Tag Archives: crisis
Prime property market in UK remains subdued but growth is forecast
The top end of the UK property market remains difficult at present but the prime central London sales market saw a quarterly rise in the second three months of the year, new research shows. Overall sales in the prime central London market increased by 24% compared to the first quarter of 2015, according to the latest data from estate agent Strutt & Parker. However, when compared to the same period last year, the results are less positive, down by 9% on the second quarter of 2014. The data also shows that properties over £2 million are 27% down in terms of the number of transactions in the same period last year, but 40% up on the first quarter of 2015. Properties under £2 million are 1% down on the second quarter of 2014 and 20% up on the first quarter of 2015. Strutt & Parker is forecasting price growth of 2.5% in the prime central London market overall in 2015, and in the medium term, the outlook for 2016/2018 remains for 6% growth per annum. For the UK as a while it expects growth of 5% in 2015, rising to 6% in 2016, followed by 7% for 2017/2018. ‘The increase to stamp duty, along with the general election uncertainty and the recent changes to non-dom status, have meant that individuals have been more hesitant with purchases as they seek additional advice,’ said Charlie Willis, head of London residential at Strutt & Parker. ‘However, this has not stopped buyers purchasing our highest quality stock as prime central London remains a very attractive place to live,’ he added. Continue reading
Wealthy Chinese looking to invest more in London prime property
Chinese investors, particularly those from the mainland are set to become the biggest group of investors in London with a relaxation of the amount of money that can be moved overseas due to be implemented soon, it is claimed. The changes in the stock market may also play a key role as wealthy Chinese investors turn away from their domestic market to explore new investment opportunities overseas, says upmarket estate agent Harrods Estates. Typically Chinese spend up to £2 million on a new off plan development in London, however the firm believes this will change with buyers from China looking at investing from £2 million to £50 million in real estate. ‘There is a huge amount of wealth in China and although we have started to see investment in London property in the last five years, the focus has been on off plan new build developments ranging from £500,000 to £5 million,’ said Simon Barry, head of new residential developments at Harrods Estates. ‘This is just the beginning of a vast amount of wealth from China and we expect this will increase dramatically over the coming years, when Chinese billionaires will look to spend anything from £5 million to £50 million,’ he added. Over the past two decades, wealth generated by China’s rate of economic expansion has flowed into Hong Kong and Singapore through corporate investment, much of which has fuelled the demand for London property. Harrods Estates has seen investors from Beijing, Shanghai, Hong Kong and Singapore, with mainland China still untapped due to an initial focus on the domestic property markets. This is now set to change as a handful of developers and estate agents explore the opportunity to reach out to mainland China, where there has not been direct to overseas property markets. ‘We expect to see more high level Chinese executives finding time to travel to London and other international centres, seeking out new markets and new opportunities outside of China,’ said Barry. He pointed out that at present there are capital controls in place restricting potential Chinese purchasers taking out US$50,000 per year, however a revised version of the Qualified Domestic Individual Investor programme (QQII 2) has recently been announced although it has yet to be implemented. ‘The programme will be open initially to anyone working in six major cities with assets in excess of circa US$160,000, and will allow them to export up to 50% by value of their net worth. For corporate investment the capital limit would rise significantly to US$1 Billion,’ he explained. He believes that China’s slowing economy and its recent stock market crash, which saw the Shanghai Composite Index lose 30% in value over a three week period in the middle of June and a further plummet in value in late July, will actually encourage investors to look at other opportunities. According to the firm one of the primary motivators for Chinese… Continue reading
New law means Wales is first part of UK to introduce training for landlords and agents
Rent Smart Wales. A new law that is being introduced this autumn which will affect all private sector landlords and housing agents in Wales. Everyone who owns and rents out private property in Wales will have to register with a central licensing authority and obtain a new type of licence under a new law from this autumn. It means that Wales will become the first part of the UK where managing landlords and agents will need to undertake training to ensure they are aware of their rights and responsibilities. The new Rent Smart Wales scheme aims to raise standards in the private rented sector and will replace the existing voluntary Landlord Accreditation Wales scheme, which has been operated by Cardiff Council on behalf of all local authorities in Wales. It is intended that the new legislation will also result in raised awareness by landlords and agents of their respective rights and responsibilities and in turn, raised awareness by tenants of their respective rights and responsibilities. All private landlords who have a rental property in Wales must register themselves and the addresses of their rental properties in Wales and those who undertake defined letting or property management activities at a rental property in Wales must apply for a licence. If a landlord instructs an agent to do such work on their behalf, it is that agent who must become licensed and in order to get a licence a person must be adequately trained, and also declare themselves ‘fit and proper’. Licensing training will be offered through Rent Smart Wales or people can choose to attend Rent Smart Wales approved training courses delivered by other bodies. The Welsh minister with responsibility for housing, Lesley Griffiths, is encouraging landlords and agents to subscribe for important news and information ahead of the changes. ‘We know approximately 184,000 homes in Wales, around one in seven, are now privately rented. With so many people renting, a strong sector with good working practices is absolutely essential,’ she said. ‘The new legislation we are introducing will not only improve the situation for tenants, informing them of their rights and responsibilities, it will also help good landlords by improving the sector’s reputation,’ she explained. ‘When Rent Smart Wales is introduced this autumn, it will provide a simple way for landlords to register and for them and their agents to become licensed. Ahead of the changes, I encourage landlords and agents to subscribe to register their interest and to receive useful news and updates,’ she added. Cardiff Council, which currently operates the existing voluntary Landlord Accreditation Wales scheme, will be the licensing authority for the new statutory scheme, Rent Smart Wales, on behalf of all local authorities. ‘The scheme demonstrates the value of training and the development of positive relationships with landlords based on a better understanding of responsibilities and the potential risks of getting things wrong,’ said Bob Derbyshire, Cardiff Council cabinet member for the environment. ‘Rent Smart Wales is the next step, building on this early… Continue reading
