw the biggest price increase at 13 per cent

Regional patterns: Average asking prices in the North West have climbed by more than 11 per cent since March last year, while in Yorkshire & the Humber by over 10 per cent, shortly behind Wales, which saw the biggest price increase at 13 per cent

What next?

In his recent Budget, Chancellor Rishi Sunak extended the stamp duty holiday in its current form until the end of June, and then tapered until September.

That means homebuyers in England and Northern Ireland will pay no stamp duty on properties worth up to £500,000, saving up to £15,000.

The threshold will then drop to £250,000 until the end of September, with buyers saving up to £2,500 per transaction, before returning to its normal level of £125,000.

Since the Chancellor first unleashed the scheme last year, the housing market has seen buyer demand – and prices – rise sharply. 

Jeremy Leaf, north London estate agent and a former RICS residential chairman, believes the tapering of stamp duty to cause a decline in activity.

He said: ‘These figures confirm what we’ve seen ‘at the sharp end’. Some sellers have taken the opportunity to raise asking prices, making home buying less accessible even for those able to purchase the dwindling stock of properties. 

‘On the other hand, we’re finding faster rollout of the second jab, in particular, is helping to encourage older homeowners to put their homes on the market but not fast enough yet to keep prices in check.

‘We expect the imminent tapering of the stamp duty concession to prompt a reduction in activity and softening rather than a correction in prices as longer-term market sustainability is driven by economic recovery and availability of competitively-priced finance.’

Matthew Cooper, founder & managing director of Yes Homebuyers, believes prices will fall once the stamp duty holiday ends.

‘It’s clear that sellers are attempting to cash in on the stamp duty holiday themselves by reaching new highs where unrealistic asking price expectations are concerned,’ he said.

‘It certainly doesn’t help when this hysteria is being driven by the likes of Rightmove, who continue to pull ‘record’ market statistics out of their hat on a monthly basis, much like a cheap magician at a children’s party.’

He added: ‘When the end of the stamp duty holiday does come and causes buyer demand to evaporate, we’re likely to see property values fall at pace.’

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Source link

Current

Sirius Real Estate sells London business park for €18.8m (GB)

Voice Of EU

Published

on

Sirius Real Estate has agreed to the sale of an asset in Camberwell, London, for €18.8m (£16m), representing a NIY of circa 2%. The property formed part of the portfolio Sirius acquired in November 2021 with its purchase of BizSpace, the leading provider of regional light industrial, workshop, studio and out of town office units across the UK. The sale price represents a 94% premium to the valuation at the time of Sirius’ acquisition of BizSpace.

 

The multi-tenanted business park, which comprises approximately 34,700ft² of industrial and office space is 91% occupied following a series of asset management measures delivered through the BizSpace platform. The sale is expected to complete in July 2022.

 

Commenting on the transaction, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “This disposal is further proof of the latent value in the BizSpace portfolio we acquired late last year, the price being significantly ahead of last September’s valuation on which our purchase was based, and the attractive sale follows our recent announcement that we had since improved like-for-like rental income across the portfolio by 7.5%. The sale will allow us to invest in new opportunities for BizSpace in the UK as we continue to build our acquisition pipeline. Bringing together the Sirius and BizSpace platforms, with a strengthened management team at BizSpace, is already delivering strong results and operational synergies that will enhance our UK portfolio.”

Source link

Continue Reading

Current

Southwold beach hut which is 10ft wide with no running water or electricity up for sale for £250,000

Voice Of EU

Published

on

A beach hut in an upmarket seaside town which is famed for its celebrity visitors has gone on the market for a record £250,000.

The price is believed to be the highest ever to be asked in the UK for a hut which people are not allowed to sleep in – and is double the cost of a three bedroom terraced house just 10 miles away.

The hut, numbered 149 and called ‘Here’s Hoping’, measures 10ft 6ins wide and is in a prime position on the promenade in the Edwardian town of Southwold, Suffolk.

The resort has always been a popular retreat for well-heeled Londoners and celebrities including Chris Evans, Michael Palin, Stephen Fry, Rowan Atkinson and Richard Curtis.

Beach huts on the south coast can be more expensive with selling prices for some in Dorset exceeding £500,000.

But the huts in Southwold, which have no electricity or running water, are subject to strict local by-laws which ban anyone from sleeping overnight.

A beach hut called 'Here's Hoping', pictured, which sits on the promenade of the upmarket seaside town Southwold in Suffolk, Doset, famed for its celebrity visitors, has gone on the market for a record £250,000

A beach hut called ‘Here’s Hoping’, pictured, which sits on the promenade of the upmarket seaside town Southwold in Suffolk, Doset, famed for its celebrity visitors, has gone on the market for a record £250,000

The price is believed to be the highest ever to be asked in the UK for a hut which people are not allowed to sleep in. The hut, called 'Here's Hoping' and numbered 149, measures 10ft 6ins wide and is in a prime position on the promenade in the Edwardian town

The price is believed to be the highest ever to be asked in the UK for a hut which people are not allowed to sleep in. The hut, called ‘Here’s Hoping’ and numbered 149, measures 10ft 6ins wide and is in a prime position on the promenade in the Edwardian town

The resort has always been a popular retreat for well-heeled Londoners and celebrities including Chris Evans, Michael Palin, Stephen Fry, Rowan Atkinson and Richard Curtis. Beach huts on the south coast can be more expensive with selling prices for some in Dorset exceeding £500,000

The resort has always been a popular retreat for well-heeled Londoners and celebrities including Chris Evans, Michael Palin, Stephen Fry, Rowan Atkinson and Richard Curtis. Beach huts on the south coast can be more expensive with selling prices for some in Dorset exceeding £500,000

The buyer will still have to pay annual ground rent of £998 and will only have 18 years left of a 30 year lease, although there will be an option to renew.

They will be able to enjoy spectacular views from a veranda overlooking the beach and the North Sea, while being just a short walk from pubs, restaurants and shops.

But just 10 miles away in Lowestoft, Suffolk, there are several homes up for sale, priced between £120,000 and £140,000.

But the huts in Southwold (pictured), which have no electricity or running water, are subject to strict local by-laws which ban anyone from sleeping overnight

But the huts in Southwold (pictured), which have no electricity or running water, are subject to strict local by-laws which ban anyone from sleeping overnight

Southwold beach (pictured) has always been a popular retreat for well-heeled Londoners and celebrities including Chris Evans, Michael Palin, Stephen Fry, Rowan Atkinson and Richard Curtis

Southwold beach (pictured) has always been a popular retreat for well-heeled Londoners and celebrities including Chris Evans, Michael Palin, Stephen Fry, Rowan Atkinson and Richard Curtis

Huts in the best locations within Southwold, which is famed for its Adnams brewery, pier and lighthouse, are rarely on the market and some have been in the same family or generations

Huts in the best locations within Southwold, which is famed for its Adnams brewery, pier and lighthouse, are rarely on the market and some have been in the same family or generations

Several semi-detached homes in the area offer three bedrooms, one bathroom and two reception rooms, and is located 0.1 miles away from Lowestoft railway station.

Another property on the market is a £90,000, three-bed semi-detached bungalow at Broadlands Park and Marina in Lowestoft which has a garden, one bathroom and one living room.

The listing for the beach hut boasts that it has ‘glazed double folding doors’ and ‘a number of storage cupboards’.

The previous highest price asked for one of Southwold’s 300 beach huts was £150,000 in September 2018.

Prices have soared since then as property prices have continued to increase and the demand for staycation breaks following the Covid epidemic has boomed.

Huts in the best locations within Southwold, which is famed for its Adnams brewery, pier and lighthouse, are rarely on the market and some have been in the same family or generations.

Several semi-detached homes in the area offer three bedrooms, one bathroom and two reception rooms, and is located 0.1 miles away from Lowestoft railway station

Several semi-detached homes in the area offer three bedrooms, one bathroom and two reception rooms, and is located 0.1 miles away from Lowestoft railway station

Many are rented out for around £600 a week to visitors who flock to the town.

The latest asking price is more than double the price of a three bedroom terrace house on the market for £110,000 around ten miles away in Lowestoft, Suffolk.

More than half the properties in Southwold are second homes and the full-time population is now below 1,000, putting extra strain on local services.

Earlier this year, councillors unveiled plans to try and stem the number of second homes in the town and make more affordable housing possible for local people.

A spokesperson for estate agent Flick & Son, which is selling the hut, said: ‘I am sure it will go very quickly.

‘There is a high demand for huts and we expect there will be a bidding war in the end.’

Source link

Continue Reading

Current

EU will retaliate to any unilateral action on NI protocol, Coveney warns

Voice Of EU

Published

on

British prime minister Boris Johnson has been warned of the consequences of unilateral action on the Northern Ireland protocol, including the prospect of “retaliatory” action from Europe.

On the eve of Mr Johnson’s visit to Belfast, the Government and Sinn Féin said moves to disapply parts of the protocol risked damaging east-west relations.

Minister for Foreign Affairs Simon Coveney spoke of a “landing zone” for negotiations and indicated that the European Union was willing to make adjustments through “partnership and dialogue” due to what he said were “legitimate concerns” within unionism about the operation of the protocol.

However, he also said that if London moved unilaterally it would make matters “significantly worse” and that “then the EU will be forced to respond to that with some form of retaliatory action”.

Mr Coveney said it was not “helpful” to expand on what form that might take, but that a response “would be very negative”.

Taoiseach Micheál Martin said “there is a real and urgent obligation now” for Britain to engage with the European Commission “in a real and professional way to resolve issues that have been raised”.

Powersharing

Ahead of talks between Mr Johnson and Northern Irish political leaders aimed at restoring powersharing at Stormont, Sinn Féin’s northern leader Michelle O’Neill said unilateral action would “represent an appalling attack on the international rule of law”.

“Only through joint agreement with the EU can solutions to problems or concerns be resolved,” she said.

“I will be telling Boris Johnson that unilateral action deepens political instability and economic uncertainty and must not happen.”

Ms O’Neill is to meet Mr Martin in at Government Buildings Dublin on Monday morning ahead of her meeting with Mr Johnson.

Mr Coveney travels today to Brussels for a meeting of the EU Foreign Affairs Council and will later speak with EU negotiator Maros Sefcovic and British foreign secretary Liz Truss, who is expected to announce legislation on Tuesday that will unilaterally override central elements of the protocol.

Speaking to The Irish Times, Mr Coveney said Mr Sefcovic is open to making “significant progress” on the protocol.

“I believe there are solutions we could pursue and we can agree relatively quickly if there was an attitude to do so on both sides,” he said. “But we need a partner in London to do that, not a partner that is making threats of unilateral action.”

Envoy

The Minister also said he believes it is “likely” that US president Joe Biden will appoint an envoy to the North, saying the US administration is “extremely interested” in marking 25 years since the Belfast Agreement next year with “its institutions intact and functioning as they need to be”.

Mr Johnson is expected to affirm his commitment to the agreement and assert that he is not seeking to scrap the protocol. But Downing Street said ahead of his meetings with the North’s party leaders that he will not drop his government’s threat to unilaterally disapply parts of the protocol, which Mr Johnson agreed with the EU in 2019.

Downing Street said in a statement that Mr Johnson will tell party leaders that the door will always be open to “genuine dialogue” but that “there will be a necessity to act” and protect the Belfast Agreement if the EU does not change its position.

Writing in Monday’s Belfast Telegraph, Mr Johnson outlined that the protocol “has not been adapted to reflect the realities of the [Trade and Co-operation Agreement]”. He will signal that there is “without question a sensible landing spot in which everyone’s interests are protected”. However, he said that if the EU’s position does not change, “there will be a necessity to act”.


Source link

Continue Reading

Trending

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates 
directly on your inbox.

You have Successfully Subscribed!