Average House Price in England and Wales Exceeds £300,000 for the First Time

The average property in England and Wales has reached £300,000 for the first time despite the slowing in house price growth.

The rate of house price growth might have fallen since the Brexit decision was made, but that has not stopped the price of an average property in England and Wales  reaching £300,000 for the first time.

According to the latest property price index, house prices grew by 3.1 percent across England and Wales last year. That is less than half of the 7.3 percent annual price growth in 2015, but was still enough to push the average cost of a home to £300,169. 

Rates of house price growth 
In London, prices rose by just 1.3 percent over the course of the year, pushing prices to an average of £598,001. The fact that there was any rise in prices in London at all is down to the growth in more affordable areas of the capital, as opposed to central London,  where prices actually fell. 

In Barking and Dagenham, prices jumped by a significant 13.6 percent over the course of the year. This pushed the price of the average property in the borough to £301,572. However, despite the rise, houses are still more affordable than they are in the rest of the city.

Waltham Forest and Redbridge were the two other London boroughs to see the highest rate of house price growth. Prices rose by 11.3 percent in Waltham Forest, to £456,987; and by 10.8 percent in Redbridge, to £449,683.

House price falls
However, the picture in the capital was mixed, with the central neighbourhoods experiencing house price falls across the board. Central London’s property market has been rocked by the stamp duty hikes on homes worth more than £1million. While Brexit has been the catalyst for price reductions in some cases, it is the stamp duty charges that have really dampened demand for the most expensive homes.

In Chelsea, house prices fell by as much 13 percent year-on-year as vendors were forced to drop prices due to higher transaction taxes. Other areas with high-end homes and sky-high prices to suffer included Kensington and Notting Hill, where prices fell by 12 percent and 10 percent respectively. Overall, prime central London house prices fell by 6.7 percent year-on-year, with houses priced between £5million and £10million experiencing the biggest drop.
  
A confident start to the year
All in all, the housing market has made an excellent start to the year. Although house prices have not been rising in central London, other areas are flourishing. That includes the East of England, where prices have risen by 7.1 percent year-on-year, and the London commuter belt, where prices in counties like Surrey, Hampshire and Oxfordshire are all showing good growth.

Most importantly, despite the many doom-mongers and doubters, the performance in January shows the housing market’s resilience looks set to continue, and this confident start to the year is a harbinger of things to come for the rest of 2017. 

A helping hand to get on the property ladder
If you’re ready to climb the first rung of the property ladder, an average house price of £300,000 can seem daunting. However,there are plenty of affordable options out there to fit your budget and meet your needs. Keep reading our blog for Deals of the Week, or pop into our office at 137 High Street for a chat. 

SUNBURY DEAL OF THE WEEK

20 3 17

LOW LEASE, CASH BUYERS ONLY. This stunning two bedroom apartment is in an excellent location for commuting to London and offers fantastic value for money and strong yields! Presented in immaculate condition throughout following an extensive renovation.


On the market with Regents, Sunbury this is an amazing opportunity for an investor with cash.  See more details at  http://www.rightmove.co.uk/property-for-sale/property-65193671.html.

STAINES' DEAL OF THE WEEK - 13th MARCH 2017

At a guide price of just £295,000 this property is a MUST SEE, potentially even a MUST BUY!

It's for sale by Auction on March 30th 2017 with Allsop in London, for more details:

http://www.rightmove.co.uk/commercial-property-for-sale/property-65158775.html. 

Currently arranged as a retail unit, offices and storage, it has planning permission to convert the upper parts to provide two 2 bedroom flats and the rear to provide one bedroom flat. It is right slap bang in the middle of Staines and a stone's throw from the River Thames.  

‘Generation Rent (Forever)’ – 1,453 Staines Tenants have no intention of ever buying a property to call home

The good old days of the 1970’s and 1980’s eh … with such highlights lowlights as 24% inflation, 17% interest rates, 3 day working week, 13% unemployment, power cuts ... those were the days (not)… but at least people could afford to buy their own home. So why aren’t the 20 and 30 something’s buying in the same numbers as they were 30 or 40 years ago?

Many people blame the credit crunch and global recession of 2008, which had an enormous impact on the Staines (and the UK) housing market. Predominantly, the 20 something first-time buyers who, confronting a problematic mortgage market, the perceived need for big deposits, reduced job security and declining disposable income, found it challenging to assemble the monetary means to get on to the Staines property ladder.

However, I would say there has been something else at play other than the issue of raising a deposit - having sufficient income and rising property prices in Staines. Whilst these are important factors and barriers to homeownership, I also believe there has been a generational change in attitudes towards home ownership in Staines (and in fact the rest of the country).

Back in 2011, the Halifax did a survey of thousands of tenants and 19% of tenants said they had no plans to buy a home for themselves. A recent, almost identical survey of tenants, carried out by The Deposit Protection Service (DPS) revealed, in late 2016, that figure had risen to 38.4%, with many no-longer equating home ownership to success and believing renting to be better suited to their lifestyle.

You see, I believe renting is a now fundamental part of the housing sector, and a meaningful proportion of the younger adult members of the Staines population choose to be tenants as it better suits their plans and lifestyle. Local Government in Staines (including the planners – especially the planners), land owners and landlords need an adaptable Staines residential property sector that allows the diverse choices of these Staines 20 and 30 year olds to be met.

This means, if we applied the same percentages to the current 3,783 Staines tenants in their 1,658 private rental properties, 1,453 tenants have no plans to ever buy a property – good news for the landlords of the 637 properties which those tenants inhabit. Interestingly, in the same report, just under two thirds (62%) of tenants said they didn’t expect to buy within the next year.

.. but does that mean the other third will be buying in Staines in the next 12 months?

Some will, but most won’t … in fact, the Royal Institution of Chartered Surveyors (RICS) predicts that, by 2025, that the number of people renting will increase, not drop. Yes, many tenants might hope to buy but the reality is different for the reasons set out above.  The RICS predicts the number of tenants looking to rent will increase by 1.8 million households by 2025, as rising house prices continue to make home ownership increasingly unaffordable for younger generations.  So, if we applied this rise to Staines, we will in fact need an additional 711 private rental properties over the next eight years (or 89 a year) … meaning the number of private rented properties in Staines is projected to rise to an eye watering 2,369 households.

STAINES / EGHAM DEAL OF THE WEEK - 9 3 17

STAINES / EGHAM  DEAL OF THE WEEK 

9th  march 2017 

A three bed for £369,950!  Two bed flats in Staines are on the market for £320,000 these days, so this three bed semi has got to be worth a look.  A stone's throw from the popular and oversubscribed Hythe Primary School, I can't imagine this property will be around for long.  On the market with Romans.  For more details click the link below:     

http://www.rightmove.co.uk/property-for-sale/property-47209731.html 

STAINES /  ASHFORD  DEAL OF THE WEEK -

21st February 2017 

A three bed under £300,000!  A very rare beast indeed.  It might need some work but on with Gregory Brown at £289,950 it has masses of potential.  Take a look, this one certainly won't stay on the market long.  

http://www.rightmove.co.uk/property-for-sale/property-46232166.html

STAINES' DEAL OF THE WEEK - 7th February 2017

This very recently refurbished two double bedroom flat in Florida Court is literally a stone's throw from the station, and a child's stones' throw at that!  Set in a charming 1920's building which has always caught my attention, this property would make an ideal Buy To Let investment or first purchase.  Apparently the neighbours are lovely and there is a real sense of community, with the whole block curve around a central area: 

On at £320,000 with the vendor looking to move quickly, this property won't hang around for long.  

This one's on with my agency, Martin & co, Staines, so give Owen in our office a call to view (01784 495660).  Full details can be seen at:

http://www.rightmove.co.uk/property-for-sale/property-41413983.html 

STAINES /  ASHFORD  DEAL OF THE WEEK -

31st January 2017 

This three semi in Ashford may not be entirely to your taste, from an interior decor point of view,  but is on the market at an extremely competitive £320,000.  Definitely worth a look.

http://www.rightmove.co.uk/property-for-sale/property-46232166.html

Staines Semi Detached House Prices rise by 479% in 20 years 

The semi-detached house with its bay windows and net curtains has long been ridiculed as an emblem of safe, lacklustre and desperately uncool suburban life; the homes of the likes of Hyacinth Bucket in Keeping up Appearances and more latterly Alan Partridge – but now our wonderful semis are having the last laugh - having enjoyed the highest price growth of any property type in Staines, up by an average 479% increase in the last twenty years - in 2017 they are now eminently cool and very desirable! 

The semi can laugh in the face of its posher detached counterpart, which saw a rise of only 243% in the same 20-year period. Looking at smaller properties, flats/apartments rose 301%, whilst terraced houses did slightly better at 310% (although they were starting from a lower base and demand from buy to let landlords has had a big part in driving the values on that type of house (i.e. the price a buy to let landlord is prepared to pay is driven by the rent the landlord can achieve).

In 1996 the average value of a Staines semi stood at £78,100,

today it stands at £452,100

Such is the attractiveness of semis, which are cheaper than detached houses but have most of the same benefits for families. Semi-detached houses were built in their hundreds of thousands by the Victorians and Edwardians between the wars and through to the present day. Interestingly in the late 19^th Century and early 20^th century – they often weren’t referred to as semi-detached – but as villas!

So whilst Europeans lived on top of each other in apartments,  us British chose, in the late Victorian and early Edwardian times, suburban comfort, being near … but not too near, the neighbours! I once heard someone say the semi-detached house was a peculiar crossbreed that doesn’t stand on its own — it is inseparable from its neighbour — yet somehow still embodies a dream of suburban independence.

Nearly one in three houses in Staines is a semi-detached house

There are 3,639 semi-detached properties in Staines and they represent 33.02% of all the households in Staines. Staines has such a mix of semi-detached properties with the older classic bay fronted semis to more modern ones built in the last couple of decades. Especially with the older ones, the semi offered a hall to provided separation between the reception rooms and privacy for their occupants. Also the downstairs offered larger rooms to accommodate dining tables, whilst upstairs, bedrooms were smaller, yet cosy.

However, probably the most overlooked aspect of popularity for semis is the garden. The front garden, designed to separate the house from the world, and the back garden designed for private relaxation. The semi in the suburbs was relaxing, well presented, plumbed and enhanced by a garden so that when a window was opened the air had a chance of being genuinely fresh… and it’s for all those reasons that 118 semi-detached houses have been sold in Staines in the last 12 months alone.  Still as popular today as they were with the Victorians all those years ago – some things just stand the test of time!

Staines Grey Generation sitting on £1.53bn of Property

Staines residents aged over 65 currently hold more housing wealth in their homes than the annual GDP of the whole of the Isle of Anglesey … and that is a problem for everyone in Staines!

Many retirees want to move but can’t, as there is a shortage of such homes for mature people to downsize into.  Due to the shortage, bungalows command a 10% to 20% premium per square foot over houses of the same size with stairs. To add to the woes, in 2014, just 1% of new builds in the UK were bungalows, according to the National House Building Council - down from 7% in 1996.

My research has found that there are 3,456 households in Staines owned outright (i.e. no mortgage) by over 65 year olds.  Taking into account the average value of a property in Staines, this means £1.53 billion of equity is locked up in these Staines homes, compared to the GDP of the whole of the Isle of Anglesey being £797 million of GDP.

A recent survey by YouGov, found that 36% of people aged over 65 in the UK are looking to downsize into a smaller home.  However, the Government seems to focus all its attention on first-time buyers with strategies such as Starter Homes to ensure the youngsters of the UK don’t become permanent members of ‘Generation Rent’.  This overlooks the chronic under-supply of appropriate retirement housing essential to the needs of the Staines’ rapidly ageing population. Regrettably  Staines’ housing stock is woefully unprepared for this demographic shift to the 'stretched middle age’ and this has created a new 'Generation Trapped’ dilemma where older people cannot move.

Some OAPs who are finding it difficult to live on their own, are unable to leave their bungalow because of a lack of sheltered housing and ‘affordable’ care home places.  So, older retirees can't leave bungalows, younger retirees can't buy bungalows and younger people can't buy family houses.

Interestingly, adding insult to injury, the problem will only get worse, as in the 50 year old to 64 year old homeownership age range there are an additional 2,033 Staines households that are mortgage free and a further 2,017 Staines households who will soon be completing their mortgage responsibility.  With Government projections showing the proportion of over 65s will rise by over a third from the current 17.7% to 24.3% of the population in the next 20 years ... this can only add greater pressure to the Staines Property market.

House prices have rocketed over the last 40 years because the supply of property has not kept up with demand. With migration, people living longer and high divorce rates (meaning one family becomes two) we need, as a country, 240,000 properties to be built a year to just stand still.  In the 1990’s and early 2000’s, the Country was building on average 180,000 to 190,000 households a year, but since the Credit Crunch (2009), that has dropped to between 130,000 and 145,000 households a year.

The solution …. release more land for starter homes, bungalows and sheltered accommodation because land prices are killing the housing market as the large firms dominating the construction industry are more likely to focus on traditional houses and apartments.  My opinion – until the Government change the planning rules and allow more land to be built on – bungalows could be a decent bet for future investment as they continue to attract ever growing premiums.  

STAINES DEAL OF THE WEEK - 24th  JANUARY 2017

OPEN  HOUSE

At just £270,000 this two bed maisonette is definitely worth a look.  Actually this one is on with Martin & Co, my agency, but as you know if you view these deals regularly, that is not the reason for putting it up as the deal of the week.

It's a great price, in a very sought after road in Staines - perfect as a Buy To Let investment or a first home.

Call us now to register interest - Open House on Saturday 4th Feb, by appointment only, please.

Follow this link for more details:

https://www.martinco.com/property/for-sale/288867 

Staines Property Market sees an unpredicted  Boost of 101%

Photo:  Mario Sánchez Prada

It doesn’t seem like two minutes ago that it was Christmas – and already it feels like a distant memory!  One cold December morning, after arranging the office’s Christmas cards I thought I would nip out for a quick festive coffee and mince pie at my favourite local coffee shop Caffe Ricco.  I bumped into an old client of mine in the coffee shop and we got talking about the Staines property market.

He asked me what my thoughts were about the last half of the year with regards to the Staines property market and if there were any great buy to let deals around. In reply I said that, in my view, shrugging off the uncertainty of the initial post Brexit vote, I had seen an increase in supply and a rise in the number of properties selling at the lower to middle end of the market, meaning both first time buyers and buy to let landlords have been returning in the last few months – proof the market is beginning to bounce back.

So let’s look at the numbers ..

In November 2016, according to the three main property portals (Rightmove, Zoopla and OnTheMarket) there were a total of 155 properties for sale in Staines (within 1 mile of the centre of Staines to be exact). In November 2015, there were only 77 properties for sale, a rise of 101%.

When I split it down into bedrooms (note:  building plots and part commercial/part residential etc. won’t be in these figures so the numbers below won’t exactly match those in the paragraph above).

	# Properties on the market in Nov 2015	# Properties on the market in Nov 2016	Per cent Change
5+ Bedrooms	7	11	+57%
4 Bedrooms	29	33	+14%
3 Bedrooms	16	52	+225%
2 Bedrooms	18	49	+172%
1 Bedroom	6	9	+50%

.. and when I looked at type of properties  .. it got even more interesting

Type of Property	# Properties on the market in Nov 2015	# Properties on the market in Nov 2016	Per cent Change
Detached	27	38	+41%
Semi	24	47	+96%
Terraced	5	25	+400%
Flat	17	40	+135%

As the number of Staines properties put up for sale has soared by 101%, homeowners have become more realistic about how much their homes are worth. This increase in homeowners wanting to sell suggests there is renewed confidence in the Staines property market and there are also signs that people are being more realistic about pricing their .property.

As you can see, there has been a significant uplift in flats and terraced properties, which means there is greater choice for first time buyers and landlords. So with a combination of realistic pricing and more properties on the market – both first time buyers and landlords alike might be able to pick up a few bargains!  

Staines property price rises set to be more restrained in 2017

While Brexit has not yet had a sizeable impact on the Staines housing market, the economic viewpoint remains uncertain and we feel that Staines property price growth is likely to be more subdued in 2017 -  that isn’t altogether a bad thing however,  let me explain.

Since the summer, apart from a little wobble of uncertainty a few weeks after the Referendum vote, property values (and the economy), on the whole has outperformed what most people were anticipating. In fact, when I looked at the property prices for our Spelthorne Borough Council area, these were the results...

October 2016                 - rise of 1.38%

September 2016             - drop of 1.25%

August 2016                   - rise of 1.14%

July 2016                        - rise of 0.58%

June 2016                       - rise of 1.9%

expressed as a graph...

The UK property market continues to perform robustly (because we can’t just look at Staines as if in its own little bubble) with national annual price growth set to end 2016 at 6.91% and the South East region property market at 9.1%.

Talking to fellow agents in London, the significant tidal wave of growth seen from 2013 through to 2015 in the capital has subdued over the last six months. However, as that central London house price wave has started to ripple out, agents are starting to see stronger property growth values in East Anglia and the South East regions outside of London, than what is being seen within the M25. So, fellow Staines landlords and homeowners, is this the time to get your surfboards ready for the London wave?

We in Staines haven’t really been affected by what is happening in the central London property mega bubble (i.e. Kensington, Chelsea, Marylebone, Mayfair etc.). However just like everywhere else, the property market locally is more driven by sentiment, especially the ‘C’ word ... confidence. The main forces for a weaker Staines Property market relate to economic uncertainty surrounding the Brexit process, which I believe will impact unhelpfully on consumer confidence in the run up to and just after the triggering of Article 50 by the end of March 2017.

In addition, the influence of reforms to the taxation of landlords is expected to result in a reduced demand from buy to let landlords, which will limit upward pressure on property values. However, on the other side of the coin, demand from tenants has been strong, but this has been counterbalanced by a strong supply of rental properties. In my opinion, there is a slight risk of rents not growing as much in 2017 as they have in 2016, but by 2018 they will rise again to counteract Philip Hammond’s changes to tenant fees.

The broader Staines rental market continues to look positive with modest rental growth expected; rents might rise further if landlords begin to sell properties in an effort to offset to the impact of tax rises.

So what do I predict will happen to the Staines housing market in 2017? In Staines,  prices are expected to fall by 2.3% in 2017 compared to a rise of 10.7% in 2016, then pick up to growth of 1.9% in 2018, 3.1% in 2019, then 4.2% in 2020 and 6.5% in 2021.

These predictions do not take into account the effect of a possible snap General Election or further referendum on ratifying any Brexit deal (if that were ever to come to pass).

Staines Deal of the Week - January 2017

This three bed property is in need of extensive refurbishment, but a steal at £295,000. On for sale with Purple Bricks, it will either make a spacious family home or a great investment property, close to all the main commuter roads and Heathrow airport. Listed on 3rd January, I'm sure it won't be around for long. 

  

Further details at:

http://www.rightmove.co.uk/property-for-sale/property-46174947.html   

Happy New Year, all my Staines' Property Blog Readers.  

I hope you all had a wonderful time with your friends and family over Christmas and have come back to daily life refreshed, re-invigorated and ready to fulfil all those New Years' resolutions.  Mine is to continue to post on a regular basis about the Staines' property market, but to increase interest in the blog by REGULARLY posting a deal of the week.  Let's face it, none of us can resist a good deal.  It won't necessarily be a property on the market with us, but one we think is worth looking at. 

 Let's see if I can keep to that this year.

Have a good one.