The new school year is underway for over 10 million children across England and Wales and school catchments rate highly for many choosing a home. How much more are home buyers prepared to pay to live close to an Ofsted rated outstanding school?
An analysis of property sales across England and Wales (excluding London) over the last year reveals a 10% price premium associated to homes close to an outstanding primary school and 17% price premium associated to an outstanding secondary school.
Properties located within one mile of an outstanding primary school sold for, on average, £22,686 more than properties within one mile of other schools, the price premium for secondary schools was £37,558.
Detached houses attract the largest price premium, with buyers here having to find an extra £90,000+ to live within one mile of an outstanding school.
£873 billion – the total value of mortgage debt across England, according to the latest data released by UK Finance. That equates to just over £130,000 for every owner occupier mortgaged household across England.
The level of mortgage debt is rising, up 2% on a year ago, and 8% higher than four years ago. That’s not surprising given stretched affordability and the increasing number of longer term mortgages. Over half of all first-time buyer mortgages are issued for a period of 30 years or more according to the 2017/18 English Housing Survey, up from just 40% in 2015/16.
The level of debt per household is highest across the capital, where property prices are close to twice the England average. Less than half of all households across London are owner occupiers, just 22% of households are owner occupiers with a mortgage. This compares to 65% and 30% respectively across the rest of England.
To date in 2018, 95% of all new mortgages issued for new homes and remortgages have been on fixed rate deals. While the average interest rate has increased slightly, from 2.09% in January to 2.2% in May, this remains low compared to historic standards and any interest rate rise is unlikely to cause significant waves across the market.
There are 14.4 million households across England who own their own home, either outright or with a mortgage. This is 63% of all households.
Of these, the latest results from the Survey of English Housing estimate that 576,000 (4%) are planning to move within the next six months.
Moving up the ladder to a larger home is the primary motivation for existing owners, although not for those who own their home outright. Almost a third of those who own outright are looking to downsize.
As the new school year gets underway shortly, moving home to be in particular school catchment areas is a motivation for almost 10% of owners with a mortgage.
Measuring commuting distance might seem a little obscure but it actually offers a particularly good insight into the character of any local housing market. For example, commuter towns tend to really come alive at the weekends but are quieter in the week. Areas where most people work locally will have a stronger community feel day-to-day.
It won’t come as any massive shock that houses are generally worth more than flats in our area. However, when it comes to the movements over time, these two broad types of property do not always behave similarly. Here we see how flats and houses have varied in price.
The property market fluctuates on a seasonal basis, and this is particularly the case for sales rates. This chart shows how the market has changed over the course of the last few months. The most recent periods are estimates based on the previous year’s pattern.
As you’re no doubt aware, there’s a lot of doom and gloom surrounding the national property market at the moment. For example, the Nationwide index showed that in June, annual house price growth had slowed to a five-year low. Our area hasn’t been immune; in the first quarter of 2018, there were 12.4 per cent fewer sales than the same period in the previous year.
Many home improvements can cost more than the value they add according to new research by buying agent Henry Pryor and GoCompare Home insurance.
Improvements such as new flooring and replacing kitchens and bathrooms (the most popular home improvements) are unlikely to yield a profit for many homeowners. At £7,000 the average cost of a new kitchen is twice as expensive as the estimated value it adds to a property.
In comparison, energy improvements, such as a new boiler or central heating system, can increase the price of a property by close to 4%, the equivalent to just over £9,000. A new boiler costs around £2,000, providing the householder with a net profit of close to £7,000.
While a fresh coat of paint may add little to the value of a property, such improvements undoubtedly encourage prospective buyers through the door.
The split of the population by age group has a big effect on the local housing market; the demographic profile affects prices, but more importantly the tenure mix and the rates of sales. The patterns you can see here gives you a good insight into the profile of local residents.