The residential property boom being experienced in London, is set to continue for at least another six months because of overseas investment, city bonuses and high demand, says Knight Frank.
Property prices in central London have appreciated by almost 25% over the past year, representing the highest rate of growth since June 1997.
Stroud & Swindon introduce 15-year fixed mortgage
Building society, Stroud & Swindon has launched a 15-year fixed rate mortgage at 5.15% until 2022.
This is the second 15-year fixed rate deal that Stroud and Swindon has launched in the last two months with the first product selling out within two weeks.
Paul Chafer of Stroud & Swindon Building Society comments: “The housing market is showing no sign of slowing pace, forcing consumers to borrow vast amounts of money. Combined with the rise in interest rates and increasing energy bills, many homeowners are facing very stretched budgets.
“As a result, we have launched a second 15-year fixed rate mortgage, with a competitive rate of 5.15%. Rather than the hassle, expense and lack of security of finding a new mortgage deal every two or three years, this gives borrowers piece of mind by offering a great rate for 15 years without having to worry about possible future interest rate rises."
Transport for London launch public Cross River Tram consultation
Transport for London has launched a public consultation relating to route options for the proposed Cross River Tram.
Initial route plans for the Cross River Tram would see it operate between Euston and Waterloo, with branches to Camden Town and Kings Cross in the north, and Brixton and Peckham in the south. Subject to future funding, the tram could be operational by 2016.
Mayor of London, Ken Livingstone said: "The Cross River Tram will provide an important cross-river link that will support regeneration in Camden in the north and Peckham and Brixton in the south. It will improve access to jobs, education and homes whilst helping to cut congestion and pollution by offering another alternative to car use.
''The tram will carry more than 60 million passengers a year, relieving some of the high demand on the Northern and Victoria lines."
Mortgage lending hits new October record
Gross lending hit a new monthly record in October of £30.3bn, according to the Council of Mortgage Lenders (CML).
CML reveals that lending was up by 4% on the September figure of £29.2bn, but down by 8% from the overall record of £33bn in August. Lending was up 12% in
comparison to October last year (£27bn).
Michael Coogan of CML said: "For yet another month the housing market is proving itself to be in robust shape. Housing demand and mortgage approvals have been strong over recent months, despite the rise in interest rates. House price growth is also
strong, so we expect to see lending remaining at high levels through the new year.
"But with interest rates rising for the second time in three months, we
anticipate a modest slowdown in house sales and mortgage approvals as 2007
progresses."
Savills Christmas Catalogue released
Savills has released its sales catalogue in preparation for its December auction. The sale will take place in The Ballroom, The Langham Hotel, London, W1 on Monday 11 December 2006 at 2pm.
The catalogue consists of 52 lots, totalling in excess of £40m in guide prices. It includes properties from Land Securities, McDonalds, the London Borough of Ealing, Rowan Asset Management, and The Worshipful Company of Skinners.
James Cannon, head of Savills’ commercial auctions team, says: “As we move into the last round of auctions for 2006, the last quarter has seen a marked increase in the volume of lots offered and bidders’ interest. Although there has been a rise in the minimum lending rate, this does not appear to have dented buyers’ enthusiasm and the market seems set fair until the Christmas break.”
Premiums fall in ‘good’ school catchment areas
The premium that is typically charged on properties located within 'good' school catchment areas is falling according RICS.
When the RICS survey was last conducted, in August 2003, estate agents suggested buyers were willing to pay a 12% premium, the latest report however, claims that with the exception of London, this figure has fallen to 8%.
Jeremy Leaf of RICS says: “A secondary school with a good reputation can cause mayhem in a local property market. Buyers with children of school age will do and pay anything to get their children a place. However, our latest figures suggest some people are simply being priced out of the market in these key locations.
“It is quite normal for potential buyers to check the local Ofsted reports before they read the particulars for their preferred properties. The education effect on property prices can extend well beyond the school run boundaries.”
Over half a million Eastern Europeans in the UK
The number of Eastern European immigrants has topped 500,000 for the first time, according to the Worker Registration scheme. This has further increased demand for housing.
Mortgage cost rises by a third
The cost of paying a mortgage has soared by a third in the past three years, according to mform, a new online mortgage company.
The study reports that the average annual mortgage payment in the UK currently stands at £6,284, up from £4,711 in 2003.
The research also reveals that some 1.38m people are spending at least £1,000per month on their home loan. Some 55% of them live in London, where property prices are highest. The fewest live in Yorkshire, representing just 2%.
Eamonn Rice, chief executive of mform, said: "Compared to last year, house prices have increased by around 7.7 percent, and with a further rise in the Bank of England base rate expected, the size and cost of a mortgage will continue to rise."
