145 Per Cent Increase in New Home Registrations in London

New Homes in London

As per an estimate, 10 per cent of the land stock of the UK is owned by foreign investors and many first-time buyers are priced out of the market as the rates are at least 20 per cent more than earnings, while the Land Registry does not provide new home supply statistics. 

The overseas investment in the London and South East has led to higher rate gains. For example, the cities of Liverpool and Manchester are getting buyers from Africa, China, Singapore, the Middle East, Kenya, and Nigeria. However, the latest draft on property transactions does not ban investment by non-residents in the country.

No Impact of Brexit on Rents

In London, at least 12 per cent of the homes on rent are owned by foreign buyers - the rate is 7 per cent more than last year. The decline in pound rates has made properties cheaper for international buyers, and the rising rents provide lucrative earning opportunities. 

If the number of people who left the country during Brexit rises, it will raise vacancy for rents, which may cause a decline while rents continue to grow in the capital.  

The negative promotion in the property market and the impact of Brexit led to the decline in the home cost in August, leading to one of the biggest declines since 2012, as per NBS. 

The foreign investment in the UK increased capital rent to $2,100 a month. It is the highest, almost 72 per cent more than the average country rent of 937 pounds a month.

Rents continue to make a significant share of income, but tenants are not buying new homes. In addition, the rise in home expenses reduced affordability for first-time buyers without any substantial inheritance.

New Home Registrations

Although there are uncertainties in the market, the country's economic outlook does not lower investors' confidence. There has been a rise in new home registrations in London by 145 per cent in the 2018 quarter from June to August.   

The investment is driven by sale and private rental goals. The registration of new homes in the private sector grew 7 per cent compared to 2017, and there has been an increase in registration of new homes by 23 per cent in the affordable sector.

The main contributors to the new registrations are the large housing association projects where 5,774 new residences were registered in the quarter from June to August in London, was 2,354 in the same quarter in 2017, while the registration of newly built in Scotland was the same in the months as 2017 and in Wales, the number reduced, while, in Northern Ireland, it almost doubled.

The Growing Median Price in Smaller Cities

As per a recent government analysis of smaller cities and remote locations in the country by ONS and HM Land Registry Lower Layer Super Output Areas, which are the smallest, the median price is in the range of £24,000 to £7.7 million (as per data till March 2018), and London's borough Barnet had the highest median outlay in the country. In addition, 45 small regions had a median of more than £2 million till March.

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