Developing Potential South of the River

Woolwich Map2013 saw an increase in property prices of some 10% in London, and it is likely that house prices will continue to rise in 2014.

Despite the chancellor announcing headline-grabbing measures to cool property price rises by taxing overseas investors in reality this is unlikely to affect the market significantly, because over 70% of the market are resident owners.

The Government target is to build 200,000 new homes to meet growing housing needs, but supply could struggle to keep pace with the market demand in which case prices will continue to rise accordingly.

At Riley Marshall we have been keeping our ear to the ground to bring you news of the latest happenings in our area.

Crossrail opens up the East and South East

Crossrail will bring high speed links from Abbywood and Woolwich via the Royal Docks and Canary Wharf before heading on into central London.

This will significantly reduce traveling times to and from these areas and is likely to bring investment into these more outlying areas that would previously have been seen as being too far to commute.

The Northern Line Extending to Meet Battersea Development

Battersea Power Station is part of a £4 billion forty-two acre site which will bring some 16,000 new homes.

This area, south of the River Thames will include the new American Embassy and the development will feature amenities such as schools, shopping, restaurants and parks as well as housing.

You can even watch the progress of construction on the live feed on the Battersea Power Station’s dedicated website.

Transport For London plans to build an extension to the existing Northern Line to include Nine Elms and Battersea.

Croydon Expects Westfield Development

Westfield, the highly popular shopping mall developers are planning to build in Croydon at an estimated cost of £1 billion.

Westfield in Stratford has been a tremendously successful venture, bringing crowds to shop, eat and visit the cinema.

It is likely to prove equally popular if Westfield get permission to develop in Croydon, and will bring a much needed boost to this area which could see price rise as demand increases.

More Olympic Village Property Released

Stratford continues to be a burgeoning market, enjoying the increase in popularity since the Olympics put Stratford so firmly on the map.

More new houses are being released on the previous athlete’s village site during 2014, and the plan is for the site to realise some 10,000 new homes in five new neighbourhoods each of which will have new schools health facilities and shops.

The site will be landscaped to include open spaces, parks and waterways to make the area a popular destination for homeowners, tenants and investors.

Our opinion is that the property prices in our area will continue to rise over the next year, if the first quarter is anything to go by, so please get in touch with us if you are planning to move and we can discuss your options 0207 394 1160.

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Housing Developers Needed as Property Demand Swells in the UK

Help to Buy Numbers Treble

According to a report from RICS (Royal Institute for Chartered Surveyors) the Help to Buy numbers trebled in the last two months of 2013, so will demand outstrip supply in the UK this year?

A report by the NAEA (National Association of Estate Agents) following their recent member’s survey states that during November its members sold an average of nine homes per estate agency branch, and on average two of those were Help to Buy purchasers.

The Help to Buy initiative launched at the beginning of October 2013 and we dealt with the different Government housing market schemes in our earlier blog post.

Nationally more than 2000 people took advantage of Help to Buy in the first month after launch – by December that figure nearly tripled to 6000. These new mortgages will equate to around £1 billion of new lending to homeowners who may have been deterred or prevented from borrowing because of the need for a lump sum for their deposit before a mortgage company will lend money.

David Cameron Comments on the Increased Demand for Housing

Prime Minister David Cameron hopes many more people will be persuaded to get on the property ladder in the New Year, giving the property market and the wider economy a welcome boost

RBS, HSBC, Lloyd’s, Virgin Money and Aldermore are already offering these mortgages but they will soon be joined by Barclay’s and Santander who plan to introduce their own Help to Buy products this month.

The property market will no doubt continue to heat up as we head towards one of the busiest times of year and Cameron observes:

“. . . too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.

That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hard-working people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home.”

UK Economic Growth Relies on a Booming Property Market

The UK economy is so dependent on a raising property market that the Government is always under pressure to find ways to keep the figures rising upwards, but if the market gets too hot it could cause a bubble that would be very painful for our recovering economy if it should burst.

RICS senior economist Josh Miller warns:

“The pace of demand is exceeding that of supply in every part of the country. Clearly the momentum in the market is growing. Help to Buy, funding for lending, and the clear commitment to keep interest rates low for a long time, all three are having an effect.”

Build More Housing to Stabilise Economic Growth

The best way to stabilise the market is to increase supply so that it tracks this increased demand. Providing that buyers can afford to purchase we are unlikely to ever have a situation where available housing stock outstrips demand in London. Therefore building more housing is the answer to increased, gradual and sustainable economic growth in the Capital.

The Shadow Housing Minister Emma Reynolds comments that:

“Any help for first-time buyers struggling to get on the property ladder is to be welcomed.

But rising demand for housing must be matched with rising supply if this scheme is to bring the cost of housing within the reach of low and middle income earners.”

It is certainly true that without a reliable release of new more affordable housing onto the market that the housing ‘bubble’ will stall and even burst, if house prices rise sharply in response to this increased demand. This could spell economic disaster for all of us.