New Zealand, North Island, Auckland, suburbia Auckland, aerial view of the affluent suburb Herne Bay. NZH 19Dec20 –
The Auckland housing market is starting to walk the talk, with more sales and prices gaining steam in November, Barfoot & Thompson said today.
The agency’s average price was $1.186 million. That was up 8.7 per cent on October and the highest in 19 months.
“November was the month when all the talk about positive gains for the housing market showed up in the sales data,” said Barfoot & Thompson managing director Peter Thompson.
“The recovery is modest, but steady, and gained momentum in the later part of the month, indicating that December will also be a good trading month,” he said.
The median price in the metropolis was $1.018m, the highest it had been in eight months.
But sales were up too – 13 per cent higher than the previous month and 33 per cent higher than October 2022.
Thompson said the company sold 956 homes last month.
He said the latest data indicated “a sound, rising market” rather than a temporary blip.
“Buyers returned in strength to the top end of the market, with 91 sales of properties for more than $2m, the highest in a month for 20 months,” he said.
Two dozen homes sold for more than $3m, the biggest sales bonanza in that price level since early 2022.
“The rural and lifestyle markets in Northland, and the rural markets to the south, west and north of Auckland were more subdued than the metropolitan market and overall experienced a more moderate lift in market activity,” Thompson added.
“There were, however, pockets of high local activity with the Franklin market achieving its highest ever sales in the month of November.”
He said new listings gained traction in the rural markets from late November.
Thompson was upbeat about summer sales prospects.
“The recovery is modest, but steady, and gained momentum in the later part of the month, indicating that December will also be a good trading month.”
About three weeks ago, the Real Estate Institute (REINZ) October report showed the house price index, which measures the changing value of properties, rose 1.1 per cent in October.
REINZ chief executive Jen Baird at the time described the market as having a “slow but steady improvement”.
- EXCLUSIVE: In London Borough of Lambeth LTN seen house prices drop 18.4%
- Six out of ten LTNs assessed by MailOnline have underperformed the market
Residents living in Low Traffic Neighbourhoods may see fewer cars using their road, but in some cases the value of their homes has plunged, new research has revealed.
In a comparison of ten different LTNs across the country, the price of properties within the restricted areas have seen their prices depressed compared with areas without protection.
In Oval, in the London borough of Lambeth, in November 2019 the average price of a property in the area to the south of the cricket ground, the average price of a property was £662,372. This fell to £540,778 – a drop of 18.4 per cent per cent.
Across the entire borough, property prices increased on average by 12.2 per cent, growing from an average of £516,851 before the LTNs were in place to £579,990 today.
In London as a whole, the average house price also saw in increase in prices of 14.65 per cent. In Hackney, areas covered by LTNs fell in value from £623,290 in November 2020 to £592.063. Across the rest of the borough, prices changed by 10.6 per cent – although there was an almost five per cent fall over the past 12 months.
There are approximately 300 LTNs across the UK following a dramatic increase in their numbers since the pandemic.
The government initially was supportive of their roll out to encourage people outside so they could exercise while remaining socially distanced from each other.
But some areas such as Tower Hamlets in east London have vowed to scrap their zones because of the impact it is having on local families who rely on a car.
Supporters claim discouraging cars and trucks from local areas improves air pollution and the quality of life. However critics claim the traffic is moved to areas outside the zone, creating chaos for buses and the emergency services who have difficulties navigating through the traffic.
MailOnline asked Marc von Grundherr, Director of Bentham and Reeves to look at a number of LTNs around the country and assess whether they were already having an impact on property prices.
In many locations, the areas within the LTN zone underperformed the wider city or region, with some losing almost one-fifth of their value.
Scroll down the graphic below to see the impact of Low Traffic Neigbhourhoods on ten different locations
Over on the Haringey/Enfield border prices have fallen by more than £30,000 over the past twelve months, compared with a slight increase cross the wider Haringey / Enfield area.
However, in the LTN around Arsenal, the average price of a house has increased from £661,192 in November 2019 increasing to £736,298 according to the latest data. That equates to a 20.5 per cent increase in the price of houses, compared with a 13.5 per cent rise across the rest of Islington.
Commenting on the figures Marc von Grundherr, director of Bentham and Reeves said: ‘The market has certainly slowed in 2023, with a drop in buyer demand levels due to higher mortgage rates causing a reduction in the previously high rates of house price growth being seen across the market.
‘However, the figures certainly suggest that property prices in low traffic neighbourhoods have largely underperformed even when compared to the underwhelming benchmark of the wider market.
READ MORE: Is this a bad time to sell your house?
‘Six of the eleven LTNs analysed were home to a weaker rate of annual house price growth when compared to their respective local authorities, with as many as four seeing property prices actually decline and one remaining flat year on year.
‘So while you might assume that the prospect of less traffic flow would be an appealing prospect for homebuyers, it would appear this isn’t quite the case. Restrictions of any kind, regardless of how positively intended, are always likely to act as a deterrent to those looking for a new home.
‘The ability to get around with ease, whether by car or public transport, is often high on the list of priorities and LTN restrictions are problematic in this respect, which would explain why they have been detrimental to house price growth in these areas.’
In Nether Edge, Sheffield,, where there is an extensive LTN, a house in the area in November 2019 was £279,389. This had increased to £325,514 in November 2021 but has since fallen back to £314,581.
Though in the Cowley area of Oxford, property prices have risen in the LTN zone from £350,498 to £403,467 compared – more than 15 per cent, but across the city, the increase is 18.6 per cent, while house prices are up almost 22 per cent since 2019 throughout Oxfordshire.
In the Levensthume area of Manchester, it’s LTN has seen prices rise from £176,658 to £218,647, which is seven per cent less than the rest of the city or Lancashire in general, which both recorded far stronger growth.
In Newcastle’s Heaton Park LTNthe price has risen by 8.3 per cent from £138,673 to £150,219 – although across the rest of the city, prices have risen by almost 22 per cent, with a 26.2 per cent rise in Northumbria.
In King’s Heath, Birmingham, property prices in its LTN area have jumped by more than a quarter over the past four years, showing a £50,000 rise since 2019.
In Barton Hill, Bristol, the research showed the areas LTN zone has seen properties increase in value from £248,868 in November 2019 to £319,855 in November 2023.
However, the Bank of England governor Andrew Bailey warned that a recent decrease in the Consumer Price Index does not mean that a reduction in interest rates will automatically follow.
The Office for Budget Responsibility said inflation would be ‘more persistent’ in 2024 than it had originally anticipted.
This prompted caution on Threadneedle Street.
Mr Bailey said inflation was still more than double the Bank of England’s 2 per cent target and reducing it further would require ‘hard work’.
He said: ‘I’m very conscious of the position of the less well-off but we do have to get it down to 2% and that’s why I have pushed back of late against assumptions that we’re talking about cutting interest rates or we will be cutting interest in anything like the foreseeable future because it’s too soon to have that discussion.’
In July, Prime Minister Rishi Sunak announced a review into LTNs after receiving a large number of complaints from backbenchers who were contacted by constituents blaming the new traffic measures of causing massive delays and hitting businesses.
However, Cllr Linda Taylor, transport spokesperson with the Local Government Association said: ‘Councils are on the side of all road users and residents, and are working hard to tackle congestion, make our air cleaner and improve the quality of life in their communities. We want to work with government to achieve this.
‘It is important that we consult with all residents and businesses to find the best solutions to ease congestion and improve air quality for everyone.
‘However, it is councils who are best placed to make decisions with their communities in improving the lives of people and businesses. As democratic organisations they continually review all kinds of services and schemes based on local circumstances. Therefore, a national review is unnecessary.
‘Only with long-term certainty of funding and consistency of government policy can councils invest confidently in transport schemes and help meet the Government’s own target of 50 per cent of urban journeys being walked, wheeled or cycled by 2030.’
Suzanne Morgan, Area Director at Purplebricks, said: ‘Low-traffic neighbourhoods (LTNs) are generally quite divisive when they are introduced, with some claiming that they prevent residential streets being used as rat runs and make them safer, and others claiming that they make it harder to visit people and make life more difficult for delivery drivers and emergency vehicles.
‘This data suggests that house prices are affected by the introduction of LTNs, and it is easy to see why this might be. While residents are able to access their street by car, their friends and families may not which could make socialising or family support harder to access, and people may be concerned that their deliveries – including their food shopping – might be affected. It is thought that LTNs can also make other local roads outside the zone busier and harder to navigate.
‘On the other hand, some people may be more attracted to buying a house in an LTN because they prefer to walk or cycle or feel it might have air quality benefits. If you’re looking to sell your home, whether in an LTN or not, a local agent – like one of our local property partners – will be able to help you maximise your selling price.’
House going for £200k less outside London LTN
Two three-bed terraces are on sale in nearly the same part of London. One is on the market for £875,000 – the other for £675,000.
The two properties are largely similar – with mostly similar sized gardens, kitchens and bedrooms.
Both homes are local to good schools and green spaces, and both have excellent connections with public transport.
The more expensive of the two properties has a larger third bedroom, which is a loft conversion, but the cheaper of the two has a large outbuilding – and a loft with potential to convert (at a cost of around £50,000 according to local quotes).
But the two houses differ in one key aspect.
The house going for £200,000 less is within Bowes Primary Area Quieter Neighbourhood (Enfield Council’s term for an LTN), whereas the more expensive property is around 20 minutes outside it.
Suzanne Morgan, Area Director at Purplebricks says the data shows that house prices are affected by LTNs, as family and friends may find it harder to visit, and people can have concerns over deliveries.
By Stephen Johnson, Economics Reporter For Daily Mail Australia
03:51 01 Dec 2023, updated 03:54 01 Dec 2023
Marrickville, in the city’s gentrified inner-west, saw its median house price in the year to November surge by 14.6 per cent to an even more unaffordable $2,022,621, new CoreLogic data showed.
Mr Albanese owns a house in this suburb and lived there until moving to The Lodge in Canberra in full time after winning the May 2022 election.
His pecuniary interest register shows he owns three properties, including the Marrickville house along with an investment house at neighbouring Dulwich Hill, which is rented out, and a Canberra unit.
In Dulwich Hill, house prices during the past year have surged by 19.7 per cent to $2,159,368, which means the prime minister would benefit from capital growth as an investor landlord.
A CoreLogic analysis showed Marrickville, Sydenham and Petersham, in Mr Albanese’s Grayndler electorate, had Sydney’s strongest annual price growth of 14.4 per cent in November, taking mid-point values for houses and units together to $1,694,355.
Sydney’s inner-west was once a working class area but now median house prices are typically well above the $2million mark, which is significantly more expensive than greater Sydney’s mid-point house price of $1,397,366.
Mr Albanese grew up locally in a housing commission flat at Camperdown and was raised by his single mother on the invalid pension, Maryanne.
Across Sydney, Australia’s most expensive capital city market, house prices have surged by 11.5 per cent during the past year and by 12.5 per cent since bottoming out in January 2023.
This has also coincided with Sydney’s rental vacancy rate sinking to an ultra-low 1.2 per cent as 429,580 overseas migrants, on a net basis, moved to Australia in the year to September.
AMP chief economist Shane Oliver said the strongest population growth since the early 1950s meant house prices kept rising in 2023 despite the aggressive rate hikes.
‘The supply shortfall in the face of strong immigration has had the upper had this year and should prevent sharp falls in prices, but high interest rates and their lagged impact are now starting to reassert themselves,’ he said.
House prices in November rose in Sydney, Brisbane, Adelaide, Perth and Canberra even though the Reserve Bank last month raised interest rates for the 13th time in 18 months, taking the cash rate to a 12-year high of 4.35 per cent.
But in Melbourne, prices were flat at $943,725 in a city where annual house price growth at 3.3 per cent has been much weaker than other big state capitals.
Perth, Australia’s most affordable capital city market that benefits more from interstate than overseas migration, had the strongest monthly growth of two per cent, as prices over the year rose by 13.8 per cent to $676,910.
But at Aramadale in the city’s south-east, prices rose at an annual pace of 21.5 per cent to $551,197.
Outside of Perth and the coastal satellite city of Mandurah, Sydney suburbs had Australia’s strongest property price growth.
The Warringah area, covering Dee Why north of Manly on Sydney’s northern beaches, had an annual increase of 14.3 per cent, taking the median house and unit price to $2,067,881.
At Baulkham Hills, in Sydney’s north-west, home prices rose by 14.1 per cent to $2,021,885.
Less upmarket areas went up too with Blacktown prices in the city’s west rising by 13.7 per cent to $970,316.
CoreLogic research director Tim Lawless said home price growth in wealthier suburbs was likely to slow as rate rises constrained what banks could lend.
‘The more expensive end of the market tends to lead the cycles in these cities,’ he said.
‘As borrowing capacity reduces, we may be seeing more demand deflected towards lower housing price points, with the broad middle of the market now recording the strongest rate of growth in Sydney and Melbourne.’
Labor lost the 2019 election under former leader Bill Shorten, who had campaigned to end negative gearing landlord tax breaks for future purchases of investment properties, and halve the capital gains tax discount for investors to 25 per cent from 50 per cent.
Mr Albanese dumped those policies after taking over as Labor leader, following a strong swing against Labor in outer suburban and regional areas but not wealthy, inner-city areas.
Daily Mail Australia has contacted the Prime Minister’s Office for a comment.
Australia’s strongest performing areas in year to November
1. ARMADALE, Perth south-east: Up 21.5 per cent to $551,197
2. GOSNELLS, Perth south-east: Up 17.6 per cent to $546,864
3. ROCKINGHAM, Perth south-west: Up 17.4 per cent to $568,434
4. KWINANA, Perth south-west: Up 16.7 per cent to $483,355
5. MANDURAH, Western Australia: Up 16.7 per cent to $565,236
6. MARRICKVILLE, SYDENHAM, PETERSHAM, Sydney inner-west: Up 14.4 per cent to $1,694,355
7. WARRINGAH, Sydney northern beaches: Up 14.3 per cent to $2,067,881
8. BAULKHAM HILLS, Sydney north-west: Up 14.1 per cent to $2,021,885
9. BLACKTOWN, Sydney west: Up 13.7 per cent to $970,316
10. HORNSBY, Sydney north shore: Up 13.3 per cent to $1,449,274
Source: CoreLogic median property price data covering houses and units together in the year to November 2023 – based on Australian Bureau of Statistics SA3 mapping areas
- Kevin and Julia Sheppard bought the building in central Salisbury 15 years ago
A couple who sunk their life savings into renovating a historic £300,000 coach house featured on Escape To The Country have been left without electricity after an angry neighbour cut their power supply.
Kevin and Julia Sheppard bought the building in central Salisbury 15 years ago before they started a major renovation on the property.
But in the last year they say they have been plunged into a nightmare after a feud with their neighbour, who owns the freehold to the land their property was built on, which saw him cut off their access to power – making it impossible to live there – but also stopping them selling up so they can move on.
Peter Jennings, a millionaire who lets property to students, has refused to relent on his decision to cut their electricity supply – and their electricity company has repeatedly refused to override him.
Mr Sheppard, 58, who manufactures lenses for a local optician, told MailOnline: ‘It has taken over our lives for such a long time. We are being held to ransom due to his greed and it’s really hurt us financially.
‘It’s just constant, it’s been non-stop. It’s just constant stress and our blood pressure is up the whole time. We wouldn’t wish this situation on our worst enemy.’
Mrs Sheppard, 59, added: ‘We are stuck in a nightmare – we can’t live in our house, no one else can either. Peter Jennings simply refuses to budge and the electricity company won’t reinstall a power supply unless he relents.
‘I am certain this was his plan from the beginning.’
The saga began in 2008 when they paid £38,000 to buy the semi-derelict building behind the grand Edwardian town house close to Salisbury cathedral where they owned two of four flats.
They spent a year and more than £100,000 removing the ruined original building and building a modern replica in its place, creating a smart two-bedroom self-contained home with open plan kitchen and luxury bathroom which is today thought to be worth around £300,000.
The original power supply to the Sheppards’ coach house property from the main house was professionally upgraded with a new submeter installed inside a flat they owned to track usage.
In the years that followed they lived in the new house themselves and then let it to a tenant.
But in 2012 the owners of the other two flats sold up and the buyer was property magnate Mr Jennings. Then in December 2022, the Sheppards sold their two flats at auction with Jennings buying both, meaning he owned the whole building.
At this point the happy lives the Sheppards had enjoyed came to an end. The day after the sale went through, power to their property was cut off.
Since then, as the freeholder, Mr Jennings has prevented anybody from installing a mains connection to the Sheppards’ property, arguing it would pass across his land so he has the right to refuse permission, the couple claim.
He is also said to have refused to allow them to pay him for electricity via the flat he now owns and refused five-figure cash offers to reconnect the power.
When the despairing couple eventually decided they could take no more they decided to cut their losses and sell the property. It was featured on the BBC property TV show as a desirable property in Wiltshire.
But at that point Mr Jennings put up posters around the property warning prospective buyers that it has no electricity and that they shouldn’t get involved.
Last year the Sheppards sold the property for £277,000 at auction leaving the couple thinking their nightmare was finally over.
But despite having put down a 5 per cent deposit on the ‘sold as seen’ property, the buyer learned of the electricity row and decided to walk away and write off £13,850 rather than spend any more.
Mr Sheppard added: ‘Every time we tried to sell the flats he would put a stop to it, we had been trying to sell for a few years and when they went to auction he got them for a lot less than they are worth.
‘His ultimate goal now is to get our property for nothing. The day after the sale went through the power went out.
‘It’s not like it’s in a field in the middle of nowhere, we’re in the centre of town, we must be the only house in Salisbury with no mains electricity.
‘He could flick it back on tomorrow if he wants to, but he has told us, ‘there is no way I am ever going to let that house have electricity’ so we are stuck paying the mortgage and all the bills on it but we can’t live there ourselves, let it out or sell it.
‘We just want SSE to install a power supply so we can sell up and move on.’
When the Sheppards asked energy company SSE to install their own cable to the house, Mr Jenkins allegedly told workmen that as he owns the freehold to the access road that this would need to be laid along that he had the power to refuse – which he did.
And despite the couple’s insistence that this isn’t legally sustainable the company has resisted all their appeals.
Left without power they spent £30,000 installing solar panelling on the roof as an alternative – but have found that it doesn’t generate enough electricity in the winter to allow the property to be habitable.
A spokesman for Scottish and Southern Energy Networks (SSEN) said: ‘Scottish and Southern Electricity Networks (SSEN) has been aware of this situation since the residents concerned made contact with us several years ago with their request for a connection to our network.
‘The property in question used to have access to a private electricity supply, and even before the arrangement which provided this came to an end, we have been open to facilitating a potential solution that’s in the interests of all parties and that remains the case.’
Mr Jennings did not respond to requests for comment from MailOnline.
THE PRICES of old dwellings in housing companies continued to decline in Finland in October.
Statistics Finland on Wednesday unveiled preliminary data revealing that the year-on-year drop in prices stood at 7.8 per cent in the largest cities and 4.1 per cent in other parts of the country, adding up to a nationwide average of 6.5 per cent.
Compared to the previous month, the prices declined by 0.8 per cent across the country.
Oulu recorded the most substantial drop in prices, with old dwellings losing on average 11 per cent of their value in the 12 months leading up to October 2023. Prices in Turku fell by 8.7 per cent and those in the capital region by 7.8 per cent.
Tampere proved to be the most resilient market, with prices falling by 5.0 per cent from the previous year. The city was also the only large city that registered a month-on-month up-tick in the prices of old dwellings in housing companies – one of 1.9 per cent.
Juhana Brotherus, the chief economist at Suomen Yrittäjät, on Wednesday predicted that the prices of old dwellings will receive a boost from the revisions that will be made to the transfer tax scheme at the turn of the year. With the government set to scrap the tax exemption granted to first-time home buyers at the start of next year, many are expected to sign the deed by the end of the year.
“The journey from first viewing to the bank to sign the deed takes at least a month. We will see an increase in sales figures for November and especially December, but January will again be brutally quiet due to the timing of purchases by the wave of first-time home buyers,” he wrote.
Brotherus revealed that he expects house prices to decrease by more than six per cent in 2023, marking the most significant year-on-year decrease in more than 30 years. Compared to the price peak witnessed in 2022, house prices have already come down by roughly 10 per cent.
“The start of next year will be difficult, but gradually low new residential production and especially the declining Euribor rates will lubricate sales chains across the country and elevate prices in growth centres,” he said.
Brotherus is familiar with the workings of the property market as a former long-time chief economist at the Mortgage Society of Finland (Hypo).
Aleksi Teivainen – HT
- The value of the average home predicted to fall by £25,000 by the end of 2024
- Soaring mortgage costs hit homeowners and squeeze affordability for buyers
- But some pockets across the country have seen property prices increase
House prices are in the thick of a two-year tumble — the average home has lost thousands over the past 12 months and is predicted to fall by a further £25,000 by the end of 2024.
Soaring mortgage costs are largely to blame as they hit millions of homeowners and squeeze affordability for buyers, who can no longer afford to purchase the homes they aspired to own just 18 months ago.
With higher rates expected to be around for longer, official forecasters at the Office for Budget Responsibility (OBR) predict that a further 4.7 per cent will be wiped off house prices next year.
But while most homeowners stand to lose out, some pockets across the country have defied the cost pressures and seen property prices increase.
If you own a home in Lancashire or the East Midlands, you’re likely to be one of the big winners.
Biggest jumps in average house prices
In-depth analysis of the most recent Office for National Statistics (ONS) data for Money Mail and This is Money by estate agents Hamptons International shows house prices have surged by more than 5 per cent in more than 30 local authorities across the UK.
To calculate this, Hamptons took the average price of transactions by local authority between January and September compared with the same period in 2022.
Because so few transactions take place in some areas each month, it took the average transaction price over nine months. It says this is the most reliable way to measure prices by local authority.
Here, we take a look at this year’s house price hotspots that have defied the property gloom — and those that have taken the biggest beating.
Surge in seaside town living
Number one in the house-price charts for percentage growth and the only area to record a double-digit increase is East Lothian, which borders Edinburgh.
Homes in the area have jumped by 10.3 per cent in the past year, rising by £30,330 to an average of £323,730.
The area is a popular sanctuary for coastal life, while having fast commuter links into the city.
Andrew Smith, director of country house sales at Rettie & Co, a local estate agent, says the area is well known for having a unique microclimate — both in its property market and its weather. Though rain may be settled over the Scottish capital, a short drive east will often reveal blue skies and a warm breeze, he says.
‘In a challenging national market, where house prices are stagnating and the volume of sales are falling, it’s immensely encouraging to see the East Lothian market not only holding up, but showing a steady rise in sales values,’ he says. ‘One of the alluring qualities of East Lothian is the range of lifestyle options within the region.
‘From beaches in the north, to the Lammermuir Hills in the south and the rolling farmland and historic villages in between, the region is packed full of charm.’
Homes in neighbouring Edinburgh have not fared so well, with demand dropping as a result of increased borrowing costs.
However, family homes are still in high demand because supply is short, says Edward Douglas-Home, head of Scotland residential at Knight Frank.
And those who are unable to find large family homes in Edinburgh are looking further afield to East Lothian.
The second-fastest growing area in Britain is the borough of Fylde, Lancashire, a short distance from the bright lights of Blackpool.
Homes in the area are up 7.7 per cent over the past year — more than in any other local authority in England, hitting an average of £242,290 between January and September.
Rachel Bamber, of estate agent Entwistle Green in St Annes in Fylde, says the area’s proximity to seven seaside towns — including Fleetwood, Cleveleys, Blackpool and St Annes — has been a big draw for buyers.
‘A lot of people come to retire here — one of our biggest clientele is people looking to retire to the seaside,’ she says.
Retired buyers typically face fewer mortgage pressures because they have usually paid off their home loans.
This means pensioner home-owners have largely been shielded from the worst of the mortgage rate rises.
Neighbours in West Lancashire, an area between Liverpool and Preston, have also seen the value of their homes shoot up by 7.3 per cent — the fourth-fastest rate in the UK.
By and large, the North-West of England seems to have been shielded from falling prices, as Lancaster, Preston and Rochdale also rank among the regions which have the fastest growth.
The average property in the North-West is worth £218,013, making it a relatively affordable market compared with the average of £309,602 across England.
Prices have also jumped in the East Midlands, which makes up a third of the top 30 property hotspots. Home values in the boroughs of Amber Valley, Harborough and Broxtowe all rose by more than 6 per cent.
Rutland, which borders Leicestershire, Lincolnshire and Northamptonshire, recorded the third largest growth in house prices, gaining 7.6 per cent.
The cost of a typical home in Rutland has risen by £27,980 over the past year to £393,890, according to the analysis by Hamptons.
Rutland is popular among those who seek out small- town country living, with its 50 villages featuring honey- coloured homes. Properties are cheaper than in the nearby Cotswolds and the area attracts fewer crowds.
The average house in the Cotswolds comes with a much larger price tag, at £503,174 — offputting for buyers grappling with rising interest rates, says Aneisha Beveridge, who is head of research at Hamptons.
Oasis in the south of England
Of the top ten fastest- growing local authorities for house prices in England, eight are in the North or Midlands.
But one region in the South defied the wider trend of falling house prices, ranking twelfth and recording a 6.5 per cent growth: West Oxfordshire.
Ms Beveridge says: ‘This region really bucks the trend. It is likely that the attraction of rural living, which grew at pace during Covid, has remained popular this year, too.’
Gavin Pike, of Parkers Witney Lettings & Estate Agents, which is based in West Oxfordshire, says the region is one of the least densely populated parts of the UK and is therefore attractive for its green spaces.
He adds that it’s a geographical sweet spot: ‘We are within cycling distance of Oxford and right on the border of the Cotswolds, but you can still get into London. It boils down to the quality of life — we have good infrastructure and education is generally good.’
Houses remain nearly £110,000 cheaper in West Oxfordshire than in the nearby Cotswolds, at £393,890.
Mr Pike added: ‘Another reason prices have remained as buoyant is because this is an area of very high employment.’
This year’s biggest losers
So what about areas hit by the heaviest falls in house prices?
The South of England and Scotland have been home to the most dramatic falls in house prices — representing seven out of the ten worst-performing regions.
Half of the local authority areas with the largest price drops in Britain were in Scotland, where homes in Aberdeen lost 6.1 per cent, dropping by £8,770 to £135,920.
Meanwhile, five of the ten worst falls in England were recorded in London, with homes in the borough of Kensington and Chelsea losing a staggering 10 per cent year-on-year.
Here, the average house lost £147,990 in value, down to £1,332,890.
Meanwhile, properties in Islington, Wandsworth, Harrow and Camden all had thousands of pounds wiped from their value. Ms Beveridge says this is partly as a result of northern areas playing ‘catch up’ on house prices.
‘Some ten years ago the top risers list would have been dominated by London boroughs. But the shift underlines that we’re in the second stage of the housing price cycle,’ she says.
‘The house-price cycle began in 2008 during the financial crash, when property prices plummeted. When they started to rise again it was London that led that recovery, while other regions lagged behind.
‘But we are now in the next stage, where price growth is rippling out to the other regions while London slows.
‘And during the past few years it’s been areas predominantly in the North of England that have seen the strongest price growth as they catch up.’
This effect has been speeded up by the rising cost of borrowing. Since property prices are higher in London, most homeowners need bigger mortgage loans and are therefore under more financial pressure when the interest rates rise.
‘It’s here and the wider commuter belt that the shift towards higher rates is really hurting,’ says Ms Beveridge. ‘Generally, the outer pockets of London have fared a bit better than the centre of the capital, as households seek out more affordable areas.’
Estate agent Savills predicts that the value of homes in the capital will fall by 4 per cent in 2024, compared with a drop of just 2.5 per cent in the North-West and the East Midlands.
It forecasts that the trend will continue until 2027, during which time cheaper areas will see the biggest increases in house prices, including Wales and Scotland.
Frances McDonald, director of research at the group, says that 2028 ‘will mark the beginning of a new house price cycle, when house prices in the capital will be at the forefront of growth again’ as the economy improves.
- Additional reporting by Lucy Evans
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SOUTH WALES, N.Y. — Welcome Western New York to “The Cabin,” a 16,975 square foot home in South Wales that can be yours for an Erie County record $14.5 million.
The home comes with a four-acre private lake, an indoor basketball court, 26 horse stables, an indoor equestrian arena, and much more.
The home is being sold by Canaan Realty,and that huge asking price gets you six luxury bedrooms and seven baths.
“In New York state, there’s not many like it, it’s not a New York state type property,” said broker of the property Allen Olmsted. “The log home is going to speak to certain type of clientele.”
The Cabin was built in 2011 and is now owned by the Warner Hill LLC.
Rosalind Burgin is the president of the Buffalo Niagara Association of Realtors.
She says if that hefty asking price is met, it would be a record breaker.
“It’s so far from average, this is one of a kind,” Burgin said. “it’s above a mansion. I’m wondering if it’ll sell.”
Burgin shared that over the past 10 years, the highest sale price for a house in Erie County was $4 million for a home in East Aurora in 2016.
The price of The Cabin at 11571Warner Hill Road is three-and-a-half times that.
The property comes with plenty of privacy, so much so that we weren’t even allowed on the property.
Olmsted feels it’ll be the perfect home for somebody soon.
“We feel it could be somebody looking for a primary residence that would be outside of a city, or somebody looking for a secondary home.”
Perhaps that’s Buffalo Bills QB Josh Allen.
He makes about $43 million a year from the Bills, triple that $14.5 million asking price.
Or maybe, Sabres defenseman Rasmus Dahlin, who just agreed to a new contract that will pay him $11 million a year starting next year.
“It could be somebody local to us here, or live nationally or internationally,” Olmsted said.
A taste of luxury tucked away in our own backyard.
Anybody looking to purchase will need proof of income but can reach out to Canaan Reality for more information by calling 888-457-6261.
- There are two regions where detached home is cheaper in the sticks than in town
- But in most areas, a country home will set buyers back much more
- We look at price difference between rural and urban properties across England
Buying a house in the country is a dream for many homeowners, attracted by the idea of a peaceful rural idyll where they can get away from it all.
But the cost of doing so can be prohibitive. Prices were driven up during the pandemic when outdoor space rocketed to the top of many buyers’ wish list and led to a flight away from major towns and cities.
For those who are still seeking their perfect country pile, exclusive research from estate agent Jackson Stops has revealed the areas of England where rural homes still offer a bargain compared to those in urban centres.
Topping the list is the East of England, including Cambridgeshire, Bedfordshire, Norfolk, Suffolk and Essex.
There, a detached home in the country costs an average of £487,483, which is 37 per cent cheaper than the £772,396 they would typically pay for a similar property in a larger town or city.
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The price difference has increased from 34 per cent before the pandemic, and has been driven by a spike in house values in sought-after cosmopolitan areas such as Cambridge.
Demand from detached home buyers looking for rural locations in the East of England has also fallen by 2 percentage points in the last decade, now at 54 per cent today compared to 56 per cent in 2013 – meaning it could be easier to drive a bargain.
Most popular locations in East of England
4. Kirby Cross
7. South Wootton
The rural location in the East of England that proved the most popular with buyers in 2023 was Whittlesey, according to Jackson Stops.
Six miles east of Peterborough in the Fenland district of Cambridgeshire, Whittlesey has a population of close to 18,000 and has two historic churches as well as access to several local nature reserves.
It is also famous for hosting an annual ‘straw bear festival’ each January.
Also popular was Dersingham in Norfolk. The village lies just to the north of the Sandringham, the favoured royal residence of Queen Elizabeth II.
It is also close to the Dersingham Bog National Nature Reserve which is home to several rare plants and birds.
Nick Leeming, chairman of Jackson-Stops, says, ‘The East of England has grown in popularity over the last two years, home to the Cambridge-Oxford Arc as a melting pot for innovation and urban expansion.
‘Whilst rural hubs around Suffolk and Norfolk have increased in demand thanks to the rise in flexible working and lifestyle trends, there remains plenty of opportunities here for buyers looking for the best of both worlds.’
Daryl Parr, director of Jackson-Stops Colchester, adds: ‘Essex continues to be one of the most affordable home counties for those moving out of London. This means families can get a large, detached house in a green location, within an hour of the capital.
‘There are houses that will tick all the boxes and sell quickly – these are set in the real diamonds of villages, in the heart of Constable country, usually right behind an old church.
Most popular rural areas to buy a home in South West England
1. Bishop’s Cleeve
5. Bovey Tracey
7. Royal Wootton Bassett
‘Hidden gem villages in the golden triangle between Ipswich, Chelmsford and Colchester are becoming more popular with buyers, where picture-postcard country views are a plenty.’
It is one of four areas where the price of a detached home in the countryside is cheaper than that of an urban one, along with the West Midlands, the North West and Yorkshire and the Humber.
The area where owners pay the biggest premium for a rural detached home is the South West, where it costs an average of £563,786 – 11 per cent higher than an urban detached property at £508,006. The gap has increased from 8 per cent in 2022.
There, the most popular locations with country home buyers included Bishops Cleeve, Amesbury and Bovey Tracey.
Bishop’s Cleeve in Gloucestershire has a population of around 14,000 and is located at the foot of Cleeve Hill, the highest point of the Cotswolds.
It is home to The Grange, a business complex which contains offices for large firms including Zurich and Capita.
Amesbury in Wiltshire is possibly the oldest occupied settlement in Britain, having been first settled around 8820 BC. It is also home to Stonehenge.
Meanwhile, Devon’s Bovey Tracey is a market town on the edge of the Dartmoor national park.
Rural homes usually outprice urban ones
Looking at house prices in real terms, the price of a rural home – across all property types, not just detached, has risen faster than an urban one.
Jackson Stops’ research shows that buyers consistently pay more for rural homes – and the price premium has expanded in the last decade.
In 2013, a buyer would need to buy on average 15 per cent more for a rural home compared to an urban home in the same region, whilst in 2023 this premium had jumped to 18 per cent.
The typical rural home now costs £347,278 compared to £295,526.
Jackson-Stops say this indicates rising demand for country life across the decade.
The cheapest region in which to buy a rural home is the North East, where it costs an average of £182,014, while the most expensive was the South East at £500,271.
The South West has seen the biggest spike in rural house prices, increasing 28 per cent in the last five years to £383,767.
That has been driven by the huge popularity of Cornwall, which topped Jackson Stops’ list of the most popular locations for rural home seekers for the third time in three years.
In each of those years it was followed by Wiltshire and the East Riding of Yorkshire.
Richard Holder, director at Jackson-Stops Cornwall, said: ‘The West Country has a long legacy of drawing in all types of home buyers from across the country, lured in by rolling landscapes and blissful beaches.
‘But Cornwall in particular is the kind of place that puts a spell on you – the romanticism of Poldark is more than just on-screen. It’s laid-back nature, warm sense of community, and close affiliation with nature, make Cornwall the ultimate countryside lovers retreat.
‘Name any hamlet here and no doubt you’ll find a cobbled street lined with pretty cottages, surrounded by wildlife and heritage. It’s a magnet for downsizers and entrepreneurs, offering the good life in spades.’
The research excluded London as it does not have any rural homes.
Prices are also falling faster in towns and cities than in the countryside. In the last year, England’s rural house prices dropped in value by on average 1 per cent or £3,615, however, urban homes decreased by nearly twice this amount by 2 per cent or £6,705.
However, rural homes have not been immune to price falls and most areas have still seen a reduction.
The South West was the only area where prices increased in the last year, going up by 2 per cent. They also stayed the same in the South East.
The area that saw the biggest drop was Yorkshire and the Humber, where prices have dropped 7 per cent in a year to £253,899 according to Jackson Stops.
However, rural house prices are still 15 per cent higher than urban ones.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
- House has been compared to Chicago house from Christmas film Home Alone
A mansion dubbed the UK’s version of the Home Alone house has gone on the market for £7million.
The seven-bedroom home in Cobham, Surrey, is complete with a heated swimming pool, private cinema room, gym and wine cellar.
In the movie Macaulay Culkin‘s character Kevin McCallister hilariously defends his home from burglars Harry and Marv aka The Wet Bandits.
Potential buyers are reassured that, unlike Kevin’s home, the Surrey mansion comes with a working security system.
The real Home Alone house is based in Winnetka, Illinois, and is said to be worth around $2.3million today – around £1.8million.
The 4,243 square foot property in Chicago boasts half an acre and attracts tourists from around the world each year.
Fans are now being given the opportunity to buy their ‘own Home Alone house’ in the UK – for the hefty price of £7million.
The property, which sits in a 0.73 acre plot, is stretched over 13,469 square feet – more than three times the size of the original Home Alone House.
Estate agent Adam Day, from eXp UK, said: ‘At first glance, you could be forgiven for thinking this is the actual Home Alone house.
‘But it’s fair to say that this property is far superior.
‘It’s certainly large enough to host a film crew, but the last thing you would want to do is let Kevin run riot given his previous form for destruction.
‘The good news is that it comes with a full security system and so if you do make a habit of forgetting your children, you can rest assured they will be safe and sound.’
The huge home boasts nine bathrooms, a breakfast room, family room, snooker room, utility room, triple garage and a steam room.
It also comes equipped with climate control, underfloor heating, air conditioning, smart home system and solar panels.
Estate agents eXp UK said the ‘showcase’ home is the ‘epitome of lavish living’ and describe it as ‘masterstroke of architectural prowess’.
They added the freehold, detached home also ‘gives off serious Home Alone vibes and then some’.
The estate agents listing adds: ‘Crafted to the most exacting standards, it is a symphony of comfort and extravagance, offering a lifestyle beyond compare.
‘As one of the most expansive and luxurious homes within the estate, represents the pinnacle of comfort, luxury, and modernity, transcending the very concept of a dream home to unimaginable heights of splendour.’
By David Wilcock, Deputy Political Editor For Mailonline
17:15 22 Nov 2023, updated 17:15 22 Nov 2023
Average house prices will fall by almost £25,000 next year and they are unlikely to recover to their 2022 high until 2027, experts warned today.
The Office for Budget Responsibility (OBR) also said that prices would fall by 4.7 per cent next year, after a modest increase of 0.9 per cent this year.
It said recovery could take three more years, but by the time they do the average mortgage rate could well be 5 per cent, heaping added pain on buyers.
In the second quarter of 2023, housing transactions fell to their lowest level since the middle of the pandemic, as higher mortgage rates reduced housing affordability,’ it noted.
Leading indicators suggest the market will remain weak … (and) residential property transactions are expected to fall as the housing market continues to cool.
‘We expect housing transactions to fall by 6.9 per cent in 2024, a 1.9 percentage point steeper decline than in our March forecast of 5 per cent.
‘We then expect housing transactions to steadily return to growth from the final quarter of 2024, returning to pre-pandemic levels in the first quarter of 2027.
‘Our central forecast estimates that house prices will grow by 0.9 per cent in 2023 and then fall by 4.7 per cent in 2024.
‘This would be consistent with the price of the average UK home reaching a low of around £266,000 at its trough in the final quarter of 2024.
‘All in all, from their high in the fourth quarter of 2022 to their low in the final quarter of 2024, nominal house prices are expected to decline by 7.6 per cent (2.4 percentage points less than we expected in March).
‘We then expect house prices to recover slowly, reaching their late 2022 peak levels in the second half of 2027 and rising to 6.4 per cent above this level by the end of the forecast. The outlook for house prices is particularly sensitive to changes in interest rates and household income growth.’
The OBR’s forecasts painted a mixed picture about the health of the economy.
The budget watchdog’s forecast in March was for the economy to shrink by 0.2 per cent in 2023, but that has now been revised up to growth of 0.6 per cent.
But it downgraded forecasts for the following three years, with GDP now expected to grow by 0.7 per cent next year, with 1.4 per cent in 2025 and 1.9 per cent in 2026.
The OBR also said inflation was ‘expected to be more persistent and domestically fuelled than we previously thought’ and is not expected to return to the Bank of England’s 2 per cent target until the first half of 2025, more than a year later than in March.
It is high inflation – fuelling increased earnings and prices and subsequently larger tax takes – which contributed to the £27 billion windfall which Mr Hunt has used in part for the giveaways announced in his statement.