London’s property is the most overvalued in the world
The Swiss bank, UBS reported that London has the biggest housing price bubble in the world, with the ratio of property price to income, and property price to rent at an all time high. After property prices increased by nearly 40% in the last two years, the city has become one of the most expensive in the world for property.
Push for flood risk warnings to be added to property listings
The Association of British Insurers are calling for traffic light style warnings to be put on property adverts, illustrating the likeliness of home flooding. A survey carried out by ABI resulted in 9 out of 10 people stating they agreed that it was a good idea to make flood risks clear to prospective buyers.
Government plan to get younger people on the housing ladder
The government plans to build an extra million houses by 2020, with 200,000 homes for first time buyers to be provided by councils and extension of right to buy and forced sales of council houses. Labour’s mayoral candidate, Sadiq Khan, believes that this will actually broaden the housing crisis, as housing association houses are likely to be bought and sold for a higher price.
Countryside properties fetch an extra £40,000
Some buyers are willing to pay an £80,000 premium to live in the countryside, with the average coming in at £43,490. Taking the West Midlands as an example, buyers were willing to pay £252,927 for a countryside property, which was £84,610 for an equivalent property in the city nearby. In the last five years, rural house prices have risen on average by 13% in comparison to 23% in urban areas.
Source: Daily Mail
Mortgage approvals at four month low
The lack of available properties has resulted in a fall of mortgages being approved to 44,489 in September– though this is still 14% higher than September 2014.
Source: The Guardian