UK house prices affected by population movement

750 homes planned for Stratford High Street

Buy-to-Let market soars 48% in 2006

Prime residential block launched in Liverpool town centre

UK house prices affected by population movement

The extra demand for housing that migration and immigration cause, explain much of the regional difference in house prices around the country, according to the latest research by propertyfinder.com.

Regions with the highest inward migration have witnessed the steepest house price increases. In the last ten years, London has seen a population growth of 8% and a 216% growth in house prices, which is well above the UK average of 5% and 191% respectively.

Warren Bright, chief executive officer of Propertyfinder.com said: “Our research suggests that the best performing regions which have been attracting the most migrants will continue to see house prices outperform over the medium term.”

Local government figures also show that household formation is on the up due to the rise in the number of single person dwellings. As a result, demand for housing will continue to be further ahead of supply.

750 homes planned for Stratford High Street

Plans for 750 new homes in Stratford, near the 2012 Olympics site, have been made public by the Genesis Housing Group housing association.

The site on Stratford High Street will, subject to planning, include several residential blocks as well as commercial and retail units. Genesis says that a large proportion of the homes to be built at the site will be affordable, but are not sure of the exact number due to being in the early stages of planning.

Steve Coleman, Genesis Group development director said: “Should our plans for this site be approved, they will contribute towards reducing the housing shortage in London as well as having a positive economic impact on the area.”

The development was designed by Stock Woolstencroft, and Genesis hopes to start work on the project in early 2008.

Buy-to-Let market soars 48% in 2006

The buy-to-let market accounted for 11.1% of gross mortgage lending last year, up from 9% the previous year. 330,000 buy-to-let mortgages were taken out in 2006, an increase of 48% by volume, according to the Council of Mortgage Lenders (CML).

The strong growth in inward migration in recent years, has fuelled the demand for rentable property and is believed to be the main driver of the buy-to-let mortgage market.

The survey found that 60% of landlords expect to remain in the residential letting market for at least 10 years, showing that most view buy-to-let as a long term investment.

Last year, buy-to-let lending reached an all time high of £94.8bn, up from £73.4bn in 2005. This growth has intensified the lack of supply and forced up prices in many regions of the UK, especially London.

The CML says that predictions for the future are encouraging. They add that an increasing number of young people are making certain ‘lifestyle choices’, including putting off marriage and children until later in life. As a result, younger people are delaying the option of home ownership, and opting to rent instead.

Prime residential block launched in Liverpool town centre

The latest phase of the £920m Liverpool One development is to be officially named One Park West.

The 17-storey tower will be built by the Duke of Westminster’s property group – Grovesnor - and has been designed by Cesar Pelli, creator of the Petronas Towers in Kuala Lumpur.

One Park West will contain 326 one, two or three bedroom apartments. There will be secure car parking and a 24-hour concierge service.

The building will have as its neighbour the new four-star Hilton Hotel on the other side of the park.

The apartments went on sale 23 February through the Liverpool office of sole agents King Sturge. So far, 40 apartments have been sold, the cheapest being a studio for £100,000 and the most expensive being a 3 bedroom flat for £400,000. All apartments will be privately owned.

Work on One Park West and the nearby Hilton Hotel is already under way. Grovesnor’s intention is to release apartments in phases, with an expected completion of the tower in early- 2009. Grosvenor plans a total of 630 new apartments for the Liverpool One development, which is a £920m regeneration scheme for the city centre.