Posted on July 18th, 2013 by admin
London house prices are set to surge six per cent this year — adding £30,000 to the value of a £500,000 family home, a top estate agent said today.
The new projection comes on the day official figures showed mortgage lending at its highest level since the banking crisis, as buyers flood back into the market. Experts at Savills said they had ripped up their “premature” prediction of “flat” prices in central London after stamp duty rises in last year’s Budget failed to slow down growth.
But the move will reignite fears that thousands of young people are being priced off the property ladder. Lucian Cook, director of Savills’ residential research, said “a clear Bank of London effect” was keeping prices higher as foreign investors and British home-owners alike choose to tie up their money in London bricks and mortar.
He said: “At a global and UK level, London is viewed as a relatively safe place to own property and, once invested, buyers are reluctant to withdraw their equity.” Other factors have been a chronic shortage of supply, record low mortgage rates and easier access to loans following the Government’s Funding For Lending scheme.
Most agents had forecast flat prices or even small falls this year after Chancellor George Osborne put stamp duty of seven per cent on homes bought for more than £2 million, increasing to 15 per cent if bought through offshore companies. It was thought that this would deter foreign buyers, resulting in a cooling of the overall market.
But a July index from agents Knight Frank and researchers Markit, out tomorrow, will show confidence about future price rises at record levels in London households. Although Savills’ projections apply to top central homes, other property experts said much of the rest of London is experiencing similar growth with some of the hottest markets just outside the centre.
Michael Hodgson, chairman of agents Douglas & Gordon, said: “With falls unlikely, we have undercooked our prediction of an eight per cent increase in capital values in 2013. So egg on our face but not as much as some of our illustrious competitors.”
Barclay Macfarlane, head of agents Strutt & Parker in Fulham — where prices are up 13 per cent this year — said: “The threat of a mansion tax and the stamp duty rise at £2 million are two issues that seem to have subsided.”
Source: Evening Standard
Posted on July 18th, 2013 by admin
Working through London’s heat wave we have had a busy week so far.
Highlights include getting a client’s property under offer, making offers on four separate London opportunities for clients, being appointed on a number of London property searches, assisting on “Below Market Value” transactions and receiving a vast range of new off-market opportunities.
We currently have a number of enquiries for prime London properties for overseas buyers.
The Property Inside London team look forward to building on this momentum and delivering on its objective of helping those interested in property.
Enquiries: Christian@propertyinsidelondon.comRead More
Posted on July 15th, 2013 by admin
NEED TO KNOW | AREA INSIGHT
Parsons Green is loved for its green open spaces making it a popular choice for families after space and areas to entertain young children. The famous Hurlingham Club, a beautiful mansion sitting on 42 acres of private green space, is a big attraction.
The area is attracting people who have been forced out of Chelsea due to even higher house prices. Buyers pay around £900 per square foot in Parsons Green compared to up to £1,500 in Chelsea.
Tucked away between Fulham Road to the north and New King’s Road to the South, the properties are predominantly Victorian terraces and Georgian period homes, many of which are occupied as houses rather than flat conversions. The amenities of Fulham are close by, but the area is a hub for quality eateries, pubs and independent boutiques in its own right.
“Parsons Green is highly coveted. The constant upgrade of an ultimately limited supply of houses is reflected in the rising property prices. However, even following annual percentage increases, Parsons Green still provides relative affordability compared to its neighbouring Chelsea,” says Foxtons Fulham sales manager, Guy Evans.
Posted on July 15th, 2013 by admin
The £8bn regeneration of the iconic Battersea Power Station is helping thrust the area back into the spotlight
Battersea is set to become the most sought after address in London. It is one of the capital’s biggest regeneration zones, initiated by Boris Johnson’s decision to approve the transformation of the famous Battersea Power Station. The move is part of the Mayor of London’s “2020 vision”, in which he is calling for “urgent and bold” action to deliver an additional 400,000 new homes in the capital in the next seven years.
A Malaysian company bought the site in 2012 for a reported £8bn. It enlisted Uruguayan architect Rafael Vindy to transform the derelict spot into a multi-use complex offering 16,000 new homes along with public parks and modern promenades. The residential limb of the development, called Circus West, is comprised of a broad selection of apartment types ranging from studios priced at £338,000 to penthouse suites for £6m.
The new 450-acre neighbourhood will not open until 2016, but in January buyers and investors queued in the bitterly cold weather to get in early in what looks set to be the top residential site in London. Foreign investors have already bought 824 of the 866 apartments.
The redevelopment is special for many reasons. Leading experts predict it will be the last time we see the creation of a completely new district where none had existed before and the changes also mark a second coming for Battersea. The area was first a fashionable address back in the 90s but quickly became overshadowed by its affluent neighbours and later, the flourishing creative scene in east London. The redevelopment of the power station has helped thrust Battersea back into the spotlight.
The American government’s announcement in 2008 that it will move its embassy to the area is expected to result in more hotels popping up to cater for the surge in international visitors. Other embassies are expected to follow suit.
Battersea has also resurrected its creative credentials. The Royal College of Art, once situated in Kensington, has relocated to Battersea Bridge Road and Vivienne Westwood, Victoria Beckham, Simon Fuller’s XIX Entertainment and architects Foster & Partners all have offices there.
Battersea doesn’t have an underground station, which has long been a deal breaker for those who had previously considered buying there, but an extension of the Northern Line will help unlock its full potential. The station will be located outside both Battersea Power Station and on Wandsworth Road. It has been made possible by an extension from Kennington and is set to open in 2020.
The stretch of land along the Thames has changed beyond recognition. Much of the unused industrial land has turned into a hotspot for modern, luxury apartments. Already we’ve seen waterside developments like Albion Riverside, designed by Norman Foster, set up there, along with The Tower further down the river. But there’s more to Battersea’s residential offering than Circus West and the riverside developments.
The interest in those developments has had a ripple effect, as more and more buyers have began looking outwards to the settled communities and its traditional Victorian terraces. Little India and “Nappy Valley”, the area between Wandsworth and Clapham, have become a nestling ground for affluent families due to the large period homes and well performing schools. These areas have also proved popular with City workers with families who want to be far enough from the office to switch off but close enough to allow for an easy commute.
For those after a middle ground between the new and old, Crest Nicholson has launched Shaftesbury Gate, a development comprised of new-build homes designed to complement the traditional Victorian and Edwardian mansion blocks in the neighbourhood. Located in the highly coveted Shaftesbury Estate Conservation Area, the site offers just one and two bedroom apartments; two and three-bedroom duplexes; and four-bedroom townhouses. All are equipped with the modern appliances that you would expect from a new-build but the intimate setting is designed to be an antidote to impersonal apartment blocks.
“Increasingly in London, newly built properties are being sold to overseas buyers as an investment, however, our developments are specifically designed to appeal to the local market in the areas in which we build,” says Crest Nicholson London managing director, Trevor Selwyn. “As a result, we sell predominately to local owner occupiers, meaning developments like Shaftesbury Gate will become real communities with long-term residents as opposed to transient communities of shorter term tenants, as is often the case in larger developments.”
Experts predict the cost per square foot to reach £580, which is still considerably less than Chelsea across the river, where the cost per square foot is £1,500. As a result, Battersea has seen an influx of people who have been priced out of Chelsea and Kensington.
If you’re interested in moving there, now is the perfect time to buy. Battersea has always been a great spot for quality boutiques and excellent independent eateries but that is set to expand, as many restaurant chains and shops are planning to move there to cater for the thousands of new residents.
It’s also the right time for investors to buy. Knight Frank predicts the value of properties to increase by 140 per cent and since the news of the regeneration was announced in 2007, prices have already increased by 15.5 per cent for houses and 9.7 per cent for flats, bucking the depreciation in value experienced in some other London postcodes.
Posted on July 15th, 2013 by admin
UK HOUSE prices soared to record levels in July, according to online property portal Rightmove.
The average price rose 0.3 per cent month-on-month and 4.8 per cent year-on-year to £253,658.
This is the seventh consecutive monthly rise, the report said.
Prices in London rose 12 per cent to an average of £515,379.
“The market is currently benefiting from the ‘aggregation of marginal gains’ where incremental improvements across a range of key market drivers compound to slowly but surely build momentum,” said Miles Shipside, Rightmove director and housing market analyst.
Posted on July 15th, 2013 by admin
RIGHTMOVE has doubled its 2013 forecast for house price growth to four per cent after seven consecutive months of gains.
Year-on-year price increases for newly marketed properties rose to 4.8 per cent in July – up £11,561 on this time last year.
Prices rose 0.3 per cent – an average of £860 – since last month, and Rightmove said an “aggregation of marginal gains” had fuelled its optimism.
The property website said there were signs of a broader-based recovery, with all regions’ prices up year-on-year for the first time in nearly three years.
Consumer confidence has also increased. The number of people expecting average prices to be higher in 12 months has doubled from 31 per cent a year ago to 62 per cent now.
Rightmove said it has dealt with five per cent more transactions in the year to date. Meanwhile email enquiries to agents and developers are up 18 per cent on 2012, the number of new sellers has risen by five per cent, mortgage approvals are up by six per cent and it said surveyors are “struggling to cope” with demand.
Source: City AM
Posted on July 15th, 2013 by admin
LONDON’S Silicon Roundabout was home to more start-ups than any other area in the country during the year to March, new figures show.
The postcode EC1V – a hotspot for technology firms – saw 15,720 start-ups created over the 12-month period, outstripping some of London’s international financial centres by a considerable distance, according to a survey by UHY Hacker Young.
Canary Wharf and Bishopsgate combined saw 4,900 new ventures, less than a third of the total for Silicon Roundabout. Of the country’s 20 top areas for new firms, 17 are in London, with only Warrington and Cheshire outside of the south east of England. Brighton is also included in the list.
UHY Hacker Young partner Colin Jones said: “Clusters of expertise can be highly effective in driving new business creation”, adding “the area around Old Street has been an emerging business destination for some time thanks to relatively cheap rents, but since the internet and app industries started to colonise the area, new business creation has really taken off”.
Silicon Roundabout, also known as Tech City, appears to have profited from government efforts such as the Tech City Investment Organisation, a body aimed at encouraging growth in the area. Successful tech start-ups in the area include Hail-o-, the international taxi app; Mind Candy, responsible for Moshi Monsters; and Stylist Pick, the online fashion boutique.
However, a recent City A.M. roundtable discussion on the new issues market heard from Balderton Capital how many larger tech sector companies, like Shazam or King, were likely to head for share listings in New York rather than London.
Other top areas for new business in the capital included Borough and Bermondsey (SE1), where 5,190 new businesses were set up in the last year, mostly specialising in the creative industries, finance and professional services.
St. James’s (SW1Y) attracted 1,830 new businesses last year. Already a popular spot for private equity firms, it is also favoured by wealth management firms.
“The area is in easy reach of the City yet close to the homes of the growing community of ultra high net worth Individuals in locations like Mayfair, Knightsbridge and Notting Hill,” said UHY Hacker Young.
Bishopsgate and Canary Wharf (EC2, E14) became the new home of 4,900 new City-related businesses in the year. The sites have become popular with former City staff who have set up their own boutique operations and wanted established locations to enhance the credibility of their new businesses.
Meanwhile London-based and web businesses are also claiming the lion’s share of angel investment.
In a study of 262 angel deals worth £137m in the year to March, Deloitte and UK Business Angels Association (UKBAA) found 54 per cent of investment went to London and the south-east and half of capital went to digital and internet businesses.
Source: City AM
Posted on July 12th, 2013 by admin
London has been the gem of the British property market for quite some time.
The values of both residential and commercial properties in the English capital have been rising far higher than buildings anywhere else in the UK for a number of years.
Amongst international investors, it is regarded as a safe haven for investors – but which London boroughs have been tipped to provide the biggest increases in property value over the next five years?
Here are Savills thoughts.
Richmond-upon-Thames is the only London borough which sits both north and south of Britain’s most famous river. Kew Village is well known for being a classy area with high property prices, but elsewhere in the borough property prices are relatively low. They have been forecast to rise by more than 20 per cent in the next five years.
Lambeth in South London is known in property circles for hosting for the South Bank. Vauxhall is expected to be one of the hottest areas for property price growth in the borough.
Southwark is another borough south of the River Thames with a promising property market. Billions of pounds worth of regeneration has been planned in the borough. In fact, Elephant & Castle is expected to play host to £1.5 billion of new projects in the next decade. Bermondsey has been earmarked for providing fantastic rental yields.
Wandsworth is well known for having the lowest overall council tax charge in the entire country. Their local council has been heralded for being the most prudent spenders of taxpayers money. These are just two reasons why property prices have been tipped to rise by almost 22 per cent by 2018.
Hackney may still be trying to shrug off its reputation for being one of the roughest areas of the UK, but it is improving at an incredible rate. In fact, crime levels have dropped faster there than any other area of Britain.
The London Olympics helped provide Hackney with plenty of glorious new infrastructure, particularly in Shoreditch which is regarded as one of London’s most glamorous property hotspots.
As home to City University and London Metropolitan University, Islington is a student-heavy area of the capital. Properties there are generally amongst London’s most expensive but they have been tipped to rise by 23 per cent within five years.
Famous for its open air market, Camden has a reputation as London’s trendiest borough and it should be particularly attractive to property investors. Rental yields in Bloomsbury have been cited as higher than anywhere else in the capital, whilst it has been predicted that property prices will be 23.5 per cent higher on average in 2018.
#3 Hammersmith and Fulham
Hammersmith is noted for hosting many uniquely shaped commercial properties including “The Ark” office building, shaped like a boat, and Hammersmith Bridge Road Surgery. It hosts a plethora of property management agencies and building values have been tipped to skyrocket.
#2 Kensington and Chelsea
The Royal Borough is the second smallest in the capital and the most densely populated local authority in the UK, so it’s no surprise that demand for buildings continues to soar, by more than 25 per cent in half a decade.
Westminster is the home of London’s most famous iconic commercial structures – Big Ben, Westminster Abbey and Buckingham Palace – but there are plenty more for wealthy investors to stick their teeth into. Property prices here have been tipped to jump by more than 25.5 per cent within cent.
With these statistics in mind, London appears to be a good investment for property investors.Read More
Posted on July 3rd, 2013 by admin
MAKE PROFIT ON THE 100% VALUE WHILST HAVING ONLY 20% TIED UP UNTIL COMPLETION
A deposit of 15% or 20% is normally required when purchasing off-plan. Investors will often look for schemes with a completion in 2-4 years time, so they can benefit from capital growth (in the same way if you were buying a resale property) but with only a small amount of equity tied up, often allowing them to buy multiple units.
SELL ON BEFORE COMPLETION AND PAY NO STAMP DUTY
Most contracts are assignable and many investors purchase off plan with the intention of selling on before completion. The buyer who completes on the property pays the stamp duty.
CHOOSE THE UNIT YOU WANT
If you are looking for a specific flat type within a development, you could be waiting many years for such a flat to become available on the re sale market. A developer or agent will be able to offer you a much larger range of apartment types and price ranges so you can pick and choose the property you want.
A brand new property with brand new appliances is very appealing to Landlords (and tenants). Most new properties come with a 2 year manufacture guarantee and a 10 year NHBC certificate or equivalent.
A CASE STUDY
Our client purchased a unit in an area that was undergoing significant redevelopment. As the first new residential block in the area, the apartment was purchased at an attractive price. The client paid the reservation payment and deposit.
After the area had seen a significant increase in value, we sold the contract for our client making him a significant profit- indeed substantially in excess of 100% return. The marketing of the property was carefully co-ordinated and timed taking into account the release of other new developments in the area.
PROPERTY INSIDE LONDON
We are aware and have access to all the major off plan developments in London. Rather than being sales agents for individual sites, we are independent and so can provide advice on the best sites, the best units within the developments and negotiate on your behalf.
We are experts in selling units before completion, having successfully done so in a number of London’s leading developments.