The past decade has seen substantial increases in the number of million pound apartments sold in the UK, outpacing all other property types

In the UK over the previous decade it has seen considerable increase in the quantity of million pound apartments sold, outpacing all other property types.  

The most recent research from Lloyds has discovered that offers of million pound flats have seen numbers increase by 196% since 2006 – jumping from 1,002 to 2,967 out of 2016.

Key Findings

• 22% of all million pound property sales in England and Wales were apartments
• Apartments accounted for 26% of the increase of all million pound property sales between 2006 and 2016 in England & Wales
• 96% of million pound apartment sales are in London
• The number of apartment sales in the capital has increased nearly threefold (193%) from 973 in 2006 to 2,853 in 2016, representing 35% of all million pound property sales in Greater London in 2016. 
• The South East had the highest percentage increase of apartment sales in the past decade with a nearly 5 times (389%) rise from 9 sales in 2006 to 44 in 2016
• In London the Borough of Kensington & Chelsea increased the most by 374, from 357 in 2006 to 731. The apartment sales in the Royal Borough represented 25% of all million pound apartment sales in England & Wales in 2016. 
• Apartment sales in Kensington & Chelsea now account for 72% of the borough’s million pound property sales
• Westminster follows with an increase of 369 transactions, from 412 in 2006 to 781 in 2016, accounting for 82% of all million pound property sales in the borough last year compared to 59% in 2006.
• Hackney had the largest rise from zero sales in 2006 to 47 in 2016, followed by Haringey (15), South East’s Windsor & Maidenhead (14), East of England’s St Albans (10) and Brent (10).
• There are two local authority districts with average apartment prices above £2 million. Westminster apartments are the most expensive at an average price of £2,215,073 followed by Kensington & Chelsea (£2,158,151). 

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In the course of five years, the cost of a first-time purchase in London has increased by an average of 67%, with a few areas in the capital seeing more considerable increases.

According to the latest analysis from Lloyds Bank, over the past five years, first-time buyer house prices in London boroughs have risen most rapidly in Waltham Forest, increasing by 93% from an average of £212,629 in 2012 to £409,491 in 2017.

Recently released analysis from Lloyds Bank detailed, in the course of 5 years years, first-time purchaser house prices in London have risen most quickly in Waltham Forest, expanding by 93% from a normal of £212,629 in 2012 to £409,491 in 2017.

Other Key Findings

• The next biggest increase was in the London Borough of Newham (92% to £359,212)
• Third was Greenwich (91% to £382,945)
• It was interesting to note that all Three adjoining boroughs had an average price well below the London average 5 years ago
• London average as a whole was 67%

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The latest UK House Price Index from the ONS and Land Registry has revealed that, across the UK, the average price of a home has have increased by 6.2% in the year to January 2017, up from 5.7% in the year to December 2016.

The most recent UK House Price Index from the ONS and Land Registry has shown that,  average house prices across the UK have increased by 6.2% in the year to January 2017, up from 5.7% in the year to December 2016.

Key Findings

• The average UK house price was £218,000 in January 2017. This is £13,000 higher than in January 2016 and £1,000 higher than last month.
• January figure remains below the average annual house price growth seen in 2016 of 7.4%.
• The main increase in UK house prices came from England, where house prices increased by 6.5% over the year to January 2017, with the average price in England now £235,000.
• The East of England is the region which showed the highest annual growth, with prices increasing by 9.4% in the year to January 2017.
• Growth in the South East was second highest at 8.7%, followed by
• London was the third highest at 7.3%.

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Following last April’s new Additional Rate Stamp Duty and the stun of Brexit, confirmation of a recovery in Prime Central London (PCL) in Q4 is good news.

Recent information from Land Registry, average prices reached a new high of £1,818,262 in Central London.

Key Findings

• Overall, prices increased 3.75% over the previous year
• Sales, however, remain substantially down. Only 3,330 took place over the year. This represented a fall of 29% over the previous year.

With more international buyers coming to the market due to fall in sterling, this is one of the main reasons which have drawn investors back to PCL as a safe haven asset class.

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Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers

Renting must remain a feasible choice for those hoping to move home, yet occupants might need to consider a market that offers a lot of incentives for first time buying

A one-bedroom apartment in London is costing renters almost half of their monthly salary, despite reports of a more favourable London rental market.

It is not unsual for a one bedroom apartment in London  to cost its renters half of their monthly salary.

According from new research from Barratt London, London ranks just behind San Francisco as one of the most expensive cities in which to rent.

Based on average salary (Percentage of wage spent on rent)

1. San Francisco 47%
2. London 45%
3. Hong Kong 44%
4. Tokyo 42%

Average price of a one bedroom apartment to rent per month and percentage of wage spent

• New York – ($4,225/£2,532) – (40% of wage spent)
• Sydney – (AU$2,600/£1,558) – (28% of wage spent)
• London- (£1,250) – (45% of wage spent)

A spokesperson for Barratt London said: “Rental prices in London continue to demand too much of the occupier, to the extent of almost half of their monthly pay cheque. Renting must remain a viable option for those looking to move home, but residents might want to consider a buying market that offers plenty of incentives for first-timers. The London Help to Buy scheme, for example, is helping first-time buyers get on the property ladder more affordably, with just a 5% deposit and an equity loan that is interest-free for the first five years.”

Despite high rental prices, London’s home ownership rate (38%) falls well below other cities around the world. In Singapore, where rent demands 40% of average salaries, more than 90% of people own their own home. In Rome, where the wage to rent ratio is the same, home ownership is at 73%.

Notwithstanding high rental costs, London’s home ownership rate (38%) falls well underneath different cities around the globe. In Singapore, where rent requires  40% of average salaries, over 90% of individuals own their own home. In Rome, where the wage to rent proportion is the same, home ownership is  at 73%.

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In the UK it’s no longer unusual for houses to ‘earn’ more than the people living in them in some places, there are clearly local impacts

The latest Halifax research has shown that during the last two years, 31% of UK local authority districts average house prices have increased by more than employees’ net earnings – edging up from 28% in 2015.

The most recent Halifax research has shown that in the past two years, 31% of UK local authority areas average house prices have increased by more than employees’ net earnings – edging up from 28% in 2015.

Key Findings

• Nine out of the 10 are in London, the South East, South West and the East of England with these four regions accounting for 111 of the 119 areas.
• The biggest gap between property values and earnings was in Haringey in London which increased by an average of £139,803 over the last two years, exceeding average take-home earnings in the area of £48,353 over the same period – a difference of £91,450, or £3,810 per month.
• Second was Harrow in north London with a price growth to earnings difference of £77,791, with St Albans (£72,995) third and Waltham Forest (£63,646) 4th.

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It is astonishing that such a significant number of individuals don’t feel ready to put something aside for their retirement

As per a report from the Office for National Statistics, a little under half under of think it is. The information uncovered that 46% of adults figured purchasing property would be the most ideal method for profiting for their retirement.

The ONS says that in the last 6 years, the sentiments has increase that the most secure approach to put something aside for retirement was through property. This may be due to the growing confidence in property prices since 2010.

Conversely, the confidence in ISAs and bank savings accounts has been diminishing, perhaps reflecting low interest rates over this period.

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Taylor Wimpey one of the UK’s largest homebuilders reports its full year results

Highlights

• 17% increase in Revenue
• 20% increase in Operating profits
• Earnings per share up 20% year on year
• Their average property selling price increased by 11% to £255,000
• 14,112 were built in 2016 up 4.8% on 2015

Pete Redfern, Chief Executive at Taylor Wimpey, highlighted to investors today that this was an ‘excellent performance’ set against an uncertain political and economic environment that stabilised in the final quarter. The group went on to acknowledge that customer interest remains high and it continues to focus on building a strong order book for the future. Furthermore, it was keen to highlight that it is confident that it can adapt to all market conditions from a position of strength and perform well, ‘underpinning its value proposition to shareholders and other stakeholders’.

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Growth London has been overtaken by other major UK Cities, such as Manchester, Liverpool and Birmingham

As indicated by the most recent information from Hometrack, house price growth in the capital is now at 6.4%

Key Findings

• Growth for the UK Cities House Price Index is now running at 6.9%
• Bristol remains the fastest growing city in the Index with annual growth holding steady at 9.5%
• Manchester has shown the greatest uplift with an increase of 8.3% London has also been overtaken by Birmingham, and Liverpool, where similarly prices are rising off a lower base and affordability levels remain attractive.

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According to recent research conducted by Lloyds Bank over the last 20 years the steepest growth in houses prices in the capital was seen in The North East London Borough of Hackney.

Key Findings (From 1996 – 2016)

• The average house price in Hackney has increased by 702%, from £75,569 in 1996 to £606,269 in 2016. (Average increase in London over the same period was 450%)
• Westminster had seen the next largest increase from £190,438 (1996) to £1,424,388 (2016) an increase of 648%
• Southwark had the third largest increase of (626%)
• Some further afield areas from Central London  had also showed strong price growth Waltham Forest (617%) and Newham (612%) were among the six least expensive boroughs in 1996 but have now moved into the top five performing areas.
• The average house prices between London and the average for England and Wales has widened from a difference of £33,834 (or 47%) in 1996 to £299,631 (or 107%) in 2016.
• Prices in London are now 5.72 times the England and Wales average, in comparison to 3.34 times in 1996.
• 20 London boroughs have seen average house prices increase by over £400,000.
• Kensington and Chelsea has seen the largest increase in monetary value, where the average house price has grown from £297,768 to £1,857,287.
• The next best performer is Westminster where the average value has grown by £1,233,949.
• The third best was Camden (£887,658).
• In 1996, average house prices were under £100,000 across nearly two thirds (64%) of London’s boroughs in present times average prices are now more than £500,000 for over half (58%).

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