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House prices hit another record high as average home now worth £20k more than 2020

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House prices hit yet another record high in April to reach £258,000, as buyers continue to take advantage of the stamp duty holiday.

According to mortgage lender Halifax, prices were 8.2 per cent higher than they were a year ago, marking the highest annual growth rate in 5 years.

This means that the average home is now worth nearly £20,000 more than it was before the pandemic.

On the rise: The average house price has increased by nearly £20,000 in the last year

On the rise: The average house price has increased by nearly £20,000 in the last year 

On a monthly basis, prices increased by 1.4 per cent or nearly £3,600 between March and April.

The data, which is based on mortgage approvals, shows that the rate of house price growth has sped up since March, when Halifax reported that prices increased by 6.5 per cent year on year to £254,606.

UK house prices rose 1.1 per cent between February and March, or almost £3,000, marking the first monthly increase since November.

In the latest quarter (February to April) house prices were 0.9 per cent higher than in the preceding three months (November to January).

The amount of money home buyers can save by using the stamp duty holiday will be reduced at the end of June, and the holiday will end altogether at the end of September.

This, combined with the ending of Government wage support schemes such as furlough, could see house price growth ease off by the end of the year.

Russell Galley, managing director at Halifax, said: ‘In cash terms, almost £20,000 has been added to the value of the average home since the market had essentially come to a standstill in April 2020.

This converted chapel in Frome, near Bath, is listed on Zoopla for £300,000. Behind its historic exterior lies two bedrooms, bathroom, living and dining room and private courtyard garden

This converted chapel in Frome, near Bath, is listed on Zoopla for £300,000. Behind its historic exterior lies two bedrooms, bathroom, living and dining room and private courtyard garden

For £200,000 you can snap up this one-bed cottage in Fowey, Cornwall, listed on Zoopla

For £200,000 you can snap up this one-bed cottage in Fowey, Cornwall, listed on Zoopla

This four-bed detached home in Wigginton, York is listed on Rightmove for £420,000

This four-bed detached home in Wigginton, York is listed on Rightmove for £420,000

‘The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low interest rates and continued demand is likely to continue to underpin prices in the market.

‘Savings built up over the months in lockdown have given some buyers even more cash to invest in their dream properties, while the new mortgage guarantee scheme may have eased deposit constraints for some prospective homebuyers who previously thought their first step on the housing ladder was a few years away.

‘As we said in March, the current levels of uncertainty and potential for higher unemployment as furlough support ends leads us to believe that house price growth will slow to the end of the year.’

The advice for those thinking about selling their home is to act now before prices start to fall.   

UK house price increases in the last year, according to mortgage lender Halifax

UK house price increases in the last year, according to mortgage lender Halifax 

Iain McKenzie, CEO of The Guild of Property Professionals, said: ‘If you’re wondering why the roads are so busy, it’s probably because half the country seems to have packed their house into a moving lorry and be driving to their new home.

‘The moving frenzy shows no signs of abating, and every month brings a new record house price. 

‘With an estimated £20,000 being added to the value of the average home compared to the time of the first lockdown last April, the potential savings on stamp duty might not outweigh the inflated price of your new home.

‘If you are looking to sell your property, now might be the best time to push forward, if you want to avoid the risk of the bubble bursting when the time comes to put the ‘For sale’ sign out.’

As well as the stamp duty holiday and people reassessing their housing needs, a lack of homes coming on to the market is also said to be pushing up prices. 

Tom Bill, head of UK residential research at estate agent Knight Frank said: ‘During the first two months of the year, rising uncertainty over new Covid-19 variants, the logistical constraints of home-schooling and an expectation that the original March stamp duty deadline would be missed all contributed to a slowdown in supply. 

‘This created an imbalance in the housing market that has increased upwards pressure on prices.

‘The shortage deterred some owners from listing their property because they were unable to find anywhere to buy themselves, exacerbating the problem. 

‘We expect more properties to come on to the market and a greater balance between supply and demand to return, reducing upwards pressure on prices. 

‘We forecast 5 per cent growth for UK property prices in 2021, with current activity levels normalising as the post-pandemic landscape materialises towards the end of the year.’

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Maurice Investments sell London office building for €30.3m (GB)

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Allsop, acting jointly alongside Anton Page, has completed the sale of the freehold of a Grade A workspace in Aldgate, central London, on behalf of Maurice Investments for €30.3m (£26m). Acquired by Meadow Partners, the price is equivalent to approximately €1120 (£960) per ft² and a net initial yield of 5%.

 

Wool + Tailor, 10-12 Alie Street E1, comprises 27,158ft² of Grade A office and ancillary accommodation over nine floors. It is within a three-minute walk of Aldgate station and a 15-minute walk of six further train and underground stations, including Whitechapel which is on the newly opened Elizabeth line, and is multi-let to five tenants. Maurice Investments had initially acquired the building in an off-market deal advised by Allsop, which also went on to conclude a successful leasing campaign alongside Anton Page.

 

Wool + Tailor was redeveloped in 2019 to include two additional floors and a new façade, with BREEAM “very good” and EPC A and B ratings. It features an eco-friendly biodiverse roof, cycle racks to accommodate up to 36 bikes, and a WiredScore Gold certification with fibre optic internet. Wool + Tailor further benefits from outstanding natural light throughout, which is enhanced by floor-to-ceiling heights of up to 3.3 metres, and a 7th floor communal business lounge with dual aspect terraces offering panoramic views of the City and beyond.

 

Matthew Millman, Partner at Allsop, said: “The sale of Wool + Tailor concludes a highly successful business plan for our client where we advised on the off-market acquisition, letting, then disposal of what has become one of the finest buildings in Aldgate. Wool + Tailor satisfies the requirements of the modern investor and occupier for ‘best in class’ office space with strong ESG credentials, excellent connectivity and plentiful nearby cafes, bars and restaurants.”

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AnaCap secures €59m loan for Paris office deal (FR)

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Tristan Capital Partners’ TIPS One “Income Plus” Real Estate Debt Fund has provided senior debt financing to funds advised by AnaCap Financial Partners, to support the €59.25m acquisition of South Station, a freehold office asset located in Massy, in the second ring of Paris. South Station is a high-quality property ideally located in Massy – the largest economic centre in the Southern Paris area – and is adjacent to the town’s main transport stations (RER and TGV). The asset is one of the most attractive buildings in the submarket offering modern A-grade office space with excellent amenities.

 

The sale and partial leaseback acquisition will see the vendor CGG, a geophysics specialist, remain as the majority tenant. Pramena Investment will act as the asset manager for the property.

 

Ashil Sodha, Director, Debt Investment at Tristan Capital Partners, said: “As TIPS One continues to diversify, we are pleased to have closed our first loan in France. We are focused on lending on high-quality assets with the right ESG characteristics and we believe this loan exemplifies this strategy well. We look forward to working alongside AnaCap and Pramena and supporting them in optimising their strategy for this asset.”

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Barratt and David Wilson invest €45.5m in UK resi market

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Harworth Group plc has sold two residential land parcel at its Waverley and Thoresby Vale developments to Barratt and David Wilson Homes, for a total consideration of €45.5m (£39m).

 

At Waverley in South Yorkshire, Harworth has competed a €33.8 (£29m) land sale which will see the delivery of approximately 450 homes, of which over 30% will be affordable. This represents Harworth’s largest-ever serviced residential land sale by number of plots. The new homes will represent Barratt and David Wilson Homes’ fifth phase at the site and will be situated adjacent to both Highwall Park and the Waverley Lake, benefitting from unique water frontage in an area of the development known as Waverley Waterfront. Construction will follow a bespoke design code, devised in partnership between Harworth and Barratt and David Wilson Homes, that complements the existing Waverley development while maximising the amenity value of the area’s waterfront location. The development will include a pedestrianised promenade, further enhancing the site’s placemaking and connectivity.

 

At Thoresby Vale in Nottinghamshire, Harworth has exchanged on the sale of serviced land capable of delivering 174 homes, for €11.6m (£10m). This represents the second phase of the Thoresby Vale development, following the sale of two land parcels at the site to Harron Homes and Barratt and David Wilson Homes in 2019 and 2020 respectively. Alongside the new homes, Barratt and David Wilson Homes will provide a new surface water attenuation pond and a multi-use path and associated landscaping, which will enhance connectivity and link to the site’s planned primary school and local centre, for which site preparation works are currently underway. The sales conclude an active first half for Harworth’s residential developments, during which over 100% of its budgeted residential land sales for the year were completed, exchanged or under offer, and it also launched its first single-family Build to Rent portfolio.

 

Andrew Blackshaw, Chief Operating Officer at Harworth, commented: “Barratt and David Wilson Homes is a trusted and valued partner to Harworth, and we are pleased to be developing our relationship with these two significant land sales. Harworth is particularly well-placed in volatile markets as our serviced land provides housebuilders with a product which is de-risked and ready to build on from day one. The acceleration of both our Waverley and Thoresby Vale sites will see Harworth stepping through its strategy to take advantage of the placemaking and levelling up that these schemes ultimately bring to these communities. In addition, these sales will enhance the maturation of these socially diverse neighbourhoods when delivered alongside our recently launched single family Build to Rent product, Project Spur.”

 

Ed Catchpole, Joint Regional Director for Yorkshire & Central at Harworth, added: “Barratt and David Wilson Homes has a proven track record of high-quality housing delivery at Harworth sites, and these transactions will help to further accelerate the build-out and placemaking at Waverley and Thoresby Vale. Both sites are also set to benefit from additional investment which will see the creation of new Build to Rent homes and local amenities.”

 

Mark Cotes, Managing Director at Barratt and David Wilson Homes North Midlands, said: “We’re thrilled to have secured the land for an extension to our Thoresby Vale development and will look forward to another opportunity to meet the growing demand for housing in Nottinghamshire. Our growing community in Edwinstowe will continue to provide new jobs for local people and we’ll be making further ecological and financial investments as the development progresses.”

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