Despite slowing throughout the rest of the UK, the value of property in Central London continued to rise in June 2007, with an increase of 1.8% on the previous month's prices, according to figures recently published by estate agents RightMove. In contrast, house prices in the rest of England and Wales rose by only 0.3% on the previous month, highlighting a new trend in house prices; the traditional north-south divide has gone to be replaced by one between London and the rest of the UK.
Despite five anti-inflationary increases in the Bank of England interest rate in the past year, house prices have continued to climb, even though mortgage repayments have increased for existing homeowners and potential first-time buyers. In addition, the high end of the market in the Capital is performing even better with luxury property for sale in Central London rising at the fastest monthly rate for 31 years, gaining 3.1% in June. That represents a rise in property values of 35% in the past year - the biggest annual gain since mid-1979.
However, that tells only part of the story as property values in Kensington and Chelsea have risen an incredible 71% in one year, making it London's most expensive district with an average house value of ?1.46 million pounds. Much of this price increase has been attributed to wealthy buyers benefiting from huge City bonuses snapping up as much property as possible, as well as an influx of wealthy foreigners doing the same.
So, even though supply seems to be matching demand in the rest of the UK, at least for now anyone looking for property to buy in central London must still be prepared to pay a premium. The average price of a , excluding the districts of Kensington and Chelsea, currently stands at ?394,730 - well outside the reach of most first-time buyers, but within the reach of anyone already on the property ladder.
Cynics have long been predicting a rapid decrease in overall house prices, but after five interest rate rises they are still holding steady in most of the UK and even racing ahead in central London. Prime Minster Gordon Brown recently announced his government's commitment to building three million homes over the next 20 years to help stem the gap between demand and supply. But while that gap remains, the latest house price figures would suggest that even five punitive rises in mortgage repayments in one year cannot stem the tide of rising house prices. The economics of house prices have changed considerably in the last 20 years, making it harder to predict how house price movements can be affected. One thing is certain: owning one or more properties in central London over the last 20 years has proved to be a sterling investment!
Joe Swift, a gardening expert and presenter of BBC programme Gardener's World, pointed out that by installing features such as decking and paving consumers can help to increase the value of their home. He stated that plants, containers and summer houses are among the popular items which homeowners are currently purchasing for their green spaces.
However, for those looking to make improvements to their garden, the gardener advised that people invest both time and money to make sure that any work is carried out to a high standard. It was suggested that hiring a garden designer to come their property can help them to come up with ideas which are "well designed rather than plonked in, which is what a lot of amateurs tend to do in the garden".
For those looking for an effective way in which to finance such investments taking out a personal loan may be recommended.
Mr Swift said: "Gardens add value - there's no doubt about this, there's been a lot of research into this over the years - and more value than the investment that's gone into the property." However, he suggested that ponds may not be the best feature to install in a garden, as prospective property buyers may be concerned that they will have to spend a significant amount of time maintaining such a water feature. "Try and keep it quite simple, quite classic. [Advice on] decking or paving tends to be whatever goes with the style of the house. Just keep it well maintained and looking good - invest in a few large plants to give some real impact in there," he added.
Furthermore, Mr Swift stated that consumers may find that a lot of their money goes towards purchasing garden furniture. It was pointed out that over recent months there have been a number of new products which offer more comfort than the "traditional wooden park bench style".
His comments come after research carried out by Lloyds TSB revealed that just under a fifth (18 per cent) of people have items worth between 1,000 and 3,000 pounds in their garden. Meanwhile, some seven per cent of Britons claimed that they would most like to get a hot tub this summer, with the same proportion of consumers looking to add some decking to their garden.
Those looking for an effective way to finance improvements to their property might wish to consider taking out a homeowner loan. In doing so, borrowers may find that they can purchase expensive pieces of garden furniture, plants and other features quickly and affordably. The financial assistance that a loan brings could also help homeowners to hire qualified workmen to carry out such work as well as purchasing comprehensive insurance cover. Last year Halifax Home Insurance warned that unseasonable weather and lower than normal temperatures could damage bedding plants and turf.
Both Paul Mcindoe & Mark Dawson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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