Connect with us

Real Estate

Race for WFH retreats puts 30% on property prices leaving locals unable to get foot on ladder

Published

on

House prices in the countryside are continuing to surge as an increasing number of city-dwellers flee to rural areas across the UK amid the coronavirus pandemic.

As the demand for rural properties continues to soar, prices in countryside locations have risen by an average of 14.2 per cent across the nation.

The biggest increases were seen in Broxtowe in Nottinghamshire, which saw house prices rise by 30 per cent, and Lancaster, Lancashire, which saw a price increase of 29 per cent, figures analysed by the estate agent Hamptons show.

The figures come after data showed that house prices have soared by almost 10 per cent over the past year as the pandemic boosts demand for larger properties and gardens.

According to the latest figures by Hamptons, the average property in Lancaster has increased from £219,760 to £283,560 while Broxtowe has seen its properties rise from an average of £234,150 to £303,780.

Also among the rural property hotspots that have seen their property prices increase are Tameside, Newport, Cheltenham, Harrogate, Bromsgrove in Worcestershire and Tunbridge Wells in Kent. 

Figures from the estate agents Hamptons have shown the house prices in the countryside are continuing to surge amid the pandemic, with Lancaster, Tameside, Newport, Broxtowe, Arundel and Harrogate among the hotspots

Figures from the estate agents Hamptons have shown the house prices in the countryside are continuing to surge amid the pandemic, with Lancaster, Tameside, Newport, Broxtowe, Arundel and Harrogate among the hotspots

This three-bedroom property in Lancaster comes with a large living room, modern decor and is currently on the market for £285,000.  Last year house prices in Lancaster cost an average £219,760 but houses have since seen a 29 per cent increase in the average cost and are now an average of £283,560

 This three-bedroom property in Lancaster comes with a large living room, modern decor and is currently on the market for £285,000.  Last year house prices in Lancaster cost an average £219,760 but houses have since seen a 29 per cent increase in the average cost and are now an average of £283,560

The property comes with a stylish interior decor, high end finishes and a living room that comes with a wooden floor and large windows that allow natural light to flood through into the room

The property comes with a stylish interior decor, high end finishes and a living room that comes with a wooden floor and large windows that allow natural light to flood through into the room

The three-bedroom home also comes with a spacious open plan dining area that comes with wooden flooring and a view of the garden

The three-bedroom home also comes with a spacious open plan dining area that comes with wooden flooring and a view of the garden

A Hamptons analyst told MailOnline: ‘We have run Land Registry price paid data against the ONS’s BUA definition (Built up Areas). This allows us to determine whether each sale is in an urban, suburban or rural area. It lets us measure house price growth rates across all three types of area within the same local authority.

‘While prices are undoubtedly rising right across the country, an element of this growth has been driven by larger homes being sold by affluent vendors.

‘This has serviced to push up average prices with fewer cheaper homes changing hands.’

According to figures, Tameside saw their average property prices increase by 29 per cent while Newport saw property prices increase by 27.8 per cent in the region.

Harrogate saw property prices increase by 27.1 per cent and Cheltenham also noted a rise in prices by 28.3 per cent. 

Meanwhile Bromsgrove in Worcestershire saw its property prices rise by an average of 27 per cent and Tunbridge Wells in Kent saw a 24 per cent in its average property price.

Data provided by Hamptons also showed the number of people registering to buy in their rural offices was up 50 per cent on May 2019, while city buyer registrations were up by just nine per cent over the same period. 

The figures also revealed that house price growth in rural areas was running nearly twice as fast as it was in urban areas (14.2 per cent compared to 6.8 per cent). 

Chris Morgan, 46, a sales manager who rents in Arun, said people moving from London had driven house prices further out of reach for those in the local area. 

He told The Guardian: ‘The only way I will get on the housing ladder is when my parents are no longer alive and I inherit their house. I could be in my sixties by then.’

Meanwhile Merryn Voysey, 32, from Cornwall, where prices have increased another 12 per cent, added: ‘I saw a bedroom in a shared house for £650 per month, but that wouldn’t be affordable for me at the moment

‘I could probably afford housing if I worked every day of every week but I want to enjoy my life.’

This three-bedroom property in Harrogate in North Yorkshire, where properties have seen a surge in demand, is currently on the market for £430,000. Average house prices in the area last year were £331,580 and the area overall has seen a 27 per cent increase in house prices. The average house price for properties in the area is now £421,300

This three-bedroom property in Harrogate in North Yorkshire, where properties have seen a surge in demand, is currently on the market for £430,000. Average house prices in the area last year were £331,580 and the area overall has seen a 27 per cent increase in house prices. The average house price for properties in the area is now £421,300

The property comes with a large living room that comes with a fireplace and large windows that allow plenty of daylight to flood through the room

The property comes with a large living room that comes with a fireplace and large windows that allow plenty of daylight to flood through the room

This property in Arundel, which is located in West Sussex, is also currently on the market for £400,000. The average house price for properties in the area last year was £300,220 but prices have now risen by 29 per cent, with the average price now costing £387,510

This property in Arundel, which is located in West Sussex, is also currently on the market for £400,000. The average house price for properties in the area last year was £300,220 but prices have now risen by 29 per cent, with the average price now costing £387,510

The three-bedroom property comes with wonderful views of the surrounding area and a spacious kitchen which comes with a fitted oven and stove

The three-bedroom property comes with wonderful views of the surrounding area and a spacious kitchen which comes with a fitted oven and stove

This three-bedroom house in Tameside, Greater Manchester, is currently on the market for £220,000. The average house price in the area for 2020 was £166,410 and the area overall has seen its house prices rise by 29.1 per cent. Average property prices now cost £214,840

This three-bedroom house in Tameside, Greater Manchester, is currently on the market for £220,000. The average house price in the area for 2020 was £166,410 and the area overall has seen its house prices rise by 29.1 per cent. Average property prices now cost £214,840

The semi-detached property comes with a an entrance hall, an open plan living room, three bedrooms and a bathroom

The semi-detached property comes with a an entrance hall, an open plan living room, three bedrooms and a bathroom

This property in Broxtowe, Nottingham, is currently on the market for £295,000. Last year the average home in Broxtowe cost  £234,150 but the area has since seen a 30 per cent increase in its average house price. Average property prices now cost £303,780

This property in Broxtowe, Nottingham, is currently on the market for £295,000. Last year the average home in Broxtowe cost  £234,150 but the area has since seen a 30 per cent increase in its average house price. Average property prices now cost £303,780

The house comes double glazing, off-street parking, an enclosed garden, fitted kitchen appliances and a spacious lounge area

The house comes double glazing, off-street parking, an enclosed garden, fitted kitchen appliances and a spacious lounge area

This property in Newport, South Wales, where the average house price last year was £234,310, is on the market for £299,950 on Rightmove. The area has seen its average house prices increase by 27.8 per cent in the last year and average home prices are now £299,550

This property in Newport, South Wales, where the average house price last year was £234,310, is on the market for £299,950 on Rightmove. The area has seen its average house prices increase by 27.8 per cent in the last year and average home prices are now £299,550

The country property comes with three-bedrooms, a renovated kitchen and a spacious living room that features wooden flooring

The country property comes with three-bedrooms, a renovated kitchen and a spacious living room that features wooden flooring

Earlier this month it was revealed that house prices had soared by almost 10 per cent over the past year as the pandemic boosted demand for larger properties.

The average home now costs £261,743, according to the Halifax bank’s May House Price Index – a new record high.

This was a rise of 9.5 per cent over the past year, meaning the average home will now fetch £22,000 more than it would have in May 2020.   

According to Halifax, Wales has seen the fastest rate of growth over the past 12 months. This is closely followed by the North West and the Yorkshire and Humber region as locked-down homeowners hunted for more space and outdoor access.

This property in Tunbridge Wells, Kent, comes with three bedrooms, first floor bathroom and rear garden. It is currently up for sale for £675,000. Last year the average property price in the area was £513,220 but properties in the area have now seen an average increase of 24 per cent and the average home in the area now costs £638,100

This property in Tunbridge Wells, Kent, comes with three bedrooms, first floor bathroom and rear garden. It is currently up for sale for £675,000. Last year the average property price in the area was £513,220 but properties in the area have now seen an average increase of 24 per cent and the average home in the area now costs £638,100

A step inside the property reveals a spacious living room on the ground floor that comes with windows that allow natural daylight to flood through the room

A step inside the property reveals a spacious living room on the ground floor that comes with windows that allow natural daylight to flood through the room

This three-bedroom property in Bromsgrove, which is among the areas that has seen a surge in property interest, is now on the market for £595,000. Data shows property prices in the area have increased by an average 27 per cent in the past year and are now an average of £516,860. Last year homes in the area cost an average of  £406,980

This three-bedroom property in Bromsgrove, which is among the areas that has seen a surge in property interest, is now on the market for £595,000. Data shows property prices in the area have increased by an average 27 per cent in the past year and are now an average of £516,860. Last year homes in the area cost an average of  £406,980

The stylish property features a large dining room, two bathrooms, a study, a cloakroom, a utility room and a living room on the ground floor

The stylish property features a large dining room, two bathrooms, a study, a cloakroom, a utility room and a living room on the ground floor

This three-bedroom house in Cheltenham, Gloucestershire, is currently up for sale for £400,000. Properties in the area have seen an average house price increase of 28.3 per cent in the past year, with the current home in the region selling for an average price of £402,700. In 2020, the average home sold for £313,860

This three-bedroom house in Cheltenham, Gloucestershire, is currently up for sale for £400,000. Properties in the area have seen an average house price increase of 28.3 per cent in the past year, with the current home in the region selling for an average price of £402,700. In 2020, the average home sold for £313,860

The property comes with a spacious kitchen that leads into the garden, double-glazed windows and a summer house

The property comes with a spacious kitchen that leads into the garden, double-glazed windows and a summer house

The Government’s stamp duty holiday, introduced when the pandemic hit last year, has also fuelled the rapid rise in prices.

Buyers will now be rushing to take advantage of the tax break before it begins to taper off at the end of this month, ending entirely on September 30.

 But the South of England, which has traditionally been the growth engine of UK housing prices, is lagging behind – especially in Greater London where prices are up just 3.1 per cent.

In November last year, a Zoopla report also revealed that the average rents in London are now 5.2 per cent lower than they were a year ago – while those in Birmingham, Manchester and Edinburgh are also dropping.

The Zoopla report said: ‘The rental declines in the capital reflect the changing picture on working and commuting patterns and tourism.

‘At the start of lockdown there was a shift from short lets to long lets, especially in the centre of the city, pushing up supply in the sector which is still being absorbed.’

Source link

Real Estate

UK property prices are 30% higher than they were in 2007, Zoopla says

Published

on

Average property prices across Britain are now 30 per cent higher than they were at the peak of the market in 2007, before the global financial crash.

Buyers are paying an average of £230,700 for a home, which is the highest on record, according to property portal Zoopla’s latest house price index.

House prices grew by 5.4 per cent in the year to June, but experts at Zoopla said they could start falling as the year draws to an end and the stamp duty holiday and furlough scheme are scrapped.

Price shifts: Average property prices across Britain are now 30% higher than they were at the peak of the market in 2007, according to data from Zoopla

Price shifts: Average property prices across Britain are now 30% higher than they were at the peak of the market in 2007, according to data from Zoopla

While the stamp duty holiday and cheap mortgage deals have given the property market a boost, a severe shortage in stock has also been pushing up prices. 

The number of properties up for sale was around a quarter lower in the first six months of this year than it was at the same point a year ago, Zoopla said.

The stock shortage problem has been exacerbated by a rise in the number of first-time buyers coming to the market, who, of course, have no property to sell.  

Getting more space remains a big draw for many prospective buyers, with demand for houses twice as high as the 2017-19 average, while the popularity of flats has waned. 

Northern Ireland and Wales saw the biggest spike in property prices in the past year, with rises of 8.6 per cent and 8.4 per cent respectively. 

For Wales, this represents the highest rate of annual growth for 16 years, with many areas becoming increasingly popular with relocators and second home owners.

Demand for houses has pushed their price tags up, especially in Wales which proved popular with relocators and second home owners

Demand for houses has pushed their price tags up, especially in Wales which proved popular with relocators and second home owners 

Stock matters: The number of homes being put up for sale has failed to keep up with demand

Stock matters: The number of homes being put up for sale has failed to keep up with demand

This was despite the fact that the Welsh land transaction tax holiday, its equivalent of the stamp duty break, did not apply to second home or buy-to-let purchases.

In Wales and England, buyers could save up to £15,000 in tax on house purchases until 30 June. In England, they can still save up to £2,500 until 30 September. 

At a regional level, house price growth was at its highest in the North West (+7.3 per cent) and Yorkshire & the Humber (+6.8 per cent), while London trailed behind with annual house price growth of +2.3 per cent.  

Demand in London is polarised between inner and outer, with demand in outer London running 86 per cent ahead of the 2017-19 average. 

‘This is explained in part by the available housing stock – with larger volumes of houses and properties with outside space’, Zoopla said.

In contrast, demand in inner London is running just 2 per cent above the ‘normal’ market average. 

This is also reflected in the pricing of properties, with London flats, predominantly clustered towards the centre, dipping by 0.5 per cent in the year to June. In contrast, houses have registered growth of 5.6 per cent in the past year. 

Looking at other major cities, Liverpool has performed well as house prices grew by 8.9 per cent in the past year. 

Rochdale, Bolton and Hastings all saw property prices increase over 9 per cent during the period, while Belfast, Manchester and Sheffield saw prices rise more than 7 per cent. 

Sales levels up and down the country are running about 22 per cent higher than they were last year, but buyer demand slipped 9 per cent in the first half of July after the initial phase of the stamp duty holiday ended. 

However, transaction volumes are still around 80 per cent higher than they would normally be at this time of year. 

Your area: A map showing how house prices have been changing up and down Britain

Your area: A map showing how house prices have been changing up and down Britain

Grainne Gilmore, head of research at Zoopla, said: ‘Demand is moderating from record high levels earlier this year, but remains significantly up from typical levels, signalling that above average activity levels will continue in the coming months.

‘Demand for houses is still outstripping demand for flats. To a certain extent this trend will have been augmented by the stamp duty holiday, with bigger savings on offer for larger properties – typically houses. 

‘But underneath this, there is a continued drumbeat of demand for more space among buyers, both inside and outside, funnelling demand towards houses, resulting in stronger price growth for these properties.’

She added: ‘Overall buyer demand coupled with constrained supply signal that price growth will continue to rise in the coming months, peaking at around 6 per cent, before falling back to between 4 per cent to 5 per cent by the end of 2021.’ 

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

Continue Reading

Real Estate

EU pauses legal action against UK over Northern Ireland protocol

Published

on

The European Commission has paused legal proceedings against the United Kingdom over the implementation of the Northern Ireland protocol in the hope that solutions can be found.

It comes after the UK government called for a “standstill period” in which the EU would not further legal action and the UK would also refrain from unilateral moves.

A European Commission spokesman said in a statement that “in order to provide the necessary space to reflect on these issues and find durable solutions to the implementation of the protocol, we have decided, at this stage, not to move to the next stage of the infringement procedure, started in March”.

Last week the UK’s Brexit minister, David Frost, told the House of Commons there should be a “significant change” in the protocol and that “we cannot go on as we are”.

The commission said the pause in the legal action would be used to consider the UK’s proposals.

“We confirm our readiness to continue to engage with the United Kingdom, also on the suggestions made in the Command Paper, and to consider any proposals that respect the principles of the protocol,” the statement from the commission added.

The Irish Government has also said it will carefully consider the British proposals, which include suggestions that were raised and discussed during the negotiation process.

“We have received a constructive reply from the Commission in response to our request for a standstill on existing arrangements,” a British government spokeswoman said. “We look forward to engaging in talks with the EU in the weeks ahead to progress the proposals in our command paper.

“As we set out in the Command Paper last week, significant changes are needed to ensure the Pprotocol is sustainable for future”

Last week, Mr Frost suggested a tiered system in which goods produced for consumption in Northern Ireland only would not need to be inspected at Irish Sea crossing points, and that goods that were made to standards that equalled those of the EU should be able to circulate freely.

‘Impossible’ steps

Other proposals included abolishing export certification, state aid rules and the oversight of the European Court of Justice, encompassing several steps that are seen as impossible for EU capitals to agree to.

Both Brussels and Dublin are seen to be keen to cool the heat on the issue of Northern Ireland and encourage negotiations to find solutions for any problems through the pathways laid out by the withdrawal agreement and trade deal wherever possible.

The commission warned that it would not renegotiate the protocol, which was negotiated and agreed by both sides as a way to allow Britain to leave the single market and customs union while avoiding the need for checks across the island of Ireland.

UK prime minister Boris Johnson originally praised the deal as a “reasonable, fair outcome” and a “very good deal” for both sides, but his government has since said it has been implemented in a stricter manner than foreseen.

“The EU has sought flexible, practical solutions to overcome the difficulties citizens in Northern Ireland are experiencing regarding the implementation of the protocol – as demonstrated in the package of measures announced by the commission on June 30th,” a commission spokeswoman said.

“While the EU will not renegotiate the protocol, we stand ready to address all the issues arising in the practical implementation of the protocol in a spirit of good faith and co-operation.”

It added that if was essential that “constructive discussions” continue in the coming weeks.

Source link

Continue Reading

Real Estate

Cladding repair bill is same as £230k price of this Hertfordshire flat

Published

on

When homeowner Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire, in 2017 for £230,000, she had no idea about the potentially crippling costs that lay ahead.

She moved into the flat just before the fire at Grenfell Tower, in West London, which caused 72 deaths.

Like so many other purchasers, Sophie bought moved into her flat believing that it was safe because it complied with building regulations. 

However, her flat has since deemed to be unsafe in the wake of the Grenfell fire.

Since the Grenfell Tower fire in 2017, concerns about cladding have become a national issue

Since the Grenfell Tower fire in 2017, concerns about cladding have become a national issue

Like so many other flat owners affected by fire safety issues, she has been left unable to sell her property, as mortgage lenders will no longer offer loans without fresh proof of safety. 

Her block of flats has been deemed unsafe and fire safety repairs need to be carried out. 

But the bill for the repairs are eye-watering, almost matching what she originally paid for the flat. 

This summer she was quoted £202,077 to fix just her flat, which is not far from the £230,000 that she originally paid for her home.

She understands that some of the £14million-plus costs to fix her block will be met from the Building Safety Fund, but it is not yet known how much financial assistance – if any – she will get.

This leaves her facing the unknown, a situation many flat owners find themselves in through no fault of their own.  

She says it is likely that she will have to relocate during the works for at least a month.

Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire in 2017 for £230,000, but has since been quoted £202,077 to fix her flat, which has deemed to be unsafe

Sophie Bichener, 29, bought her flat in Stevenage, Hertfordshire in 2017 for £230,000, but has since been quoted £202,077 to fix her flat, which has deemed to be unsafe

Her block is home to 73 flats spread across 14 storeys. It is above 18 metres and had problems with combustible cladding and missing fire breaks.

It is unknown when the fire safety work is expected to begin as the Government has yet to confirm whether it will provide funding for her block.

But once the work does start, it is suggested that it could take 52 weeks, meaning Sophie would be effectively living on what would look like a building site for a year.

The block has already paid for six months of a waking watch at a cost of £600 a month per flat. Those payments stopped following the installation of new fire alarms.

Sophie told MailOnline Property: ‘We have a supportive network of leaseholders and so you can take time out from dealing with it. However, being in lockdown and in the flat twenty-four seven means I’ve spent a lot of time trying to figure this out.

‘Knowing that when you go to work that money has already been spent has been disheartening.

‘We just have to do what we can. It is easier for me to talk about it now, but there are people I know who are suicidal. While the Government is playing ‘who is to pay’, leaseholders are struggling to survive.’

‘We have had to put our life on hold. I can’t spend any money as I know I shall have a bill at the end of all of this, although I don’t know how much that will be.

‘I’d like to get married and have children, but simply cannot afford to contemplate that at the moment.’

Campaigners have called ministers of ignoring cladding victims’ screams for help.

Stephen McPartland, MP for Stevenage, said: ‘Ministers have betrayed leaseholders like Sophie. Ignoring their screams for help, dismissing their dreams and refusing to listen.

‘Leaseholders need practical support, not more weasel words and I will continue to fight for people like Sophie.

‘Leaseholders are not to blame, but they are facing devastating mental health and financial costs as they are left to pay more in remediating their flats, than they are now worth. It is a tragic market failure and we must step in as a government to support them.’

It follows an announcement by Robert Jenrick that neither leaseholders nor taxpayers should pay for dangerous cladding to be removed. 

He said that the law will be changed retrospectively to give homeowners 15 years to take action against their developers for shoddy workmanship.  

A MHCLG spokesman responded, saying: “Building owners should make buildings safe without passing on costs to leaseholders – and we will introduce a new legal requirement for owners of high-rise buildings to prove they have tried all routes to cover the cost of fixing their buildings.

“We are processing applications to the Building Safety Fund as quickly as possible – and we have been clear that we will fund the removal of dangerous cladding from high rise building where remediation is necessary.

“Our approach strikes the right balance in our continuing commitment to protecting leaseholders and being fair to taxpayers – while reassuring lenders that where cladding remediation is needed, costs will not be a barrier or mean that mortgage payments become unmanageable.”

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!