Revealed: areas where prices have grown by more than 250% since 2000

There are 19 towns and cities that have witnessed property prices growing by more than 250% since the turn of the century, according to research carried out by online estate agent HouseSimple.com.

Southend-on-Sea was found to be the UK’s top property hotspot of the 21st century so far, with average property prices in the Essex coastal town soaring by 287.1% since 2000.

According to Land Registry figures, Southend-on-Sea – famed for having the longest leisure pier in the world – has seen property prices rise faster than any other town or city outside of London since January 2000. But it’s far from the only place that has seen phenomenal growth, with the East of England particularly booming. In fact, four out of five of the biggest price growth areas outside of the capital can be found in the East of England, with Cambridge (279.2%), Luton (276.7%) and Basildon (274.7%) also all seeing average property price growth of 270% or more.

When London boroughs were included, Waltham Forest in East London won out, with astonishing growth of 364.9% since the turn of the century. This made the popular commuter hub the top performing area in the UK when it comes to property price growth. To put together its research, HouseSimple.com identified 19 UK towns and cities that have experienced average price growth of at least 250% since January 2000. Only two towns from the north of England – Salford and Sale – made the grade, with both these locations found in Greater Manchester.

Other towns and cities which have enjoyed exceptional price growth since January 2000 include Bristol, Corby, Hastings, Leicester, Brighton, Lincoln, Slough, Norwich and Canterbury.

Unsurprisingly, London has seen the biggest gains in property prices in the last 18 years, with the eight largest house price growth areas all accounted for by London boroughs. All saw average property prices increase by more than 300% since the beginning of the Millennium. As well as Waltham Forest, Hackney – another Olympic borough boosted by the 2012 Games – has seen prices rise significantly, up by 339% since 2000.

Lewisham, Southwark, the City of Westminster, Newham, Barking and Dagenham and Haringey have also seen huge price growth in the past 18 years. “While London is the clear winner when it comes to house price growth since the turn of the century, prices have boomed in many areas outside the capital as these figures attest,” Sam Mitchell, chief executive of HouseSimple.com, said.
“What’s more impressive is that in the middle of this 18-year period, we experienced one of the worst recessions this country has ever seen. It shows the resilience of the UK property market.”

He added: “During this period, London property prices stabilised thanks to an inflow of foreign investment, and then started to rise again 18 months after the height of the Credit Crunch. However, that wasn’t the case across large swathes of the country, where the recovery process was far more protracted.” Mitchell said the property price growth picture is a totally different story today. “As London’s property market shows signs of running out of steam, we are seeing strong growth in the north of England. Eighteen years from now, the UK’s property hotspot landscape
could well look entirely different.”

Property investment – where are the UK’s 2018 hotspots?

Investing in property is always unpredictable, especially as it’s difficult to pinpoint the best locations for investment – who would have known in 2010 that an area such as Brixton would suddenly become such a hotspot?

Inflated house princes in London and the South East have become the norm, and now it looks as if many investors are looking up North, but which specific towns and cities should be considered?

Manchester

Manchester is one of the UK’s fastest growing cities and has seen a huge increase in property investments in recent times. Estimates for 2018 predict it will be a great year for investment in the area. Recently, Manchester has undergone quite a few regeneration projects and now several businesses have made it their home, including HSBC and Barclaycard. Because of this, average yields are extremely high (often around the 7% mark) in areas such as Fallowfield and Chorlton.

The city has also been mentioned in PwC and Urban Land Institute’s ‘Emerging Trends in Real Estate Europe’.

Liverpool

Liverpool is another city benefiting from domestic and international investment as well as large-scale job creation. The Merseyside city hasn’t experienced major house price growth in the past decade, unlike other areas in the North, but there are several signs that show property price growth is beginning, and 2018 looks to be the time to buy.

Currently, Liverpool has the UK’s fastest-growing economy, with flagship investment projects like the £5 billion Liverpool Waters scheme which has seen the transformation of a 60-hectare brownfield site into five new neighbourhoods, making the city a lucrative place to invest.

Nottingham

2018 also looks to be a great year to invest in the home of Robin Hood, as its predicted that Nottingham will benefit greatly from the HS2 development.

Emoov.co.uk estimates that over the next 10 years Nottingham will top the tables for average house price growth with areas such as West Bridgford and Bingham proving very popular.

The transport developments in the city have been voted as one of the best in the UK and as the student population in the city grows, Nottingham is predicted to experience a staggering increase in property prices.

Birmingham

Another hotspot in 2018 to look out for is Birmingham, as a lack of supply and high demand has pushed rental prices up. Its £90 billion regional economy is on track to grow dramatically as HS2 will slash journey times from London to just 50 minutes.

HSBC has been drawn to setup a new headquarters in the city as well as HMRC who are setting up a new regional office.

With Brexit in mind, many large companies are looking to relocate from London’s inflated property market to Birmingham, all making the city as a hotspot for 2018 property investment.

Croydon

As mentioned, it looks like focusing North seems to be the current trend, yet London still offers some areas which display signs of a smart investment like Croydon. Although Croydon has experienced an increase in house prices, it still remains behind standard London prices. Yet, with new investments such as Boxpark and plans for a Westfield shopping centre, Croydon is soon to follow in the footsteps of Brixton.

One estate agent claims that It’s only a matter of time before flats in Croydon start selling for over £1 million, as one three-bedroom penthouse apartment in the area is currently on sale for £875,000, a new record for the area.

What factors should you consider when investing in property?

When investing in a property there are many factors you ought to consider, such as the location and the mortgage provider, but the property type is also important. In 2018, Upad has found that two-bedroom houses currently offer the best rental yield, and if you’re in the market for a flat, two bedrooms is also the way to go.

When looking at which type of property has increased in value the most over the past 20 years, Zoopla found that terraced houses appear to bring in the highest capital gains, whether you plan to sell up now or in a decade or two.

They were also able to see trends showing that detached houses could give you reasonable capital gains in the short to mid-term but may fall behind other property types over longer periods of time.

So ultimately, while looking at the right type of property, it seems as if in 2018 looking North is the best way forward for property investment, although London still offers the opportunity to make some smart investments.

It will be interesting to see which areas prove as the smartest investments; only time shall tell.

Property investment at its peak in Yorkshire

Landlords from the Yorkshire and Humberside region have the biggest appetites for property investment, according to a new survey by property consultancy Knight Knox. Landlords operating in this region are set to buy more properties for the purpose of renting them out in the next five years than any other.

The survey found that 60% of landlords in Yorkshire and Humberside intend to buy another buy-to-let property in the next five years, some 20% above the national average (40%). More than a third of buy-to-let landlords in Yorkshire are planning to purchase another home within two years.

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Urban.co.uk founder says controversial Heathrow third runway could be good for buy-to-let

The government has approved plans for a controversial third runway to be built at Heathrow Airport. The expansion project, which has been beset by delays and hold-ups for 20 years, has a proposed completion date of 2026.

Local residents and their local MPs have campaigned vigorously against the planned expansion, and opposition to the third runway is still very high. A £2.6 billion compensation fund for residents has been announced, but this is unlikely to provide much comfort to those whose homes lie in the construction path, with many set to be demolished to make way for the new runway.

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Sunderland once again revealed as the worst place to sell a property

Sunderland is the slowest city in England for selling property, according to a new report by Ready Steady Sell.

The study, carried out by the North East-based quick house sale agency, found that properties on the market in Sunderland take on average 302 days to sell. Bradford didn’t
fare much better (287 days), while in South Shields the average home stays on the market for 273 days.

The North East performs poorly as a selling location, with North Shields – a town opposite South Shields on the north bank of the River Tyne and only a few miles from Newcastle –
recording an average sale time of 265 days. The findings were taken from the past 12 months of data Ready Steady Sell have collected from homeowners applying on their website (England only) and those listing via their partner online estate agency. Continue reading

London rental supply reaches critical point, says ARLA

ARLA Propertymark has issued a stark warning regarding London’s rental supply, with the number of properties available to rent in the capital standing 46% below the national average in January.

According to the trade body’s latest findings, letting agents in London were typically managing 99 properties in January, in comparison to a national average of 184.  London was also the lowest region for supply in December, with 130 properties compared to a national average of 200.

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London rental supply falls as sharp rise is recorded in other major UK cities

The latest Property & Homemover Report, released by marketing consultancy TwentyCi, has shown a sharp rise in the number of rental properties on offer in the UK’s largest cities.

However, the report – a comprehensive review of the UK housing market up to the end of 2017 – also found that demand for rental homes outstrips available stock in London, with new buy-to-let policies causing a shortage of supply in the capital.

The report revealed that, in the last quarter of 2017, there was a marked rise in the availability of rental versus sales properties on the market in the UK’s top 10 largest cities (excluding London). The only exception to this rule was Glasgow.

Manchester, in fact, now has a ratio of 50:50 when it comes to dividing rental and sales properties, while Newcastle has more properties for rent than for sale.

By contrast, the report suggests that London is losing its status as the rental capital of the UK, with fewer rental properties than those available to buy. The share of rental properties on the market in London ended 2017 down 4% on the same period the year before.

The most affected areas were ‘East Central’ and ‘West Central London’, with the share of the market down 14% and 10% respectively.

In terms of both volume and market share, all areas of Central London have seen rentals fall, a perhaps surprising statistic for a global city that typically relies on a higher number of rentals than sales. “The big decline in properties for rent now in London suggests that the government’s anti-landlord, buy-to-let policies may have backfired,” property commentator Kate Faulkner said of the findings.  “Instead of improving conditions for tenants, what we’re seeing now is a decline in the availability of properties for rent. Although it hasn’t necessarily pushed up rental prices, it does mean that the growing population of renters now have fewer options than before.”  She added: “Looking at London particularly, it’s difficult to see that the reduction in rental properties has translated into a ‘magic’ increase in the number of people buying homes; something which the government had hoped for.”

Elsewhere, the report highlighted the ‘Silver Economy’ as the fastest growing market segment with a 31% rise in exchanges year-on-year amongst this demographic. Millennials, on the other hand, are still finding it tricky to get on the property ladder, or they are choosing to rent for lifestyle reasons.

There were 17% fewer exchanges occurring amongst 18-35 year olds last year.

The sales market also remains stable, with average asking prices growing by 3.3% to £298k, and exchanges up 1% year-on-year in 2017. Most exchanges took place within the £100-£200k bracket, with Wales experiencing an especially buoyant market with exchanges rising 11% year-on-year.

Affordable UK property prices help to attract UAE expats

Expats and foreign nationals in the UAE are using the weak pound to snap up UK properties while prices remain affordable outside London and the South East, new research by Liquid Expat Mortgages has found. The figures show that there has been a 20% increase in foreign nationals and expats within the UAE investing in UK property year on year.

With these foreign buyers investing in buy-to- lets, first homes and second homes, roughly 60% opted for properties in Manchester in 2017, while 25% chose Birmingham. London, however, has seen the number of buyers from this region dwindle by 60% – a result of high property prices and poor rental yields, according to the study. When it comes to property prices, the research unveiled a surprising trend in the last 10 years, with average values falling in the UK (in real terms) compared with a decade ago. There is also a huge divide between the North and South of England and big price differences between London and the South East and other regions of the UK. In London, for  example, the average property value has risen by nearly 70% in the last 10 years, while Northern Ireland experienced a 40% drop in average property values. Continue reading

House building rate falling substantially, survey finds

A new survey of house building companies has revealed that the construction of new homes has fallen significantly since the EU referendum in June 2016. The survey, carried out for construction consulting and design agency McBains, spoke to more than 400 house building companies in England, with many skeptical that the government will meet its current house building targets, let alone the new ones set out by Philip Hammond in the latest Budget.

Less than one in three thinks the government will meet its house building target of one million new homes by 2020, while over one in three say Brexit will affect their ability to recruit skilled workers.

The research found that just 38% of respondents had upped their rate of house building over the last 12 months, in comparison to 50% of house builders when the same question was asked in a previous survey conducted by McBain (in May 2016) before the referendum result had been announced.  London is still the area where the rate of house building has increased the most over the last year (half of those responding said their rate of house building had risen), but this is down on 2016, when 60% said they had upped their rate.

The fall has been blamed by house builders on a weakening of demand (38%), a shortage of skilled labour (32%), a lack of available finance (22%) and planning permission taking too long to process (22%).  Just 30% believe the government will meet its ambition of building a million homes by 2020, with the main reasons for this failure being: not enough land (48%), planning permission taking too long (41%) and a lack of available finance (37%).

The survey also questioned house builders on what they think can be done to increase house building across the UK. Some 36% said the government should release more publicly-owned land, while 32% said the government should incentivise large construction firms to develop and build homes more quickly.
Furthermore, the survey showed that more than half of house builders (52%) are optimistic about the state of the housing market overall, with 18% very optimistic. Optimism is at its highest in London (65%).

When asked what the biggest issue facing their company at the moment is in terms of building houses, 28% said land availability and 24% cited skills shortages. The trades where those skills shortages are most noticeable are general construction professions (33%) and bricklayers (17%).

The findings revealed that Britain’s house building industry is very reliant on ‘skilled itinerant workers’ from outside the UK, with non-UK citizens accounting for 20% of housebuilders’ labour force. This rises to 33% in London, or one in three of the overall workforce.

As such, 36% of those who responded are worried about the impact of Brexit on the availability of workers because of changes to freedom of movement. Again, this rises (to 47%) in the capital.
Already, one in five housebuilders (26%) have found it more difficult to recruit staff from non-UK countries since the EU referendum, with the issue at its most acute in London (38%).
What’s more, 50% of housebuilders – and nearly 60% in London – are concerned about the effect Brexit will have on their business if fewer properties are purchased by overseas buyers.

“This survey shows the shadow of Brexit still looms large over the house building industry,” Michael Thirkettle, chief executive of McBains, commented. “Uncertainty over the terms of EU withdrawal is having a real impact, with the survey showing a weakening of demand because UK investors are biding their time on committing to new projects.”
He added: “Not enough land is the reason most house builders think the government’s target for a million new homes to be built by 2020 will not be achieved. The industry was hoping for the Budget to provide a shot in the arm for growth, such as freeing up more land like greenbelt and simplifying planning permission. Yet, although the Chancellor promised to introduce planning reforms to ensure more land is made available, there was no detail on how this would be achieved.”

Properties sell quickest in major Scottish cities

The latest City Rate of Sale report from Post Office Money has revealed the average UK property takes 96 days to sell, with properties in the Scottish cities of Edinburgh and Glasgow selling the fastest. The research, developed in collaboration with the Centre for Economics and Business Research (Cebr), analysed the average property selling time in over 20 major cities across the UK.
Sellers in Edinburgh and Glasgow saw their homes go the quickest, with properties spending only 41 and 50 days on the market respectively. By contrast, cities on the west side of the UK were more likely to experience a longer wait, with homes in Liverpool and Belfast typically taking more than 100 days to sell (112 and 119 days respectively).

“Against a backdrop of muted but steady increases in house prices across the country and sustained demand from the FTB market, these movements in time to sell reflect the changes in the number of properties listed for sale in cities across the UK,” said Owen Woodley, managing director of Post Office Money. “We know from previous research that first-time buyers are taking a flexible approach to finding an affordable home, most especially towards location. Second steppers, in contrast, have less flexibility as they are specifically looking to move to a new area or a bigger property.”

As a result, the number of houses on the market across the UK has fallen as those looking to trade up struggle to find good properties at acceptable prices. “This is likely to become a growing issue as buyers are more likely to wait out the current market until price growth returns more forcefully,” Woodley added.

The biggest fall in the time properties spend on the market was witnessed in Edinburgh and Stoke-on-Trent, despite the two cities existing at the opposite ends of the spectrum when it comes to house price growth. In the past year house prices have grown by 10.4% in the Scottish capital, considerably ahead of the 3.9% growth for Scotland as a whole.  On the other hand, prices in Stoke-on-Trent have only increased by 0.9% in the same time period – the smallest rise of any major city in the UK.

It’s a whole different story for Southend and Portsmouth, with both these coastal locations witnessing the sharpest rise in the typical time that properties spend on the market. Southend has seen a 12% increase and Portsmouth has witnessed a 10% increase. This is partly reflective of both places becoming less affordable, with a higher increase in house prices than is normal for their respective regions.

In all the cities analysed in the Post Office Money Report, house prices have increased, with the average price of a UK home growing by 5% in the 12 months to August 2017.