News
Four new housing zones for London to add 12,000 new homes
The Mayor of London has announced a further four Housing Zones across London, accelerating efforts to deliver the new housing that the rapidly expanding city needs. The new zones in the boroughs of Havering, Enfield, Redbridge and Tower Hamlets will together deliver over 12,000 new homes, nearly 3,500 of which will be affordable housing. This will bring the number of Housing Zones announced to 15 with a total of 45,109 homes created, 14,055 of them affordable. A total of £162 million in funding will be contributed by the Mayor to the new Housing Zones as are a collaborative effort between the Greater London Authority, the government and local boroughs to streamline approval processes and fast track development in areas where it may not otherwise happen. Included in the new Housing Zones will be two brand new rail stations, a large new park, new primary schools, and new retail and entertainment precincts. They will revitalise currently disused brownfield sites and turn them into neighbourhoods where Londoners will work, live and visit. ‘Housing Zones will provide the swift delivery of new homes for Londoners that is so desperately needed and create entirely new, highly connected urban districts for generations to come,’ said the Mayor of London Boris Johnson. ‘By freeing up empty brownfield sites from lengthy approval processes and providing a funding boost, we can ensure new housing capacity is created in areas where it might never otherwise have happened,’ he explained, adding that the four new zones brings the project within touching distance of the 50,000 new homes target. Rainham and Beam Park Housing Zone in the borough of Havering is one of the biggest development sites at 12 square kilometres, and will include the new Beam Park rail station with 20 minute access into the heart of London. The Housing Zone will include the Beam Park site recently released by the Mayor for development, the largest slab of land that had been in the Mayor's portfolio. The council plans on creating a new garden suburb from former industrial land with 3,457 new homes, 941 of them affordable. ‘This is incredibly exciting news for the residents in Rainham, and the Borough as a whole. The changes this funding will allow us to implement will have a lasting positive impact on their lives,’ said Havering council leader Roger Ramsey. Meridian Water Housing Zone in the borough of Enfield will build 3,650 new homes in a development designed to complement the riverside canal district it is situated on, of which 1,460 be affordable. The Housing Zone will contribute to the development of Meridian Water station, currently Angel Road station, which will have four trains an hour running into central London by March 2018 under the Stratford to Angel Road rail scheme. In early June a procurement process was launched to secure a master developer for the project. The Ilford Town Centre Housing Zone in the borough of Redbridge will capitalise on the arrival of Crossrail to the area by… Continue reading
More new residential lets in the UK being agreed before tenants move out
An increasing number of landlords in the UK are able to re-let their property before their existing tenant moves out with the average property being let in 32 days, the lowest figure on record. So far in 2015 some 33% of all new lets were agreed while the property is still occupied, up from 27% last year, according to new research from Countrywide. The average let agreed while tenants are in place is equal to 105% of the asking rent, or an average of £35 a month more than the asking rent. With landlords still receiving rent from the vacating tenant, they are under less pressure to negotiate. In comparison tenants moving into an empty property have more room to negotiate on the rent, knocking an average of £21 a month off what the landlord was looking for. The research also shows that in London 51% of new lets are agreed while there is still a sitting tenant in the property, up from 41% in 2014. The level of demand from tenants in markets where the level of demand is highest and the time to find a tenant is shortest, means landlords are able to reduce the time a home is empty. Where a deal is agreed before the existing tenant leaves the property, there is an average of just six days between the existing tenant moving out and a new one moving in. 10% of the time a new tenant moves in on the same day that the existing tenant moves out. Where a property hasn’t been let prior to a tenant leaving the property, the first week of marketing is when landlords are most likely to achieve the highest rent. During the first seven days, the average let is agreed at full asking price, a figure which falls the longer a rental property is on the market. The first weekend after coming onto the market is when the majority of the most motivated would-be tenants view the property. In London’s fast paced rental market, fewer landlords need to wait until the weekend to find a tenant. Twice as many lets are agreed on a weekday in London than in any other part of the country. Every day a rental property is on the market without a tenant, the landlord is losing rent. If a deal is not agreed during the first week of marketing, landlords become increasingly receptive to offers. 98% of the cases where a landlord accepts an offer below the asking rent are after the property has been on the market for more than a week. In slower rental markets, generally outside of cities, the average landlord has to wait an extra 15 days to find a tenant willing to pay the full asking price compared to those letting a property in the city centre. ‘In larger rental markets, more new lets are being agreed well… Continue reading
Southern cities leading house price growth in the UK, latest index data suggests
UK house prices have increased by an average of £11,500 over the12 months to May 2015 with seven cities in the South of England significantly outperforming this level, the latest index shows. The average house in a city now costs £189,400 with London more than double this figure at £425,700, according to the data from residential property analyst Hometrack. The data also shows that on a month on month basis prices increased by 0.8% in May which is 3.8% above the peak of the market in 2007. Oxford has recorded the highest rise in the last 12 months with growth of £41,700, nearly quadruple the UK average of £11,500, followed by London at £38,900, Cambridge at £23,900, Bristol at £22,400, Southampton at £15,300, Bournemouth at £15,300 and Portsmouth at £15,000. Hometrack said that these house prices gains are a result of robust demand underpinned by the strength of these cities’ local economies and all 20 cities covered by the index recorded annual price rises. Those that saw the smallest rises were all in the north. In Liverpool prices increased by £4,200, Newcastle by £4,700 and Sheffield by £5,300 and these cities are still 14%, 8.5% and 3.8% respectively below their 2007. They are part of a group of nine cities in the north of England, Scotland and North Ireland that are recovering at a much slower pace due to weaker demand from house buyers. All cities except Aberdeen with a fall of 0.4%, recorded month on month price rises and Hometrack said that this could be partly due to a post-election bounce. Bristol led the way with a 1.3% increase followed by Cambridge, Leicester, Liverpool and Belfast all at 1.2%. ‘House prices have picked up momentum post-election. An increasing proportion of households are feeling the benefits of the improving economy, which means that house price growth is set to continue in the coming months. The greatest risk is an earlier than expected increase in interest rates which would knock market sentiment,’ said Richard Donnell, director of research at Hometrack. ‘The strong demand side recovery seen in southern England has yet to spread to other cities revealing the diverse nature of the housing market. All cities are making gains at different rates of growth, but the cities with the biggest increases all have something in common and that is strong local economies,’ he explained. He predicted that affordability pressures will bite at some point in the high value, high growth markets. ‘The double digit price growth registered in cities such as London, Oxford and Cambridge is being sustained by a lack of supply and below average transaction volumes with a third of sales funded by cash or buy to let mortgages,’ he pointed out. ‘London has the highest price to earnings ratio, but it covers a wide range of sub-markets. Over the last three years, the impetus for house price growth has shifted… Continue reading
