A study from Reading University has reported the private rented sector contributes £3.5 billion each year to the Treasury as a result of taxes paid. Given that it is tenants who end up paying for such taxes through higher rents, this equates to £1,000 per tenancy in the UK.
The current tax treatment of private landlords is stifling investment in the sector and major changes are required if the supply of rented accommodation is to be boosted to overcome the current shortage, according to the Residential Landlords Association (RLA)
Speaking for the RLA, its Chairman, Alan Ward said:
“With rapidly increasing demand for rented accommodation and a supply shortage driving up rents, there is a real need for changes to the tax treatment of the sector to encourage it to invest. It is a nonsense that when landlords are running a business, that they should be hampered by a tax system that treats them as investors.
“Our proposals for change are cost neutral as they recognise the revenue that will flow from income to new and larger landlords and that every £1 invested in the sector provides a return to the economy of £3.50 through expenditure on building work and furniture.”
It is estimated that there are some 300,000 “accidental landlords” who are only renting because they have not been able to sell their properties for the price they want. Many of these will sell up once market conditions improve. This is equivalent to roughly 7% of all privately rented accommodation in England, Wales and Scotland.
Private Rental Property Investment News
Wednesday, 29 February 2012
Tuesday, 28 February 2012
First Time Buyers Market Boosted By Imminent End of Stamp Duty Holiday
Housing and mortgage market sentiment has improved a little over recent weeks. Over the short-term, activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends on 24 March.
For the time being at least, funding conditions have eased as a result of European Central Bank operations, so lessening the need for UK banks to tighten mortgage pricing and terms.
As inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half.
First Time Buyer News
For the time being at least, funding conditions have eased as a result of European Central Bank operations, so lessening the need for UK banks to tighten mortgage pricing and terms.
As inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half.
First Time Buyer News
Monday, 27 February 2012
Buy to Let Market Continues to Improve
The number of properties being bought with buy-to-let mortgages increased by around 84,000 in 2011, modestly helping to increase the supply of private rented housing in the UK, according to latest data from the Council of Mortgage Lenders.
During the fourth quarter of 2011, a total of 34,800 buy-to-let mortgages (of which 15,600 were remortgages) were advanced, with a total value of £4 billion. This was virtually identical to the volume of business in the third quarter (34,300 loans worth £4 billion) but up on the fourth quarter of 2010 (26,300 loans worth £2.9 billion).
Compared with the height of the market in the third quarter of 2007, when quarterly lending totalled over 93,000 loans worth £12.7 billion, the buy-to-let market continues to operate at relatively subdued levels, but it is clearly continuing to recover from its low point in 2009.
Buy to Let Property News
During the fourth quarter of 2011, a total of 34,800 buy-to-let mortgages (of which 15,600 were remortgages) were advanced, with a total value of £4 billion. This was virtually identical to the volume of business in the third quarter (34,300 loans worth £4 billion) but up on the fourth quarter of 2010 (26,300 loans worth £2.9 billion).
Compared with the height of the market in the third quarter of 2007, when quarterly lending totalled over 93,000 loans worth £12.7 billion, the buy-to-let market continues to operate at relatively subdued levels, but it is clearly continuing to recover from its low point in 2009.
Buy to Let Property News
Sunday, 26 February 2012
Jones Lang LaSalle Welcome Government London Housing Fund
Jones Lang LaSalle responds to the announcement made today by Eric Pickles stating £3bn of government funding will be provided for housing and regeneration projects in London.
Jon Neale, Residential Research Director commented on the announcement that: “This is good news for London and reinforces the government’s commitment to giving cities and neighbourhoods greater control over where housing and regeneration funds are spent.
“London has some of the most severe affordability and housing undersupply issues in the country and resolving these are crucial to its continued role as the engine room of the British economy.
Jon Neale, Residential Research Director commented on the announcement that: “This is good news for London and reinforces the government’s commitment to giving cities and neighbourhoods greater control over where housing and regeneration funds are spent.
“London has some of the most severe affordability and housing undersupply issues in the country and resolving these are crucial to its continued role as the engine room of the British economy.
Saturday, 25 February 2012
UK Mortgage Approval News
December’s approvals data from the Bank of England suggests that the profile of January’s lending continued to be one of resilient house purchase demand alongside a levelling-off in remortgage activity.
Gross mortgage lending declined to an estimated £10.5 billion in January. Lending fell by 14% from £12.2 billion in December but was 10% higher than the total of £9.5 billion in January 2011, according to the Council of Mortgage Lenders.
Although a seasonal decline is expected, January was the sixth month in a row of higher year-on-year lending.In today’s CML market commentary, CML chief economist Bob Pannell comments:
“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March.
UK Mortgage News
Gross mortgage lending declined to an estimated £10.5 billion in January. Lending fell by 14% from £12.2 billion in December but was 10% higher than the total of £9.5 billion in January 2011, according to the Council of Mortgage Lenders.
Although a seasonal decline is expected, January was the sixth month in a row of higher year-on-year lending.In today’s CML market commentary, CML chief economist Bob Pannell comments:
“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March.
UK Mortgage News
Thursday, 23 February 2012
UK Property Prices See Highest Rise Since 2002
The average UK property price has seen its highest monthly rise since 2002. The average home in London was worth nearly twice the national average at £449,252, enhanced by demand from overseas buyers.
The 4.1% month-on-month increase took the typical asking price of a home on the market to £233,252, according to Rightmove who looked at 90% of the UK property market between January 8 and February 11.
Miles Shipside of Rightmove commented."Confidence in bricks and mortar in the capital seems set to continue, with 'seller-power' twice as strong in London compared to the rest of the U.K.Upwards price- pressure is likely to be maintained in 2012."
UK House Prices
The 4.1% month-on-month increase took the typical asking price of a home on the market to £233,252, according to Rightmove who looked at 90% of the UK property market between January 8 and February 11.
Miles Shipside of Rightmove commented."Confidence in bricks and mortar in the capital seems set to continue, with 'seller-power' twice as strong in London compared to the rest of the U.K.Upwards price- pressure is likely to be maintained in 2012."
UK House Prices
Wednesday, 22 February 2012
Stamp Duty Holiday Due to End Next Month
First time buyers have saved a collective £319 million since the stamp duty holiday came into effect in March 2010, new analysis claims.
Santander estimates that around 170,000 first time property purchasers have benefitted from the exemption and is urging people to take advantage of it before it ends next month.
After the deal ends, home buyers will be required to pay a one per cent tax on property purchases over £125,000, a three per cent tax over £250,000 and four per cent over £500,000.
First Time Buyer News
Santander estimates that around 170,000 first time property purchasers have benefitted from the exemption and is urging people to take advantage of it before it ends next month.
After the deal ends, home buyers will be required to pay a one per cent tax on property purchases over £125,000, a three per cent tax over £250,000 and four per cent over £500,000.
First Time Buyer News
Monday, 20 February 2012
Overseas Property Investors Opt For Luxury Apartments
Property investors in London are switching their attention from traditional townhouses to luxury super-sized apartments, it has been claimed.
According to Stephen Dyer, managing director of Ideal Property, cash rich buyers from overseas are shying away from the giant houses of Chelsea and Kensington are instead looking to move into spacious new developments.
And as a result of this, professional investors are following the trend and restructuring the types of properties in their portfolios.
London Property Investment News
According to Stephen Dyer, managing director of Ideal Property, cash rich buyers from overseas are shying away from the giant houses of Chelsea and Kensington are instead looking to move into spacious new developments.
And as a result of this, professional investors are following the trend and restructuring the types of properties in their portfolios.
London Property Investment News
London Investment and Development News; The Northern Line Extension is the Key to Development of Nine Elms and Vauxhall
Plans for the Extension of the Northern Line is planned to have a greater impact than improved public transport capacity and accessibility between central London and the Nine Elms area. Battersea Power Station would become the focus for a new town centre with 66,000 square metres of retail, restaurant and cafe space - more than Clapham Junction and Wandsworth town centres.
The Extension will:
1. Deliver improved public transport to an area of major change and regeneration projects including:
• New Covent Garden Market - delivering a new consolidated, modern food and flower market with new education facilities, homes and a retail zone based around the market;
• Battersea Power Station - creating a new town centre for Nine Elms and including restoration of the iconic listed building into a new cultural centre for London;
• United States Embassy - relocating the embassy from Mayfair to a new landmark building in a parkland setting, as a catalyst to the area's regeneration;
• Tideway Wharf - providing residential units, a hotel, health club, restaurants, bars and retail spaces and an enhanced river frontage through new public realm and an improved river walk; and
• Development around Vauxhall interchange - focusing business and residential development around this existing transport hub.
2. Bring new homes, jobs, businesses, shops and community facilities to an underused part of central London;
3. Improve public transport for 15,000 existing households, reduce reliance on the car and reduce pressure on Vauxhall Underground station; and
4. Create a new public transport link, connecting VNEB directly to the rest of central London, less than 15 minutes from the West End and the City
Leader of Wandsworth Council Ravi Govindia said:
"This is great news for London and huge victory for the council and its partners. The Northern Line Extension is the key to unlocking development throughout Nine Elms and Vauxhall. It will help create 16,000 new homes, 25,000 jobs and deliver billions in growth for the wider economy."
London Local News
The Extension will:
1. Deliver improved public transport to an area of major change and regeneration projects including:
• New Covent Garden Market - delivering a new consolidated, modern food and flower market with new education facilities, homes and a retail zone based around the market;
• Battersea Power Station - creating a new town centre for Nine Elms and including restoration of the iconic listed building into a new cultural centre for London;
• United States Embassy - relocating the embassy from Mayfair to a new landmark building in a parkland setting, as a catalyst to the area's regeneration;
• Tideway Wharf - providing residential units, a hotel, health club, restaurants, bars and retail spaces and an enhanced river frontage through new public realm and an improved river walk; and
• Development around Vauxhall interchange - focusing business and residential development around this existing transport hub.
2. Bring new homes, jobs, businesses, shops and community facilities to an underused part of central London;
3. Improve public transport for 15,000 existing households, reduce reliance on the car and reduce pressure on Vauxhall Underground station; and
4. Create a new public transport link, connecting VNEB directly to the rest of central London, less than 15 minutes from the West End and the City
Leader of Wandsworth Council Ravi Govindia said:
"This is great news for London and huge victory for the council and its partners. The Northern Line Extension is the key to unlocking development throughout Nine Elms and Vauxhall. It will help create 16,000 new homes, 25,000 jobs and deliver billions in growth for the wider economy."
London Local News
Thursday, 16 February 2012
Damien Hirst To Build Devon Eco Homes
This is North Devon reports that the arstist Damien Hirst has started a new venture building 500 ecohomes in Ilfracombe, Devon, where he already owns a number of properties. The announcement was made by one of Damien Hirst's representatives, architect Mike Rundell of MRJ Rundell Associates, at a meeting to discuss Ilfracombe's southern extension last week.
The meeting followed two similar meetings in July and October last year where planning permission was sought for up to 1,000 new homes, a primary school, sports facilities, small business units and a medical centre on 32 hectares of land near Killacleave.
The plans involve utilising land at Winsham Farm, which has been owned by Hirst for the past ten years, as well as nearby Channel Farm and Bowden Farm.
Although plans to extend the town to the south are well documented, Hirst's involvement has never been publicly announced until now.
Councillors, officers, agency workers and other interested parties at the meeting heard of the artist's excitement and vision for the development.
Mr Rundell commented: "We are not expecting to make retirement homes for rich people coming down from London.We want these houses to attract young, creative families as well as people who already live here. It's our ambition to make them affordable but houses like these are more expensive than ordinary houses. I couldn't tell you specifically how much we are talking about."
Building and Construction News
The meeting followed two similar meetings in July and October last year where planning permission was sought for up to 1,000 new homes, a primary school, sports facilities, small business units and a medical centre on 32 hectares of land near Killacleave.
The plans involve utilising land at Winsham Farm, which has been owned by Hirst for the past ten years, as well as nearby Channel Farm and Bowden Farm.
Although plans to extend the town to the south are well documented, Hirst's involvement has never been publicly announced until now.
Councillors, officers, agency workers and other interested parties at the meeting heard of the artist's excitement and vision for the development.
Mr Rundell commented: "We are not expecting to make retirement homes for rich people coming down from London.We want these houses to attract young, creative families as well as people who already live here. It's our ambition to make them affordable but houses like these are more expensive than ordinary houses. I couldn't tell you specifically how much we are talking about."
Building and Construction News
Wednesday, 15 February 2012
Rightmove Consumer Confidence Survey
First time buyers do not fear the struggle to meet monthly mortgage payments. The main struggle in getting their feet on the first rung of the property ladder is meeting the initial criteria to be in a position to receive a mortgage offer.In the meantime, potential first time buyers are unable to save the required deposit, and are their financial situations worsen, faced with high and rising rents.
Key points of the Rightmove Consumer Confidence Survey:
• Around one in four (24.3%) of all likely buyers over the next 12 months will be buying for the first
time up 1.4% on last quarter and 1.5% year-on-year
• A new home-ownership hurdle emerges as just under a third of first-time buyers now cite finding
a suitable property to buy as their single biggest concern, a jump of 6% on last quarter
• Concerns over finding a suitable property driven in part by a ‘first-time seller’ shortage, with the
number of terraces and flats fresh to market in Q4 of 2011 31% and 28% down respectively on Q3
• Only one in 12 (8%) concerned about ability to meet monthly repayments highlighting frustrations
of ‘trapped renters’ who have the means to pay a mortgage but not the means to access one
• Regional picture improves as number of first-time buyer ‘blackspot’ areas – where intending first time buyers levels are below 20% goes from seven to one in just six months
First Time Buyer News
Key points of the Rightmove Consumer Confidence Survey:
• Around one in four (24.3%) of all likely buyers over the next 12 months will be buying for the first
time up 1.4% on last quarter and 1.5% year-on-year
• A new home-ownership hurdle emerges as just under a third of first-time buyers now cite finding
a suitable property to buy as their single biggest concern, a jump of 6% on last quarter
• Concerns over finding a suitable property driven in part by a ‘first-time seller’ shortage, with the
number of terraces and flats fresh to market in Q4 of 2011 31% and 28% down respectively on Q3
• Only one in 12 (8%) concerned about ability to meet monthly repayments highlighting frustrations
of ‘trapped renters’ who have the means to pay a mortgage but not the means to access one
• Regional picture improves as number of first-time buyer ‘blackspot’ areas – where intending first time buyers levels are below 20% goes from seven to one in just six months
First Time Buyer News
Tuesday, 14 February 2012
Get Britain Building Plans Viewed With Scepticism
The RICs housing market survey for the last quarter of 2011 gave a gloomy picture of the UK construction industry despite the Governments Get Britain Building plans; only 14% of surveyors taking part in the survey believed the government fund would have any useful impact on the industry. There was significant doubt as to whether the Government could boost the interest from private investors to raise the funds to carry out proposed infrastructure projects.
Read More; Building and Surveying News
Read More; Building and Surveying News
Monday, 13 February 2012
West End Property Market and Bankers Bonuses
Reuters reports that shrinking bonus pools in London's City financial district will reduce bankers' clout in the British capital's buoyant prime housing market this year, with hedge fund managers set to outspend them for the first time, data from Savills showed.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End district.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money.
Savills said it expects international investors to retain their position as London's biggest buyers of prime housing in 2012 with a predicted spend of 4 billion pounds, as many continue to favour London for its safe haven status.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End district.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money.
Savills said it expects international investors to retain their position as London's biggest buyers of prime housing in 2012 with a predicted spend of 4 billion pounds, as many continue to favour London for its safe haven status.
Friday, 10 February 2012
London Homeowners Expect House Price Rises
New figures released by the Halifax show that confidence in house prices is soaring, with Londoners feeling the most optimistic.
According to the bank's Halifax Housing Market Confidence Tracker, almost a third of Brits feel that house prices will rise rather than fall this year.
Some 29 per cent now feel home values are on the up, compared to 22 per cent who feel a fall is on the way.
But in London the number of people predicting a rise is far greater. Indeed the percentage of those who feel an increase in values is likely dwarfs the pessimists by a whopping 21 per cent.
Half (50 per cent) of those questioned said that they feel now is a good time to buy, while just ten per cent said that they feel it is a seller's market a present.
Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies.
"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."
Another key finding of the research is the fact that 61 per cent expect rental prices to rise in the next 12 months, while just three per cent foresee a drop.
While both house prices and rental values are seemingly on the increase, another study conducted by the Halifax recently found that for many people owning a home has never been cheaper.
On average first time buyers are paying 27 per cent of their monthly income towards their mortgage, making it the lowest level since 1997 and some 20 per cent lower than the figure stood in late 2007
London Property News
According to the bank's Halifax Housing Market Confidence Tracker, almost a third of Brits feel that house prices will rise rather than fall this year.
Some 29 per cent now feel home values are on the up, compared to 22 per cent who feel a fall is on the way.
But in London the number of people predicting a rise is far greater. Indeed the percentage of those who feel an increase in values is likely dwarfs the pessimists by a whopping 21 per cent.
Half (50 per cent) of those questioned said that they feel now is a good time to buy, while just ten per cent said that they feel it is a seller's market a present.
Martin Ellis, housing economist at Halifax, said: "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies.
"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."
Another key finding of the research is the fact that 61 per cent expect rental prices to rise in the next 12 months, while just three per cent foresee a drop.
While both house prices and rental values are seemingly on the increase, another study conducted by the Halifax recently found that for many people owning a home has never been cheaper.
On average first time buyers are paying 27 per cent of their monthly income towards their mortgage, making it the lowest level since 1997 and some 20 per cent lower than the figure stood in late 2007
London Property News
Thursday, 9 February 2012
London's Luxury Homes Targeted By Russian Investors
Bloomberg reports that Russian investors increased their share of luxury-home purchases in London’s most expensive neighborhoods more than any other group in the fourth quarter, Hamptons International said, as Vladimir Putin bids to regain the presidency in March amid growing opposition.
Russians accounted for 16 percent of all transactions in the Chelsea, Kensington, Knightsbridge and Belgravia neighborhoods handled by the London-based broker, according to a report today. That was up from 5 percent in the previous three months and 1 point more the combined total for European Union countries.
“It’s a precaution against things going too far in the wrong direction,” Adam Challis, head of residential research, said by phone. “The very well-connected folk realized that there was going to be some serious political uncertainty and that they’re better off putting their money into London property.”
Russian Prime Minister Putin faces the biggest challenge to his rule since coming to power 12 years ago after allegations of fraud in Dec. 4 legislative polls sparked mass protests. Putin’s voter support has fallen to 37 percent, according to an opinion poll by the independent Levada Center, indicating he will need to face one of the four opposition candidates in a second-round run-off.
Russians accounted for 16 percent of all transactions in the Chelsea, Kensington, Knightsbridge and Belgravia neighborhoods handled by the London-based broker, according to a report today. That was up from 5 percent in the previous three months and 1 point more the combined total for European Union countries.
“It’s a precaution against things going too far in the wrong direction,” Adam Challis, head of residential research, said by phone. “The very well-connected folk realized that there was going to be some serious political uncertainty and that they’re better off putting their money into London property.”
Russian Prime Minister Putin faces the biggest challenge to his rule since coming to power 12 years ago after allegations of fraud in Dec. 4 legislative polls sparked mass protests. Putin’s voter support has fallen to 37 percent, according to an opinion poll by the independent Levada Center, indicating he will need to face one of the four opposition candidates in a second-round run-off.
Wednesday, 8 February 2012
London's Newest Neighbourhood
East Village may be London's newest neighbourhood, yet you'll think it had been here for years. Lush wetlands, fully grown trees and fabulous fauna and flora. Local independent shops, cafes and bars, and Westfield Stratford City, just a short stroll away. Outstanding free schooling for all ages at Chobham Academy, a community centre and an advanced medical clinic. Not forgetting the obvious - world class sporting facilities right on your doorstep.
During the Games, the Olympic and Paralympic Village will comprise residential apartments for around 17,000 athletes and officials, along with shops, restaurants, medical, media and leisure facilities and large areas of open space.
The Village also includes a 'Village Plaza’ where athletes can meet with friends and family. The plan retains London's tradition of building homes around communal squares and courtyards, with water features accentuating the closeness of the River Lea.
Athletes will have an inspirational view over the Park. Every apartment will provide comfortable accommodation and state-of-the-art communications facilities, including internet access and wireless networking. All the apartment blocks will be fully accessible and equipped with modern lifts.
Athletes will have easy access to the travel and leisure facilities of the adjacent Stratford City complex, and the High Speed 1 Javelin® shuttle service will link the Village to central London in just seven minutes.
During the Games, the Village will include ‘back of house’ operations, and services for athletes such as catering and transport. The majority of these will be accommodated in temporary structures on sites that can be cleared for development immediately after the Games.
After the Games, the Olympic and Paralympic Village will be a lasting legacy of essential new housing for east London. It will be transformed into 2,800 new homes, including 1,379 affordable homes.
The communities that develop in the area after the Games will be supported by new parks, open space, transport links, and community facilities including Chobham Academy – a world-class new education campus with 1,800 places for students aged 3-19.
London Property News
During the Games, the Olympic and Paralympic Village will comprise residential apartments for around 17,000 athletes and officials, along with shops, restaurants, medical, media and leisure facilities and large areas of open space.
The Village also includes a 'Village Plaza’ where athletes can meet with friends and family. The plan retains London's tradition of building homes around communal squares and courtyards, with water features accentuating the closeness of the River Lea.
Athletes will have an inspirational view over the Park. Every apartment will provide comfortable accommodation and state-of-the-art communications facilities, including internet access and wireless networking. All the apartment blocks will be fully accessible and equipped with modern lifts.
Athletes will have easy access to the travel and leisure facilities of the adjacent Stratford City complex, and the High Speed 1 Javelin® shuttle service will link the Village to central London in just seven minutes.
During the Games, the Village will include ‘back of house’ operations, and services for athletes such as catering and transport. The majority of these will be accommodated in temporary structures on sites that can be cleared for development immediately after the Games.
After the Games, the Olympic and Paralympic Village will be a lasting legacy of essential new housing for east London. It will be transformed into 2,800 new homes, including 1,379 affordable homes.
The communities that develop in the area after the Games will be supported by new parks, open space, transport links, and community facilities including Chobham Academy – a world-class new education campus with 1,800 places for students aged 3-19.
London Property News
Tuesday, 7 February 2012
Property Repossessions News: Repossessions will rise this year
This year is likely to see a rise in the number of people having their homes repossessed.
According to the Council of Mortgage Lenders (CML), continued economic uncertainty is resulting in more and more people falling behind with their mortgage repayments and the end result will be a increase in the number of those forced out of their properties.
Bernard Clarke, communications manager at the CML, said: "An increase in the number of people falling into arrears is likely to also result in an increase in the number of cases of possession.
“We have forecast an increase in the number of mortgages that will be in arrears of 2.5 per cent or more of the outstanding balance at the end of the year, to be 180,000 as opposed to 166,000 at the end of 2011.”
However, he pointed out the issue is not likely to reach anywhere near the level that it did during the recession of the early 1990s.
Despite this, the National Association of Estate Agents (NAEA) said recently that that this year will see the housing market gradually recover to transaction levels seen prior to the credit crunch.
Property Repossession News
According to the Council of Mortgage Lenders (CML), continued economic uncertainty is resulting in more and more people falling behind with their mortgage repayments and the end result will be a increase in the number of those forced out of their properties.
Bernard Clarke, communications manager at the CML, said: "An increase in the number of people falling into arrears is likely to also result in an increase in the number of cases of possession.
“We have forecast an increase in the number of mortgages that will be in arrears of 2.5 per cent or more of the outstanding balance at the end of the year, to be 180,000 as opposed to 166,000 at the end of 2011.”
However, he pointed out the issue is not likely to reach anywhere near the level that it did during the recession of the early 1990s.
Despite this, the National Association of Estate Agents (NAEA) said recently that that this year will see the housing market gradually recover to transaction levels seen prior to the credit crunch.
Property Repossession News
Half term Entertainment at the Tricycle Theatre
How to make sure your kids don’t get bored during half term is a modern dilemma that most of us struggle to solve when juggling busy lives and endless responsibilities. Just when you’re settling back into the daily routine of taking the kids to school, half term crops up faster than you thought was ever possible, leaving you staring at the calendar every five minutes to make sure your eyes aren’t deceiving you.
Luckily for those who live in and around the NW6 area, the Tricycle Theatre on Kilburn High Road has come to the rescue with a variety of reasonably priced activities and entertainment for children during half term. The Tricycle Theatre’s spring half term activities will run from Monday the 13th of February to Friday the 17th of February.
The activities include drama clubs for children aged 8-10, storytelling and dance and a finger puppet workshop for children aged 3-5, and a design-your-own miniature spring garden workshop for children aged 5-7. Times do vary, but you can find out specific times and prices for each activity by going to the Tricycle Theatre website.
For those who don’t fancy taking part in the activities, there will be two screenings in the children’s cinema of Happy Feet Two, one on Saturday the 11th of February at 1:30pm and one on Tuesday the 14th of February at 1:30pm. There are also various puppet shows for young children on most Saturdays, including Goldilocks, Little Bo Peep and Three Billy Pigs.
You can book tickets for all of the above by contacting the Tricycle Theatre Box Office on 020 7328 1000
London Local News
Luckily for those who live in and around the NW6 area, the Tricycle Theatre on Kilburn High Road has come to the rescue with a variety of reasonably priced activities and entertainment for children during half term. The Tricycle Theatre’s spring half term activities will run from Monday the 13th of February to Friday the 17th of February.
The activities include drama clubs for children aged 8-10, storytelling and dance and a finger puppet workshop for children aged 3-5, and a design-your-own miniature spring garden workshop for children aged 5-7. Times do vary, but you can find out specific times and prices for each activity by going to the Tricycle Theatre website.
For those who don’t fancy taking part in the activities, there will be two screenings in the children’s cinema of Happy Feet Two, one on Saturday the 11th of February at 1:30pm and one on Tuesday the 14th of February at 1:30pm. There are also various puppet shows for young children on most Saturdays, including Goldilocks, Little Bo Peep and Three Billy Pigs.
You can book tickets for all of the above by contacting the Tricycle Theatre Box Office on 020 7328 1000
London Local News
Monday, 6 February 2012
Central London Public Conveniences Saved for Ten Years
Vital public loos across the centre of London will remain open for at least the next ten years as Westminster City Council is set to protect services and save money under innovative new proposals.
Plans are being finalised which will see the council’s 20 permanent facilities being leased out to a private provider and, as a result, safeguarded from any threat of closure. The contract will involve at least 50 per cent of the sites being free for all users with the remainder charging a maximum of 50p, set to be introduced in April.
Currently Westminster has one of the most extensive networks of public loos in the country, but that comes at a cost of £2.1m a year to the taxpayer to run the 20 sites. Even though local authorities have no statutory duty to provide public conveniences, Westminster has for many years ensured that these facilities remain open.
This is against a national back drop of a significant decline in the number of public conveniences with the problem particularly acute in London. In fact the capital has seen the biggest decline in the number of local-authority run public toilets – a closure rate twice that of the country as a whole.
Westminster is bucking the trend by providing a high quality and extensive network of public conveniences throughout which are visited more than 8 million times a year.
Plans are being finalised which will see the council’s 20 permanent facilities being leased out to a private provider and, as a result, safeguarded from any threat of closure. The contract will involve at least 50 per cent of the sites being free for all users with the remainder charging a maximum of 50p, set to be introduced in April.
Currently Westminster has one of the most extensive networks of public loos in the country, but that comes at a cost of £2.1m a year to the taxpayer to run the 20 sites. Even though local authorities have no statutory duty to provide public conveniences, Westminster has for many years ensured that these facilities remain open.
This is against a national back drop of a significant decline in the number of public conveniences with the problem particularly acute in London. In fact the capital has seen the biggest decline in the number of local-authority run public toilets – a closure rate twice that of the country as a whole.
Westminster is bucking the trend by providing a high quality and extensive network of public conveniences throughout which are visited more than 8 million times a year.
Sunday, 5 February 2012
Online Property Searches Indicate Positive Sign for Housing Market 2012
The number of people searching for a new property online has continued to grow and that can only be a positive sign for the housing market.
According to Rightmove, the number of people turning to the net to look for properties in the first ten days of this year was 27 per cent higher than in the same period in 2011.
Selwyn Lim, director of Mouseprice, believes that this is an encouraging indicator that the market will have a buoyant 2012, but also believes that it is a direct result of people switching from looking in newspapers to using their computer instead.
“It is definitely a positive indicator. I would water it down a little because of some elements. One is the shift in behaviour of more and more people searching online – it is a trend that has been going on,” he said.
“Since the internet began, more people have been searching online and that trend is continuing.”
Rightmove also reported that there was a 1.4 per cent rise in asking prices in the first week of the year.
London Housing Market News
According to Rightmove, the number of people turning to the net to look for properties in the first ten days of this year was 27 per cent higher than in the same period in 2011.
Selwyn Lim, director of Mouseprice, believes that this is an encouraging indicator that the market will have a buoyant 2012, but also believes that it is a direct result of people switching from looking in newspapers to using their computer instead.
“It is definitely a positive indicator. I would water it down a little because of some elements. One is the shift in behaviour of more and more people searching online – it is a trend that has been going on,” he said.
“Since the internet began, more people have been searching online and that trend is continuing.”
Rightmove also reported that there was a 1.4 per cent rise in asking prices in the first week of the year.
London Housing Market News
Saturday, 4 February 2012
London Commercial Property Lures South East Asian Investment
The Korean Teachers’ Credit Union, with 20.9 trillion won ($18.5 billion) of assets, plans to buy a 12-story office building in London in the first half as declining property prices boost returns.
The credit union will visit the site this month and may team up with three or four Korean institutional investors to buy the property worth 299 million pounds ($471 million), said Lee Kun Ho, executive director at the Seoul-based organization that provides loans and insurance to its members. He declined to identify the tower as he’s still in talks.
“The price is still attractive enough for us to earn around 6 percent annually, and possibly further returns upon selling the building after a few years,” Lee said in an interview on Jan. 31, adding that prices for some properties are falling as banks put more buildings that were repossessed earlier up for sale to increase liquidity.
The credit union is planning its purchase as a two-year recovery in U.K.’s commercial property values petered out in the second half amid Europe’s sovereign debt crisis. The average value of the nation’s commercial real estate dropped 0.02 percent in November from October, the Investment Property Databank said last month. Values fell 44.1 percent from June 2007 to June 2009 and then rose by 17.9 percent in the following months through November.
The investment will be made while London, Europe’s most- active commercial property market since the start of the global financial crisis, is losing some of its allure as rising prices and prospects of a U.K. recession deter investors. The city slipped to 10th place in a ranking of 27 European cities, according to a survey of more than 600 brokers, investors and money managers compiled by PricewaterhouseCoopers LLP.
“Asian investors with sufficient liquidity can seize the investment opportunity amid financial turmoil in Europe and the U.S.,” Lee said.
The 41-year-old credit union joined a group of investors that bought a San Francisco office tower occupied by Wells Fargo & Co. in 2010 for $333 million in the city’s biggest commercial property deal in three years.
Bloomberg
The credit union will visit the site this month and may team up with three or four Korean institutional investors to buy the property worth 299 million pounds ($471 million), said Lee Kun Ho, executive director at the Seoul-based organization that provides loans and insurance to its members. He declined to identify the tower as he’s still in talks.
“The price is still attractive enough for us to earn around 6 percent annually, and possibly further returns upon selling the building after a few years,” Lee said in an interview on Jan. 31, adding that prices for some properties are falling as banks put more buildings that were repossessed earlier up for sale to increase liquidity.
The credit union is planning its purchase as a two-year recovery in U.K.’s commercial property values petered out in the second half amid Europe’s sovereign debt crisis. The average value of the nation’s commercial real estate dropped 0.02 percent in November from October, the Investment Property Databank said last month. Values fell 44.1 percent from June 2007 to June 2009 and then rose by 17.9 percent in the following months through November.
The investment will be made while London, Europe’s most- active commercial property market since the start of the global financial crisis, is losing some of its allure as rising prices and prospects of a U.K. recession deter investors. The city slipped to 10th place in a ranking of 27 European cities, according to a survey of more than 600 brokers, investors and money managers compiled by PricewaterhouseCoopers LLP.
“Asian investors with sufficient liquidity can seize the investment opportunity amid financial turmoil in Europe and the U.S.,” Lee said.
The 41-year-old credit union joined a group of investors that bought a San Francisco office tower occupied by Wells Fargo & Co. in 2010 for $333 million in the city’s biggest commercial property deal in three years.
Bloomberg
Friday, 3 February 2012
Olympic and Jubilee Year No Extra Pay Day for London Property Owners
Property owners who are expecting to reap the benefits of increased rental returns during this year's big London events should not set their sights too high. The Olympics and Jubilee celebrations have not really prompted a mass surge of enquiries for short term lets;it appears that 90 percent of letting enquiries about this period are speculative enquiries coming from would be landlords planning to leave London during these busy events,and make a quick killing at the same time.
The Olympic or Jubilee Effect has also been used to promote the sale of London investment and buy to let property at overseas property shows. Recent surveys show that there has been a marked increase in Australian investment in residential buy to let property. However,this is more likely to be the result of the strong Australian dollar and familiarity with the London rental market, than with a one off events.
Any other recent rise in overseas nationals increased interest and purchase can be directly traced back to events in the home country; Russians seeking a safe haven in the run up to unnerving presidential elections; Cash rich Greeks are also seeking a steady investment during uncertain economic times; Chinese investors have already replaced those from Russia and the Middle East as the busiest property investors, led by their Government looking to invest huge, surplus to requirements, sovereign wealth fund.
No doubt these investors will also be able to afford some Olympic opening ceremony tickets too.
London Property News
The Olympic or Jubilee Effect has also been used to promote the sale of London investment and buy to let property at overseas property shows. Recent surveys show that there has been a marked increase in Australian investment in residential buy to let property. However,this is more likely to be the result of the strong Australian dollar and familiarity with the London rental market, than with a one off events.
Any other recent rise in overseas nationals increased interest and purchase can be directly traced back to events in the home country; Russians seeking a safe haven in the run up to unnerving presidential elections; Cash rich Greeks are also seeking a steady investment during uncertain economic times; Chinese investors have already replaced those from Russia and the Middle East as the busiest property investors, led by their Government looking to invest huge, surplus to requirements, sovereign wealth fund.
No doubt these investors will also be able to afford some Olympic opening ceremony tickets too.
London Property News
Overseas Investment Continues to Drive Prime London Housing Market
Investment from overseas is continuing to drive the housing market in the heart of London.
This is according to Naomi Heaton, chief executive of London Central Portfolio, who believes that the financial security of homes in the capital appeals to cash-rich foreign investors more than in other European cities.
"Inevitably, foreign buyers will dominate by virtue of the fact that there are far more wealthy people globally, than there are located in the UK," she said.
"London Central is increasingly seen as a safe haven market which offers capital preservation with long-term upside potential."
And it seems the figures back up her claims.
Recent statistics released by the Royal Institution of Chartered Surveyors (RICS) show that nationally property values have seen a slight decrease. But London has continued to buck the trend.
There's also good news for landlords in London as HomeLet's Rental Index for November showed that in some parts of the capital, rental values are 80 per cent greater than the national average.
London Property Market News
This is according to Naomi Heaton, chief executive of London Central Portfolio, who believes that the financial security of homes in the capital appeals to cash-rich foreign investors more than in other European cities.
"Inevitably, foreign buyers will dominate by virtue of the fact that there are far more wealthy people globally, than there are located in the UK," she said.
"London Central is increasingly seen as a safe haven market which offers capital preservation with long-term upside potential."
And it seems the figures back up her claims.
Recent statistics released by the Royal Institution of Chartered Surveyors (RICS) show that nationally property values have seen a slight decrease. But London has continued to buck the trend.
There's also good news for landlords in London as HomeLet's Rental Index for November showed that in some parts of the capital, rental values are 80 per cent greater than the national average.
London Property Market News
Thursday, 2 February 2012
First Time Property Buyer News: Buying is more cost effective than renting
Purchasing a property is on average more than £100 a month cheaper than renting one, according to new figures from the Halifax.
According to the bank, the cost of buying a three bedroom home in the UK stood at £600 per month while renting the same type of property would be 16 per cent higher at £716.
It’s a considerable difference from when the Halifax looked at the market in 2008. Back then the cost of buying was an astounding 29 per cent greater.
In the main this has been driven by mortgage rate dropping to lower than expected levels. Currently the average rate paid by a property buyer stands at 3.63 per cent, compared to 5.75 per cent four years ago.At the same time, the average cost of renting has risen by nine per cent due to an increased demand for rental properties.
Londoners appear to be ones who would most benefit from buying as currently the cost of renting works out 10.2 per cent higher than the average mortgage repayment, even after the cost of funding a deposit.Indeed, out of all the regions in the UK only Wales has cheaper rental than purchase figures (£474 opposed to £479).
Martin Ellis, housing economist at Halifax, stated: “The affordability gains for buyers relative to renters in the last three years have been significant.
“The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.”
It seems that this year may be when many people take the plunge by their first home.
A recent survey conducted by MyIntroducer.com and Virgin Money found that 24.78 per cent of mortgage and financial advisers expected to see more first-time property buyers pass through their doors during 2012.
First Time Buyer News
According to the bank, the cost of buying a three bedroom home in the UK stood at £600 per month while renting the same type of property would be 16 per cent higher at £716.
It’s a considerable difference from when the Halifax looked at the market in 2008. Back then the cost of buying was an astounding 29 per cent greater.
In the main this has been driven by mortgage rate dropping to lower than expected levels. Currently the average rate paid by a property buyer stands at 3.63 per cent, compared to 5.75 per cent four years ago.At the same time, the average cost of renting has risen by nine per cent due to an increased demand for rental properties.
Londoners appear to be ones who would most benefit from buying as currently the cost of renting works out 10.2 per cent higher than the average mortgage repayment, even after the cost of funding a deposit.Indeed, out of all the regions in the UK only Wales has cheaper rental than purchase figures (£474 opposed to £479).
Martin Ellis, housing economist at Halifax, stated: “The affordability gains for buyers relative to renters in the last three years have been significant.
“The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.”
It seems that this year may be when many people take the plunge by their first home.
A recent survey conducted by MyIntroducer.com and Virgin Money found that 24.78 per cent of mortgage and financial advisers expected to see more first-time property buyers pass through their doors during 2012.
First Time Buyer News
Wednesday, 1 February 2012
Monthly Commercial Property Rents Would Help Struggling Retailers
Commercial landlords who let their premises to retailers should allow their tenants to move to a month-by-month payment system.
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
This is according to the British Retail Consortium (BRC), who believe that scrapping the tried and tested quarterly payments system would help businesses manage their finances better, particularly in the months following on from Christmas.
Sarah Cordey, spokeswoman for the BRC, explained: “A large number of landlords still operate on a quarterly basis when it comes to collecting rent up-front for business premises.
“The quarterly rent payment date fell just after Christmas, so again, where companies had not had a Christmas that made up for 2011, they would also in some cases have been faced for a bill for three months in advance, which obviously poses cash flow challenges to any business.”
She added that in her opinion a quarterly rental agreement is an “anachronism” in this day and age due to the speed in which direct bank payments can be made and called for landlords to be more flexible with retailers who are feeling the pinch.
Despite the current economic climate, figures from the Office for National Statistics show that retail sales rose by 2.6 per cent year-on-year in December.
However, several high street chains, such as Peacocks and La Senza, have recently been forced into administration.
London Commercial Property News
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