Tuesday, 13 March 2012
ARLA's top ten tips for Britain's growing number o...
London Letting Agents Blog: ARLA's top ten tips for Britain's growing number o...: For anyone considering renting out their property, ARLA has the following top tips to help make the process as smooth and trouble-free as p...
Wednesday, 15 February 2012
London Lettings Market Analysis from Reuters
London Letting Agents Blog: London Lettings Market Analysis from Reuters: Properties in London’s fanciest districts like Chelsea and Notting Hill entered 2012 at record levels – about 10 percent above the last peak, says high-end real estate agent Savills. The recovery in London’s financial sector is one factor, with over 20 percent of Londoners’ overall income generated in finance. Meanwhile, international buyers continued to see London as an attractive place to live and a safe financial asset at a time of market volatility. Sterling’s weakness against the euro, relative to pre-crisis levels, only helps.
Wednesday, 8 February 2012
2012 Events Have no Bearing on London's Property Market Stability
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 residential property agent Robert Lazarus commented "London's annual events such as Wimbledon obviously skew the property market of surrounding areas, and boost rental income for the period, but property investment is a long term project and local regeneration benefits aside, one off events are unlikely to impact on property markets."
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 residential property agent Robert Lazarus commented "London's annual events such as Wimbledon obviously skew the property market of surrounding areas, and boost rental income for the period, but property investment is a long term project and local regeneration benefits aside, one off events are unlikely to impact on property markets."
Sunday, 15 January 2012
Wall Street Journal View Of London Property
How long can London's property market defy gravity asks the online Wall Street Journal? House prices in the capital rose in December, even as prices elsewhere stayed flat or fell, says the Royal Institution of Chartered Surveyors.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Prices in prime central London are around 16% higher than their September 2007 precrisis peak. Some forecasters predict a further 25% jump by 2016, as foreign investors continue to seek havens for their cash. But downward pressures are likely to intensify this year.
Foreign buyers account for more than half of the sales of London's most desirable residences, helping shield the market from a domestic downturn. Many have large chunks of equity to invest, so are less affected by the mortgage-lending squeeze. Recent sterling weakness against many currencies—down 20% against the dollar since the start of the crisis—has added to London's allure, while ultralow interest rates have kept a lid on distressed sales.
So long as the economic uncertainty continues, the torrent of foreign cash flowing into London property—an estimated £6 billion, or roughly $9 billion, in the 18 months through mid-2011—will likely be sustained. But the top end of the market is sensitive to the global picture. If the euro crisis is resolved or the world economic outlook improves, overseas investors might turn to riskier, higher-return assets. A rise in sterling or a fall in commodity prices are other possible factors.
London property isn't cheap by any measure. Yields are low—at 3.9%, compared with 5% in the wider U.K. housing market and up to 7% for prime offices in most European capitals. Soaring prime central London rents, up 25% since mid-2009, have provided some support to valuations, but an estimated 55% of "prime" tenants work in financial services, where heavy job losses are on tap. Yields are likely to remain flat into 2016, estate agent Savills says.
Meanwhile, the average house price in London is equivalent to 7.8 times earnings for a typical first-time buyer, compared with an average of 4.8 times across the country, website Findaproperty.com estimates. Such a disparity looks unsustainable, and provides a strong incentive for capital-dwellers to relocate and investors to seek better value elsewhere.
Thursday, 22 December 2011
Prime London Property Sales Numbers Increased By 17%
The value of prime property in central London shot up by 13 per cent in 2011.This is according to the latest Knight Frank Prime London Sales Index, which states that homes in the area are now at the their highest ever levels.
Properties priced between £2.5 million and £5 million saw the largest growth, increasing by 16 per cent on average, while those valued over £10 million increased by 12 per cent.The average prime property in central London is now worth around £3.19 million and has seen a value increase equivalent to £1,202 each day over the past 12 months.
Sales numbers have increased by 17 per cent year-on-year, but this is largely due to high take up of properties at £5 million or less, which are up by an incredible 20 per cent.It is widely believed that funds from cash-rich investors from overseas is helping to drive up the luxury homes market in the capital.
London Property Market News
Thursday, 15 December 2011
Mortgage Rate & Home Loan News: House prices in the UK stay steady
There was no movement for house prices in the UK in November, according to the latest England & Wales House Price Index from LSL Property Services/Acadametrics.
However, just because house prices have remained static, people should not assume that they are not becoming more affordable.
David Brown, commercial director at the firm, said that zero growth means that in real terms houses are becoming more affordable.
"With inflation running at five per cent the real cost of property is getting smaller and smaller, which is good news for buyers and mortgage borrowers alike," he added.
The data showed that the average house price in the UK now stands at £220,043.
Mr Brown said that while over the past year house prices have dropped 0.7 per cent, low mortgage rates, the stamp duty holiday and the government's FirstBuy scheme have prevented larger falls.
Recent data from Halifax showed that 2011 has so far seen five months of price falls and the same number of rises, with one month of no change.
Mortgage Rate & Home Loan News
However, just because house prices have remained static, people should not assume that they are not becoming more affordable.
David Brown, commercial director at the firm, said that zero growth means that in real terms houses are becoming more affordable.
"With inflation running at five per cent the real cost of property is getting smaller and smaller, which is good news for buyers and mortgage borrowers alike," he added.
The data showed that the average house price in the UK now stands at £220,043.
Mr Brown said that while over the past year house prices have dropped 0.7 per cent, low mortgage rates, the stamp duty holiday and the government's FirstBuy scheme have prevented larger falls.
Recent data from Halifax showed that 2011 has so far seen five months of price falls and the same number of rises, with one month of no change.
Mortgage Rate & Home Loan News
Friday, 25 November 2011
Pubs and Schools Are Driving Force Behind Stable House Prices
A good range of local pubs or eateries coupled with quality local schools is the driving force behind solid house prices in most regions, say the people behind first-time buyer news site FirstRungNow.com.
Helen Adams, managing director of the website, believes that being able to wine and dine locally in a hip and trendy setting gives a great boost to property values.
She said: "Schools are important and people do move to areas for schools, but also if there's a thriving social life - restaurants, cafes and bars - that can also keep prices up too."
Ms Adams added that smaller towns and regions that have good commuter links to big cities such as London will always perform well no matter what the market conditions are at the time.
With that in mind, it is probably advised that those planning on purchasing a property check out the quality of the pubs and restaurants, while those of you looking to buy a pub should investigate the area's local amenities, schools and transport links.
Gastro pubs in particular remain a sound investment, with the All Party Parliamentary Beer Group stating last week that food sales are good way for any licensed premises to make money.
London House Price News
Helen Adams, managing director of the website, believes that being able to wine and dine locally in a hip and trendy setting gives a great boost to property values.
She said: "Schools are important and people do move to areas for schools, but also if there's a thriving social life - restaurants, cafes and bars - that can also keep prices up too."
Ms Adams added that smaller towns and regions that have good commuter links to big cities such as London will always perform well no matter what the market conditions are at the time.
With that in mind, it is probably advised that those planning on purchasing a property check out the quality of the pubs and restaurants, while those of you looking to buy a pub should investigate the area's local amenities, schools and transport links.
Gastro pubs in particular remain a sound investment, with the All Party Parliamentary Beer Group stating last week that food sales are good way for any licensed premises to make money.
London House Price News
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