Homeowners who bought their home within the last 20 years are typically sitting on £80,000 in property value gains, says Zoopla. So, are you one of them?
For those who assiduously monitor house prices, the last few years may not have brought much cheer. But take a step back and things might appear brighter (for homeowners, at least).
According to Zoopla, the average UK homeowner who bought their home within the last 20 years is sitting on property value gains to the tune of £80,000. And up to 60% have ‘earned’ £65,000 or more from their home thanks, in part, to house price growth of 78% over that time frame.
‘Where are the hotspots?’, I hear you cry! Well, homes in pricey areas and commuter hotspots have gained the most in the last 20 years, says the property portal.
The Cotswolds and the leafy London suburb of Richmond upon Thames top Zoopla’s ranking of largest gains by local authority. A whopping 80% of homes in these rarefied areas have soared in value by more than £65,000.
Redbridge (79.4%), Three Rivers (79%) and St Albans (78.4%), all on the outskirts of London, complete the top five.
There’s some other, perhaps more surprising areas in the 15-strong list: Trafford, Bath and North East Somerset, and Monmouthshire.
‘Whilst house prices fell or grew modestly in London in recent years, there are areas, such as Richmond, where the market has fared much better,’ points out Izabella Lubowiecka, senior property researcher at Zoopla.
‘In the North West, Trafford has seen similar growth, due in part to its close proximity to Manchester and popularity with families looking to move out of the city.’
The question is, what are homeowners who are sitting on tens of thousands of pounds in property value gains going to do with their small fortunes? Most will simply put it into their next home, as and when they come to move. But there’s always another option: sell up and invest in an area where you can max out bang for your buck. For some ideas on this, check out last week’s Property Talk.
A less sensible option might be to downsize and release money for a no-expense-spared holiday. With this dreary weather, I fancy the latter. Caveat: this does not constitute financial advice.
‘Record’ level of former rental homes for sale
Two sets of research, one clear take-away: some landlords have, quite simply, had enough.
A ‘record’ proportion of former rental homes are on the market, says Rightmove, with 18% of homes for sale previously available to rent. This compares with just 8% in 2010.
This trend is echoed by TwentyCi, which reports that the number of rental homes for sale has reached its highest level in a decade.
The property data provider found that 11.3% of properties listed for sale between July and September had been available to rent at some point in the last three years. And this is up from 6.8% during the same time last year.
Colin Bradshaw, chief executive officer of TwentyCi, says: ‘Following headwinds such as high mortgage rates, a possible rise in Capital Gains Tax, renters’ reforms and demands around compliance, it appears many landlords have had enough and are selling up.’
All eyes are on the Autumn Budget this month…
Homes in New Towns 15% cheaper, says Halifax
Halifax has some good news for those struggling to make the maths stack up on buying a home. Properties in New Towns – the type heralded by the Labour government – cost 15% less than the UK average.
Not only that, but house price growth in New Towns, such as Welwyn Garden City, Corby and East Kilbride, is in line with the national average. Over the last 10 years, prices in New Towns have climbed 68% compared with 69% across the UK, according to the lender.
Amanda Bryden, head of Halifax Mortgages, says: ‘With the government’s ambitious plan to build a new generation of New Towns, our research shows that while they offer homeowners the potential to benefit from significant price growth, they also present attractive opportunities for first-time buyers.’
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