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.
Tuesday, 30 June 2009
Friday, 22 May 2009
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
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
Friday, 20 March 2009
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.
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.
Tuesday, 24 February 2009
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.
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.
Friday, 17 October 2008
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%
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%
Friday, 30 May 2008
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.”
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.”
Wednesday, 21 May 2008
Tuesday, 8 April 2008
First time buyers snap up apartments near Crystal Palace
First time buyers are swift to take action when a great opportunity is presented, which is why half of the apartments at Barratt Kent’s Zen development near Crystal Palace have already been reserved.
The homes, which are priced from just £195,000, are being sold under English Partnerships’ First Time Buyers Initiative. This allows first time buyers to buy a property through an affordable mortgage, with the remainder of the purchase price paid directly to Barratt by English Partnerships.
“The chance to buy a home with an affordable mortgage is an enormous incentive in the current market,” comments Ann Moriarty, sales and marketing director for Barratt Kent. “Add to this the fact that these are smart new apartments in an up and coming part of London, close to the high street and station, and it’s easy to appreciate why Zen is selling so quickly.”
The 32 one-bedroom apartments at Zen are located on Anerley Park Road, close to Crystal Palace Park. Anerley’s high street, with its good selection of shops, bistros and cafés, is a short walk away and for commuters it is just a 20-minute train journey from nearby Anerley Station to London Bridge.
The homes, which are priced from just £195,000, are being sold under English Partnerships’ First Time Buyers Initiative. This allows first time buyers to buy a property through an affordable mortgage, with the remainder of the purchase price paid directly to Barratt by English Partnerships.
“The chance to buy a home with an affordable mortgage is an enormous incentive in the current market,” comments Ann Moriarty, sales and marketing director for Barratt Kent. “Add to this the fact that these are smart new apartments in an up and coming part of London, close to the high street and station, and it’s easy to appreciate why Zen is selling so quickly.”
The 32 one-bedroom apartments at Zen are located on Anerley Park Road, close to Crystal Palace Park. Anerley’s high street, with its good selection of shops, bistros and cafés, is a short walk away and for commuters it is just a 20-minute train journey from nearby Anerley Station to London Bridge.
Wednesday, 2 January 2008
Home prices fall for second month
UK house prices fell for a second consecutive month in December, the Nationwide building society says.
Prices dropped 0.5% in December after slipping 0.8% in November, but property prices were still up 4.8% year-on-year from December 2006, it said.
The average price of a Stratford Property rose by £8,334 over the year, putting it at £182,080 at the end of 2007.
Nationwide said that this month's interest rate cut should help the market recover somewhat later in 2008.
"The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year," said Fionnuala Earley, Nationwide's chief economist.
Rankings
Nationwide data also showed that St Albans was the most expensive place to buy property in a survey of 30 towns and cities.
The average house price in the Hertfordshire town rose 13% to £347,563 over the year.Belfast saw the biggest rise in house prices, up 32% over the year to £306,698 - an increase of £201 a day.Durham and Newcastle saw the survey's only fall in house prices.
Average prices fell 3% in both places to £152,902 and £178,309 respectively.
Prices dropped 0.5% in December after slipping 0.8% in November, but property prices were still up 4.8% year-on-year from December 2006, it said.
The average price of a Stratford Property rose by £8,334 over the year, putting it at £182,080 at the end of 2007.
Nationwide said that this month's interest rate cut should help the market recover somewhat later in 2008.
"The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year," said Fionnuala Earley, Nationwide's chief economist.
Rankings
Nationwide data also showed that St Albans was the most expensive place to buy property in a survey of 30 towns and cities.
The average house price in the Hertfordshire town rose 13% to £347,563 over the year.Belfast saw the biggest rise in house prices, up 32% over the year to £306,698 - an increase of £201 a day.Durham and Newcastle saw the survey's only fall in house prices.
Average prices fell 3% in both places to £152,902 and £178,309 respectively.
Tuesday, 16 October 2007
Britain's deflating buy-to-let bubble
Take out a mortgage to buy a property and then, while the rent covers the mortgage repayments, the capital value of the property increases year on year.
For many years, that was the way it was, but now there are signs that the years of easy money may be coming to an end.
In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn.
It has been phenomenally successful and one of the best performing investments around.
Many buy-to-let investors have made fortunes as house prices increased and mortgage rates remained low.
One such investor is Raj Shastri who has seen his initial £950 investment grow over the last five years into a portfolio worth £8m.
For many years, that was the way it was, but now there are signs that the years of easy money may be coming to an end.
In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn.
It has been phenomenally successful and one of the best performing investments around.
Many buy-to-let investors have made fortunes as house prices increased and mortgage rates remained low.
One such investor is Raj Shastri who has seen his initial £950 investment grow over the last five years into a portfolio worth £8m.
Wednesday, 13 June 2007
one bedroom apartment situated in Bloomsbury.
A top floor, Georgian, one bedroom apartment situated in Bloomsbury. This third floor property comprises of a double bedroom, reception/ kitchen and bathroom. The property is located at the north end of Gray's Inn Road and only a short walk from King's Cross St Pancras.MAIN FEATURES
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Friday, 25 May 2007
Property demand expected to peak in 2008
The soaring demand for industrial property space will peak in Sydney and Brisbane next year, then start to tumble in 2009, analysts say.
In a report, UBS property analysts attributed strong industrial tenant demand to Australia's economic growth, low unemployment and upbeat business sentiment.
"In 2008, Sydney and Brisbane are expected to peak, and then in 2009 begin a downswing," UBS said.
UBS said industrial markets in Sydney, Melbourne and Brisbane were currently at the top of the property cycle, with demand coming from some of the largest occupiers of industrial property space, such as supermarkets and transport companies.
The predictions on the downturn come amid an increase in the amount of industrial property up for sale, with rents rocketing 25.6 per cent in Perth in the year to March 2007, and 16.1 per cent in Brisbane.
Overall, in the year to March 2007, Australian prime industrial rents grew by 13.1 per cent to reach an average of $98 per square metre.
"Retail sales and consumer confidence data have returned to the levels last seen in 2003 amid the housing property boom.
"Further, jobs growth is healthy, while the unemployment rate is at a record low."
Investors were moving aggressively to establish a foothold around Sydney's M7, the TradeCoast in Brisbane and the Eastlink and Craigieburn Freeway in Melbourne.
In a report, UBS property analysts attributed strong industrial tenant demand to Australia's economic growth, low unemployment and upbeat business sentiment.
"In 2008, Sydney and Brisbane are expected to peak, and then in 2009 begin a downswing," UBS said.
UBS said industrial markets in Sydney, Melbourne and Brisbane were currently at the top of the property cycle, with demand coming from some of the largest occupiers of industrial property space, such as supermarkets and transport companies.
The predictions on the downturn come amid an increase in the amount of industrial property up for sale, with rents rocketing 25.6 per cent in Perth in the year to March 2007, and 16.1 per cent in Brisbane.
Overall, in the year to March 2007, Australian prime industrial rents grew by 13.1 per cent to reach an average of $98 per square metre.
"Retail sales and consumer confidence data have returned to the levels last seen in 2003 amid the housing property boom.
"Further, jobs growth is healthy, while the unemployment rate is at a record low."
Investors were moving aggressively to establish a foothold around Sydney's M7, the TradeCoast in Brisbane and the Eastlink and Craigieburn Freeway in Melbourne.
Stratford officials, meetings draw derision from wide range in town
I have lived in the town of Stratford my entire life and used to think it was a really nice place to live. The past couple of years, the town has really gone downhill, and that is a shame to see this happening.
Instead of building himself a glamorous "bachelor's apartment" in Town Hall, Mayor James R. Miron should have used the people's money to clean up Stratford's coastline and beaches. Town officials just continue to throw our money away, and then tax us to death. Many people cannot even afford to live here anymore.
We need to get ordinary, caring, regular people back running Stratford. Funny, we can impeach a president, but can't get rid of a small-town mayor.
Stratford officials are also allowing developers to come to the town, destroy smaller homes and put up giant homes on tiny pieces of property. These developers cut down every living tree and plant on the existing land. Look at that development on Highland Avenue and Highview Drive as an example. They cut down all vegetation and some those homes are on 0.17 acres!
Then officials tell us it is good for us, because our property values will go up. What they don't tell you is that your taxes will also go up.
Wake up, Stratford.
Ruth Stanton
Stratford
Instead of building himself a glamorous "bachelor's apartment" in Town Hall, Mayor James R. Miron should have used the people's money to clean up Stratford's coastline and beaches. Town officials just continue to throw our money away, and then tax us to death. Many people cannot even afford to live here anymore.
We need to get ordinary, caring, regular people back running Stratford. Funny, we can impeach a president, but can't get rid of a small-town mayor.
Stratford officials are also allowing developers to come to the town, destroy smaller homes and put up giant homes on tiny pieces of property. These developers cut down every living tree and plant on the existing land. Look at that development on Highland Avenue and Highview Drive as an example. They cut down all vegetation and some those homes are on 0.17 acres!
Then officials tell us it is good for us, because our property values will go up. What they don't tell you is that your taxes will also go up.
Wake up, Stratford.
Ruth Stanton
Stratford
Barbican’s revamp ‘OK’
FRESH plans for York's Barbican Centre look set to win the go-ahead next week, despite strong objections from campaigners. Barbican Property
If planners approve the proposals, owners Absolute Leisure will have only five months to complete a multi-million pound refurbishment of the auditorium and construct new bars and restaurants in time for the Royal British Legion's Festival of Remembrance, in November.
However, The Press reported yesterday the UK Snooker Tournament, due to be held at the Barbican in December, might be held at another venue amid fears that the centre might not be ready.
Organisers say they are keeping their options open and are in talks with other potential venues.
Absolute Leisure, which won permission for a refurbishment in 2004, submitted revised plans for the site late last year, including the enclosure of a roof garden, a redesign of the glazed curtain wall on the frontage and changes to the reception area.
The application failed to make it to a City of York Council planning committee last month, and will now be considered at a meeting next Wednesday. More >>
If planners approve the proposals, owners Absolute Leisure will have only five months to complete a multi-million pound refurbishment of the auditorium and construct new bars and restaurants in time for the Royal British Legion's Festival of Remembrance, in November.
However, The Press reported yesterday the UK Snooker Tournament, due to be held at the Barbican in December, might be held at another venue amid fears that the centre might not be ready.
Organisers say they are keeping their options open and are in talks with other potential venues.
Absolute Leisure, which won permission for a refurbishment in 2004, submitted revised plans for the site late last year, including the enclosure of a roof garden, a redesign of the glazed curtain wall on the frontage and changes to the reception area.
The application failed to make it to a City of York Council planning committee last month, and will now be considered at a meeting next Wednesday. More >>
Monday, 14 May 2007
£9.3 Billion London Olympics Of No Benefit To UK
WE all remember their faces – has-been athletes such as Steve Cram and Kelly Holmes, not to mention Lord Sebastian of Coe, erupting with joy as the decision to award the 2012 Olympic games to London was made. (Pic: Beau Bo D'Or.)
Yet while these ex-Olympians celebrated the undoubted extra media work they’d get over the next seven years, and London property developers danced in the street, the reality for ordinary Britons was less certain.
Now, in a new report for the Greater London Assembly, researchers claim the 2012 games - the cost has quadrupled to a staggering £9.3 billion - will struggle to create a boom in jobs, sport and even housing.
In looking at the impact of the games on former hosts Athens, Sydney, Atlanta and Barcelona, the authors of the report found that the cites all struggled to benefit from the event, with Greece even losing 70,000 jobs just after the 2004 games.
Increased participation in sports also failed to rise significantly after the event while infrastructure improvements mainly benefited international residents and those lovely property developers.
Expect to see a herd of White Elephants rampaging around the East End after 2012.
Yet while these ex-Olympians celebrated the undoubted extra media work they’d get over the next seven years, and London property developers danced in the street, the reality for ordinary Britons was less certain.
Now, in a new report for the Greater London Assembly, researchers claim the 2012 games - the cost has quadrupled to a staggering £9.3 billion - will struggle to create a boom in jobs, sport and even housing.
In looking at the impact of the games on former hosts Athens, Sydney, Atlanta and Barcelona, the authors of the report found that the cites all struggled to benefit from the event, with Greece even losing 70,000 jobs just after the 2004 games.
Increased participation in sports also failed to rise significantly after the event while infrastructure improvements mainly benefited international residents and those lovely property developers.
Expect to see a herd of White Elephants rampaging around the East End after 2012.
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