Tag Archives: crisis
Total value of UK homes now stands at £5.75 trillion, new research shows
The total value of homes across the UK now stands at £5.75 trillion, an increase of £543 billion in one year and £966 billion in five years, new research shows. London and the South East account for a growing share of the total, with a combined value of over £2.5 trillion, with average values per property now at £428,988 and £282,168 respectively. Five year total value growth has been seen in all regions with the exception of the North West and North East and Northern Ireland, the detailed analysis of the nation’s housing stock from real estate firm Savills also shows. The firm includes all tenures in its valuation and has found that the total value of owner occupied stock reached £3.9 trillion in 2014 split broadly evenly between that subject to a mortgage and that owned outright. Owner occupied homes remain the dominant tenure, accounting for almost 15 million households and the number of homes owned without a mortgage rose 437,471 in the past five years, to over 8.3 million, with values rising £325 billion to almost £2 trillion. By contrast, as a result of the credit crunch and subsequent constraints on mortgage lending, homes owned with a mortgage have fallen by almost 800,000 over the past five years. For similar reasons, the total value of stock in the private rented sector has passed the £1 trillion mark, having risen in value by 17% in one year, 57% in five years. The total number of private rented homes has risen by almost 1.2 million since 2009, taking the total to over 5.4 million, compared to 4.7 million in the social rented sector. The value of housing stock in London stands at £1.485 trillion, an increase of 20% or £247 billion in one year and 61% in the past five years. Continue reading
Residential rents in prime central London rising again
After months of decline, rents in prime central London have begun to climb upwards again, according to new research. Rents in many of London's most prestigious locations such as Knightsbridge, Belgravia and Mayfair increased by 4% or more over the final quarter of 2014, the data from lettings firm Benham & Reeves says. Inner suburbs, meanwhile, saw more modest rental increases but indicators suggest the market is still very strong. Agents also report a number of tenants choosing to rent until the sales market stabilises after the general election. However, Chelsea and South Kensington saw significant falls in rents in contrast to neighbouring areas and the firm pointed out that they rely much more heavily on the domestic market so have not seen the same uplift from foreign demand. Most of the inner suburbs saw rents stabilise or enjoy modest growth although the rental market in north London areas such as Hampstead and Highgate continued to cool. The firm also pointed out that fewer new homes are being built in the area so tenants are drawn to newer and often less expensive developments in east London. The two boroughs that reportedly saw the biggest capital growth in London last year, Hackney and Greenwich, also saw large rent increases as new developments came to the market. ‘Prime central London is seen as a blue chip investment for a reason. Capital growth may have slowed but its popularity remains undiminished, especially in the eyes of tenants,’ said Marc von Grundherr, lettings director at Benham & Reeves Residential Lettings. ‘Bearish headlines at the end of last year were cause for concern, but landlords who have kept their nerve in the latter half of 2015 are finally seeing their just rewards,’ he added. Continue reading
Property markets in Dubai and Abu Dhabi set for a stable 2015
Property prices in Abu Dhabi are expected to see a gradual increase in 2015 but not on the scale that was seen in 2104, it is claimed. Leading property firm Cluttons believes there is still some great investor appetite in Abu Dhabi and predicts that new residential schemes will still be popular. It also expects that there will be more off-plan housing launches this year, from the leading firms such as Aldar and TDIC as well as some private developers. But William Neil, head of Cluttons in Abu Dhabi warned that there is a danger that residential rents could continue to go up. ‘With no rental cap in place in Abu Dhabi, if there is a lack of supply then the market could face some of the same issues it faced back in 2007 when rents were so expensive that many people were forced to commute here each day from Dubai,’ he explained. He added that the commercial market is waiting with anticipation to find out what the new rules will be regarding the proposed financial free zone on Al Maryah Island. ‘With Yas Mall now open, we are predicting growth for retail rents in the city. However, with more shopping centres being built on Al Maryah Island and Saadiyat Island, there is a danger over the next three years for oversupply,’ he said. Meanwhile, in neighbouring Dubai the New Year is expected to see a mixed outlook with some sectors of residential property selling well but prices and sales varying depending on location. According to Matthew Green, the head of research and consultancy for the United Arab Emirates at CBRE Middle East the residential market has shown signs of stabilisation over the past six months across both sales and leasing markets. ‘We expect this to be a similar outlook for this year, with the scheduled pipeline of 20,000 new units during the year likely to help constrain rental inflation and add more balance to the sector,’ he said. ‘As has been the trend, a fragmented market will continue, with certain products and locations performing somewhat independently from the wider market. For example, the villa market, which has been relatively stable in recent quarters, could be set for rental deflation in certain areas as a substantial supply of new units starts to emerge from locations such as Jumeirah Park, Arabian Ranches, Dubailand and Jumeirah Golf Estates,’ he explained. ‘The demand for mid to low end residential offerings is expected to remain strong in the short term because of limited supply and high demand. Much of this demand is being generated by solid growth in the services sector, particularly from the retail and hospitality industries,’ he added. Dubai’s commercial office sector saw improvement in 2015 and this is expected to continue into 2015 and Dubai’s position as the headquarter city of choice for global corporates in the Middle East looks set to continue. ‘However, with limited good quality and efficient office properties available in the… Continue reading
