#PROPERTYOFTHEDAY #27: 3 Bedroom Apartment – Marylebone, London

Gallery

This gallery contains 6 photos.

On propertypropertyproperty.co.uk/blog we are introducing the #PropertyofTheDay segment, which will highlight properties across the UK that are currently available for sale or rent on the portal. Today we are highlighting Manors in London and their lovely 3-bedroom apartment, property which … Continue reading

#PROPERTYOFTHEDAY #15: 2 Bedroom Terraced House – Hampstead, London

Gallery

This gallery contains 8 photos.

On propertypropertyproperty.co.uk/blog we are introducing the #PropertyofTheDay segment, which will highlight properties across the UK that are currently available for sale or rent on the portal. Today we are highlighting Greene & Co in Hampstead and their lovely 2-bedroom terraced … Continue reading

First-time buyers are priced out as number of flats sold in London tumbles

London’s flats have decreased in sales as the prices are out of reach for ordinary first-time buyers, according to new research.

According to figures from Home.co.uk, which analyses data from the Office for National Statistics and property portals, which the number of apartments sold in the capital fell by 47pc in July compared to 12 months previously.

The number of detached properties sold in London fell 5pc in 12 months to July this year, with sales of terraced houses down 8pc. This comes amid a general slowdown in the level of transactions across the country, and particularly in London.

According to the Land Registry, the average price of a flat in London increased by 3.9pc in the 12 months to July to £434,587. The price growth of flats is outstripping all other property types across the country, partly due to a lack of supply, being led by the rises in the capital.

With the slowdown in sales signals that affordability has been crunched and many first-time buyers, who would typically purchase these properties, are sitting on their hands and waiting for a correction in prices. 

While the Government’s Help to buy scheme has allowed many first-time buyers across the country to get on the property ladder with a 5pc deposit, the take-up in London has been far lower. The threshold of £600,000 means that many newbuild properties are too expensive to qualify and analysis by the BBC earlier in the year found that while Help to Buy is used to buy one in three new-build homes outside London, in the capital it is just one in 10.

Other natural buyers of these properties, buy-to-let landlords, have also been squeezed by changes to the tax regime and many are sitting out buying opportunities or selling up their portfolios.

Lucy Pendleton, the founder of estate agency James Pendleton, said: “Solid numbers of people are showing some reluctance at current prices and signaling to all the other market participants they can’t transact unless they come back down to earth.” 

A correction could soon be coming: data from Acadata and LSL property services found that prices in London have fallen the most since the financial crisis. Average property values have fallen 2.7pc in the year to September, the most since 2009.

 

Prices for London Luxury homes predicted to stay flat until after Brexit…

According to Savills, Brexit uncertainty and tax changes weigh on the market. With central London luxury homes are forecast to fall 4% this year and will flatline for nearly two more years.

Sellers in London are being forced to lower their prices: the number of properties worth £1m or more where the asking price has been cut nearly doubled in the first half of 2017 from a year ago. With a 3.2% in the first nine months of this year, and are 15.2% below their peak three years ago. Savills is forecasting 20% growth in central London luxury house prices over the next five years, which is less than half the 52% long-term average seen between 1979 and 2014.

The City to lose about 20,000 jobs from its 350,000 workforces in coming years espects Savills, but believes London will remain a key global financial center and develop as one of the several European hubs for the growing tech sector. They also estimate there were 394,000 properties worth £1m or more across the UK in 2016, down 3.4% from the year before, although the number has more than doubled in the past decade. Almost two-thirds of those homes are in London and a further 21% in the south-east. In Kensington and Chelsea in west London, almost half of all privately owned homes exceed the £1m mark.

Looking beyond the price declines at the top of the market, bloated London property prices have been fuelling an exodus from the capital. The number of people in their 30s who are moving out to the commuter belt or further afield in search of more affordable homes rose 27% in the five years to the end of June 2016, according to official figures. 

Mortgage lending in August hit a one-and-a-half-year high, according to figures from UK Finance, the new trade body for the banking industry. Gross lending rose to £24.2bn, the highest since March 2016 when buy-to-let buyers rushed to complete before a hike on stamp duty, taking lending to £26.3bn. Before that, mortgage lending was last higher in April 2008.