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Councils to crackdown on mega basement extensions in London
Councils in London are starting to crackdown on wealthy property owners who want to extend their properties underground to create several storeys of living space as well as swimming pools, gyms and car parking. Basement extensions several storeys below the ground have become increasingly popular in some of the capital's most expensive neighbourhoods in Westminster and Kensington and Chelsea but often result in complaints from neighbours. Indeed, other home owners are not just worried about the noise and disturbance caused by what can amount to years of work, but also raise concerns about the effect of all this underground work on surrounding properties. These so called ‘iceberg’ homes where more of the living space is underground than above ground have been used by owners to get round strict planning rules but now some councils are changing the regulations which could result in it being harder to get permission to go underground. The Royal Borough of Kensington and Chelsea is about to introduce restrictions on basement extensions which will limit them to a single story and they will be banned completely from listed buildings. Now Westminster Council has confirmed that basement extensions will require full planning permission and will also be limited to one storey apart from in exceptional circumstances. This means that neighbours will have the opportunity to object to basement extensions through the normal planning process. ‘Residents have been facing an underground epidemic on their quiet residential streets, and I want to help stop the horror stories of people living next to mega basement construction,’ said Robert Davis, Westminster Council's deputy leader. ‘All basements will now go before the council’s planning department, allowing neighbours and local communities to have their say and for developers to demonstrate they will not cause undue harm to neighbours or the character of the area,’ he added. Continue reading
Surge in house equity release in UK as over 55s cash in on property wealth
Equity release lending to UK home owners over the age of 55 totalled £384.3 million in the second quarter of 2015, the largest amount for any quarter since records began. The latest data from the Equity Release Council show that this surpasses the previous high of £375.4 million reached in the third quarter of 2014 and that the over 55s withdrew £4.2 million of housing wealth every day from April to June. This uplift comes despite savers gaining greater access to their pension pots under the freedoms launched on 06 April. With house prices rising again, it shows the growing appeal of using property wealth as an extra source of retirement income in later life, according to the report. Also, record lending in the second quarter meant the total value of equity released in the first six months of 2015 hit £710 million, the largest sum on record for the first half of the year and an 11% increase on the first half of 2014. There were 5,414 new equity release customers in the second quarter of 2015, an 11% increase on the last quarter, pushing the total number of new customers past 10,000 for the first six months of 2015. The value of lending, via lump sum lifetime mortgages, increased by 10% year on year in the first half of 2015 to reach £285.3 million, the highest total for lump sum activity in the first half of any year since the first half of 2007 when the value hit £355.9 million. However, the value of lending via drawdown lifetime mortgages surpassed this rate of growth, rising 12% year on year from £379.2 million in the first half of 2014) to £423.5 million in the first half of 2015. The data shows it also rose faster from the first to second quarter, at 21% compared with 14% for lump sum products. The Council says this was as customers took advantage of the flexibility to withdraw their housing wealth in regular instalments rather than as a one off amount. Home reversion plans account for less than 1% of the overall equity release market, yet these too saw an increase of 18% in lending from £534,765 in the first quarter of 2015 to £632,647 in the second quarter. ‘The last three months have been a landmark period for UK retirees and those approaching retirement, and equity release activity continues to grow amid a sea of change. There is no doubt the pension freedoms have created more options for people to consider, but the appeal of tapping into housing wealth is on the rise as older consumers seek to make use of all the assets at their disposal,’ said Nigel Waterson, chairman of the Equity Release Council. ‘Doom and gloom often surrounds discussions on retirement income, but while contributions to pension pots remain low, an entire generation of home owners have been paying into property their whole lives… Continue reading
Property prices creeping up on Spanish island of Mallorca
Property prices in the Spanish island of Mallorca are creeping up for the most sought after locations and sales are also rising, including at the lower end of the market. The latest real estate analysis of the island’s property markets shows that the recovery is well underway with prices up by an average of 10% for the best quality homes in the top destinations. Indeed, Engel & Völkers, which has 16 offices around the island, reports that sales increased by 27% in the first half of 2015 compared to the same period in 2014. The firm says that confidence in the market and a flux of foreign buyers, mainly German speaking, British and Scandinavian, have fuelled the initial price increases of 10% to 15% for top quality properties in high demand prime locations. Hot spots tend to be coastal locations such as Andratx in the south west of the island where, according to the latest Spanish land registry figures for 2014, Engel & Völkers dominated the market in Andratx and accounted for 70% of all transaction volume. In Palma the historic old town and the fashionable port areas of Portixol and Molinar apartments with outdoor space are at a premium and for these type of properties prices have increased by approximately 10% over this time last year. Son Vida is experiencing a boom with demand for contemporary style properties with sea views. The sale of plots has trebled since this time last year and in the South West, where over 40% of all sales are made to foreigners, prices have increased by approximately 10% over this time last year. The report says that buyers in the region are demanding top quality, sea views and Mediterranean design and new trends include concierge serviced apartments. It is predicting a further 10% increase in prices for top properties. Prices are stable in the West of the island with no significant increases recorded over last year while in the centre and South sales up by over 120% over this time last year. Prices are stable with increases of up to 10% for top locations. Hot spots in the North include Pollensa Town and the Port with increasing interest for the coastal areas of Mal Pas and Alcanada. Buyers want quality and frontline positions and prices predicated to increase by 10% in 2016. In the North East prices are stable here the lower end of the market selling well for properties under €500,000. The report says buyers are looking for bargains and specifically for fincas and townhouses which are less expensive here in comparison to other areas closer to Palma. In the South East the sales picture is similar to this time last year with prices remaining stable. The area continues to represent good value and investors are currently buying a range of properties from €300,000 to €3 million. Continue reading
