London house prices driving people to move away – but only 26 miles

Rising house prices have sparked a jump in the number of people looking to leave London but on average they only move 26 miles away, according to research published on Monday.

  Estate agent Hamptons International also found that throughout England and Wales people were generally reluctant to move far, with the average distance just 2.5 miles. 

  Its analysis of who is moving where found that 32 is the average age that Londoners move away, often because they have young families and want to settle somewhere outside the capital before their children start school. It forecasts central London prices will rise by 32% over five years and said that was a key driver in families moving out while staying close enough to commute back. 

  "In the last three months the number of London buyers registering with our country offices has increased by 12%. As house prices increase at a faster rate in London than anywhere else, Londoners are increasingly waking up to the idea that they can get more value for money outside the capital," said the group's head of sales, Marc Goldberg. 

  The south-east and west are the biggest draws, taking half the 250,000 Londoners who left the capital in 2012, the agent said.

  People aged between 19 and 25 are most likely of all age groups to move to the capital, largely reflecting students moving there and young graduates taking jobs in London. It also found that people moving into London move furthest – on average 34 miles. 

  While the average distance home buyers in England and Wales move was just 2.5 miles, that masked a wide range: two thirds moved within five miles but 14% moved more than 50 miles. People moving within London went an average of 1.3 miles.

UK property prices up 3.0% annually and 1.4% in a single month

Haart National Housing Monitor

• UK property prices up 3.0% annually and 1.4% in a single month

• Total new buyers up 27.9% annually but new properties for sale down 4.4%, constraining actual sales to a 3.5% annual increase. First time buyers surge continues, up 76.2% annually
• New buyers in London up 60.3% on last year but new properties for sale down 17.7%, resulting in only a 2.0% rise in sales transactions across the Capital
• First time buyers in London up 109.1% annually – more than doubling

National	July 2013	% change since June 2013	% change since July 2012
Ave UK house prices £ (current listed price)	202,238	+1.4%	+3.0%
First time buyer house price £ (current listed price)	145,171	-1.9%	-2.2%
First time buyer % of all mortgages written	43.2	-1.1%	+6.2%
House sales (exchange)	64,611	+1.6%	+3.5%
All buyer viewings per property for sale	10:1	- 3.5%	+33.8%

Paul Smith, CEO of haart, with a network of over 100 branches, comments:

“Bank of England Governor Mark Carney’s recent promise to keep interest rates at 0.5% until unemployment drops to 7% - drawing on the US and Canadian models -  is fantastic news for the property market. It heralds increased stability over the coming years with lenders able to offer attractive locked in deals.

“Confidence is already creeping back with the number of new buyers up 27.9% annually and first time buyers up 76.2% in the same period. As a result property prices continue to rise steadily, up 3.0% annually and 1.4% on the month. The epic return of the first time buyer is also still in full swing, with a 76.2% annual surge in their registrations (109.1% in London). But we keep hearing it from all corners: far too few properties are coming onto the market. House builders either need encouragement from the centre to build or more existing home owners seeking to buy need to instruct agents now in order to unclog the market.”

House prices in UK rise £9,000 in a year say Halifax

UK House prices rose at their fastest pace for almost three years in July as market activity intensified ahead of the traditional August lull, the latest figures from mortgage lender Halifax showed today.

The 4.6% rise in the month was the strongest since August 2010. It means house prices have risen by just over £9,000 in a year.

House prices were 0.9% higher in July than in June reaching £169,624 on average, marking the sixth consecutive month on month increase in house prices. Last July the average house cost £160,428.

Commenting, Martin Ellis, housing economist, said:

"House prices in the three months to July were 2.1% higher than in the previous three months. This is similar to the rates of increase recorded throughout the first six months of 2013. Prices in the three months to July were 4.6% higher than in the same three months last year, the highest annual rate since August 2010. Sales have also picked up with total purchase transactions for the first half of the year 6% higher than in the same period last year.

"Signs of improvement in the economy, underlined by the recent evidence of a rise in gross domestic product in Quarter 2 and increases in employment, appear to have boosted consumer confidence. Greater confidence is likely to have underpinned the increase in housing demand. Official schemes, such as the Funding for Lending Scheme and the Help to Buy equity loan scheme, may also be raising demand. House prices are expected to continue to rise gradually through this year with only modest economic growth and still falling real earnings constraining housing demand and activity."

Key facts

• House prices in the latest three months (May-July) were 2.1% higher than in the preceding three months (February-April).
• Prices in the three months to July were 4.6% higher than in the same three months a year earlier. This was higher than June's 3.7% increase and is the highest annual rate since August 2010 (4.6%).
• House prices increased by 0.9% in July. This was the sixth consecutive monthly rise.
• Activity is also higher. Home sales in the first six months of 2013 were 6% higher than in the same period last year, at 495,000. (Source: HMRC, seasonally adjusted figures). The number of mortgage approvals for house purchases – a leading indicator of completed house sales – in the second quarter of 2013 was 6% higher than in the first quarter despite a 1% fall between May and June. (Source: Bank of England, seasonally-adjusted figures).)
• Supply still low. The increase in sales over the past year has not been matched by higher supply with the stock of unsold properties on the market lower than it was a year ago. The resulting tightening in market conditions has probably contributed to the modest upward pressure on house prices. Surveyors have, however, reported an overall increase in the number of homeowners providing instructions to sell in the last few months, which could help to bring demand and supply into better balance. (Source: RICS).

UK house prices up nearly £2,000 in a month

UK house prices increased by 0.8% in July and were 3.9% higher than July 2012

The typical UK home is now worth £170,825 - up from £168,941 in June

Strongest rate of annual price growth since August 2010

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:

“UK house prices rose by a robust 0.8% in July, providing further evidence of an upturn in the housing market.  The annual rate of house price growth increased to 3.9% in July, though this figure was boosted by the low base for comparison, as prices declined by 2.6% in July 2012.

“House prices are currently around 12% higher than the lows seen in the midst of the financial crisis, though they are still around 10% below the all time highs recorded in late 2007.

“Signs of a modest improvement in wider economic conditions and further modest gains in employment are likely to be lifting buyer sentiment.  An improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures such as the Funding for Lending and Help to Buy schemes, are also boosting the demand for homes.

“At the same time, the supply side of the market remains fairly constrained.  Building activity is still subdued – in Q1 housing completions in England were down 8% compared to the same period of 2012 and around 40% below the average number of quarterly completions in 2007.  The fact that rental growth has been consistently outstripping wage growth reinforces the notion that housing more generally remains in relative short supply.”

First-time buyer numbers have soared to their highest levels in six years, a report shows.

There were 120,000 in the first six months of this year, a 20 per cent increase year-on-year, the Halifax has found.

Improvements to the housing market have made it easier for buyers in their 20s and 30s to get on the property ladder.

Mortgage rates have been slashed to some of their lowest levels, driven by the government’s Funding for Lending scheme, giving lenders access to cheap finance to help borrowers.

Halifax said that the average house price paid by a first-time buyer was 4.26 times their annual earnings, well above an average of 3.23 over the last 30 years. Buyers in this sector are 30 years old on average, up from 29 in 2011.

Once first-time buyers have managed to make the jump on to the property ladder, mortgage repayments have become more affordable as a proportion of income.

Halifax said that the proportion of disposable earnings they typically need to put towards mortgage payments has dropped to 27 per cent, which is way below a peak of 50 per cent in autumn 2007 and sits comfortably under the long-term average of 36 per cent.

‘We’re determined that anyone who works hard and wants to get on the property ladder should have the chance to do so,’ said housing minister Mark Prisk.

‘Today’s figures show how government action is helping more first-time buyers take that step into home ownership.’

A new scheme called Help to Buy will be fully operational next year.

The government will underwrite £130billion of low-deposit mortgage lending with state guarantees.

Some analysts and even Business Secretary Vince Cable warn it could create a ‘property bubble’ with people overstretching themselves.

Bank of mum and dad forks out £2bn a year to help children get on housing ladder

Parents are paying out £2 billion every year to help their children get on the housing ladder, as more and more young people are priced out of a home of their own.

New analysis by NatGen Social Research for Shelter shows that the pressure on parents to help their children out with the money for a deposit is rising.

Since 2009, more than a quarter (27%) of UK first-time buyers relied on help from their parents to raise a deposit – up from a fifth (17%) in the previous four years.

The average contribution from parents who helped their children was £17,000 – more than half of the average deposit of £28,000. That means that parents are contributing around £2 billion to the housing market each year. This is almost double the amount that the Government spends on building affordable homes.

Shelter is warning that unless the Government takes action to address this country’s affordable homes shortage, the Bank of Mum and Dad is going to reach breaking point. 1 in 5 parents are eating into their retirement pot to help fund children’s deposits, and a quarter are cutting back on their own spending.

For young families who can’t rely on financial help from their parents, the average time to save for a deposit is a decade. Unless something changes, then even those who could have relied on their parents in the past will begin to find that high house prices mean this parental assistance might not be enough.

Shelter argues that building affordable homes is the way to tackle this crisis. This wouldn’t just help young people hoping to get on the housing ladder; it would also ease pressure on the overheated rental market and reduce housing costs.

Campbell Robb, Shelter’s Chief Executive, said: ‘The fact that the Bank of Mum and Dad has to play such a central role in our housing market shows just how desperate the situation has become for a generation that’s priced out of a home of their own.

‘Something is seriously wrong when people who work hard and save each month still have no hope of buying a home without significant financial support from their parents. And while parents want to help their children to get a start in life, with the growing squeeze on family budgets the reality is that the majority can’t afford to.

‘Unless the Government starts building the affordable homes we so urgently need, having a home to call their own will be a distant dream for the next generation.'

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Osborne dismisses fears of house price bubble

Chancellor George Osborne played down concerns that house prices might rise too quickly because of government measures to help mortgage lending. Recent surveys suggest government support is stoking Britain's housing market, which in recent decades has been characterised by dramatic price surges followed by strong corrections. Prices nationally are rising at their fastest pace in three years and hot-spots have emerged in parts of London where property inflation is running well into double digits. Osborne dismisses fears of house price bubblesborne told a parliamentary panel the Help-to-Buy scheme was unlikely to be extended but would not be wound up before the three-year term was up. He said the scheme, which offers subsidies to riskier borrowers finding it hard to buy a house, was a targeted response to a malfunctioning mortgage market and dismissed concerns property prices had become a one-way bet. "I don't think in the current environment a house price bubble is going to emerge in 18 months or three years," he said. The International Monetary Fund, former Bank of England officials and some serving policymakers have been critical of the government's intervention. Osborne, facing tough questioning from the Treasury Committee, said the ideal scenario would be for property prices to rise in line with earnings but the scheme would not end prematurely even if prices rose faster. "You have to provide some kind of timeframe to mortgage companies and banks which are going to be investing in systems to deliver the scheme," he said.

Top 10 most expensive UK streets

ZOOPLA PROPERTY RICH LIST 2013 REVEALED

Britain now home to 8,230 streets with average property value over £1m

•             Number of Million Pound Streets in Britain rises 23% over past 12 months

•             There are now 323,684 homes worth over £1m in Britain - up 32% from 2012

•             Kensington Palace Gardens named again as Britain’s most expensive street

•             Kensington and Knightsbridge named as most expensive neighbourhood

•             Floor space the size of an average doormat worth £3,586 in Kensington

Top 10 most expensive UK streets

1	Kensington Palace Gardens, London W8	£36,066,148
2	The Boltons, London SW10	£23,375,758
3	Grosvenor Crescent, London SW1X	£19,768,963
4	Courtenay Avenue, London N6	£10,750,336
5	Compton Avenue, London N6	£10,006,014
6	Frognal Way, London NW3	£9,513,716
7	Park Place Villas, London W2	£8,980,477
8	Montrose Place, London SW1X	£8,980,468
9	Cottesmore Gardens, London W8	£8,813,429
10	Palace Green, London W8	£8,644,535
11	Highest value towns

	Town	Zed-Index
1	Virginia Water, Surrey	£1,034,368
2	Cobham, Surrey	£842,806
3	Beaconsfield, Buckinghamshire	£806,459
4	Keston, London	£785,399
5	Esher, Surrey	£774,265
6	Chalfont St. Giles, Buckinghamshire	£754,779
7	Richmond, Surrey	£718,229
8	Gerrards Cross, Buckinghamshire	£717,319
9	Radlett, Hertfordshire	£691,211
10	Welwyn, Hertfordshire	£687,558

Winners and losers in game of London house prices

Almost 80 years after being made famous by a board game, the highest and lowest average house prices of London’s most iconic postcodes remain occupied by Mayfair (£1,426,689) and Old Kent Road (£192,714). However, there has been plenty of movement in the areas in-between.

In 1936, the average value of a London house on a Monopoly board stood at £208, with players of the game purchasing Mayfair properties at £400 and those on Old Kent Road priced at just £60.

77 years on, with the property market in the capital remaining seemingly resistant to the shifts in house prices experienced in the rest of the UK, the average house price in these famous London streets now stands at £788,106.

Whilst there has been no change in the cheapest two areas, or the five most expensive, based on today’s average house prices every other colour category would see at least one change on a modern Monopoly board.

Political Price Rises

Whitehall, which was originally the seventh cheapest area to buy a property, has taken the biggest leap up the table and now, based on average house prices, stands ten places from its original board game position as the sixth most expensive area to buy.

With an average house price of £1,172,778, the heart of British Government would have moved to the top of the yellow areas, just below the ‘green’ giants of Oxford Street (£1,093,960), Bond Street (£1,235,485), and Regent Street (£1,244,476).

Falling From Favour

The greatest drop from its board game position would be experienced by Vine Street which, with an average house price of £399,818, would fall eight places, from 11th to 3rd least expensive, replacing Angel Islington at the bottom of the blues.

Fleet Street would also fall seven places, from 13th to 6th least expensive, with average house prices in the area now standing at £491,902.

Craig McKinlay, Mortgage Director, Halifax says: “Whilst drawing a comparison between the values placed on these areas in a board game and the actual average house prices provides a light-hearted look at the London property market, it does present a

realistic picture of the capital’s most popular postcodes.

“Many of the areas that have seen hypothetical increases from their board game positions are those which we have seen grow in popularity in recent years. Angel Islington is an example of this, surpassing its ‘blue’ peers of Pentonville and Euston Road, by establishing itself as one of the capital’s most cosmopolitan areas.

“The London property market remains one of the most diverse in the UK, with property prices that reflect this. Attracting buyers from both the UK and overseas and commanding premium prices seldom seen elsewhere, the most sought after streets of the capital remain those with excellent schools, upmarket shops and easy access to the City and other business centr

Annual price growth exceeds 10% in prime Central London

KEY POINTS:

·      PCL house prices growing at fastest rate since the financial crisis

·      Prices rose by 4% in Q2 alone, taking annual growth to 10.2%

·      Improvements in economy and job prospects have boosted confidence

·      Cluttons believes this rate of growth is unsustainable

Prime Central London house prices are growing at their fastest rate since the financial crisis of 2008, with provisional figures for Q2 2013 showing quarterly growth of 4%, bringing annual growth to 10.2%, reports property consultants Cluttons.

Improved sentiment in the capital in terms of both the economy and job prospects, which are both showing signs of growth, have spurred even more buyers to step into the market or make a long overdue move.

While the supply of properties for sale in London sits at a record low, with Londoners keen to retain their exposure to the capital's market, demand for property has grown with an increase in overall job numbers, which now stands ahead of the economic peak. There has been a particular acceleration in highly skilled and highly paid employment, which is quickly translating into demand for high value homes.

Cluttons does not expect this pace of price growth to continue, however, as it has moved ahead of the long term trend and well ahead of income growth, which is unsustainable.

Sue Foxley, head of research at Cluttons, said: "The current fervent pace of growth will temper over the summer but remain positive in light of the limited supply, tending towards the long term average of around 7% for 2013 as a whole.

"Despite this, first time buyers and those seeking to move up the ladder to accommodate expanding families will face a marked reduction in their buying power in Central London, compared to a year ago. On the up side, those looking to cash in on the record prices in the capital before the summer slowdown are well positioned to make that move."

House prices rise 6.6% in London in 2013

The prime London residential market has recorded stronger price growth in the past three months than at any time since March 2012, defying expectations that values would flatline this year, according to the Savills quarterly prime London index. 

Across prime London prices rose 2.5 per cent between April and June, bringing annual growth up to 6.6 per cent from 5.5% at the end of the first quarter.  But, says Savills, there are significant differences in performance between locations and price bands that reflect differences in buyer profiles, reasons for purchase and their perception of the market, with evidence that some market segments are now looking fully valued.

The strongest growth was seen in the predominantly domestic markets of prime southwest London (running from Fulham to Richmond and Battersea to Wimbledon), where values rose 3.2 per cent in the last quarter.  Annual growth now stands at 8.5 per cent, much higher than the 4.4 per cent seen in prime central London.  Despite reduced city bonuses, these markets are benefiting from wealth accumulated prior to the downturn, new wealth creation, especially from West End hedge funds, and increased buying activity from international buyers working and resident full time in the capital.

View the Average price movements across prime central London table

Prime property in Fulham has been the star performer, outperforming all other districts across prime London with annual price growth of 13 per cent at the mid-year point.   This means that £1million invested in a Fulham property would have gained £2,500 per week over the past year, compared with a more modest £845 in prime central London.

"Fulham is classic example of an area which has undergone ultra-gentrification, attracting international and domestic buyers who, despite significant wealth, have been priced out of the central London market,” says Lucian Cook, director of Savills residential research.   ”Such migration of wealth is being seen from Chelsea to Fulham, Kensington to Battersea and Wandsworth, and from Notting Hill to Chiswick.

“At the same time, domestic wealth has resisted a move out of the capital in this recovery cycle, resulting in a concentration of demand in prime southwest London and similar markets such as Islington.”

Prime central London values rose by just 1.6 per cent in the quarter and 4.4 per cent year on year.  Here price growth has become concentrated in the very core locations of Mayfair, Chelsea, Belgravia and Knightsbridge which are the primary focus of new global wealth.

“Other central London markets have remained more reliant on world money and price growth has become more subdued,” says Cook.  “Locations such as Kensington, Holland Park, Notting Hill and St John’s Wood have been more sensitive to the effect of stamp duty changes for properties over £2 million than the core central locations. 

“This has focused buyers’ minds on whether certain segments of the market are fully valued for now, with the result that these areas barely registered any price growth in the quarter, while year on year growth ranges from just 1.6 to 2.3 per cent.”

Savills research also highlights distinctions in performance by price band.   Properties worth over £10 million have outperformed to date, to stand 38 per cent above their previous peak.  However, values appear to have plateaued for the time being, although transaction levels remain robust . 

At the end of 2012, Savills forecast that London’s prime residential markets would be static through 2013.   “It is increasingly clear that prime London cannot be considered a single, homogenous market,” says Cook, “but average price growth of 4.8% per cent at the half year point could not have been foreseen at the turn of the year.” 

THREE BATHROOMS MINIMUM REQUIREMENT FOR PRIME PROPERTY BUYERS

 Key points:

•           79% of prime buyers say bathrooms a critical factor in property search

•           Prime buyers require an average of two bathrooms for every bedroom

•           37% of prime buyers seeking an en-suite bathroom for every bedroom

Four out of five (79%) prime homebuyers in the UK state that the number of bathrooms in a prospective property is a significant factor in their decision-making process, according to a survey of over 4,000 prime buyers by PrimeLocation.com.

Prime buyers want an average ratio of at least two bathrooms for every three bedrooms. And furthermore almost one third of those surveyed would rule out a home entirely from their search if it had too few bathrooms.

Amongst those surveyed the average number of bedrooms and bathrooms respectively needed for a property to be considered ‘prime’ was 4.5 bedrooms and 3 bathrooms.

Over 90% of respondents believed that the ratio of bedrooms to bathrooms could not be greater than 2:1 for a property to be considered as ‘prime’ while 37% of prime buyers felt that an en-suite in each bedroom is vital. En-suites ranked higher than almost any other ‘prime’ features including swimming pools, tennis courts and gyms.

Lawrence Hall of Primelocation.com, comments: “There is a qualitative difference in the basic features that prime buyers require. The results of our survey show that dozens of bedrooms are not what makes a property prime for most people but instead quality comforts are extremely important for a home to be considered a ‘prime’ property. Extra bathrooms would seem to be one of the most effective investments at the prime end of the market”

Prime buyers are split when it comes to property style with 33% favouring a modern style whilst 43% would prefer a Victorian or Edwardian home. However, prime buyers are united in terms of outdoor space with 66% regarding a large garden as essential for a prime property.

The rural idyll is the favourite way for prime buyers to find that peace and quiet. Recent research from PrimeLocation.com has found that a quarter (25%) would prefer to live in a small village, while 22% would choose the community of a small country town. Fewer than one in five (19%) would live in a larger town, including a minority of 14% who would prefer the attractions of London to rural living.

Some of the best bathrooms currently available:

£65m - Heath Hall, The Bishops Avenue, London - 14 bedrooms / 15 bathrooms

http://www.primelocation.com/for-sale/details/28679290

£2.5m - Melville Street, Edinburgh EH3 - 5 bedrooms / 5 bathrooms (4 en-suite)

http://www.primelocation.com/for-sale/details/28612058

£11.95m - Bedford Square, London WC1B – 7 bedrooms / 6 bathrooms (5 en-suite)

http://www.primelocation.com/for-sale/details/29331310

One in 3 people concerned they won't be able to pay mortgage or rent

A third of people (33 per cent) are concerned they won’t be able to pay their mortgage or rent next year. New figures from the Chartered Institute of Housing (CIH) show housing costs are taking their toll on millions of people across Great Britain.

Of those with monthly rent or mortgage payments in the Ipsos MORI survey of adults aged 16-75:

• 23 per cent – equivalent to around 7.2 million people – are worried about their ability to pay the rent or mortgage right now
• 33 per cent – equivalent to around 10.3 million people – said they were concerned they wouldn’t be able to meet their mortgage or  rent payments in 12 months’ time
• 36 per cent – equivalent to around 11.2 million people – said their concerns about housing costs are causing them a great deal or a fair amount of stress.

CIH released the figures ahead of Housing 2013, its annual conference and exhibition, which takes place at Manchester Central next week from 25-27 June.  It comes as Labour leader Ed Miliband prepares to use his National Policy Forum speech later today (Saturday 22 June) to outline his party’s proposals to get Britain building.

CIH chief executive Grainia Long said: “The fact that one in three people are worried they won’t be able to pay their mortgage or rent next year – and almost a quarter (23 per cent) are already concerned about their ability to pay at the moment – is extremely disturbing. 

“The cost of housing combined with the increasing cost of living, flat lining wages and worries about job security is creating a toxic mix.  This is causing real hardship for millions of people right now and these figures show that we are facing a ticking time bomb.

“The number of people worried about their housing costs will continue to rise, because we have failed to build enough new homes for decades.  Decisive action is required to help fix our dysfunctional housing market.  Long-term problems like this require long-term, fundamental solutions.  Recent government announcements have shown ministers understand the importance of fixing our housing system, but we need housing to be understood as a national priority if we are to have any chance of dealing with this deepening crisis.”