Tag Archives: crisis
More British buyers in top end of UK country house market
British buyers are active again in the top end of the UK’s country house market, making up two thirds of buyers in the five million pounds plus sector since the start of the year. This compares to less than half of this market in the same timescale last year, according to research by leading international real estate firm Knight Frank. The figures show that British buyers have become a more regular feature in the super prime country house market this year, accounting for 71% of all sales since the start of 2014. In 2013 they accounted for just 46% of the market. The improving UK economy and growing confidence in the property market outside of London over the course of the year have contributed to the rise in British buyers at this level of the market, according to Rupert Sweeting, head of Knight Frank Country. ‘The increase in mergers and acquisitions and the stock market has also encouraged UK national buyers to buy having been waiting in the wings for a while. Some company owners now feel they can invest their dividends in a home rather than keep them in reserve for their business,’ he said. ‘However, they have often had to outbid international buyers who whilst wanting to move to the UK for education, political and work reasons have found their currency a little weaker against the pound,’ he pointed out. Since the market low in 2009, super prime country homes have risen in value by around 12%, in prime central London price growth over the same period has been in excess of 70% making the country seem good value in comparison. The firm is starting to see an increase in the number of London buyers active at the top end of the country market, with some London dwellers choosing to take advantage of record prices in the Capital and spend their budgets on large country properties. As well as rising demand from domestic buyers, demand from Asia has increased. Chinese buyers have accounted for 6% of the market since the start of 2014, up from 0% last year and 2% in 2012. While economic conditions in the UK are favourable, the political backdrop has become more unpredictable, the firm also pointed out. Taxation, for example, is likely to become more of an issue in the run-up to the general election and could have a direct impact on the demand for luxury property and on price performance. Continue reading
Mayor concerned about number of tall buildings on London site
The Mayor of London has intervened in the proposed redevelopment of a site on the Isle of Dogs following concern that too many tall buildings are being proposed without an overall vision for the area. South Quay in Tower Hamlets is made up of numerous small plots of land and many of the individual land owners want to construct their own tall buildings. But the Mayor believes that sensitively managed tall buildings that are well designed and in the right place, will help London address its housing need. However, he is concerned that without an overall strategy for South Quay, the tall buildings proposed could have a detrimental impact on London's skyline and the public realm. As a result, the Mayor is now working with the London Borough of Tower Hamlets who are developing a Masterplan for South Quay. The plan will establish the key priorities for the area so that new buildings are delivered in a planned, sustainable and responsible way. ‘South Quay is enjoying unprecedented interest from developers all of whom want to bring forward their own plans. While we want to see the comprehensive regeneration of the area, what we cannot allow is a situation where planning is granted on a first come first served basis with no overall strategy, as this could eat up valuable space, have a negative impact on the public realm and potentially cause other schemes to collapse,’ said Sir Edward Lister, Deputy Mayor for Planning. ‘This Masterplan will allow us to take a coordinated approach so that this growth is managed in a sensible way with developers coordinating their proposals. It will allow us to maximise the area's huge potential while ensuring that all development contributes directly to the sustainability of the area,’ he explained. ‘The Mayor firmly believes that tall buildings play a valuable role in addressing some of our housing needs but it is essential that the right buildings are built in the right places,’ he added. By working with the council, the Mayor hopes that the Masterplan will be brought forward more speedily so that there is clarity for developers about what schemes are suitable. This will ensure that the key planning objectives for this key growth area can be met. The Masterplan will also ensure that the social and physical infrastructure required to realise and support this unprecedented growth is delivered in a managed way. Developers are being encouraged to proactively engage in meaningful discussions to ensure that their proposals respond appropriately to this emerging vision. The Mayor also intends to develop an Opportunity Area Planning Framework to building on the work of the Masterplan and addressing the wider Isle of Dogs. Continue reading
Mansion tax would hit flats and terraced properties rather than palatial residences
A mansion tax for properties in the UK would not hit large detached palatial houses in London owned by exceptionally wealthy people but flats, according to a new analysis. The proposal has been criticised for its disproportionate impact on London so international real estate firm Knight Frank has undertaken an analysis of the two prime central London boroughs of Westminster and Kensington and Chelsea. The two boroughs contain 46% of the total number of £2 million plus properties in the whole of England and Wales, with the potential overall financial contribution likely to far exceed that. Furthermore, 26% of £2 million plus properties in England and Wales are flats in the two London boroughs, not the type of large detached property envisaged by the tax. More significantly, across the whole of Greater London, 38% of all £2 million plus properties are flats while only 14% are detached properties. Terraced houses are the second largest group at 36% while semi-detached properties make up the remaining 12%. ‘The figures demonstrate the mismatch between perception, in particular the term mansion, and the reality of the London property market, where three quarters of £2 million-plus properties are either flats or terraced houses,’ said Tom Bill, head of London residential research at Knight Frank. He also pointed out that any further property tax would also come on top of the large and growing contribution London already makes in the form of stamp duty. New data for the 2013/2014 tax year shows London properties contributed 81% of stamp duty revenue in the £2 million plus price bracket in England and Wales, up from 79% in the previous year. Additionally, £2 million plus London properties accounted for 14% of total stamp duty revenue in England and Wales while London transactions across all price brackets accounted for 42% of total revenue. Another concern that has been outlined is that house price growth, which is traditionally stronger in London than other areas of the country, means more properties would become subject to the tax over time. Since the idea was first floated five years ago, a property worth £1.08 million in prime central London would have grown to £2 million, based on price growth of 85% for properties worth between £1 million and £2 million within the prime central London index. Continue reading
