London's Residential Market is Worth £1.5 Trillion
• New homes sales were 6.5% higher than in 2016
• Average house price growth slowed to 2.5% in 2017 across Greater London
• Asking prices for new homes in 2017 rose by 2%, taking the average asking price to £900/sq ft
Homes in the capital are now more than twice as valuable as the combined value of the next nine largest cities in Britain, including Bristol, Glasgow and Birmingham*.
The total value of London’s properties is now more than £1.5 trillion, 13 times higher than Bristol overall value of properties, which is second in the list with homes worth an estimated £115.21 billion and 27 times higher than Sheffield - 10th on the list - with a total of £55.67 billion. The gap between London and the rest of the UK’s big cities remains wide despite house price growth in the capital being the slowest of all cities at 1.5 per cent over the last year.
Broadband now more important than transport links
As more people are now using multiple digital devices to download or stream at home, fast internet connectivity has become an increasingly important factor to home buyers. According to telecoms regulator Ofcom, the amount of data used by people in the UK is growing by nearly half every year, becoming more prevalent with increasing numbers of home buyers opting for automation systems.
A recent Rightmove survey shows that over two thirds of people check the available broadband speed before moving home. With fast broadband being a higher priority than transport links, outside space and even an extra bedroom, developers are now offering so-called “smart homes” with super fast broadband.
Buy-to-let mortgage rates return to lowest ever levels
The independent mortgage market monitor Moneyfacts says buy-to-let mortgage rates have decreased to record lows. In spring 2016 many buy-to-let investors would have taken out two year fixed rate deals to buy properties before the 3% stamp duty surcharge was introduced in April that year. As those investors may now be seeking to re-mortgage, they will be pleased to learn that the average five year fixed rate has fallen to 3.43%, equalling the lowest ever rate.
As a result, five year fixed rates are likely to be a popular choice among landlords, particularly as the stress-test applied for two year fixed rates does not apply to the five year deals.
Did you know
£1.7 billion of affordable housing grant will go to London to fund a further 26,000 new affordable homes.