2011 investments in London

In September 2010 The Treasury concluded its consultation on investment in the private rented sector, which had commenced under the previous Government in February 2010. In particular, the consultation addressed the issue of the Stamp Duty Land Tax (SDLT) rate for bulk purchases, where some consultees had argued for the payment of SDLT at the lower rates implicit for individual units of 1% to 3%, rather than the top rate of 4%, which is due to rise to 5% on 6th April 2011 for residential property over £1 million. The Government was unconvinced that such a change would have a material affect on viability and that in any case the cost to the Government would not be acceptable set against the need to reduce the budget deficit. Reducing VAT rates for management fees and repairs and maintenance of private residential property was also ruled out on the same grounds.

Press commentary indicates that institutions which are targeting the private rented sector will not be deterred by this lack of support from the Government. Consortia such as Aviva Investors with residential management firm Pinnacle, and Aegon with property developer Terrace Hill, are actively raising initial equity.

The Facts about London Real Estate Agents

There are many refreshingly different qualities speaking about The Space Station. One of the major reasons why this company holds such a kind of reputation is its well equipped staff, which is absolutely friendly and highly knowledgeable. This is the right company that you have to go with, when you are in search of London real estate agents offering the best when it comes to service, assistance as well as advice. There is no doubt that the company is highly experienced and will be well aware of all things coming to property marketing techniques. You will be able to find their online branch as well, which is again well equipped with an outstanding staff for offering best assistance. The Space Station agents are included in the list of top London real estate agents offering an outstanding service to customers and clients alike.

The knowledge and experience are the two major factors, which have been the reasons for the outstanding reputation of this company. The company has already helped thousands of people to find a perfect property when it comes to accommodation in London. In fact, the company also holds a record of being the first one to sell most of the amazing Shoreditch residential properties. At first, people were able to get accommodated in only single apartments. However, due the advancements made with the help of real estate agents, there are many multi optional apartments available in this city.

It is quite obvious that people will look forward to either lease a residential property or purchase a property in London. In both of these cases, all that they have to do is seek the help of The Space Station real estate agents. The reason is that this company has good number of residential and commercial properties for negotiation in this part of the world.

UK property Increased by 2,000 billion Pounds

A new research shows that, in ten years the UK property value has increased by over 2000 billion pounds and the traditional north-south divide of United Kingdom is narrowing.

Halifax, released a report which clearly shows that the total value of the privately owned property in United Kingdom has doubled over the past ten years.

In 1999, there was an increase of 118 percent that is 1,719 billion pounds to an estimated 3,755 billon pounds in the year 2009. At that same period, the retail price rate was increased by 29 percent.

The report shows that the significant growth of the 2000 billion pounds over the decade is equal to 33,000 pounds per head of the United Kingdom population. But, since 2007, value of the UK property prices decreased by eight percent mainly due to the worldwide financial crises. This shows the decrease in the property vales between the middle of the year 2007 and early 2009. The increase in the property prices in the year 2009 saw property value increased by two percent during that year.


The new study also point out that the north and south gap in the private property value of the county decreased during the noughties. Between 1999 and 2009, the value of the property in the north increased by 132 percent, whereas in the south it was increased by 109 percent. As a result the north property share was increased to 41 percent in 1999 to 44 percent in 2009

In 1999, there was a huge increase in the property value in Northern Ireland with a 198 percent from 31 billion pounds to 92 billion pound in 2009. The next big increase was in North East, 147 percent, Yorkshire and the Humber, 139 percent, East Midlands, 133 percent and Scotland at 145 percent. The smallest increase were in West Midlands and East of England at 107 percent and south east at 100 percent.

Riding the interest rate

In thirty years of mortgage broking, Am I should take a variable or fixed rate is a question which is asked by most of the people to themselves and to experts.

It doesn’t matter if you are a first time buyers or about to move or in fact coming to the end of the present mortgage product. Whether to fix the rate of interest of to allow it remain variable is the major issue. The Bank of England a 300-year old central bank of United Kingdom, the base interest rate remains at low of 0.5 percent. Therefore it does seem reasonable in order to suggest that another movement in the base rate is more possible to be increased than decreasing.

Pay now, save later

During most of the year 2004 until late of 2008, the average rate was about five percent.
If you had a twenty five year mortgage deal of 100,000 pounds, presently charging three percent an annual interest, an increase in your mortgage deal rate to 7.5 percent (a margin of 2.5 percent over a base rate of five percent) would see your interest amount rise from 475 pounds per month to 850 pounds per month. The main benefit with fixed rates but is that as the base rate rises (if it does) then your budget remains unchanged by the increase.

Any pay increase you get over the five or two years would be yours to spend and not just handed over to your lender. Obviously, if you take a deal for a five year interest rate at 4.5 percent, you would be paying more than a few of your neighbors this year. However if the interest rates raise you may find you have new neighbors.

Those exposed to the variable interest rates might have been forced to move because of their inability in order to maintain their mortgage and their lifestyle.

NEW DEVELOPMENTS IN LONDON

New developments in london

St Pancras Chambers -650pw

A Stylish Interior Designed Two Bedroom Apartment within the Prestigious and Brand New Grade II Listed St Pancras Chambers Development. Comprises Large Reception Room with Wooden Floors and Large Windows, Smart Separate Kitchen, Two Double Bedrooms (One Master, One Double Used as Executive Home Office), One Bathroom. High Ceilings Throughout. Second Floor (With Lift). Concierge Service and Secure Entrance. Moments from Eateries/Designer Shops of St Pancras Eurostar Complex. Easy Access to West End, Islington and The City. Tube: Kings Cross.

Kings Cross property for sale.

A beautifully presented top floor apartment overlooking The Regent's Canal

A beautifully presented top floor apartment overlooking The Regent's Canal. The accommodation comprises, reception room with recessed fully integrated kitchen, master bedroom with en-suite shower room, second double bedroom and bathroom. The apartment also has the advantage of a terrace and secure parking. Orsman Road is located close to Hoxton and will benefit from the opening of the new East London Line. Clerkenwell estate agents

MAIN FEATURES

* 2 Double Bedrooms

* 742 Sq ft - 69 Sq m

* Terrace

* Parking

A one bedroom apartment on the fourth floor apartment

A one bedroom apartment on the fourth floor apartment of a most sought after portered block on High Holborn. Located next to Chancery Lane tube station, the south facing apartment comprises one double bedroom, one bathroom and reception room with a kitchen in immaculate condition. Bloomsbury apartments

MAIN FEATURES

* One Bedroom

* 448 Sq ft / 42 Sq m

* Portered Building

* Prime Location

rental market

Residential rents in Midtown, City and Docklands began to fall at the end of 2007, initially in response to the increased supply of rental units and more recently, in addition to supply side factors, as a reaction to the fragility of the London labour market. While the sales market may have turned a corner in the first half of 2009, there was no such respite for the rental market – not at least in terms of rental levels.





The rental market has become highly competitive across central London in response to the supply and demand balance increasingly favouring the tenant. In effect, there has been a contraction in the demand side London-wide and that has put pressure on prices in all markets. Tenants have been the winners, with some in the position
to trade up, in terms of location and/or quality of unit. Midtown, City and Docklands has actually benefited from this process, drawing in tenants from other less favoured locations in its penumbra.





Landlords are accepting rents below their initial asking rents in order to reduce voids. In some cases landlords’ own financing costs have been reduced along with the Official Bank Rate, softening the impact of reduced rents and encouraging landlords to accept lower offers. When renewing their leases, some tenants have asked for break
clauses to be included in new tenancies, to allow greater flexibility to move quickly if they are able to secure a purchase.






As a result, rents fell by 7% on average across Midtown, City and Docklands in the first half of 2009. This was in addition to a reduction of 9% in 2008 (Figure 3). Hence, rent levels at the end of the first half of 2009 were at 84% of the December 2007 peak. In terms of rental income landlords might expect to achieve, the typical weekly rent for a two-bedroom flat has fallen from £505 per week to £430 per week
over 18 months to the end of June 2009, while for a one-bedroom flat weekly rents have fallen from £385 to £325 per week.

Baker’s Row is a stunning development of just 8 apartments

Clerkenwell has been described as "the London equivalent of New York's East Village, but with better architecture and ten times more history."

With great shopping and tremendous diversity of acclaimed restaurants, bars, galleries, pubs and clubs, the Clerkenwell Green Conservation Area has become a favourite for young professionals. Clerkenwell was in fact the site of London's very first gastropub (The Eagle) back in 1991. It's home to some of the capital's finest restaurants (including Moro and St John) and a bewildering array of social venues, from family orientated wine bars to huge clubs and cool underground bars. From the groovy little shopping streets around Exmouth Market to London's oldest church.

Baker’s Row is a stunning development of just 8 apartments

Mortgage approvals down further as UK pays its credit card bill

According to Bank of England data, in December mortgage approvals decreased to 99,000 lower than the six month average of 136,000 and the 100,000 in November.


Due to low rates on standard variable rate mortgages, borrowers have little reason to switch at the end of fixed deals which has resulted in particularly low activity in the remortgage market.
There was a rise in Mortgage approvals for home purchases in December and according to the UK economist Vicky Redwood, this could be seen as a sign that the rise in new buyer interest seen over the past few months is finally boosting housing market activity. However she warns not to get too excited as approvals are still 76 per cent low than on their peak and is unlikely to increase significantly while credit is hard to get.


The Bank of England data also shows that despite the Christmas rush, UK paid off £100 million more on credit card debts than spent.


Howard Archer, chief UK economist at Global Insight mentioned that rising debt levels, historically low household savings rates, plunging house prices and sharply weakened equity markets mean that there is a pressing need for many consumers to improve their finances.

Global residential property growth slows

The latest statistics from Knight Frank indicate that in the second quarter of 2008, the global residential property market continued to slow down with growth falling to 4.8 per cent, down from 6.1 per cent in the first quarter.


Although half the markets listed in the index experienced a drop in prices, certain economies of central and south-eastern Europe appear to be performing strongly.


Nick Barnes, head of international research at Knight Frank explained that the global house price inflation has continuously decreased and as a result of this most of continental Europe is experiencing low or negative growth.


On the other hand there are rapid price increases in some parts of Asia and Eastern Europe with Bulgaria, Slovakia and Czech Republic recording strong performance due to robust economic growth.

In contrast rapidly depreciating housing markets of the Baltic States – led by Latvia, where prices fell by 24.1 per cent over the past year, demonstrate that rising inflation and mortgage costs poses serious threats for the emerging economies of Europe.

Property prices in Spain, Denmark, Ireland, UK and New Zealand are experiencing a sharp fall due to the credit crunch.

Housing Bubble Bursts in London

The financial crisis is taking a heavy toll on London's once-thriving property market, as real-estate agents report the biggest slump in business since records began 30 years ago.

London's real-estate agents sold an average of 8.3 properties apiece in the three months ended in September, according to the Royal Institution of Chartered Surveyors. That is the lowest tally for any region of the country since the survey started in 1978. In Britain as a whole, agents sold an average of 11.5 properties during the three-month period, down more than 50%

Classy and classic should avoid the crunch

The class divide is alive in London. If your home is flawlessly finished and impeccably located, you’ll still find the buyers lining up, whether you live in the leafy squares of Central London or deep in suburban commuter land.

Agents report that prices are between 10 per cent and 15 per cent lower than the highs reached last summer. But even with such reductions, predictions that prices will fall even farther mean that a single flaw is enough to scare off buyers, who are quickly made nervous by as little as a thoughtlessly planned extension or too much road noise. If it is not the best in its class, it’s not good enough.

At the top end, in the very best postcodes of Chelsea, Mayfair and Knightsbridge, demand remains unconstrained. Cash-rich international buyers still stalk the market, with £5 million or more to spend, looking for a London bolthole. They are also in the market for landmark, stucco-fronted homes for more than £10 million.

Ed Mead, of Douglas and Gordon, reports increased activity from Indians and Russians. But, he says: “Most of the activity is from countries in euroland. Between the strengthening of the currency, and the reduction in prices, the deals look very good to them. The staff in my office speak five languages and I rarely hear them in English.”

But agents say that the gloss is coming off even these homes, as the gloom that afflicted the national market has spread to Central London. Miles Shipside, of the property website Rightmove, says: “The super-rich have got the funds but they are canny buyers. If they think they can get something cheaper later, they’ll wait.”

Should international buyers close their cheque books, sellers will be left to brave the demands of the British buyer: the best home of its kind, for the sharpest price. Marc Goldberg, of Hamptons, says: “Nobody is willing now to pay over the odds for any property, and everyone wants a bargain.”

That is quickly translating into pressure on prices. Ed Mead advises: “Prices were reduced 10-15 per cent almost in unison. But now, anyone who wants an easy life and a sale must reduce prices another 10 per cent from what they think is a reasonable price. That adds up to a fall of 25 per cent.” The fast deterioration of the market has been blamed on the loss of bonus cash, which did so much to boost prices in the past two years. With job security under question and bonuses forecast to be slim, City buyers have gone on strike. David Salvi, of Salvi Hurford Carr, says: “You could draw a line between east and west. The west is relatively unaffected, whereas the farther east you go the worse it gets. Docklands has been badly hit.”

Chris Pendleton Interview - MS map and Real Estate

Chris Pendleton Interview