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Edinburgh property market not affected by referendum vote in third quarter
Despite the uncertainty caused by the Scottish referendum during the summer months, new statistics show that the property market maintained momentum and interest. There was a large rise in the number of good quality homes coming on to the market in the third quarter of the year, according to research conducted by property consultants CKD Galbraith’s Edinburgh office. The number of potential buyers registering with the firm also increased compared to the previous quarter of this year, indicative of pent up demand in the property market from purchasers following buoyant sales market during the first half of 2014. Overall the number of properties brought to the market through CKD Galbraith increased by 50% compared to the second quarter of 2014 and the number of interested buyers registering with the firm rose by 5% compared to the last quarter. On average properties in the Edinburgh area have sold two weeks quicker than the last quarter of this year; the shortest time taken to sell a property this quarter was two weeks. ‘The Edinburgh market wasn’t quite as affected by the referendum as other regions and although we saw a slight decrease in sales and viewings in the fortnight leading up to the 18 September, there has since been a lot of new activity as confidence returns to the market,’ said Andrew Jarvie, of CKD Galbraith’s Edinburgh office. ‘Whereas last quarter we saw an influx of buyers from south of the border and overseas, the summer period has been a little quieter in comparison as was expected and buyers have predominantly been from within the Edinburgh area. Buyers and sellers are now waking up to the implications of proposed changes to stamp duty which will take effect from April 2015,’ he added. CKD Galbraith operates a network of regional offices located throughout the country and has enjoyed good growth over the last year which it expects to continue into the final quarter of 2014. Continue reading
Prime central London experiencing shortage of three bed homes to rent
As the lettings market in the capital continues to thrive, one leading national estate agent is experiencing a shortage of rental properties available, particularly for three bedroom homes which are in high demand. The demand for three bedroom homes for rent in central London is seemingly insatiable, according to Zoe Rose, head of London lettings at Strutt & Parker. ‘As soon as we get a good one on our books, it lets in a flash. We recently let a three bedroom lateral top floor apartment on Cranley Gardens in South Kensington for £1,300 per week within two days on its first viewing and similarly we let a three-bedroom apartment on Ladbroke Gardens within one week for its asking price of £1,500 per week,’ she explained. She said that while buy to let investors often believe owning a one or two bedroom flat is a failsafe option when it comes to attracting tenants and optimising rent, the firm’s experience suggests that it’s actually three bedroom homes that are the most sought after at present. Indeed, Rightmove recently reported that more than a third of its top 5,000 most viewed homes were all three bedroom properties. ‘Owning a three bedroom property is clearly good news for landlords. They are a great investment because they have such broad appeal. Prospective tenants include young couples, small families and older couples looking to downsize. At a time when there has been a surge in working from home, having a spare room to use as an office is also very attractive to tenants,’ Rose pointed out. Strutt & Parker’s latest figures for lettings transactions in the third quarter of 2014 also indicate that it’s the larger, more expensive properties that are performing most strongly. When compared to the same period last year, transactions are up 18.4% for properties between £2,000 and £2,999 per week, up 14% for properties between £3,000 and £3,999 per week and up 16.7% for properties over £4,000 per week. However, lower priced properties costing less than £999 per week to rent, were down 7.5% on last year and properties between £1,000 and £1,999 per week were also down very slightly by 1.4%. Rose predicts that 2015 will be a good year for landlords with property in the prime central London market. ‘We are anticipating a 2.5% increase in lettings prices in prime central London for 2015 and we’ve already seen 2% growth for lettings in 2014,’ she explained. ‘This slow but steady growth will be underpinned by the simple fact that there are still so many people out there that can’t afford to buy a home in London and these people will continue to rent. Not to mention the large number of people who enjoy the flexibility of renting and the threat of rising interest rates rising will also play an important contributing factor,’ said Rose. ‘We currently have 25% less property available for… Continue reading
Overseas investment in UK commercial property market set to increase
Overseas investment in the UK commercial real estate market is having a positive impact and is set to increase over the next three to six months, according to new research. There has been a slight tapering in confidence after nearly two years of consistent growth in optimism and fewer property professionals expect investment to increase but around 60% of UK investors believe foreign investment has had positive impact. Increasing numbers expect activity to stabilise and the North West and London based smaller sized operators are more confident about the future, according to the latest confidence survey of real estate professionals by Lloyds Bank Commercial in association with the Investment Property Forum (IPF). Further analysis revealed that nearly73% of larger sized businesses surveyed and 70% of fund managers agreed, though this figure dipped to 60% amongst SME respondents. Given the increased level of foreign investment into this sector, a significant minority, at least 17%, of all respondents said that they had changed their business investment activity as a result of the influx of overseas capital. In particular 42% of fund managers and 30% of larger sized businesses stated that they have altered their business investment plans due to this influx. ‘For many regional commercial property operators the influx of foreign capital has widened the range of exit options and shifted focus away from UK institutional buyers,’ said John Feeney, global head of commercial real estate at Lloyds Bank Commercial Banking. ‘'Further a variety of foreign buyers are now active in regional UK markets including sovereign buyers seeking stabilised assets and more opportunistic investors willing to take asset management risk,’ he added. The latest survey also indicates that confidence in the UK’s commercial property market remains high, with over 60% of respondents believing that activity will continue to increase over the next three to six months. However, an increasing number believe that the market will level out. Around 25% to 36% of respondents now expect activity to remain at current levels for the next three to six months which compares to just under 20% in the CPCM’s last report in April. In line with a slight softening in confidence, the report suggests that prices will begin to stabilise as well. In the Spring 2014 CPCM only 3% of major businesses said prices would stay the same compared to 30% in this latest survey. Investment activity also looks set to increase, with fund managers reporting a slight increase in their investment intentions, rising from 70% to 72%, as did major businesses, with 53% planning to spend compared to 50% in April. ‘The UK’s market has soaked up a lot of capital over a short period of time and some investors, such as private equity funds, are turning their attention to the nascent investment market recovery in certain Eurozone countries particularly in the periphery,’ said Feeney. ‘The UK market is further advanced in… Continue reading
