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Outer London prime property becoming attractive to buy to let investors
UK buy to let buyers are taking advantage of attractive mortgage rates and a thriving prime property market in outer London, especially new build schemes, it is claimed. Properties in this sector offer greater returns than the prime central London real estate market, according to London estate agent Fraser & Co. An example is Mrs Busby, 43, who bought a two bedroom property with her husband as a buy to let investment in the Aqua new build development in Finsbury Park. ‘The area is currently undergoing a 20 year regeneration plan, which makes for a promising long term investment,’ she said. ‘We looked at other developments in the area, but Aqua proved best value for money when considering the quality and its position overlooking the West Reservoir which meant it can’t be obstructed by any new buildings,’ she explained. She added that another attraction was that the property was part of a smaller development of just 82 apartments. ‘Being part of a smaller development creates healthy competition that will only benefit our property by increasing the re-sale profitability,’ she pointed out. The couple are establishing a property portfolio as part of their pension scheme and are taking note of the investment potential outside of prime central London. They felt that the area offers good transport links and new builds tend to be the safer option as most come with warrantees and require little maintenance. Robert Fraser, managing director of Fraser & Co, said that for years the buy to let market was dominated by Asian buyers but now more domestic buyers are showing interest in capitalising on the greater return on investment of property available in outer zones. ‘Where there is redevelopment and good transport links to central London, there is significant growth potential. While Aqua is benefitting from the regeneration going on in Finsbury Park town centre and at Woodberry Down, Rotherhithe is experiencing a double ripple effect from Canada Water and London Bridge, making Anchor Point equally attractive,’ he explained. He pointed out that last month, Southwark and Hackney experienced asking price growths of 5.6% and 4.1% respectively compared to Kensington and Chelsea and Camden which experienced either zero or negative growth. ‘As buy to let mortgages become more appealing, we expect to see domestic investors nipping at the heels of their international counterparts, allowing areas in zone 2 to continue to thrive and extend out towards zone 3,’ he added. Continue reading
Positive outlook for sales and lettings markets in south and east London
The sales and lettings market in the South East of London are set to be buoyant in the coming months due to high demand, according to a new analysis report. There has been a notable migration of buyers from parts of North and West London setting up home in the Royal Borough of Greenwich thanks to it being comparably good value for money, according to the report from JLL. The associate director at the firm’s Blackheath office, Graham Lawes, said that this, coupled with high local demand, is fuelling the prices and momentum is set to continue throughout the year. ‘For City workers, the accessibility to Canary Wharf is a huge attraction. Young professionals and high earners are drawn to the area thanks to the addition of new boutiques, high end restaurants and bars opening in the historical borough. Families are also attracted to the Royal Borough thanks to its excellent local schools with impressive Ofsted reports,’ he explained. He pointed out that it is widely regarded that parts of the South East of London will see prices rise beyond the national average and that there is a huge disparity from one side of London to the other. The imminent arrival of Crossrail will add to this. ‘Blackheath and Greenwich will continue to attract interest but I anticipate Lewisham (SE13) Charlton (SE7), Woolwich (SE18), Plumstead (SE18), and Abbey Wood (SE2) to see the largest growth percentages over the next year as properties there are excellent value,’ added Lawes. The area’s rental market has also been strong, according to Charlotte Russell, assistant lettings manager of JLL’s Greenwich office. ‘This year, the rental market in Greenwich and Blackheath has been particularly strong for one and two bedroom properties. These properties have achieved up to 18% increases in rents year on year in some areas, largely due to relocation for employment into Canary Wharf and the City,’ she said. ‘Such relocations have positively impacted the rental market, particularly now that Greenwich is offering riverside developments to match Canary Wharf, and this has increased both the popularity of the area and spectrum of tenants. Additionally, we are seeing more people staying in their properties longer term with minimal void periods between tenancies,’ she explained. Looking ahead to spring, the firm anticipates that the rental market will remain buoyant, particularly going in to the warmer months, when tenants prefer to move with riverside living likely to remain popular with potential tenants. ‘We hope that new developments such as Platinum Riverside, Greenland Place, Peninsula Tower, and the ever growing Royal Arsenal Riverside in Woolwich, will keep the market in good supply as the demand increases,’ added Russell. In the City and East London property sales market there is likely to be a focus on what happens with Canary Wharf with the estate being sold to a Qatari led bid and planning passed to develop Wood Wharf. But in the… Continue reading
More home being built in New Zealand, mostly apartments
The number of new home consents in New Zealand was 3.6% higher in January 2015 compared with the same month the year before, new data shows. The trend for new dwellings is rising and is at its highest level since July 2007. However, excluding apartments, it was 6.8% lower, the figures from Statistics New Zealand also show. Also, the seasonally adjusted number of new home consents decreased 3.8% in January 2015 and excluding apartments, this number fell 7.5%. Business indicators manager Neil Kelly pointed out that in unadjusted terms, nearly $1 billion of building work was consented in January, some $645 million of residential work and $351 million of non-residential work. More than $15 billion worth of building work was carried out in 2014, some $2.8 billion higher than in 2013, a 23% increase. Together, Auckland and Canterbury accounted for $9.7 billion worth of the building work in 2014, nearly two thirds of the national total. After removing price changes and seasonal variations, overall building activity volume edged up 0.3% in the final quarter of 2014. Residential building activity led with 4.3% growth, while non-residential building activity fell by 5%. ‘The trend for residential building activity has grown by two thirds since the September 2011 quarter. However the current level is 7% lower than the series peak more than 10 years ago in the June 2004 quarter,’ added Kelly. Continue reading
