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House prices in selected UK regions on the rise

House prices in Wales, Scotland and Northern Ireland are expected to continue their upward trajectory, reallymoving has predicted.

Values have been forecasted to rise by 8.7% in Wales, 3.8% in Scotland and 1.9% in Northern Ireland over the next three months.

Rob Houghton, chief executive of reallymoving, said: “Considering the current political situation, the UK housing market continues to show remarkable resilience.”

Average house prices in England and Wales are set to see an average 0.9% monthly drop over the next three months.

London is set to see a moderate increase of 1.5% overall in the three-month period from September to November.

Year-on-year, house prices are on course to remain in positive territory throughout the Autumn.

A 3% annual increase forecast for September will be the highest rate of annual house price growth for almost a year, followed by 2.7% in October and 2.1% in November 2019.

However, average house prices in England and Wales are set to see an average 0.9% monthly drop over the next three months.

Houghton added: “House prices are on course for minor monthly falls in September, October and November, but while the temptation is to attribute this to Brexit, in fact it is largely down to seasonality with the market following its usual pattern of peaking in August then tailing off steadily through Autumn.

“The London market has proved to be most vulnerable to the political situation and the data suggests buyers were more cautious in August when No Deal Brexit rhetoric peaked, prompting a 2.3% monthly fall in prices agreed which will translate to completions in November.

“Nationally, annual growth is set to remain in positive territory throughout the Autumn, indicating that people are continuing to press ahead with home moves and the underlying value of the housing market remains stable.”

By Michael Lloyd

Source: Mortgage Introducer

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New housing minister defends Right to Buy but says escalating house prices ‘cannot be right’

New housing minister Esther McVey has said that although there have been nine housing ministers in nine years, all have been united to deliver the homes that she claims Britain needs.

In a speech at the Resi conference in Newport, Wales, she also defended Right to Buy, claiming that it did not push up house prices and that no one was profiteering from it.

She told delegates: “Help to Buy is precisely that. It is helping people to buy, it is not helping somebody to make a profit, it is not helping to increase the prices of property. It is about helping people to buy. So this government will be vigilant about what is working, keeping an eye on our goal.”

She also referred to house price inflation, saying that house prices in some parts of the country had risen to between eight and 44 times average local earnings since the nineties. She said: “That cannot be right.

“Successive Conservative governments have sought to put a lid on that escalation.”

Her speech concentrated very much on the new build sector, emphasising the importance of using brown field sites and saying that “every blade of grass” must be looked at before it is changed.

She concluded that post-Brexit, Britain could be setting new standards for building homes, being bold and visionary, and setting the world alight “as we go forward with what we can do”.

There was nothing in her speech about second hand homes, estate agency, or the traditional private rented sector. She did however refer to Rent to Buy, plus Right to Buy, Right to Build, and Communities to Build.

While giving no details on any of these she said: “Because there are so many houses to build, we need to open up all of those possibilities.”

The bulk of the speech is below:

Now you don’t come into politics as a woman to do ‘housework’, but when the Prime Minister asks you to do so on behalf of your country you make an exception!

And maybe, just maybe Boris thought the ask was so big, building 300,000 homes each year by the mid-2020s, only a woman could get that much ‘housework’ done!

Whilst I might be the first woman in a decade to do this job, you all know there has been nine housing ministers in 9 years, so I want to say, that although we have been many in number, our collective commitment to deliver the homes this country needs has been constant and unwavering.

That working with yourselves, working with the industry, we have together delivered some significant achievements.

• We published the new National Planning Policy Framework scheme ironing out the planning process to help us deliver the houses we need. Our work on planning reform continues, as we focus on delivering an Accelerated Planning Green Paper.

• We’ve invested £9 billion in the Affordable Homes Programme and committed a further £2 billion in long-term partnerships that gives Housing Associations the certainty through funding up to 2029, nearly 10 years from now.

• And we have all focused on ensuring that our flagship Help to Buy programme has driven the supply in new homes and vitally, have helped a new generation of people onto the property ladder.

Progress together has been significant since 2010,

1.3 million more homes have been delivered.

430,000 affordable homes.

With 222,000 additional homes built in the last year alone.

Government is backing the industry with real investment and with interventions. And that is to make the dream of home ownership a reality. A dream that the vast majority of the public still have and continue to have.

And why is that? It’s about having a stake in society, it’s about having security, it is about aspiration, it is actually about freedom. It’s about financial security, and it’s about safety for you and your family and it provides people with a real stake in their community.

And whether you own your home or not, we all need a roof over our head.

I can say that because I’ve had many homes in my life, many experiences in my life.

I’ve been in a Barnardo’s home, I’ve been in my grandparents’ home, I’ve been in a council home, my first family owned home and now my own home.

Every single one holds an exceptional and significant experience for me.

So, providing these homes are essential; to provide homes for all people, from all walks of life, for the need they have at that moment in time.

In fact, it is a scandal, possibly the greatest scandal over the last 30 years that we’ve had a shortage in houses. And that has led, as we know, to a rise in renting and costs, and to a fall in home ownership which has destroyed the aspiration of a generation of working people.

We need to put that right.

And this government, with your help will put that right.

Since the mid-1990s, house prices have risen to 8 times, 10 times, 12 times, in some of the most expensive parts of this country 44 times the actual income of someone, that cannot be right.

Successive Conservative governments have sought to put a lid on that escalation, helping working people get on the housing ladder so they don’t have to dip into the bank of mum and dad.

It still isn’t enough, but we have cut Stamp Duty for 95% of first-time buyers and abolished it altogether for 80% of them.

We’ve introduced Help to Buy, loan and ISA, helping more than half a million have the security of home ownership.

And we’ve continued the hugely successful Right to Buy which has helped generations after generations onto the housing ladder.

But there is a limit to what government can do, for example, Help to Buy is precisely that. It is helping people to buy, it is not helping somebody to make a profit, it is not helping to increase the prices of property. It is about helping people to buy.

So this government will be vigilant about what is working, keeping an eye on our goal. That is a shared goal, helping people into a home and into home ownership.

Extending ownership schemes and building the homes the country needs.

And, we’re doing that straight away, we’ve looked at ownership models, so making Shared Ownership more accessible for working families. We’ve started that already so buyers can have a staircase of 1% increases rather than 10% leaps.

We’re going to look to expand Shared Ownership, supporting it in different ways, taking out what we hear to be the difficulties of it, the expense of it. It shouldn’t be unfair for those trying to get onto the housing market.

And Rent to Buy, so people can rent knowing that they are going to buy, knowing that they’ve got a bit of breathing space, maybe it’s in 5 years, maybe it’s in 10 years, but they will get to own that property – so they can plan, knowing they have the certainty of getting a deposit and getting that house.

And Right to Build, so many places around the world have far more people building their own homes, so we’re going to be there, whether its support for Right to Buy or Right to Build.

And also supporting communities, for Communities to Build.

Because there are so many houses to build – we need to open up all of those opportunities.

Too many people feel that vital link between hard work and owning their own home is broken. And when that link is severed, social mobility and opportunity falls away.

For so many people in our public sector, like our nurses and our teachers, like our police, owning their own home feels like the dream that has been taken away from them.

This is not right, they are the backbone of our country. They deserve a home of their own and they are looking to us to see what we can do. They are looking to us to fix it like we look to them to teach our kids like we look to them when we need healthcare, to look after us. They’re looking to us now to return that favour and look after them.

So, that’s 300,000 more homes a year to build. Each and every year.

Now we’re getting closer to that target – we’re building more, more than before. In fact last year we built more homes than in every year bar one in the last 31 years.

In Greater Manchester, the number of extra homes built is rising by more than 12%.

In Birmingham, it’s rising by 80%.

Only in London, [political content removed], have the number of new homes fallen.

While the trend is heading upwards, I’ve found there’s still serious barriers stopping that progress unnecessarily, and we need to understand what those barriers are, understand what is getting in our way so we can remove them.

We also need to focus on brownfield sites – what are we doing there? Are we doing enough there? Are we building enough homes there? Regeneration must be something we should be most proud of, turning round, I call it, unloved land.

And I know regeneration is a tough thing to do, I know that, that’s what my family’s business is in – demolition, excavation, regeneration, so we know that, and that is why government has put in billions of pounds in support to help with regeneration on brownfield sites and that is what we must do.

Because greenfield land, greenfield sites, should not be what we turn to, not what we look at first.

Every blade of grass must be looked at before it is changed – and it is only in the most exceptional circumstances we turn there and I can announce today councils will receive a share of nearly £2m to crackdown on illegal development, including in the green belt.

I’ll be putting money there, to help with enforcement officers, new technology and legal costs.

And alongside that, there will be a cash boost, from our department too, we are teaming up with the Royal Town Planning Institute to overhaul the National Enforcement Handbook. These are the things that we are offering to do, and can do.

And I want to look at those 300,000 new homes, in a different way now, because I see that as enormous, absolutely enormous.

I just think of the opportunities, enormous opportunities, exciting prospects and I’m talking in design and type.

I’m talking in diversity of homes.

I’m talking in technology of the home.

I’m talking environmentally of the home – carbon zero homes.

I’m taking creativity, in the style of the home, the type of living, reflecting the needs of people, whichever part of the housing ladder, young single people, divorcees, elderly, disabled people, families – all kinds of partnerships.

Each one of these needs a different type of home.

Are we really reflecting those different types of homes and needs?

I speak to young people across the country and they say these homes don’t really reflect what we’d like to see. Some want a family home, some want a bigger home, some want what they see as more like a future community – living in an exceptional space, maybe with a shared gym, maybe with a shared space downstairs, and within it an apartment as their own home, these would be much cheaper in price, a smaller apartment that they could own.

Surely between us, looking across what’s happening in the world, we can get the homes that different generations want.

And what about the jobs and the careers to build all these homes, we need to think about that. We need to be opening up this house building to SME’s, bringing them onboard, bringing it to communities, bringing it to the self-build and bringing in modern methods of construction.

We are now at a transformational turning point where we can make homes by manufacturing them at a very high specification.

Cars, over the years, have gone smarter, faster, sleeker, leaner.

Phones are no longer about talking to one another, they are computers in your pocket, connecting you with the world.

TV’s are bigger, are flatter, are high definition.

Our houses have to be exactly the same, replicate this change, so we can build them faster, sleeker, environmentally friendlier, cheaper and what people want.

Because that is what it’s about, it is about the customer. What do they want?

And that is what we’ve got to be on the side of the person who needs that home, who knows they are putting pretty much all the money they earn into that home, and so it has to be what they want, and not what they are given and just have to accept!

And, we are going to strengthen up home owner’s rights as well, as we consult on a future home owners Ombudsman.

Because now, (as we leave the E.U. and set about building 300,000 homes a year) we could become global leaders in the world of house building, of high end engineering, manufacturing, 3D specification, architecture and traditional build too.

And with that, I see clusters of excellence across the country, of where modular building is being developed – in the North East, Yorkshire, the North West, – I see in my mind’s eye, just like you see homes in your mind’s eye, I see, a Centre of Construction Excellence being established in the North of the country, combining all these things, so we can have a newly found industry. You’re not just living in a home, you can prosper from having a job in creating those homes, when we are building at such a significant scale and pace, the career opportunities are huge.

And we can set new housing standards for the rest of the world.

You talked about Brexit before because yes, we are moving into a world post the EU. With the government’s help we are getting ready for Brexit, helping UK businesses get geared up for the challenges and opportunities ahead. We will be carrying over EU product requirements as valid for sale, to ensure smooth transition for the construction industry.

And we’re making sure we’ve got the skills here in the UK to deliver what we need for that next generation of homes, through our technical hubs, through our, as I see it, Centre of Excellence, which will be industry led, which can deliver training, right up to high end degree apprenticeships.

So we will be bold, we will be visionary, we will be setting the world alight as we go forward with what we can do. I remember somebody said to me, which made such a huge impact on me as a child, you know everything you see, was created within someone’s mind, it never existed until somebody thought of it and then thought of a way to do it.

You are those people.

You are those architects, those visionaries, who set the scene.

Together we will do it.

We will do it together, and please know, the Government will support you.

We have supported you.

Together we have to tackle this Great British housing building problem.

By ROSALIND RENSHAW

Source: Property Industry Eye

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First-time buyers are driving the property market

FTBs were the largest group of purchasers in 2018, accounting for 36% of all sales, and are expected to remain so in 2019.

The latest report from Hometrack has looked at the rising number of first-time buyers in the UK property market and how they have been the driving force for housing sales in recent years.

Growth in FTBs is expected to be driven in regional markets, where affordability remains attractive, supported by availability of higher LTV mortgages. However, they are not trying to purchase lower value homes and appear to be taking a longer-term view.

GetAgent.co.uk founder and CEO Colby Short, commented: “We have and always will be a nation of aspirational homeowners and so it should come as no shock that those that are yet to reach that life mile marker are the ones pushing the hardest to do so and driving the market forward when they get there.

“Although the barrier in achieving this goal remains large with house prices far from affordable, we are currently seeing what could be described as perfect conditions to help boost the number of first-time buyers.

“We’ve seen a prolonged period of affordability where mortgages are concerned, static house price growth in many areas and a healthy uplift in wage growth as well as financial incentives. All of which have helped to narrow the gap and make it easier to take that first step onto the ladder.”

The findings follow news that house prices remain steady, despite Brexit turmoil and homeowners putting their moves on hold. Earlier this month, Halifax reported that the average UK house price in August rose by 0.3% on a monthly basis but was up 1.8% in the year to August to reach £233,541.

The lender said that a shortage of properties coming to the market – as homeowners decide to stay put rather than move – was supporting house prices in the face of political uncertainty.

HMRC Monthly data revealed that there were 86,630 home sales during July, down approximately 12% year on year. However, mortgage approvals have risen slightly, with Bank of England figures showing that the number of mortgages approved to finance house purchases were 67,306 in July – this represents a 1.2% rise from June and at its highest level since July 2017.

Halifax managing director Russell Galley said: “There was no real shift in house prices in August as the average property value grew by just 0.3% month on month. This further extends the predominantly flat trend we’ve seen over the last six months, with the average house price having barely changed since March.

“While ongoing economic uncertainty continues to weigh on consumer sentiment – with evidence of both buyers and sellers exercising some caution – a number of important underlying factors, such as affordability and employment remain strong.

“Although the housing market will undoubtedly be influenced by events in the wider economy, it continues to show a degree of resilience for the time being.”

Discussing the rising number of first-time buyers in the market, Springbok Properties founder and CEO Shepherd Ncube added: “There’s no doubting that Help to Buy has had an impact in terms of fuelling huge additional demand on the side of first-time buyers and while it has its critics, the scheme has helped a vast number of people to purchase their first home who would otherwise have failed to do so.

“Another driving factor behind this rise of first-time buyers is their attitude towards a purchase. We’ve seen Brexit uncertainty cause many areas of the market to grind to a halt as both buyer and seller contemplate the ‘what ifs’ of transacting in the current landscape.

“However, this hasn’t deterred first-time buyers who remain grateful to be on the ladder at all, let alone making a profit from their bricks and mortar investment. At the same time, those who simply have to sell have had to do so at a reduced price and all of these factors combine to provide a favourable environment for those looking to buy for the first time.”

Source: DIY Week

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House prices fall in rare September slump

Rightmove has revealed that UK house prices have decreased for the first September since 2010 as the usual autumn rebound failed to transpire.

The average price of UK property coming on the market fell by 0.2%, or £730, to £304,770, as the number of agreed sales dropped 5.5%. Underlying housing fundamentals remain strong, yet the October 31st Brexit deadline and the prospect of no-deal have discouraged buyers.

Miles Shipside, Rightmove director, said the approaching deadline was “causing some to hesitate”. If it lasts, the traditional autumn bounce in completions may be “missed altogether”.

Excluding London, the UK housing market has been somewhat resilient since the 2016 referendum. House prices in London have been in decline since March 2018, but that has been explained by a reduced interest from international buyers. Other regions have remained resilient against uncertainty.

The Rightmove figures have indicated that the intensity of no-deal Brexit concerns are impacting the larger market.

Mr Shipside said: “As the deadline gets closer and tensions heighten, there has been a big swing with sales agreed now over 5 per cent below those of a year ago. Buying activity is still at nearly 95 per cent of what it was a year ago, but sellers in all regions are seeing fewer sales go through.”

People selling property are also holding back, but prices continue to fall. The number of newly-marketed properties decreased by 7.8% this month compared with last year, with all regions down on the previous year, Rightmove found.

The most recent Office for National Statistics (ONS) data shows prices increasing 0.9% across Britain in June, but falling by 2.7% in London, continuing a trend since March 2018. Prices in the south-east decreased by 0.6% in the same month.

A total of 53% of homes were taken off the market in the most exclusive boroughs of central London instead of sold in the second quarter of the year, according to Lonres. The figure has risen gradually since 2014, when it ranged between 30 and 40%.

Marcus Dixon, head of research at Lonres, said that changes to stamp duty and the uncertainty surrounding the EU referendum in 2016 had hit the market. He said: “Indeed, since 2016 more properties have been removed from the market due to a withdrawal than a sale.”

Source: Scottish Housing News

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Brexit weighing on UK housing market outlook – RICS

The outlook for the UK housing market darkened in August as uncertainty about Brexit takes its toll, according to the latest survey from the Royal Institution of Chartered Surveyors.

The net balance of surveyors reporting that house prices have risen over the last three months increased to -4 in August from -9 in July, coming in ahead of expectations for a reading of -10.

However, Brexit-related uncertainty dented the outlook, with the near-term sales expectations net balance falling to -23 from -4, while the near-term prices expectations net balance declined to -24 from -13.

RICS chief economist Simon Rubinsohn said: “It is hard to get away from the shadow being cast over the housing market by the seemingly never-ending Brexit saga. Indeed uncertainty is a theme that respondents continue to highlight as a negative influence on sentiment in survey after survey.”

Capital Economic economist Hansen Lu said: “In all, today’s data support our view that there will be no recovery in transactions or house price growth before the end of the year. We expect that to happen whatever the Brexit outcome, although a no-deal exit could lead to a sharp fall in housing transactions.”

By Michele Maatouk

Source: Sharecast

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Savills: Investment in Scottish real estate to reach record high

SCOTLAND has attracted more than £500 million of international capital in the first half of 2019, according to Savills.

The latest research by the international real estate advisor shows that 2019 is now on track to become the best ever recorded year for inward investment in commercial real estate in the country.

Some £575 million of international capital was invested in Scottish commercial property in the first half of 2019, accounting for 49% of all investment in the period and representing the largest share of inward capital since 2016.

Investors from Asia accounted for the largest proportion, channelling more than £240m into Scotland in 2019, surpassing the £180m invested in the whole of 2018. South Korean investors spent more than £200m, investing in some of the largest deals in Scotland. Leonardo Innovation Hub was sold to South Korean investors for £100m, with a 5.9% yield.

European investors also continued to spend heavily on Scottish commercial real estate, with almost £200m invested in the first half of 2019. The largest deal this year was to German investors, who bought 4-8 St Andrew’s Square in Edinburgh for £120m, representing a yield of 4.45%.

Head of Savills Scotland Nick Penny said the country’s attractiveness to investors is likely to increase further. “2019 is shaping up to be a record year for inward investment into Scotland,” he said. “Investors are attracted by the strong performance of the economy, record employment and more attractive yields on offer relative to other regional cities in the south east.”

“Recent plans set out by the Government to position Scotland as a forward-looking digital nation by embracing 5G has the potential to enhance Scotland’s global competitiveness and continue to drive inward investment. We are already experiencing a growth in the tech sector, particularly in Edinburgh, and with digital becoming more engrained in business processes and procedures, having a fast and reliable digital infrastructure will become increasingly vital for businesses.”

Overseas investors accounted for more than three quarters (79%) of investment, according to the latest data from Savills. The second quarter was particularly active as more than £400m of deals were completed, four times the amount in the first quarter.

Offices proved to be the most popular sector in the first half of the year with £494m transacted.

Overall, Edinburgh witnessed the highest level of investment in Scotland. A total of £316m in investment was generated through six deals, compared with five in the first half of 2018.

Glasgow and Aberdeen achieved £128m and £50m of office investment respectively. Key deals during H1 included 110 St Vincent Street, Glasgow. Savills sold the site for £48m, reflecting a 5.4% yield. Meanwhile, AB1 on Huntly Street, Aberdeen, was purchased for £13.5m, with an 8% yield, also advised by Savills.

Penny, concluded: “The fundamentals of the office market remain strong. Edinburgh is proving particularly popular due to the combination of a robust occupational market and restricted supply of high quality office space which has led to rental growth in the city. This environment is creating significant demand for office buildings with international investors that want to secure long-term income at attractive yields.”

Source: The National

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No-deal Brexit to accelerate London house price drop

London house prices could sink up to seven per cent next year if no Brexit deal is reached by the 31 October deadline date, according to the latest research.

If the UK exits the European Union with a deal London house prices will fall by a smaller 4.7 per cent, continuing the trend of declining property prices in the capital.

Research by accountancy firm KPMG published this morning shows that the average property in the capital would cost £453,000 in 2020 following a smooth exit. However, after a no-deal Brexit the average London house price would drop to £422,000.

A no-deal Brexit would trigger a drop in house prices in every region of the UK, with the sharpest fall of 7.5 per cent seen in Northern Ireland.

The latest research shows that a drop of 10 to 20 per cent is “not out of the question” if markets react “stronger than anticipated”.

KPMG chief economist Yael Selfin said: “The housing market has been stuck in the slow lane since 2016 – with the changes to stamp duty and the uncertainties of Brexit putting the market on the back foot.

“As our forecasts show, a no-deal Brexit will see house prices decline significantly across the UK in 2020 by an average of 6.2 per cent, with more severe falls of around 10 to 20 per cent also possible if we look at historic precedents.”

Last month the Bank of England’s monetary policy committee (MPC) said that if the UK’s departure from the EU is smooth and some recovery in global growth is seen it could raise interest rates “at a gradual pace and to a limited extent, as it unanimously chose to hold the main interest rate at 0.75 per cent, where it has stood since August last year.

The committee said under no deal, the “interest rate decision would need to balance the upward pressure on inflation, from the likely fall in sterling and any reduction in supply capacity, with the downward pressure from any reduction in demand”.

In July, MPC member Gertjan Vlieghe said the bank might have to slash interest rates to nearly zero in the event of a no-deal Brexit.

By Jessica Clark

Source: City AM

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UK house price growth ground to a halt in August

House price growth ground to a halt in August across the UK amid signs of a “slowdown” in activity in the property market, according to the latest figures from Nationwide.

Average prices were unchanged between July and August when analysts factored out seasonal variation in the latest house price index from the building society.

The average home in Britain sold for just over £216,000 ($263,000) in August, no higher than a month earlier but up 0.6% on a year earlier.

It marks the ninth month in a row of muted price growth below 1% or even declines on an annual basis.

Marc von Grundherr, director of London estate agent Benham & Reeves, said prices were “climbing at a snail’s pace.”

“While the UK property market may have ground to a halt on a month on month basis, it is an admirable show of defiance to at least register some annual growth, given the seasonalities at play and the addition of political turbulence that continues to plague home seller sentiment,” said von Grundherr.

He said price growth could continue to stall over the next few months as prime minister Boris Johnson takes Britain closer to a no-deal Brexit, but predicted a “consistent and strong uplift” later this year or next.

Robert Gardner, Nationwide’s chief economist, said: “Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued.

“Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable.

“Housing market trends will remain heavily dependent on developments in the broader economy. In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.”

By Tom Belger

Source: Yahoo Finance UK

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Londoners pay highest UK house price premium to live closer to a station

London home buyers are willing to pay almost 10 per cent more on a house in order to live closer to a station, according to Nationwide.

The building society found Londoners are willing to pay a whopping 9.4 per cent premium for a house located 500 metres away from a station.

That amounts to approximately £42,900 based on averages London house prices.

Data shows that – naturally – this premium falls the further away from a station a house is located.

A property located 1,250 metres away commands only a 1.9 per cent premium. At 1,000 metres this increases to 4.1 per cent and at 750 metres the premium rises again to 6.6 per cent.

London homebuyers are willing to pay much more to live closer to their nearest train station – particularly in comparison with inhabitants of Greater Manchester and Glasgow.

Nationwide suggests that “this probably reflects the greater reliance on public transport in the capital, with residents less likely to drive”.

In comparison to London’s 9.4 per cent, a premium for a property 500 metres from a station in Manchester stands at 7.8 per cent, or £12,600.

This falls to 3.8 per cent, or £5,700, for properties 500 metres from a station in Glasgow.

Average London house prices on every Tube line

While Londoners are willing to pay a premium on a home closer to a station, their average house price differs greatly depending on what Tube line they use.

Average house prices in London are most expensive where the nearest station is the Circle line, where the average cost of house is £801,000.

TfL rail serves the least costly homes, at an average cost price of £359,000.

Of the London Underground lines, average house prices are least expensive where the nearest station is on the Metropolitan line, at a £439,000 average.

Nationwide suggests that “this probably reflects that the line stretches towards the outer suburbs, with only a short section in central London.”

London house prices on every Tube line:

LineAverage House Price
Circle£801,000
Bakerloo£624,000
Victoria£573,000
Northern£563,000
Jubilee£553,000
Hammersmith and City£524,000
Docklands Light Railway£505,000
Overground£490,000
Piccadilly£485,000
District£478,000
Central£450,000
Metropolitan£439,000
TfL Rail£359,000

By Emma Tyrrell

Source: City AM

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UK house prices remain stagnant as no-deal Brexit looms

UK house prices grew at less than one per cent for the ninth month in a row in August, Nationwide figures revealed today, prompting calls for Boris Johnson to slash stamp duty.

The value of homes did not grow between July and August, Nationwide’s House Price Index found.

But they did grow 0.6 per cent on an annual basis and 0.3 per cent over the last three months.

However, UK house prices slipped to an average price of £216,096 in August, down from July’s £217,663.

Nationwide warned that Brexit uncertainty is weighing the market down despite healthy economic signals.

“While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months,” Robert Gardner, Nationwide’s chief economist, said.

No-deal Brexit threat weighs down UK house prices
While mortgage approvals have been stable and new buyer enquiries have improved, UK consumer confidence slumped in August as a no-deal Brexit looms.

The threat of Brexit uncertainty will continue to cloud the UK housing market, Gardner added.

“Housing market trends will remain heavily dependent on developments in the broader economy,” he said.

“In the near term, healthy labour market conditions and low borrowing costs will provide underlying support, though uncertainty is likely to continue to exert a drag on sentiment and activity.”

Howard Archer, chief economic adviser to the EY Item Club, added: “With the economy struggling and the outlook currently highly uncertain, we suspect that house prices will remain soft despite the recent pick-up in housing market activity – which could well prove temporary.”

Could Boris Johnson cut stamp duty?
Prime Minister Boris Johnson is yet to announce his domestic agenda since he took power in July, but he is reportedly considering slashing stamp duty to boost UK house prices.

This couldn’t come soon enough, according to experts, who believe it would help lift housing stock supply and boost house price value as Johnson takes the UK closer to a no-deal Brexit.

Guy Harrington, chief executive of property lender Glenhawk, said: “The need for more stock is as urgent as ever and the government would be foolish not to address stamp duty relief as a priority.”

Archer added: “Housing market activity – and possibly to a lesser extent prices – could be given a lift in 2020 if the government cuts stamp duty significantly in the Budget later this year.”

Kevin Roberts, director of the Legal & General Mortgage Club, added: “The critical issue is that there are simply not enough homes to meet the demand from consumers, whether people buying their first property or those who want to downsize.”

By Joe Curtis

Source: City AM