Currently viewing the tag: "North of England"
UK Property Market Predictions For 2015

UK Property Market Predictions For 2015

What Will Happen To
The UK Property Market In 2015?

Happy New Year to all our readers, and welcome to the usual confusion over what the year ahead will bring for the UK property market.

Property prices are still predicted to rise in 2015, albeit at a much slower pace than in 2014, with economists and property experts providing forecasts ranging from 3% to 5% property price growth.

However, there are a few events that might affect the UK property market in 2015, namely the general election that will be held in May and the growing probability of Bank of England (BoE) raising the base interest rate.

Regarding the general election, it all could depend which party wins or what coalition combination is named to form the Government, after Labour recently confirmed that they would introduce a mansion tax if they come to power. Meaning that the changes to Stamp Duty that were announced in the 2014 Autumn budget would be negated if Labour win.

Less clear is what will happen with Bank of England interest rates. It had been predicted that a small rise, either by a quarter to half of a percent, was going to be introduced before the end of 2014, but that didn’t happen. Then it was going to be early 2015 but that is now also looking very unlikely.

Continue reading »

Cost Of Renting Property More Expensive Than Purchasing Property

Cost Of Renting Property More Expensive Than Purchasing Property

The cost of renting property in the UK private rented sector (PRS) is more expensive than actually buying property, according to Zoopla.

Renting works out at 13% more expensive than paying off a mortgage, although the gap between the two lifestyle choices has narrowed in recent months due to the rise in residential property values.

Zoopla say the main cause of the narrowing gap is that residential property prices have increased at a faster rate than rents during the past year.

The cost of renting a two-bedroom property in the UK Private Rented Sector is up by an average of £84 (GBP) per month compared to the cost of servicing an interest-only mortgage on the same property, which has risen by just £120 per year.

The average rental payment on a typical two-bedroom property is around £8,006 (GBP) per year, compared with £7,045 (GBP) per year to service a 5% mortgage.

Continue reading »

2012/13 UK Property Hotspots Revealed by Halifax

2012/13 UK Property Hotspots Revealed by Halifax

New data from UK mortgage lender, Halifax, reveals that currently 9 out of the top 10 UK property hotspots are in the South of England.

The mortgage lender analysed data from across the UK and compared the findings with the actual size of property (in square metres) to find the best performing places in the country.

The borough of Westminster in central London is the most expensive area per square metre for property investment, however, it is also the most cramped. Properties in this London borough can cost an average of £7,586 (GBP) per square metre and on average are also the smallest in the UK at approximately 71 m2.

The Halifax data also found that St Albans was the next most expensive area, although property costs are significantly less at an average of £3,227 (GBP) per square metre. However, this is still almost double the national average of £1,668 (GBP).

Martin Ellis, Housing Economist at Halifax, said: “House price per square metre is a useful measure for house price comparison because it helps to adjust for differences in the size and type of properties between locations. Westminster has the most expensive prices in the UK on a price per square metre. Interestingly, it also has the smallest average property size in the country. Not only has Westminster got one of the highest population densities per square kilometre among UK cities, but it also has a large proportion of properties that are flats”.

Edinburgh is the only UK city in the top 10 that is outside of the South of England, with Oxford, Winchester, Chichester and Cambridge all above it as among the most expensive areas.

York was named as the most expensive city in the North of England at £1,830 (GBP) per square metre.

Despite the economic downturn still affecting the country’s economy during 2011, private rental sector landlords witnessed increasing rental yields in all parts of the UK.

Monthly Buy To Let property rents increased by 4.8% in 2011, giving property investors a rental yield of 6.1%.

The average monthly private rented sector (PRS) residential property rent climbed up from £682 in 2010 to £716 in 2011.

Figures from BM Solutions (part of Lloyds Banking Group), show that in East Anglia residential property rents increased by 8%.

In the North of England rents were up by 6.9% but property rents in Greater London saw slower growth and only increased by 5.6%, although the average residential property rent in London ended the year 69% higher than the national average at £1,212 per calendar month.

The areas with the lowest average PRS residential property rents in the UK during 2011 were:

  • Wales – £474
  • The North – £488
  • Yorkshire & Humber – £488

The latest UK report from Rightmove has found property asking prices in the South are now more than double the property asking prices in the North, creating a record divide.

Home owners in the South are putting their homes on the market for £336,743, compared with £164,347 in the North, sparking thoughts of a “two-tier twist” that could stall more widespread growth in the UK property market.

The monthly index revealed an overall 2.8% increase in asking prices, a jump of £6,533 from mid September to reach £239,672 in mid October.

The whopping £170,000 difference in property prices is the largest (in monetary terms) since Rightmove’s records began in 2002.

The property price rise was driven by the South, including London, the South East, the South West and East Anglia, which experienced a 4.7% overall upsurge in property values.

Meanwhile, the North (including Wales), the West Midlands, East Midlands, Yorkshire and Humberside, the North West and the North of England, saw property values go the other way and prices fell back by 0.7% in the space of a month to levels similar to May 2005.

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!