City of London Property Market News Blog

Buy to Let Mortgage Availability Increases

2012-02-02T02:30:00.001-08:00

Mortgage lenders are beginning to loosen their lending criteria to prospective buy to let (BTL) customers.

Raising the finances needed to improve a property or expand a portfolio has been a headache for many landlords over the past couple of years but according to Mortgages for Business, BTL products at higher loan to value (LTV) ratios are becoming more available.

Indeed, there are now more than 20 BTL mortgages from six different lenders at LTVs of up to 80 per cent.

David Whittaker, managing director at Mortgages for Business, stated: "This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than homeowner lending."

And it's certainly a good time for landlords to expand their property portfolios as the yields available have never been greater in many parts of the country.

Research conducted by specialist mortgage provider Paragon late last year found that properties let to students provide a landlord the highest possible yield, with an average of 7.62 per cent, while shared houses are the second best performer at 7.56 per cent.

Landlord and Tenant News

Property: Property Outlook for 2012

2012-01-23T02:11:00.000-08:00

Property: Property Outlook for 2012: Most homeowners expect property prices to rise in 2012, according to a new survey. But despite the findings, confidence in the market has ...

Freehold Property For Sale: British Property Remains a Safer Bet Than Stocks a...

2012-01-03T00:31:00.000-08:00

Freehold Property For Sale: British Property Remains a Safer Bet Than Stocks a...: Lofty apartments in London's prime boroughs, chic chalet's in the finest Alpine ski resorts of France and Switzerland, and 2 bed semi's in S...

Top Property Tips for 2012

2011-12-29T08:10:00.000-08:00

International Business Times reports;
A survey of more than 360 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants has revealed the emerging top earners for the real estate sector in 2012.

Residential real estate is the second top investment for the year 2012 across the Asia Pacific Region, the study revealed.

It said that in spite the weak global housing market this year better prospects are to be seen in 2012, although caution and planning are still the keys to success.

Apartments. Interviewees favoured investing in multifamily property development, which can be class A, value-enhance class B, develop from scratch, purchase in infill areas, acquire in gateway cities, or hold in lower-growth markets. "Even buy class C and upgrade, spend a little more, hold a little longer-demand will be there."

The only caveat: avoid severely affected housing markets where a surfeit of empty single-family homes will compete as rentals.

Fortress Malls, Infill Shopping Centres. Aptly named fortress malls, near upscale suburban neighbourhoods and strategic highway intersections, continue to concentrate the top brand chains and attract more shoppers away from their weakening competition-centres situated near older or more commodity class housing districts. These types of property development attract necessity shoppers to anchored centres with leading supermarket and drug store chains. Investors are in for steady cash flows.

Coastal Port Industrial Space. Global trade will power export activity around the nation's primary seaboard ports, where traditional big-box warehouse distribution assets rebound after experiencing uncomfortably high vacancies. All eyes focus on which East Coast cities can position themselves to capture Pacific container-ship traffic slated to come through a widened Panama Canal in 2014. Some winners will turn into new industrial hubs, but first need to dredge harbor channels to handle deep-hulled vessels. Miami, Charleston, Savannah, and Norfolk look like prime contenders, and New York/New Jersey will not be left out. Houston should pick up business along the Gulf Coast.

Business Center Hotels. ULI and PwC said that 2012 will be within that the point in the real estate market cycle where lodging makes sense. But only the major 24-hour cities attract consistently strong combinations of business and tourist travelers to sustain occupancies and advance room rates during the week, as well as into weekends. Middle-market hotels without food and beverage service lure budget-conscious travelers without outsized operation overheads, enhancing bottom-line results.

RICS; Demand for Property Rose in November

2011-12-15T06:16:00.000-08:00

Demand for property rose yet again in November according to the latest UK Housing Market survey from the Royal Institution of Chartered Surveyors (RICS).

But the body warned that economic uncertainty is still holding the housing sector back from really flourishing.

Some seven per cent of surveyors said that they had seen a increase in the number of new buyer enquires last month, meaning that demand has continued to rise steadily for each of the past three months.

On top of this, newly agreed sales increased by 14 per cent and the average number of sales dealt with per surveyor or branch climbed by 15.4 per cent.

However, RICS warned that the market is still very subdued in many regions and, while the figures are certainly encouraging, they are still far short of those posted in the years prior to the start of the credit crunch.

RICS housing spokesperson, Alan Collett, said:"It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets. However, a meaningful recovery still seems some way off.”

Despite these comments, e-surv revealed this week that mortgage approvals last month reached their highest levels in two years.

London Property Market News

Stamp Duty Avoidance is New Target of HMRC

2011-11-29T00:40:00.001-08:00

Her Majesty’s Revenue & Customs is declaring war on stamp duty avoidance.

It is to mount a court challenge to determine the legality, or otherwise, of stamp duty tax avoidance schemes.

Central to the challenge will be the use of limited companies to buy properties, and then sell them to individuals – something which does appear to be completely legal.

Essentially, the purchaser sets up a Special Purpose Vehicle, a company or a trust with a property as its sole asset. The purchaser then buys shares in the company and is subjected to a tax rate of just 0.5%.

There are many companies offering stamp duty tax avoidance: a Google search yielded over 3,200 results.

The taxman’s move follows this year’s Budget when Chancellor George Osborne announced that he would be clamping down on stamp duty avoidance, whilst law firms have also warned that HMRC is on the prowl.

HMRC estimates the tax avoidance schemes have cost it millions in lost revenue. It is investigating 1,200 people it suspects of having underpaid stamp duty by a collective total of £35m, whilst it will also go after others who have avoided the tax altogether.

The many schemes that claim to legally exploit stamp duty loopholes frequently charge fees of around half the amount that would have been paid in tax.

It is thought that a number of property investors have set up a limited liability company to buy the property to sell back to the individual.

An HMRC spokesperson said: “The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept.”

Newham Council Launches Compulsary Landlord Licensing

2011-11-11T04:07:00.000-08:00

Newham Council has launched a consultation on compulsory borough-wide licensing. Inviting views, the council says: “Newham has a thriving private rented sector that provides affordable housing options for local people; but the council is concerned about possible overcrowding and anti-social behaviour in some properties.

“Therefore, the council is thinking of licensing private landlords and properties in the borough – in order to ensure that landlords, managing agents, tenants and owners operate legally and professionally.”

The consultation runs until December 4.

Newham estimates that around one-third of households in the borough are in the private rented sector, numbering around 35,000 homes. It has already piloted a smaller scale licensing scheme for over a year.

Sir Robin Wales, mayor of Newham, said: “We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing.

“There are good landlords in Newham and we want to work with them. Unfortunately there are also some unscrupulous ones – which these proposals would target.”

Shelter welcomed the Newham move. Kay Boycott, director of communications, policy and campaigns, said: “We urge other local councils to follow Newham’s lead in sending a clear signal that enforcing the law against rogue landlords is a priority.”

Central London Commercial Property Market Records Increase

2011-11-08T02:14:00.000-08:00

Central London office take-up rose to 2.7m sq ft in the third quarter of 2011 - the strongest performance of the year to date, according to the latest Central London property market review from CBRE.

Almost all Central London markets recorded increases in take-up from the previous quarter, with the largest increase seen in the City, strengthening to 0.9m sq ft from 744,000 sq ft in Q2.

The exception was the West End, which fell below 1m sq ft for the first time since Q3 2009 due to a large drop in newly completed space.

In spite of the better Q3 performance, take-up remained below the 10-year average of 2.9m sq ft and has been below this average for the last three quarters. The lack of demand from the banking and finance sector has been the primary explanation of this; the sector’s share of total take-up was 18 per cent in Q3 and 22 per cent for the first three quarters, which compares with an average of 29 per cent over the last 10 years and 41 per cent last year.

Adam Hetherington, Managing Director, Central London, said:

“While take-up has been generally weak throughout the year, the jump in leasing levels across almost all central London markets over the third quarter has been a positive sign. However, it’s clear that the London office market has not escaped the deterioration in economic conditions and the lack of confidence amongst businesses has meant that occupiers are more cautious about making real estate decisions.”

UK Commercial Property Adds More Economic Value Than Banking

2011-11-06T04:34:00.000-08:00

Commercial property adds more value to the UK economy than the banking sector, according to new research.

A property data report by the Property Industry Alliance claims that in excess of £46 billion is generated by the property sector each year, equivalent to 3.5 per cent of the UK's gross domestic product (GDP).

"From providing places for people to work, shop and play through to playing a major role in funding retirement, the property sector is a crucial cog in the UK economy," Sir Robert Finch, chairman of the Property Industry Alliance, stated.
"In legislating the government must be mindful of this."

The UK commercial property sector employs more than 800,000 workers, with more than 500,000 employed in the construction, development and building repair alone.

The value of commercial properties rose to an estimated £516 billion last year, meaning that it is now worth the equivalent of 25 per cent of the London Stock Exchange.

The Royal Institution of Chartered Surveyors stated recently that commercial property purchases had picked up in the first half of the year but demand fell back slightly in the quarter leading up to September.

Commercial property in London

Aldgate Penthouse Apartment for Rent, E1

2011-11-03T03:29:00.000-07:00

Middlesex Street, Aldgate, London, E1

A stunning penthouse apartment within this newly converted building in the heart of the City. The property has been finished to an extremely high standard with high spec fixtures and fittings. The property comprises two spacious double bedrooms, (ensuite facilities to master bedroom), family bathroom with shower and wc, spacious reception room, second reception room on the upper floor and an expansive private terrace with great views, available NOW, furnished or unfurnished.

Aldgate Apartment for Rent E1

London Olympics Boosts East London Hotel Development

2011-11-01T02:24:00.000-07:00

Fuelled largely by next summer's Olympic and Paralympic Games, the hotel market in East London is set for a boom.

With more than 500,000 extra tourists expected in 2012 the outlook for London's tourism industry is looking bright and especially confidence amongst hoteliers in the east of the city is sky rocketing.

PricewaterhouseCoopers (PWC) recently published a report on the hospitality market and highlighted the capital as the best performing city in Europe.

Coupled with the Olympics, the redevelopment of the Royal Albert Dock, the launch of Stratford's Westfield shopping centre and expansions of ExCel exhibition centre and London City Airport have helped further boost the east end's hotel trade.

Ray Withers, director of investment firm Property Frontiers, said: "The hotel market in London this year has been forecasted at near double digit growth while 2012 is expected to be a record breaking year for the hotel market".

A study published by Oxford Economics and the British Hospitality Association (BHA) recently estimated that growth in the hospitality sector will tens of thousands new jobs over the next five years.

Commercial Property News

Luxury Property for Sale Hoxton N1

2011-10-27T03:57:00.000-07:00

Poole Street, Hoxton, London, N1

A stunning two double bedroom apartment on the fifth floor of a luxurious development in the famous Gainsborough Studios and with panoramic views over the City of London. Benefits include an open plan fitted kitchen with integrated appliances including dishwasher and large fridge/freezer, spacious reception room with floor to ceiling windows and access to a small balcony, two double bedrooms with built-in wardrobes, tiled bathroom with shower and wc, 24 hour concierge, gym and private grounds with access to the Regent's Canal, available NOW, fully furnished!

Gainsborough Studios Development Property for Sale

Commercial Property News: Commercial property sector more valuable than banking

2011-10-25T09:30:00.000-07:00

Shoreditch Set To Be A Mini Bond Street

2011-10-24T08:59:00.000-07:00

Investors keen to buy into the hottest London property development opportunities may want to look at the Shoreditch area of the capital, with a new report noting that this is set to be transformed into a 'mini Bond Street' over the next few years.

According to Reuters, while the area, which is located just to the east of the heart of London, is currently 'edgy', high-end retailers such as Ralph Lauren and Vivienne Westwood are now eyeing up new business opportunities there.

This could mean that Shoreditch is transformed into an affluent neighbourhood with high rents and high-earning residents within the space of just five years.

Indeed, one landlord with five properties in the area told the news agency that it is like the Meatpacking District in New York City, in that it is on the verge of being transformed from a slightly dodgy, undesirable area into one of the city's most attractive postcodes.

Notably, as well as the prospect of luxury fashion houses setting up shop, it is anticipated that the recent arrival of Google will help drive London property development in this part of the city.

The internet giant's decision to set up a technology hub in the east of the capital was welcomed as "great news" by the chancellor George Osborne at the end of last month.

London Property Market News

Aldgate Penthouse Apartment for Rent

2011-10-21T05:31:00.000-07:00

Middlesex Street, Aldgate, London, E1 £750 pw

A penthouse apartment within this newly converted building. This has been finished to an extremely high standard with superb modern fixtures and fittings. The property comprises two large double bedrooms, ensuite shower room, a further bathroom suite, spacious living room, second reception room on the upper floor and an expansive private terrace. Available NOW. Furnished or Unfurnished

London Penthouse Apartment for Rent

Docklands Property Developers Look To Chinese Prop...

2011-10-18T02:39:00.000-07:00

Docklands Flats & Houses For Sale & Rent: Docklands Property Developers Look To Chinese Prop...: Chinese investors have been snapping up London property , with one-in-three buyers of newly built London homes coming from China and Hong Ko...

North American Invest in London Commercial Property

2011-10-12T04:52:00.000-07:00

North American property buyers returned to the London real-estate market with gusto in the first half of 2011, but market watchers warn that their interest may not be enough to stop property values from falling in some areas.(reports the Wall Street Journal)

The U.K. commercial-property market has always been popular with foreign investors, and London is usually the hub of money inflows because of its size, liquidity and transparency. But North American investment fell off sharply in the recession of 2008 and 2009 as investors focused on the crisis in their home markets.

Investment picked up in the second half of 2010 and continued through the first half of this year. It isn't clear whether there will be much effect from the turmoil in European financial markets.

North American investors bought €3.07 billion ($4.19 billion) of property in Central London in the second half of 2010 and €1.88 billion in the first half of this year, compared with €173 million in all of 2008 and €1.56 billion in 2009, according to property-services company CB Richard Ellis.

This level of activity is still below that of the peak of the market in 2006 and 2007, when an average of €2.8 billion was invested on a six-month basis, said CB Richard Ellis associate director Iryna Pylypchuk. "However, those were exceptional levels, fueled by debt and not something to be repeated in the current equity-driven market," Ms. Pylypchuk said.

Non-European buyers have always been important for Europe. They invested €24 billion in commercial European real estate in 2010 and the first half of 2011. North American investors accounted for 55%, or €13.1 billion, of that, of which London received €5.1 billion, according to CB Richard Ellis. The majority of investment went into office buildings. The U.K. accounted for more than half of all European acquisitions by U.S. investors in the first half of 2011, CB Richard Ellis says.

New York Nudges Out London as No 1 Destination for Property Investment

2011-10-07T04:26:00.000-07:00

New York overtook London as the No. 1 destination for Property investment for the first time since 2007 after improved access to financing spurred more U.S. deals, Cushman & Wakefield Inc. said in a report today.

Buyers are drawn to cities like New York and London because of a greater focus on the “biggest and best,” Cushman said in the report. The trend will continue in the next six months, it said.

Chicago, New York, Boston and Atlanta made up four of the five fastest growing property investment markets by volume, the report said. Frankfurt and Germany’s Rhine-Main area ranked fourth, with growth of 126 percent.

London kept its spot as the top city for overseas property investment with $14.2 billion. That was a drop of 9.6 percent. One in every two dollars spent on real estate investment in London during the period came from abroad. Kelly said there has been a “resurgence” in interest in London from U.S. investors

London was followed by Paris, New York, Singapore and Beijing as the favorite destinations for overseas buyers.

Commercial Property in London Remains Top Choice for International Corporations

2011-09-22T10:01:00.000-07:00

The British Council for Offices has said that central London is still a prime area for commercial property owners to invest in as it remains the most popular area for companies to base offices.

Richard Kauntze, chief executive of the BCO has told of his belief that central London property is performing well currently and is very desirable to companies looking for office locations. However, he also said that once you leave the confines of the circle line prospects do tend to spiral somewhat.

Mr Kauntze pointed to buildings such as The Heron Tower and The Shard which are both steadily filling up with companies as examples of success.

He said: “The area between the City and the West End was a neglected area. That is changing, not least because rents in more traditional parts are so high and there have been some good development opportunities. I think you will see the character and the range of office offers within those areas continue to develop as the market picks up.”

Moving House; London Estate Agents Help Ease the Stress

2011-09-13T05:47:00.000-07:00

People who are looking for property to rent in London or first time buyers getting set to move into their first home can take a number of steps to ensure moving is "hassle free".

The National Association of Estate Agents (NAEA) has offered some top tips on how to make moving as easy as possible.

According to the NAEA, it is important to get a number of quotes from removal companies before deciding on one, as the services they offer can vary a great deal.

Peter Bolton King, chief executive of the organisation, said: "Moving into a house should be an exciting time, but too many people leave preparation until the last minute, which often adds avoidable pressure and expense.

"Making a few simple checks and arrangements in advance should keep problems to a minimum."

Other ways to make moving less stressful include setting up services - such as gas and electricity - as soon as possible and plan the packing well in advance, working out where items are going to go before putting them all into boxes.

Moving home is often considered one of the most stressful events in people's lives.

London Rental Property News

London Office Space Under Threat from Planning Permission

2011-06-23T09:37:00.000-07:00

Government plans to overhaul the planning system
could see more office space in London being turned into residential properties.

According to city planning officer for the Corporation of London Peter Rees, the Square Mile and other renowned business districts could lose their power to attract international organisations and investment if they are not safeguarded.

Speaking at a British Property Federation conference, he is expected to say: "The cyclical nature of the property industry means that if developers were to turn offices into residential blocks when times were tough, the City's ability to attract and house new firms when market conditions improved would be seriously diminished."

Such changes to the planning system could "dilute the concentration of offices", making it harder for companies looking for investment properties in London to find commercial space in the Square Mile, Mr Lees added.

His comments come after the Institute for Public Policy Research revealed that the UK could face a shortfall of 750,000 homes by 2025 because the construction of new build properties is at its lowest peacetime level since the 1920s.

Planning Permission News

London Commercial Property News: Office space in London 'will return to 2008 prices'

2011-06-16T01:51:00.000-07:00

Companies and individuals looking for office space in London might wish to invest now before prices shoot up again.

According to Simon Jones, research project manager at officebroker.com, the increasing uptake of office space in London is hopefully a sign of a positive return.

"Our [managing director] Jim Venables recently made a prediction that … central London prices will turn to their 2008 pre-recession peak by the end of this year and then he thinks the regional cities will probably see them exceeding or returning in the next 12 to 18 months.

"So, that's a good sign, but it all depends on the economy and it all depends on things keeping moving," Mr Jones noted.

He pointed out that businesses in a niche market, such as production companies and casting agencies, would do well to find serviced offices, which let them move in, set up and go.

Meanwhile, BBC Television Centre has been put up for sale, with the west London site expected to bring in hundreds of millions of pounds for the broadcaster.

London Commercial Property News

Land Securities Secure Planning Permission

2011-06-03T01:36:00.000-07:00

Land Securities has today secured planning permission for its 375,000 sq ft 30 Old Bailey and 60 Ludgate Hill office redevelopment in the City of London.

The mixed-use development comprises a two building scheme and will replace the current 1960s properties with high quality office accommodation, new restaurant and retail facilities, improved pedestrian links and new public areas for those working, visiting and living in the area. The scheme is scheduled to complete in late 2013 at a time when there will be relatively few development completions in the City.

Commenting on the scheme Colette O’Shea, Head of Development, London Portfolio, Land Securities, said: “We were the first to re-start a major development programme after the downturn anticipating supply constrained conditions and this is the latest part of our clear plan to deliver over two million sq ft of new space by April 2014.”

The Old Bailey scheme is designed by world renowned German architects Sauerbruch Hutton. It will offer 195,000 sq ft of office space across nine levels with floors averaging 22,600 sq ft and providing uninterrupted views of the City. There will be two open terraces on the 9th floor with views over the Old Bailey and to St Paul’s Cathedral. The offices will have a prominent entrance on Old Bailey with restaurant accommodation fronting the piazzetta at ground floor level.

London Commercial Property News: Office lighting 'should be energy efficient'

2011-05-24T02:54:00.000-07:00

Those who are investing in office space in London might see a reduction in their energy bills when lights are turned off.

According to Paul Edwards, chair of the British Council for Office's Environmental Sustainability Group, one key change businesses can make is to ensure office lighting is energy efficient.

"Turning them off is the simplest thing you can do, but also you could install presence detectors in meeting rooms and ensure that all the lights are turned off in the evening when people leave," he noted.

"If you work out your energy bill, you can normally see a payback on that."Companies that are behind office property investments in London or other parts of the UK might find it easier to implement changes when they are the tenants of the building, but if they own office space they should "try to get [tenants] on board".

Mr Edwards' comments come after Electricity North West announced it has invited businesses to take part in an energy trial involving micro-generation projects.

London Commercial Property News

Rightmove Founder Launches On line Property Conveyancing Business

2011-05-24T02:28:00.000-07:00

The founder of a leading estate agency has launched a new venture aimed at shaking up the property legal market.

Harry Hill, founder of Rightmove, said his In-Deed online residential conveyancing service was designed to make home sales simpler and less stressful for the 2.6 million housebuyers and sellers each year.

Consumers will be able to track the progress of their property purchase to avoid being kept in the dark when buying a house.

Mr Hill said: “Buying and selling a home in the UK is always stressful. Feudal methods of property transfer still apply, unfortunately, and in the last five years increased price competition to secure a shrinking market has driven service standards in conveyancing that are unacceptable in many cases.

“The consumer is left in the dark about one of the most important transactions in their life. It’s time for a new script.”