Savills Surrey and Berkshire SeminarBy Quinta Properties • Jul 3rd, 2015 • Category: Company News
Hosted by journalist and business presenter for BBC Breakfast, Steph McGovern, the Savills Surrey and Berkshire seminar took place on Tuesday 23 June at G-Live, Guildford.
“House price growth in Surrey and Berkshire is set to rise by an average of 26.4% for properties priced up to £1.25 million and 25.7% for property above £2 million, over the next five years”, said Lucian Cook, Head of Savills Residential Research at the event.
Set amongst a more secure political and economic climate, this is indeed good news for those already on the property ladder but, for first time buyers, this positive outlook is decidedly less optimistic.
Savills research indicates that, currently, the average deposit required for a first time buyer outside London is £26,000, making up 69% of their total income. This compares with an average of almost £68,000 deposit required for a first time buyer purchasing in the Capital, making up 120% of their income.
Cook warned that access to home ownership is likely to continue to be restricted by a number of factors. Currently, the Mortgage Market Review (MMR) which was implemented last April looks with growing scrutiny at an individuals finances prior to agreeing to lend or re-mortgage and this is likely to impact the locations individuals choose to purchase; the time in their lives they choose to purchase; and the frequency with which they move. All these factors will affect the housing market and, in turn, house values. In addition, there will come a time when the historically low interest rate levels which currently make borrowing affordable, will rise, adding to the financial strain and restricting house price growth.
“The result is that the private rented sector is likely to continue to grow as more and more individuals turning to lettings as the solution to their housing needs” he said.
Richard Winter, Head of Savills Surrey and Berkshire Residential, who also spoke at the seminar, said: “As the first ‘ports of call’ for those moving out of the Capital, key locations in Surrey and Berkshire have always proved popular for they provide quick and easy access back into central London; good access to the international airports; superb schools and, the price differential will get a purchaser a lot more house for their money than London. Taking into account the predicted house price growth, Surrey and Berkshire should continue to prove to be good investements.”