Tag Archives: europe
Shard creating a mini property boom in SE1 area of London
London's Southbank around the Shard, which includes riverside Southwark, Borough and parts of Bermondsey, is experiencing a mini property boom, it is claimed. This is being driven by extensive regeneration, infrastructure improvements and residential development, drawing in young professionals and experiencing rapidly rising prices, according to letting and estate agents Chestertons. The firm’s latest market report points out that prices in the SE1 postcode have risen by 106% in the five years since the lowest point of the downturn, surpassing pre-crash prices by and far outstripping the London average increase over the same period, which is 51%. It suggests that the Shard development has proved a beacon for commercial regeneration, attracting investment and jobs to the area, while the number of new homes in the area, coupled with ongoing improvements to London Bridge station, is attracting young professionals, many of whom work in the booming tech, creative and financial services industries. ‘The residential sales market has not been without its challenges this year, the number of transactions has fallen slightly in fact when compared to 2014, and we've seen slower price growth than last year. But owners are still enjoying average sales values in SE1 that are 70% above their pre-global recession peak in 2008,’ said Matt Johnson, sales manager in the Tower Bridge office of Chestertons. ‘When it comes to the new homes sector, however, there's no sign of a slowdown. Coming into the final quarter of the year, a total of 2,916 homes in 21 schemes were under construction and a further 4,146 homes in 22 schemes had planning permission,’ he added. The report shows that One Tower Bridge (Berkeley Homes), NEO Bankside (Native Land) and One Blackfriars (St George) have all achieved strong off-plan sales. Investors have also been very keen to buy partly due to the rising demand from young professionals moving to the area. Indeed, according to Laura Kitts, lettings manager at Chestertons Tower Bridge, the lettings market in SE1 has really picked up in 2015, displaying continuous signs of growth and confidence. ‘Tenant demand was nearly 8% higher in the first three quarters of the year compared to the corresponding period of 2014, and the number of homes available for let was up by more than half. The wider choice of lets available hasn't dampened rental growth, either, with the average rents on new tenancies having risen by around 5% over the past year alone,’ she said. Continue reading
Most UK home owners don’t know the rebuild cost of their property
The majority of home owners in the UK don’t know the rebuild cost of their home and many think it is the same as the value of their property, a new survey has found. Overall some 67% of home owners said that they don’t know how much it would cost to rebuild their home if it was destroyed and 35% thought it would be the same as the valuation. This means that they are probably not insured properly should the unthinkable happen and the property is badly damaged and needs to be rebuilt, according to the research from insurance firm SunLife. ‘When you buy buildings insurance, you will need to know the rebuild cost of your home, which is the amount it would cost to completely rebuild your home if it was destroyed beyond repair,’ said Simon Stanney, director of insurance at SunLife. ‘Unfortunately, two thirds of home owners don’t actually know what this is or how calculate it properly. Contrary to popular belief, it is not the same as the current market value of the property,’ he added. He explained that having an accurate figure can help prevent over or under insurance. If you over insure, you could be paying out hundreds of pounds in unnecessary premiums, but if you underinsure, the consequences could be very serious. ‘In the unfortunate event that your home requires a complete rebuild and your buildings insurance is not sufficient, you will be left to cover any difference in price. Worse still, if your property is mortgaged you could be left with no home and thousands to pay back to your lender,’ Stanney explained. He pointed out that the best way to get an accurate rebuild cost is to get a surveyor to carry out detailed measurements of a home and then prepare a professional Rebuilding Cost Assessment which generally costs around £250. However, the survey found that only 8% of home owners do this. ‘Most people either don’t want to or cannot afford to spend this kind of money,’ said Stanney, adding that the research found 22% said they had calculated the rebuild cost themselves and 30% just leave it, hoping the insurer will estimate it for them. There are tools available, for example, the rebuild cost calculator from the Royal Institution of Chartered Surveyors which needs a property’s external floor area for both upstairs and downstairs as well as what it is made from, the type of house, and how old it is. The other way to avoid the issue of over or under insurance is to shop around for a policy that doesn’t ask the question. There are a number of providers out there that offer buildings insurance with a standard rebuild cost cover, including SunLife. ‘Despite the fact our research shows that most people don’t know what rebuild cost is, many policies still ask for it, and this is an example of how some insurers are not thinking enough about their customers. At SunLife we’re doing… Continue reading
Extra stamp duty set to reduce number of lettings in UK, say agents
The extra stamp duty charge for the buy to let sector that begins next April has triggered a less optimistic outlook among letting agents in the UK. Some 40% are predicting that rental supply will decrease over the next five years, the highest rate this year, according to the latest report from the Association of Residential Letting Agents (ARLA). ‘This month’s findings are triggered the Chancellor’s announcements around buy to let tax in his Autumn Statement. We said these changes would be catastrophic for the rental sector and this has been echoed by letting agents across the country,’ said David Cox, ARLA managing director. ‘The new stamp duty increases will make owning a buy to let property unprofitable for a lot of landlords, and certainly make new investors think twice about purchasing a buy to let,’ he added. The ARLA monthly report also shows that tenants experiencing rent increases continue to fall, with 23% of letting agents reporting rent increases for tenants in November, down from 25% in October and the lowest in 2015 so far. Demand for rental properties increased marginally in November, alongside supply of available housing which was likely a result of tenants preparing themselves to find new rental properties in the New Year. ARLA agents registered an average of 34 new tenants per branch this month, up from 33 in October. Supply of rental accommodation also increased in November, rising by 9% from an average of 173 properties managed per branch in October, to 189 this month. However, renters in the capital will still struggle to find a property, with only 121 properties managed per branch, some 36% less than the UK average. ‘It’s promising to see that the number of agents reporting rent increases is continuing to decline, and this should spread some Christmas cheer amongst renters renewing tenancies or looking for a new property to rent,’ said Cox. ‘However, just under a quarter of tenants are still unfortunately seeing hikes in their monthly rent payments. But if we continue to follow trends we’ve seen in previous months, we should see fewer tenants experiencing increases as we welcome in 2016,’ he added. Continue reading
