Average property prices across England and Wales have shot up by some £5,796.00 over the last year, though in London the increase was higher by some 7.1%.
It would appear that nearly 45% of residential property prices have been made by first time buyers, presumably assisted by low mortgage rates and the Government’s ‘Help to Buy’ scheme.
Property near any of the twenty Premier League grounds (with one exception) has rocketed in price over the last ten years by 135%. This is especially where a new stadium has been built, bringing with it large regeneration of the local area and better transport links. The developments surrounding Chelsea FC’s ground are an excellent example of this. The biggest increase has been seen by Manchester City, and it is only St James’ Park (Newcastle’s ground) which has suffered an 11% decrease in prices.
It also seems that living close to a vibrant high street, full of independent shops, can add a whopping 20% to the value of your home.
The Government announced plans earlier this year to relax planning rules when converting retail (usually, but not always, office blocks) into residential property, and even more recently has threatened those local authorities who had successfully applied for exemption that their right may be removed.
Three more mortgage lenders are preparing to enter the marketplace and are awaiting regulatory approval, either from the PRA and/or the FCA.
The widely reported delay in property valuations, which is holding up many residential property transactions across the country, is not down to a shortage of valuers but rather the low fees paid by the building societies and banks, making some types of valuations for valuers uneconomic. Nationwide has responded by increasing the fees that they pay, and it is assumed that many other lenders will follow suit shortly.
Not such good news for those hoping to move onto the second stage of the property ladder, the average age of the ‘second stager’ is now 42 years of age. Higher property prices would seem to be the major obstacle for would-be purchasers in this position, and the majority are waiting fourteen years before they buy their next (and second) home.
There is a downside to London and South East property prices: nearly 50% of residential purchases in London now attract the highest rate of stamp duty at 4%. This is also deterring some from moving up the housing ladder. Stamp duty adds £4 billion to the Treasury coffers and the 4% bracket accounts for £3.6 billion of that total amount.
Currently:
- 1% stamp duty is due on property between the values of £125,000 and £250,000
- 3% stamp duty is due on property between the values of £250,000 and £500,000
- 4% stamp duty is due on property valued at over £500,000
Basement excavations are ‘à la mode’ in prime residential areas, indeed 75% of these basement conversions are in London. Digging down in London clay was always going to be an issue, and has led to a massive increase in claims which currently total some £21 million to date. Effects on the water table together with climate change have brought successful claims by neighbours relating to subsidence, water ingress, damp proofing, etc. As a result, many London Local Authorities are clamping down hard on these types of basement conversions.
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