Cash buyers driving property market
* 35 per cent of property sales in the first half of 2013 in the UK were paid for in cash, up 11% on the same period last year
* The South West has the highest proportion of cash buyers in England and Wales at 39%
* The number of cash buyers in the UK has grown faster than mortgage buyers in 2013
Johnny Morris, Head of Research at Hamptons International, said: “Many cash buyers are downsizers planning to take advantage of the capital locked away in their properties. The South West has both the highest rate of owner occupation in England and the highest proportion of older age groups in its population.”
Home insurance premiums down again
The overall cost of home insurance is continuing to fall year-on-year, according to MoneySuperMarket. Their latest research shows that overall home insurance premiums for those looking for new insurance have fallen by 6% since this time last year, with average annual premiums now available at £137. The cost of combined buildings and contents insurance is down by £11, while premiums for buildings insurance fell by £12. The analysis suggests that Norwich is the cheapest postal area for home insurance, with Harrow the most expensive.
Prime property in the UK
The Buying Solution says both UK national and international buyers are returning to the ‘Prime’ market across the UK.
Jonathan Mount, Associate at TBS for the London property market said that in the last few weeks he had seen the market rally with a surge of good quality properties being listed for sale, with competition strongest for properties priced between £800,000 and £2m.
“With the rising London prices we are starting to see a number of people move out of the city having sold for figures they may never have dreamt of and getting great value for money in the countryside by comparison,” said Mark Lawson, Head of the TBS Home Counties team. “In addition, international buyers continue to see the Home Counties as representing better value for money than in London with a larger house and more land but with the same distance to the airports and still only an hour from central London.” Jonathan Bramwell of TBS’s Central and Cotswold team said that in 2012 their market was dominated by buyers who were mainly school focused or downsizing, whereas this year he haseen the return of the second home buyer to the market.
In London, Sophie Chick from Savills says that Fulham’s performance is only marginally behind prime central London. “This reflects the fact that it has been undergoing a process of ultra-gentrification, attracting international and domestic buyers who, despite significant wealth, have been priced out of the central London market,” she said.
Figures from John D Wood also suggest major price rises in Primrose Hill, Wandsworth, and Battersea. James Wyatt, Head of Valuations and Surveying at John D Wood & Co said: “Prices in Central London are now so high sellers are unable to trade up in the same part of the capital. The shortage of properties has forced frustrated buyers to compete, often through sealed bids and this has pushed up prices. Evidence of this ripple effect can be seen across Greater London, as sellers move out to buy larger properties in neighbouring areas as the financial step to buy a larger property in the same location is now too great.”
Renting in London
The latest statistics from HomeLet shows that in London in August:
* rental values grew 3.5% on last year
* students accounted for 15.7% of all lets
* average rental prices in Greater London are now £15,792 a year, compared to £12,864 in August 2010
Pictured is a 2 bedroom flat for sale on Este Road, London SW11, on with Rochford Stokes. Offers over £360,000Tagged in: cash buyers, home insurance, london, prime property, renting
Latest from Independent journalists on Twitter