Latest Property News & Updates in London
Up the Creek with a Golden Paddle
May 14th
There’s a lot going on in London this year. The Queen’s Jubilee, the Olympic Games and many other satellite events surrounding these big occasions. In more sustainable news, St George, a UK developer has just unveiled Chelsea Creek, a waterside project designed by architecture firm, Squire and Partners. The project is located at King’s Road, London and was officially unveiled at an exhibition at the St. Regis Hotel in Singapore over the last weekend.
Squire and Partners is an award-winning firm and as far as London architecture goes Chelsea Creek is a ver ambitious undertaking. The project sees interlinking waterways allowing residents to access a central dock with their private boats. This may be from their apartment building or from the river Thames itself.
Middle-East Property Investment Interest in London Flares Up
May 11th
Financial pundits were once sure that property investment was a safe and sure way to grow your net value in the long-term, but as of late even that has come into question with the world’s economic problems. In the UK, property investment has had a few genuine markets however which have acted as a safe haven during times of crisis and that is now being tested extensively as Qatar announce their continuing interest in property investment in London. On Saturday, Qatar’s sovereign wealth fund explained that is had become the biggest shareholder in the company that owns much of the Canary Wharf business district of London. While owning Fitzrovia property means you’re definitely in a property investment hotspot, amassing the sheer amount of property Qatar seems to have is a gigantic undertaking. This announcement demonstrates a renewed appetite adding London into their property investment portfolios.
In total the Qatar Holding said it had increased its share of the real estate agents in control of Canary Wharf to 24% with a total property investment amount of 350 million pounds. Managing director of Qatar Holding Chief Executive Ahmad al-Sayed said that London presents itself as outstanding prime real estate and I’m sure you won’t find a Bayswater estate agent who wouldn’t agree. Qatar may seem to be going against property investment advice that is spreading fast; with property prices in London at record highs, how much return on investment can realistically be anticipated. However the property investment savvy, calculator in hand, project a further 20% increase in property prices in the next decade; this means a massive return on investment. It may be as good as it’ll get for the long term when it comes to entering property investment right now.
Qatar Holding is the investment arm of the Arab state’s gas-rich sovereign wealth fund, the Qatar Investment Authority. The holding includes investment in Barclays PCL, Credit Suisse Group, J Sainsbury PLC and the London Stock Exchange; in other words large investments in a perceived stable market despite the Euro Zone crisis. In time these, as well as the property investments, will put Qatar in a financially powerful situation.
UK Construction Industry Shows Signs of Growth
May 9th
As businesses around the UK begin to recover from the recession of 2008-2009, the construction industry is set to join these re-emerging industries after a slow start to the year seems to be picking up, in both the residential and commercial construction markets. A big push behind these changes have been the further injection of funds and work due to the ever increasing amount of railway projects, specifically London’s Cross Rail Project and the build up to the 2012 Olympics, and energy projects that are being government funded.
Even though the industry still remains upbeat with over 100 billion pounds still invested in the industry every year, however the spread across the British Isles is not equal with the majority of work occurring in London and the South. The Olympics has been a great boost to the construction industry with hotels needing changes and amendments, infrastructure demanding an increase in capacity and lastly that everything is well maintained and prepared for the huge amount of expected guests this summer. With all the work ongoing, sales in other industries, such as workwear manufacturers producing safety shoes, are experiencing the benefits of the improving construction industry.
Schools are also a key aspect of development in the UK, with the construction industry being offered great government projects to help increase the number of learning institutions across the UK. While government is providing the largest boost to the industry in terms of jobs, the other industries are set to blossom after the Olympics, which will play a huge factor in international investment and commercial development throughout the country. So don’t be surprised when you seen an increasing number of workers on the streets dressed in ladies safety shoes and hard hats as the construction industry is developing yet again.
London Property Booming After EU Elections
May 8th
London estate agents are experiencing a flood of interest from potential French and Greek buyers, as recent elections in these southern EU countries have cast a shadow of doubt over the financial security of the wealthy, driving London property values up. The French general public have welcomed the first socialist elected president since 1995, which is bad news for France’s elite and good news for London property owners in exclusive areas. President Francois Hollande has promised to introduce a wide range of left-wing policies, such as a top tax bracket of 75% and the creation of thousands of new public sector jobs. He has also publicly stated that he ‘dislikes the rich’ and that the world of finance is his principle enemy.
Mr Hollande’s policies and public statements is pushing wealthy French buyers across the channel to London’s luxury property market, which is considered a safe haven for preserving family fortunes and avoiding tightening tax regulations. Fitzrovia estate agents have noticed a marked increase in London property price trends in general thanks to the increasing French demand. Areas like South Kensington in particular, enjoyed a property price escalation of up to 6% a month in the first quarter of 2012. On average, the trendy property hotspots of SW7 and SW5 are going up for sale at around $3.2 million.
Overall, when considering figures from Paddington estate agents to Mayfair property consultants, the French are now the second largest group of property buyers in London behind the British, making up 8% of all London property purchases. At one London property estate agent, enquiries from potential French buyers have increased by a massive 19% over the first quarter of 2012. Experts agree that the London luxury property boom will only continue to grow as fears of a Euro collapse grow stronger.
Using House Sitters Over Renting to Tenants
May 4th
A home is a castle, but even a king will want to travel to foreign lands; finding the right house sitters for the job of defending your castle may seem intimidating and confusing or perhaps you’ve not even considered it at all. There are many reasons house sitters are needed for your empty home; for example insurance companies can offer unique premiums that take into consideration that you secure your home with a house sitter while you travel while a presence within a home is usually a deterrent for would-be thieves or vandals.
Another good reason is the pet minding that is included part and parcel with house sitters in the UK and abroad; let’s go over some of the questions you may be asking yourself as you consider a service of this sort.
What are the advantages over a wanted house sitter or a tenant; for a tenant you are essentially working for them and they are your boss, ironically, on your own property. Meanwhile house sitters work for you which equates to less stress from your side.
You can enjoy your holiday without stressing about the issues a tenant might have.
House sitting in London can lead to you not having to shelve all your possessions for a tenant; leave your house as is and it will be returned to you in exactly the same condition without fuss.
Many don’t realise this, but insurance policies usually only cover homes that have not been empty of residents for 30 consecutive days; if you’re away for longer than a month without someone staying in your home and insurance claim will fall on deaf ears unless specified. This is even worse in more temperamental locations where it can be as little as four days. With anything capable of going wrong while you’re away, such a burst pipelines or electrical fires, it’s important to safeguard you house from more than just burglaries. It’s even possible that long term house sitters charge nothing for the privilege of looking after your home. Pet and house sitters are usually looking for an alternative way to travel and just being able to stay in a home is enough for them to safeguard it for you. If the choice were up to me, I would use house sitters every and any time I don’t plan on retreating to my castle for a while.
Central London Property Market Prices Hit the Roof
May 4th
Astounding London Property News; Garage On Sale For £500 Thousand
May 2nd
It has become a common occurrence that when London property prices are discussed, people gasp. Many London property agents such as Fitzrovia estate agents thought that the property craze had come to a halt that is until a garage was listed on the London property market for sale at a whopping £500 thousand!
For £500k, many people are asking if this garage is gold plated. Quite to the contrary, this central London property is small, dirty and run down. It is situated in a Knightsbridge side road called Rysbrack Street. The central London property garage that is for sale for an incredible amount of money is nothing spectacular. No chandeliers nor private lift, it’s just an ordinary .4 metres wide by 4.75 metres deep garage. If you are the lucky buyer of this London property, you have the wonderful opportunity to drive straight out of your garage and into immense traffic most days of the week.
Although any real estate agent such as Paddington estate agents will tell you, this garage is three times more expensive then the average property in the United Kingdom. This particular area and its surrounding areas, is one of the most if not the most expensive areas in London. For around £500k, one is able to possibly by a shoebox of an apartment with less than 40 years on the lease. For a one bedroom expect to pay around £1 million and a two bed around £3 million.
The streets in this area have little to no public parking available on the streets and expect to dig deep into your pockets if wanting to park in a residential space. So in hindsight, if you are willing to fork out the amount of money you are going to for your London property in Knightsbridge, then £500 thousand seems like a small price to pay for parking.
London Housing Continues to Propel the UK Market
Apr 26th
Despite the anxiety surrounding the Newham property crisis, a survey has revealed that London housing continues to propel the UK real-estate market upwards and onwards. The report showed that shops and rent were the most divergent sector that drove the 0.2% growth, partly due to interest in Marylebone property.
Distilling the uncertainty around the UK economy, Central London has been highlighted as the brightest jewel in England’s crown. The centre of the capital has become the place to live and shop, attracting locals and tourists to its paved streets and London housing market prices. A counter-balance to the rest of the country, Central London’s strength is only set to get stronger as the Olympics sweeps through the city.
Nick Parker has described the message of the report as being very clear. His conclusion is that “London remains the key hub for UK commercial real-estate growth”. From prime rent to prime office space and prime shops, London housing has experienced positive growth in all three sectors. The only results that remained subdued were those from investment markets due to the uncertainty shrouding the UK economy. London housing solutions are leaning heavily against the capital city’s condensed venture interest, especially foreign focus on Central London properties.
Good news for Londoners, the report has shown that there is still hope yet for the burgeoning city of lights. The growth spurt of London housing shows that the there is still life in the property market, despite speculation.
Economic Signs that Affect the Housing Market
Apr 25th
The housing market has always been touted as one of the surest investments when it comes to the long-term, but cashing in your chips as it were tends to be a moment in a home owner’s life that remains intimidating. While some invest in property as inheritance for their family and loved ones, but those looking to generate profit off of it need some savvy to know when the best time to buy or sell has come. In the case of selling, especially in recent years, the housing market trendsare becoming increasingly difficult to read. While certain markets or areas, such as Marylebone property, are mostly sure bets it’s still difficult to know exactly when housing market predictions signify a good time to sell.
Previously it was noted that the housing market in the UK tends to see an increase in activity during spring, the time of the year is becoming less of an indicator than it used to be. It makes sense that a home would look more appealing in the springtime than in the grey winter, but this has little consequence to the now overly-prudent market of buyers. Regent Park estate agents will testify to the fact that weather has little to do with a sale with more on the line than mere aesthetics. The main factor is without a doubt the overall economic situation, although by now it goes without saying. Usually the market ramps up in March or April before slowing down at the beginning of July, but the 2011 housing market proved otherwise.
Prices in the housing market are not limited to the economic situation of any given region, but indeed the bigger picture has to be taken into account. For example, when tragedy struck Japan it affected many industries that in turn had an impact on housing market values. The same can be said for the financial crisis in Greece and the doubt in the EU; these were signs that affected the housing market worldwide. So if you’re trying to figure when would be a good time to cash in your investment and sell your property, be sure you know what signs to look for that may seem unrelated but will play a role in the housing market; picking the right time of the year in addition to the economic factors is a less a science than a gamble, but you can limit the risk by knowing the signs.
UK Mortgage Lending Reaches Six Month High
Apr 24th
According to the Council of Mortgage Lenders (CML), UK mortgage lending boomed in March to reach a six month record high. The sudden increase in mortgage lending was largely due to the oncoming deadline for the stamp due concession. According to mortgage lending statistics, gross mortgage lending for March stood at £13.4 billion, a massive 30% increase from the £10.3 billion seen in February and a 17% increase from March last year.
The concession on stamp duty allowed first-time home buyers to be exempt from the 1% stamp duty imposed on residential property that exceeded a price of £250,000. The concession however ended on 24th March, not only for central London property but for homes situated elsewhere in the UK. A new scheme assisting first-time home buyers with their mortgage lending was introduced by the government, in which lenders and the government underwrite a mortgage secured on a new-build house or flat. Because of these recent changes, the residential property market has been comparatively buoyant in the past few months leading up to the NewBuy scheme.
According to Bob Pannell, CML chief executive, a drop in mortgage lending and the rate of transactions is expected to decrease after March following the end of the stamp duty concession rules. It will also take some time for the NewBuy levels to build.
The CML largely consists of banks, building societies and other lenders who combined assist with a massive 95% residential mortgage lending, whether a luxury Fitzrovia property or an apartment in Wimbledon. According to the latest mortgage lending news, the gross lending for this quarter peaked at £34.4 billion, an overall drop from £37.8 billion last year.
