Urban Prime Locations: the Preferred Choice over its Rural London Counterparts?
Property is on everyone’s mind whether it is because of the buzz it is now creating when property values increase & people see in real terms their home equity growing. Urban is currently prime when held up against rural London sections. According to Savills and a recent research publication London is definitely the prime urban destination. In recent months the average sale price of homes across 24 wards of London have seen an average sale of £1 million plus. This includes Westminster and the Kensington and Chelsea boroughs. The two boroughs actually account for 69 per cent of home sales that are well over the average £1 million, with several of the north, south, and west corridors growing in wealth, too.
London, Equity Release, and Housing Locations
Some wealthy families already have their roots in London. With the increase in property sale prices and average home worth, equity release in London is a financial product spurring on younger generations to get into the London market by getting aid from their parents. It is time to buy before prices soar even higher than the million they have been in certain wards? Whether it is products like enhanced equity release or traditional lifetime mortgages, older generations are helping their younger family members break into the Urban Prime locations.
Moving Beyond London
Even though London has increased in popularity, other areas of the UK cannot be outdone. Thriving towns and cities outside of the Big Smoke are increasing in market value. Regional housing price growth is not keeping pace with the Capital, but it is nevertheless growing. There is quite a gap between London and the rest of the UK’s urban locations. This gap has increased of late, and existed since the subprime mortgage flop.
Prime regional urban settings are 3.1 per cent below the average they had during the 2007 peak. This is high compared to the 12.5 per cent below mark of rural and village locations. Given the performance of the real estate market it must be said that the gap and ever growing market values are evident by looking at the “outer commuter zone” such as the one called “little London.” Oxford, Winchester, and Cambridge are also showing how prime Greater London is for the housing market.
Housing stock in the areas certain helps, and growth of 10.9 per cent in just 2013 makes it absolutely impressive to home buyers looking for that urban pad. If you compare the Greater London market with rural housing prices that increased 2.8 per cent there is about an 8 per cent difference.
Wealthy buyers in London are looking at rural markets for their second home. They are the drivers behind the 2.8 per cent increase. It is products like equity release lifetime mortgages that are making it possible for the wealthy to buy up rural housing before the prices increase even more. The attraction is in the local amenities at their doorstep, with a price gap that makes it more affordable. The advantage of transportation to reach these rural areas has also increased making it a competitive place to start looking.
In contrast many families looking at prime urban locations are doing so for the schools. London has a huge competition for the schools that offer more wealth, better education because of it, and overall the desire of the school name. Families do not have to look beyond Greater London, unless it is an affordability issue. Rural markets close by London help with this endeavour ensuring the schools can still be sought, at least the private ones.
Looking to the Future of Urban Living
Living in urban space is definitely going to continue. There are plenty of draws that bring new consumers year after year. In 2013, the hope that even rural areas would begin to see wealth again occurred. Wealth started moving from London into other urban locations, as well as some of the rural places for second homes. The economy is bound to recover and continue a steady growth so that London buyers will increase, and others will move to other regions. Prime urban and suburbs are the best place to enjoy the advantage of mortgage products with low fixed interest rates.
Mortgages have changed and while the wealthy can help move the cash flow there is also a need for families to get into the property ladder. For those who are wealthy, but need slight help with specialist lifetime mortgage products like Greater London equity release are available to over 55s. This allows parents to help their children move into London, other prime urban areas, or simply enjoy being a first time home buyer anywhere.