Building a conservatory could actually hurt your chances of buying a home – according to the latest study of what buyers want.
More, good broadband is now more than three times as important as good schools, while period features no longer have Brits clamouring to buy.
“We found that many potential buyers are prioritising efficiency, security and connectivity over aesthetic features,” said Matt Sanders from, Gocompare.com home insurance, who carried out the research.
“This suggests that modern buyers are buying with their heads rather than their hearts and that investing in things like a new boiler, additional electrical sockets or modernising your home’s insulation could be a smarter investment than traditional selling points such as period features or conservatories.”
The research also found that past trends – including open-plan kitchens and living areas and period features – are no longer in our top 20 'must-have' features.
“It is surprising to see previous must-haves such as good schools and conservatories fail to make the top 20,” Saunders said.
“However, our research shows that buyers are becoming more financially savvy and are willing to make compromises on the finer details of a property to keep costs down and avoid expensive work in the future.”
The top 20 property must-haves for 2017
Central heating - 69% of buyers
Double glazing - 68% of buyers
A garden - 65% of buyers
Secure doors and windows - 61% of buyers
Driveway or dedicated parking space - 54% of buyers
Plenty of electrical sockets - 54% of buyers
Local shops and amenities - 50% of buyers
A good, reliable broadband connection strong enough to stream TV and films - 49% of buyers
Friendly neighbours - 47% of buyers
At least 2 toilets- 46% of buyers
A bath - 46% of buyers
A good energy efficiency rating - 46% of buyers
A new boiler/central heating system - 45% of buyers
A reliable, clear mobile phone signal - 44% of buyers
A shower cubicle - 40% of buyers
A garage - 39% of buyers
Cavity wall insulation - 38% of buyers
A land line telephone - 38% of buyers
A living room big enough for a large, flat screen television - 37% of buyers
If you’re thinking of buying a house in the London Borough of Hackney, you might be paying more than anywhere else in the country relative to your average wage.
According to new research, the average house price across the UK is now more than six times that of the average wage, with a gap of £6,111 between the current average wage and the wage required for a general mortgage approval of four and a half times your salary.
But in Hackney, the average annual wage is £33,800 and the average house price is a lofty £575,511 – equating to a ratio of 17.03 and making it the most expensive place to buy property relative to income.
The London Borough of Brent is the second priciest area based on that metric, according to the research compiled by estate agent emoov.co.uk, ahead of Haringey, Waltham Forest, Ealing, Harrow and Barnet.
The only area in the top ten that does not fall within London is Purbeck in Dorset, in eighth spot, where the average salary is £23,800 and the average house price £335,950, putting its ratio at 14.12.
Ham & Fulham and Newnham are in ninth and tenth spot respectively.
At the other end of the spectrum, at 3.43, the house price to wage ratio is lowest in Burnley, where the average wage is £23,500 a year and the average house goes for £80,605.
Overall, the ratio in London is 12.05, putting it top of the UK in a ranking of regions, ahead of the South West, at 9.55, the South East, at 9.50 and the East, at 9.33.
The average for the whole of England stands at 7.86, ahead of Wales, at 5.95, Scotland at 5.07 and Northern Ireland at 5.32.
The “Cheesegrater”, the tallest building in the City of London, has been sold to a Chinese property tycoon for £1.15bn, the second-biggest ever sale of a UK building.
The developer behind the 224 metre tower, British Land, and its joint venture partner Oxford Properties, the global property arm of a Canadian pension fund, have sold the landmark building to CC Land, a Hong Kong-listed company controlled by Cheung Chung-kiu.
The deal is the biggest sale of a single building in the UK since 2014, when the HSBC tower in Canary Wharf was sold to Qatar’s sovereign wealth fund for £1.18bn. It is also one of the biggest Chinese purchases of UK property.
The sale suggests investor interest in UK property remains strong, despite Britain’s vote to leave the EU last summer. The weak pound has drawn in global investors, despite uncertainty created by the referendum.
Officially called the Leadenhall Building, after its location, the tower was completed in 2014 after a four-year construction period and broke records for rents in the City. It is fully let to a number of financial firms, including insurers Aon and MS Amlin.
Designed by Rogers Stirk Harbour + Partners, the Cheesegrater got its nickname from its distinctive wedge-like shape, created to preserve views of St Paul’s Cathedral. It drew ridicule when three bolts snapped only months after it was completed, forcing British Land to cordon off an area below the tower.
It is one of a series of skyscrapers that have sprung up in the Square Mile in recent years, such as the “Walkie Talkie”. They will be overshadowed by the planned 304.9m Trellis tower at 1 Undershaft, which will be almost as high as the Shard – the tallest building in western Europe.
Tim Roberts, head of offices and residential at British Land, said: “British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop the Leadenhall Building to generate a high-quality, long-term income stream. It’s a decision which has really paid off.
“This sale shows continued investor appetite for best-in-class, well-located property in London.”
Contracts have been exchanged but the deal still has to be approved by shareholders of CC Land.
The housing market continues to defy fears of a post-referendum slump after sellers’ asking prices hit a new record high of more than £313,000 on average in April.
Across England and Wales, the average price tag on a property being put on the market increased by £3,547 – or 1.1% month-on-month – to reach £313,655.
Rightmove said strong numbers of house sales being agreed – at levels not seen since before the credit crunch – have helped to keep pushing asking prices upwards.
Miles Shipside, director of Rightmove, said there were signs of a “strong spring market”, which should help to offset any jitters in the market before the general election on 8 June.
The first-time buyer sector was driving the price increases, Rightmove said, after changes to previously generous tax rules deterred buy-to-let investors from competing for similar homes.
Asking prices in this market are up by 6.5% year-on-year, with the typical price tag on a first-time property – one with up to two bedrooms – now at a record high of £194,881.
Across all sectors, asking prices are up by 2.2% year-on-year across England and Wales. Rightmove said the annual pace of asking price growth had generally slowed and was now at its lowest since April 2013.
London and the north-east were the only regions in the study where average asking prices were lower than a year ago. In the capital they were downl 1.5% annually, at £636,777 on average, while in the north-east they were down 0.7%, at an average of £150,350.
Eastern England has seen the strongest growth over the last year, with a 5.3% uplift taking the average property price there to £349,269.
The West Midlands reported the next strongest, with a 5% increase pushing average prices to £215,784. In Wales, they were up by 4% year-on-year to reach £186,172 on average.
Shipside said the number of sales being agreed was the highest for this time of year since 2007.
Last year, the chancellor gave a year’s notice of phased reductions in tax benefits for buy-let-investors. First-time buyers appear to have been the main beneficiary, though a higher rate of stamp duty on second homes, which came into effect this month, also had the effect of spurring sales to people from purchasing an additional property.
Shipside said: “Strong buyer activity this month has led to 10% higher numbers of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously as the comparable timespan in 2016 saw a drop in buy-to-let activity with the additional second home stamp duty.”
But he said the figures for agreed sales were also up by 3.8% when compared with two years ago. “With the growth in household numbers and new-build supply struggling to keep pace, demand is strong and has led to the highest sales agreed numbers at this time of year since the heady pre-credit crunch levels,” he said.
The average home in Britain has lost around £1,000 in value since the start of the year, according to property website Zoopla.
The company said its data showed prices were down 0.4% between the start of January and the end of March, the equivalent to a fall of £11.15 a day for the average property.
But it noted varying patterns in different parts of the country, with prices falling most sharply in south-west England, by 0.6%, but bucking the trend in Wales by rising 0.4%.
Compared with a year earlier, average British house prices were up 1.4%, Zoopla said. It did not provide figures on annual growth in previous months. The housing market is typically quiet around the turn of the year but usually picks up in the spring, meaning the price falls since the start of 2017 could be reversed.
Other housing market indicators have pointed to a slowdown in recent months. UK house prices fell for the first time in almost two years in March, according to Nationwide, with the average price dropping to £207,308 following a 0.6% rise in February. Bank of England figures showed mortgage approvals fell for the first time in six months in February.
“The softening in values and continued low mortgage rates are positive news for first-time buyers trying to get on to the property ladder,” said Zoopla’s Lawrence Hall.
“These prospective homeowners will be pleased to see a decrease in overall property values as seemingly unstoppable growth has pushed many areas out of reach in the past year.
“It’s also encouraging to see the resilience of the Welsh property market which in the past has often lagged behind England and Scotland.”
Zoopla’s analysis of its property values data showed prices in England dropped 0.4% over the first quarter of the year but were little changed in Scotland, dipping by less than 0.1%. Year-on-year comparisons showed house prices were up 2.1% in Wales, 0.9% in Scotland and 1.5% in England.
Looking at property values by town, it found Tredegar in Wales had the largest increase between January and March, with a 1.8% rise. Leominster in Herefordshire saw the biggest rise among English towns, with prices up 1.7%. In Scotland, the biggest increase was in Livingston, West Lothian, with average prices up by 0.7%.
UK house prices fell for the first time in almost two years in March, according to Nationwide, in the latest sign of a slowdown in the property market.
The average price of a home fell 0.3% to £207,308 following a 0.6% rise in prices in February. It was the first fall on the Nationwide index since June 2015 and surprised City economists who had forecast a 0.4% increase in prices.
The fall pushed the annual rate of growth down to a 19-month low of 3.5%, weaker than expected. And it echoed a report earlier in the week from the Bank of England, which said mortgage approvals had fallen for the first time in six months in February.
Britain’s housing market is expected to come under some pressure in 2017 as the backdrop for consumers weakens. Household finances are being squeezed by a combination of rising inflation and weak wage growth, potentially deterring people from committing to major spending decisions.
However, economists believe a housing crash is unlikely because a shortage of homes coming on to the market in the UK will limit the extent to which prices fall.
“Markedly weakening consumer fundamentals, likely mounting caution over making major spending decisions, and elevated house price to earnings ratios are likely to weigh down on housing market activity and house prices,” said Howard Archer, UK chief at IHS Markit.
“However, a shortage of supply is likely to put a floor under prices. Consequently, we believe house price gains over 2017 will be limited to around 2.5%.”
Nationwide said that over the first quarter, there was the least variation in regional house price performance in almost 40 years. At 6.8 percentage points, the gap between the weakest and strongest performing regions was the lowest since 1978.
“The south of England continued to see slightly stronger price growth than the north of England, but there was a further narrowing in the differential,” said Robert Gardner, Nationwide’s chief economist.
“Northern Ireland saw a slight pickup in annual house price growth, while conditions remained relatively subdued in Scotland and Wales.”
Looking at trends over the past decade, the mortgage lender said home ownership in England was at the lowest level since 1985, at 62.9% in 2016. Ownership rates among those aged 35-44 fell sharply to 56% from 74% in 2006.
“The counterpart to this trend has been robust growth in the private rental sector, with 20% of households in England now privately rented, a record high, up from 12% 10 years ago,” Gardner said.
Brian Murphy, head of lending at the Mortgage Advice Bureau, said a cooling of the UK housing market might enable more people to get on to the housing ladder.
“In itself, this wouldn’t perhaps be a negative trend, as a slowing down of prices coupled with the ongoing near record low mortgage rates available may provide a welcome opportunity for those who want to get on to or move up the property ladder to take advantage of the current climate.
“Given that … home ownership levels are at their lowest since the mid-80s, then any market conditions which may assist more people to buy their own property could be seen as a positive development, rather than a cause for concern.”
Over a third of homeowners in the UK are currently sitting on the wrong mortgage deal - and it's costing families £2.78billion more a year than they should be shelling out.
New figures by L&C Mortgages show that over 4 million households are currently on a Standard Variable Rate mortgage (SVR) - the rate set by a mortgage lender after a borrower completes an introductory offer.
This means that if interest rates rise - as the Bank of England has hinted could happen - all 4 million customers could see their payments rise further, in line with their mortgage lender's rates.
L&C's investigation found that by switching to a better deal, UK homeowners can save £216 each month or over £2,500 annually.
The figures come as over half (58%) of homeowners admit they've never re-mortgaged to save money.
That is particularly worrying given the recent news that inflation is at its highest point since June 2014, energy prices are on the up and there is the potential for interest rates to rise as well.
In addition, L&C discovered that 3.4million households don’t know the current interest rate of their mortgage, highlighting just how many people could be paying over the odds.
David Hollingworth from L&C Mortgages said: "’It’s worrying to see so many people still on a Standard Variable Rate mortgage as they are not the cheapest rates available.
"Not only have we found over a third (36%) of homeowners are on their bank or building society’s standard variable rate, but 3.4million people don’t know their mortgage rate – the chances are they could potentially save hundreds or even thousands of pounds a year by re-mortgaging to a new deal."
L&C also looked into the UK regions who are overpaying the most and unsurprisingly London tops the table with an average monthly overspend of £266. - despite house prices in the capital the highest in the country.
The south of England and the Midlands collectively overspend by an average of £222 and the North is paying £201 more than they should be.
How and when to remortgage: Expert tips
Shop around and speak to a broker
When setting out on your mortgage journey, don’t be influenced by loyalty to one bank. There are a vast number of lenders in the market offering very different products to suit borrowers with very different requirements.
Make sure you fully understand what’s out there before jumping into one deal. The difference between 1.99% and 2.99% that your bank might be offering may not sound much, but on a 250k mortgage over 3 years this is £4,500.
If you're unsure, an independent, whole of market broker not tied to a particular lender can help you compare a wide range of deals to suit your needs. Taking advice when remortgaging makes sense, as an expert will help you find the best deals in the market and advise you on how much you stand to save.
Approach your current lender
Once you’ve found a new mortgage deal, it’s worth giving your current lender a chance to match the terms, even if it's advertised products are inferior. It may be keen to fight to keep your business.
Use technology to your advantage
Millions of people in the UK are currently on a standard variable rate, because they don’t keep track of their mortgage payments in the same way that they monitor day-to-day spending.
Using apps such as Momentum Moneyhub , which allow you to view all your finances in one place and track these over the longer term, is a handy solution to this problem.
Don’t leave it until the last minute
Switching mortgage is getting quicker, but traditional routes can still take several weeks. Borrowers should give themselves sufficient time to consider their options, so that they can avoid moving onto a Standard Variable Rate during the process.
Don’t wait until a week before your fixed term ends before taking action. Start looking around 14 weeks before your rate ends.
Do your homework
Before speaking to any lenders or brokers, it's good to do some research; What’s the current base rate? What mortgages are currently available? What are commentators saying about interest rates?
Having even a small understanding of the bigger picture can help you make a more informed decision.
Remember, if you are tied into an initial deal then you might have to pay an early repayment charge which can be huge, often 2-5% of your outstanding loan - in these instances, homework is crucial.
Rents in Britain have recorded their first annual drop for six years, according to the UK’s biggest estate and lettings agency.
In February, the average rent in Britain was £921 a month, £5 lower than a year earlier, and the first annual decrease since 2011. Countrywide, which compiled the figures, said the buying frenzy ahead of the hike in stamp duty last year pushed up the supply of new homes for letting by 10%. Meanwhile tenant demand has been dropping, particularly in London, possibly related to Brexit.
Rents are falling fastest in the capital, down 4.3% over the year to an average of £1,246 a month. It means tenants are now typically paying £63 a month less to secure an apartment compared to last year.
Rents in the south-east have also dropped, by an average of 2.6%, but in other parts of the UK they are still rising. Countrywide said rents in Wales were up 5.3% over the last 12 months to an average of £636 per month, while in the east of England they rose 3.1% to £945.
In London, the supply of new homes to let is up 18%, but the number of tenants looking for properties has fallen by 3%. Tenant demand is also falling in the south-east, but in other parts of the UK it continues to rise.
Johnny Morris, research director at Countrywide, said: “Economic and housing sentiment – both in sales and rental markets – has been affected by our vote to leave the EU, in London more than anywhere else. This uncertainty causes tenants to be more cautious, meaning less likely to move and more likely to look for cheaper accommodation, eg sharing. With the private rented sector home to around three-quarters of new migrants, any future substantial shift in migration patterns would likely have a knock-on effect on rents.”
Any falls in rents will come as welcome relief to tenants after years of rises. Despite the small decrease over the past 12 months, the average rent in Britain is still £112 higher than the previous peak in 2007, even though average incomes have only edged ahead since the financial crisis.
The government’s white paper on housing last month acknowledged that England’s housing market is “broken”, with the communities secretary, Sajid Javid, telling the House of Commons that rents in many places swallow more than half of take-home pay.
Separate figures from LSL Property Services, which includes estate agents Your Move and Reeds Rain, paint a similar picture of a slow market in the south and much busier activity in the Midlands and north. It said annual house price growth dropped to 2.4% in February from 3.9% the month before, the 12th month in a row that the annual rate of inflation has fallen. It said London had been the most challenging market.
“Every borough [of London] has seen a reduction in transactions for the three months to the end of January, compared to a year before, and London has seen the largest drop in transactions in the country, down 22%,” LSL said. Prices in once-booming markets such as Camden, Hackney, Fulham and Richmond have all fallen over the past year said LSL, although they are currently falling fastest in Tower Hamlets, home to Canary Wharf’s skyscrapers and residential tower developments.
In contrast, it said house prices in Birmingham and Merseyside had hit a new peak. Average prices in Birmingham have hit £190,504, up 6.2% on the year. However the location with the biggest percentage price rise over the past 12 months is Merthyr Tydfil, normally a byword for property depression. Homes in the former mining town have jumped in price by 12.7% over the past year but, at an average of £120,682, are still among the cheapest in the UK. LSL added that a low volume of transactions in the area makes price reports highly volatile.
Nationally, turnover in the property market has been falling, with the number of transactions down 9% on the year. Flats had the biggest reduction in sales volumes, falling 15%.
Rents in the UK are expected to grow in excess of 20% over the next five years, according to the 'February 2017: UK Residential Market Survey published on Thursday (9 March) by the Royal Institution of Chartered Surveyors (Rics).
<>pThe survey warned that the rise would have a negative impact on tenants especially those in the lower income group. Homeless people and those on housing benefits would be pushed out of the private rental market as prices rise.
It also revealed that there is a growing shortage in the number of properties available for rent with tenant demand growing for the third consecutive month. Around 15% of the respondents surveyed by Rics noted an increase in demand for houses on rent in February.
The increase in rent expectations comes as the number of new houses put up for rent have declined.
Meanwhile, speaking about the rise in rents, Rics CEO Sean Tompkins called on the government to act and said, "Worryingly our figures show that as a result of a combination of economic pressures, more and more vulnerable tenants are being pushed out of the private rented sector. However, if Government were to put in place additional support measures through the introduction of help to rent schemes, the door to the rental market may once again be opened for Britain's most vulnerable."
On the sales front, both transactions and buyer enquiries remained flat in February. The latter had moved into positive territory last September, but seemed to have gradually lost steam. However, house sales grew by 2%.
With regards to house prices, 24% of the respondents said they had witnessed a price rise in February, which was unchanged from January. Region-wise, the strongest growth in prices was seen in the North West of England while notable improvements were seen in Northern Ireland. In contrast, London saw prices fall for the fourth consecutive month.
However, sales grew in London following a year of negative to flat growth.
Going forward, respondents across all of UK expressed confidence with regards to transactions growing over the next 12-months.
Annual house price growth slowed to the weakest rate seen in nearly four years in February, according to an index.
House prices were 5.1% higher than a year earlier, marking the smallest increase seen since a 4.6% year-on-year rise in July 2013, Halifax said.
Across the UK, house prices are now increasing at around half the rate seen a year ago. In March 2016, annual house price growth stood at 10%.
Property values increased by 0.1% between January and February following a 1.1% monthly fall in January.
House price rises
Martin Ellis, a housing economist at Halifax, said: "Housing demand is being supported by an economy that continues to perform well with employment still expanding. Meanwhile, the supply of both new homes and existing properties available for sale remains low. This combination is pushing up prices.
"The annual rate of house price growth has, however, nearly halved over the past 11 months. A sustained period of house price growth in excess of pay rises has made it increasingly difficult for many to purchase a home.
"This development, together with signs of reduced momentum in the jobs market and squeezed consumer spending power, is expected to curb house price growth during 2017."
At midnight on April 5, the last day of the financial year, another new tax will blow up in landlords’ faces.
Investors will no longer be able to claim higher rate tax relief on mortgage interest payments, in a move that could turn profits into losses.
The move was announced by former Chancellor George Osborne in 2015, as part of his three-pronged tax assault on landlords.
Since last April, second home buyers and investors have had to pay a 3 per cent stamp duty surcharge, driving up the bill on a £300,000 property from £5,000 to £14,000.
Osborne also ditched rules allowing landlords to claim a 10 per cent tax break for “wear and tear”, only letting them deduct the costs they incur.
Now buy-to-let could be blown away for good, hurting thousands of older savers who were planning to buy a rental property to bolster their pension income.
Currently, landlords pay income tax on rental earnings after mortgage interest payments (and other costs) have been deducted.
This effectively gives them relief at 20, 40 or 45 per cent, depending on their tax bracket.
In the future, they will pay tax on their full rental income and get a tax credit instead, which will be phased in over four years and worth just 20 per cent in the 2020/21 tax year.
This will hurt higher rate taxpayers and some basic-rate taxpayers too, by pushing them into the higher rate tax bracket.
Ironically, wealthy landlords with no mortgages will escape unscathed.
Many landlords still do not realise they are facing a “doomsday scenario” says Mark Andrews, director of specialist firm Buy to Let Restructuring.
“April 6 heralds a depressing new dawn for many,” he says.
As a rough guide, a 40 per cent taxpayer earning £14,000 gross rental income with costs of £1,400 and mortgage interest at £9,800, might currently make a net profit of £1,680 after tax.
That could steadily decline into a loss of £218 in the 2020/21 tax year.
Higher rate tax payers, especially those with significant levels of mortgage debt and a large portfolio, could be hardest hit.
Andrews says: “Some losses could exceed £200,000.”
The taxation onslaught will throw many landlords into disarray and ruin their pension plans, he adds: “For many it must be like staring into the abyss.”
Smaller investors with large deposits can still make buy-to-let work, but may be deterred from adding to their portfolios.
“Long-standing landlords who have paid down much of their mortgage debt can probably ride out the changes,” says Andrews.
Growing numbers of landlords are now setting up limited companies to sidestep the new rules.
“Not only will they get full tax relief on their financing, they will pay corporation tax at just 19 per cent, which falls to 17 per cent in 2020,” Andrews adds.
This may work for landlords with several properties, but could be too expensive for those with just one or two.
There has already been a sharp slowdown in the buy-to-let sector with the number of landlord loans down 21 per cent last year, according to the Council of Mortgage Lenders.
Andrews says this has knocked London property prices and the slowdown could ripple across the country.
Platinum Property Partners founder Steve Bolton says the sector was hit hard by the stamp duty surcharge and cutting tax relief will wipe out even more profits: “Landlords will have to increase rents or leave the market, further restricting the supply of affordable property for tenants.”
Bolton says this will make it harder for first-time buyers in rental accommodation to build a deposit and climb onto the property ladder.
He is calling on Chancellor Philip Hammond to scrap this “absurd tenant tax” in the Budget on Wednesday.
Landlords even pay a higher rate of capital gains tax when selling a property, at 18 per cent for basic rate taxpayers and 28 per cent for higher rate taxpayers.
However, Mark Harris, chief executive of mortgage broker SPF Private Clients, says with savings paying near zero interest, many will continue to favour bricks and mortar: “Those who bought some years ago and have reduced their mortgage debt should still be able to turn a profit.”
Jonathan Harris, director of mortgage broker Anderson Harris, says existing and potential landlords need to do their sums carefully: “Check if you could get a cheaper mortgage deal. There are some excellent low rate long-term fixes. An independent broker can inform you of the options.”
Stamped on The buy-to-let tax onslaught should at least give first-time buyers a better chance of getting on the property ladder.
Some 335,750 bought their first home last year, the highest number since the financial crisis, Halifax says.
They also face their own tax hurdle as three quarters paid stamp duty last year, with the current £125,000 threshold frozen since 2006.
Andrew McPhillips, chief economist at Yorkshire Building Society, says: “Stamp duty worsens affordability issues in a market where prices have vastly outpaced wage growth.”
First-time buyers and buy-to-let investors may be in competition, but they have one thing in common: both live in taxing times.
A study by the Centre for Economics and Business Research (Cebr), analysed the work-life balance of residents over the past two years.
The team considered a range of factors including the quality of schools, access to green spaces, employment prospects, working hours, affordable housing and average commuting times.
In England, people living in the small town of Bebington in the Wirral have the nicest lives – closely followed by those in north west Norwich and parts of Bournemouth.
The study says people in Bebington – the town also named top spot in 2015 – “enjoy the ideal balance of living close to work, having access to good schools and high employment rates”.
Of the list of ten postcodes, six of them are located in the south of England – a rise from just three last year.
Economists said that “good local schools and lower unemployment helped facilitate the change”.
The top areas in Scotland were the Glasgow suburbs – due to shorter working hours and commute times – with Edinburgh postcodes knocked out of the top ten as a result of high housing costs.
Areas in and around Cardiff were voted the best in Wales.
And County Armagh topped the Northern Ireland postcodes.
The study was commissioned by Royal Mail and reviewed local data sources, including Census results and date from local governments the Office for National Statistics.
Steve Rooney, Head of Royal Mail’s Address Management Unit, said: “Royal Mail delivers to nearly 30 million addresses across the UK, connecting communities and businesses.
“This new report builds on the study that we commissioned two years ago and provides unique insight into the most desirable places to live and work, through the lens of the postcode.”
The design is show-stopping but it has to be said, the location at Capital Interchange Way, tucked between the M4 and the South Circular, is less so.
However, as well as being very near the motorway and Heathrow airport, it’s handy for central London. If approved by Hounslow council, the project will include 550 new homes, completed by about 2021.
There will also be transport links, a bus depot, new offices and business “pods” for start-up firms, parks between and on top of the blocks, and a stadium for Brentford Football Club on the industrial site close to Kew Bridge station.
While modest by central and east London standards, the planned three main buildings will, at 18, 19, and 20 storeys, form a west London landmark that will be easily visible from the M4, Gunnersbury Park, and from planes approaching Heathrow.
As well as their unusual design — one tower will be rectangular, one oval, and one will taper outwards from a narrow base, with Alsop’s trademark pops of primary-colour cladding — the buildings feature some novel approaches to “vertical village” living.
Runners will enjoy a roof-level running track “providing opportunity for exercise away from the busy roads”, and there will be areas for residents to use as allotments for growing fruit and veg.
Given its proximity to the M4, air pollution at the site will be a concern. However, a report commissioned by site owner Facilitas Technical Engineering Services, a privately owned property and construction company, claims that after three months of monitoring nitrogen dioxide and particulate levels on Capital Interchange Way it concluded that local air quality is within standards set out by the World Health Organisation, the European Union and the British Government.
Alex Moussaieff, development consultant at estate agents Aston Chase, believes buyers will consider homes with a motorway blight on the doorstep because they are desperate for somewhere to live at the right price. The homes in the new scheme have not yet been priced.
The development is part of the ongoing rejuvenation of the hinterland of the Great West Road, once nicknamed the Golden Mile and lined with some of London’s finest Art Deco industrial buildings. Over the last few years developers have been taking over these buildings and repurposing them as housing, notably Bellway Homes’ WestSide scheme on the site of the Thirties Alfa Laval building, and Barratt London’s Great West Quarter, a 900-home scheme centred on the Grade II-listed Wallis House, originally occupied by aircraft company Simmonds Aerocessories.
As an average housing prices are set to rise faster than earnings, many people are at risk of being shut out from the housing market completely.
But there are some cities in the UK where buyers can still get plenty of bang for their buck.
Research by Lloyds Bank has revealed that the average ratio of house prices to earnings has reached 7.1 – the highest level since the 2008 credit crisis.
But thankfully there is still hope for would-be homeowners, and it comes in the form of the UK’s most affordable cities.
These are the places where the ratios of house prices to average earnings are lowest, and in some cities you can bag a home for just four times the average salary.
Stirling comes in as the UK’s most affordable city, where house prices are just 3.7 times the average salary.
And Londonderry takes second place, whilst Bradford was named England’s most affordable city, with the rank of third in the UK.
Herford is England’s second most affordable city, going against the clear North/South divide evident in the affordability rankings.
Sunderland, Durham and Newcastle upon Tyne all feature in the list, which sees Swansea named as Wales’ cheapest city, taking the number 10 spot for the whole of the UK.
And in cities such as Lancaster, Liverpool and Hull you can bag a house for under 5.5 times the average salary.
The UK’s 20 most affordable cities, with their ratios of house prices to average earnings, can be seen in full below.
Asking prices in Britain’s housing market rose at the slowest annual rate in almost four years in February as buyers become wary about paying too much, according to the latest survey from Rightmove.
Annual price growth fell from 3.2% in January to 2.3%, the weakest since April 2013. On a monthly basis, average asking prices rose 2% t0 £306,213, the slowest rate of growth in the month of February in eight years.
Miles Shipside, Rightmove director and housing market analyst, said sellers would be taking a risk by overpricing their properties.
He said a number of factors were making buyers more cautious, including inflation, which hit a two-year high of 1.8% in January and is expected to reach about 3% in early 2018, putting more pressure on household finances.
“Property prices are still 2.3% higher than a year ago, but perhaps we’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria and a dose of Brexit uncertainty.”
Rightmove said the housing market was boosted in early 2016 by “frenzied” buy-to-let investors who rushed to complete transactions before new stamp duty rules were introduced in April, making this year look subdued by comparison.
However, it added that demand was holding up, with more than 131m visits to its website in January, up 3% compared with a year earlier.
“While seller pricing power appears to be on the wane overall, the numbers of deals done is very robust, scarcely lower than during last year’s tax-saving rush,” Shipside said.
Estate agents reported that buyer interest was significantly diminished if properties were priced more than 5% too high.
Rightmove analysed more than 100,000 newly listed homes and found that sellers were 40% more likely to sell with that agent if the property was correctly priced when it first came to market.
Kevin Shaw, national sales director at estate agency Leaders, said: “Tempting as it may be, it’s never in the interests of a seller to set an asking price above what a property is really worth. Setting an accurate price, based on local market conditions, is crucial for achieving both a quick sale and the best possible price.
“Overpricing, particularly in a price-sensitive market, will result in the property sitting on the market until the price is dropped, losing the interest of buyers and ultimately achieving a lower price in the end.”
Brian Murphy, head of lending for the Mortgage Advice Bureau, said the report suggested buyers were sticking to their budgets with very little “wiggle room”.
“It’s likely that this is due to stricter lending criteria, and suggests that buyers are getting their ducks in a row financially before they start their property search, in terms of applying for their mortgage, to understand how much they can spend,” he said. This meant that agents were finding it harder to “upsell” properties by encouraging buyers to look at properties that were out of their price range.
Changes in asking price varied widely in London, according to Rightmove. The biggest annual riser was the borough of Camden, where average prices jumped 27.3% to £1.4m over the year to February.
The worst performing area in the capital was Kensington and Chelsea, where average prices were £2.1m in February, down 14.6% compared with a year earlier.
Accountancy firm Deloitte's Manchester Crane Survey said 22 schemes had started construction, eight more than the previous high of 14 in 2008.
It said dozens of high-rise apartment buildings were set to change the city's skyline over the next few years.
Simon Bedford from Deloitte said the work reflected the city's "resurgence".
The annual crane survey reported 6,963 residential units were currently under construction, compared with last year's 2,982.
Mr Bedford, head of Deloitte Real Estate in the North West, said: "Construction activity has not just matched 2007, it has completely blown those figures out of the water, demonstrating unparalleled scale and volume of development."
The incoming chief executive of the Greater Manchester Combined Authority, Eamonn Boylan, said the bulk of the fund was being used in the city centre "because that is where the market demand is".
"We are not simply producing luxury apartments - many of the apartments in the city centre are being bought by young professionals who are sharing those apartments and effectively creating their own affordable housing."
The number of house sales across Scotland "faltered" in December, according to a report.
The Royal Institution of Chartered Surveyors (RICS) found the number of potential new house buyers in December 2016 was only "marginally positive".
This compared with much stronger figures for November, the RICS said.
But predictions for new sales over the next three months remained steady, according to the institution's UK residential market survey.
The survey found that 2% more chartered surveyors saw a fall rather than a rise in sales across Scotland last month.
New instructions to sell also failed to see any pick-up, marking the eighth straight month of declining supply.
Respondents to the survey continued to highlight low stock levels as a key concern, creating a lack of choice for would-be buyers, the report showed.
Simon Rubinsohn, RICS chief economist, said: "A familiar story relating to supply continues to drive both the sales and lettings markets impacting on activity, prices and rents.
"The latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly-valued to more modestly-valued parts of the market for good or ill."
Scottish house prices continued to go up in December - possibly down to the lack of supply - with 32% more chartered surveyors reporting a rise rather than fall in prices in December, up from 27% in November.
The RICS said prices were expected to rise over the next three months.
First-time buyers have a “window of opportunity” in 2017 with more choice and accelerate negotiating power, according to property website Rightmove.
Rightmove said there was a rise in the supply of smaller properties typically bought by first-time buyers compared to the same period a year ago.
This is because they are competing against fewer buy-to-let investors who last year were looking to close deals before the April stamp duty deadline.
The number of sales agreed in the typical first-time-buyer sector of two bedrooms and fewer was down 13.2% in December compared to the same month in 2015.
As a result, available stock for sale in this sector is up 1.9% compared to last year, offering more choice for first-time buyers. This contrasts with the same period a year ago, when available stock fell by 18% as active buy-to-let purchasers reduced choice and limited buyers’ ability to negotiate.
A restraining force on potential first-time buyer activity is increasingly stretched affordability.
The average house price went up for a first-time buyer went up 6.4% in the last year to £188,612.
Miles Shipside, Rightmove director and housing market analyst, said: “Those planning to buy their first home in 2017 have more choice of properties and less competition from other buyers than their counterparts a year ago.
“It’s a possible learning point for aspiring first-time buyers that a year ago buy-to-let purchasers acted more quickly and closed deals at a faster rate, appearing not to take a Christmas break. Admittedly they had the financial incentive of a deadline to motivate them, but first-time buyers still have time to act and currently have the incentive of stronger negotiating power to try and mitigate the upwards trajectory of property prices.”
Average annual house prices went up 0.4% for the month to £300,245.
The East of England recorded the biggest rise in prices for the year, with a 6.1% increase taking the average price to £332,088.
However, in Wales and the North East prices have dropped to lower than a year ago.
In Wales house prices have fallen 1.1% to £164,291, while in the North East they are down 1.7% to £139,527.
“Those planning to buy their first home in 2017 have more choice of properties and less competition from other buyers than their counterparts a year ago. It’s a possible learning point for aspiring first-time buyers that a year ago buy-to-let purchasers acted more quickly and closed deals at a faster rate, appearing not to take a Christmas break. Admittedly they had the financial incentive of a deadline to motivate them, but first-time buyers still have time to act and currently have the incentive of stronger negotiating power to try and mitigate the upwards trajectory of property prices,” said Shipside.
Richard Sexton, director of e.surv, said: “These first figures of the New Year show that the property market has started on a strong foot. With record low mortgage rates, lenders are continuing to help a wide range of prospective buyers to secure a mortgage. However, in many areas, annual price inflation is still rising at an uncontrollable rate compared to wage earnings.
“This issue of affordability is a growing problem, with prices moving out of reach for many buyers, but a new year can mean new opportunities. The recent Government announcement of £1.2 billion being provided for the Starter Homes Land Fund is a step in the right direction, and the Housing White Paper will hopefully promise further change. Initiatives like these have the opportunity to create a housing market that is fair, sustainable and open to everyone.”
More first-time buyers climbed on to the property ladder in 2016 than in any year since 2007, but would-be home owners now need to raise more than £32,000 for a deposit, research suggests.
Those buying their first property can expect to pay more than £200,000 across the UK generally and an "eye-watering" £400,000 in London, according to Halifax.
Deposit sizes have more than doubled over the last decade. In 2006, the average first-time buyer deposit across the UK was £15,168. Now it is £32,321 - around 16% of the price of a typical first home.
In London, a first-time buyer's deposit is more than £100,000 on average, assuming they can also cover moving costs and stamp duty.
First-time buyers in London put down a 25% deposit on average in 2016, amounting to £100,445.
In 2016, the average house price paid by first-time buyers was £205,170 - the highest on record. This average has grown by 7% over the last year, pushing it over the £200,000 mark.
In London, first-time buyers can expect to pay £402,692.
The number of first-time buyers is estimated to have reached 335,750 in 2016, Halifax said. This is the highest figure since 359,900 in 2007, and marks the third year in a row that the number has topped 300,000.
Halifax said the number of first-time buyers in 2016 was 75% higher than a low point in 2009, but 17% below a pre-crisis peak of 402,800 in 2006.
As the cost of housing has increased, first-time buyers have been taking out longer mortgages. In 2006, just over a third (36%) had mortgages lasting beyond the traditional 25-year period. In 2016, 60% of mortgages were for 25 years or more.
<>More aspiring first-time buyers are also having to factor stamp duty into their costs. Less than a third (29%) of first-time purchases in 2016 were below the £125,000 stamp duty threshold. This share was 45% in 2013.
The average age of a first-time buyer is 30, ranging from 27 in Carlisle in Cumbria and Torfaen in South Wales to 34 in places such as Slough in Berkshire and the London boroughs of Barnet and Ealing.
Martin Ellis, a housing economist at Halifax, said record low mortgage rates, high employment levels and Government schemes such as Help to Buy have helped first-time buyers. The UK-wide Help to Buy mortgage guarantee scheme ended in 2016, but other schemes are still available.
He said: "Across the regions there is a contrasting picture. In London - which has one of the youngest populations in the UK - the average house price for a typical first-time buyer is now more than an eye-watering £400,000 with an average deposit of over £100,000 - more than twice that in the South East, the next most expensive region."
Halifax used a range of sources for the research, including its own housing statistics database and figures from the Council of Mortgage Lenders (CML) and the Office for National Statistics (ONS).
David Ritchie, who has led the £1.1 billion builder for eight years, is stepping down immediately as chief executive. He will stay with the company until the end of next month to help hand the business over to interim boss and current finance director Earl Sibley.
Doubts over Ritchie’s position are understood to have come to a head in recent days culminating in a board meeting at which he offered his resignation to chairman Ian Tyler, who accepted.
Ritchie, who earned £1.54 million in 2015, is understood to have received a payoff and has no other job to go to.
His abrupt departure comes against the backdrop of a housebuilding industry which has so far largely shrugged off the effects of last year’s Brexit vote and uncertainty around the 2015 general election.
But in a climate where the Government’s Help to Buy deposit scheme is also supporting buyers and mortgage rates are at record lows, Bovis has suffered its own issues.
In late December the firm warned of “slower than expected” production across its sites, resulting in the delayed sale of 180 largely built homes due to complete in 2016.
That followed problems in 2015 with planning delays to sites as well as rising subcontractor costs, which squeezed its margins.
Analysts also reported “cultural” issues within Bovis. Shore Capital’s Robin Hardy said: “We have long been concerned that there was something structurally wrong at Bovis and that — for reasons which were not wholly clear from the outside — Bovis was struggling to keep hold of key resources necessary to execute its growth plans.
“It has long been suspected there were cultural issues that ran right to the top of the organisation and that the business was less able to function freely and take best advantage of market conditions because of too much control.”
Ritchie said: “I believe now is the right time for someone new to lead the group into its next phase of development.”
Shares rose 16.5p to 827.5p.
The company’s history can be traced back to 1885 when Charles William Bovis founded a general building business. Bovis Homes was set up in 1965, becoming the UK’s second-largest housebuilder in the early Seventies before floating in 1997 and severing links with the old construction arm.
The firm, headquartered in Kent, has more than 1200 employees.
