Tag Archives: london
UK property sales up over 5% year on year
The number of UK residential property sales increased by 0.8% between August and September 2015, according to the latest figures published by HMRC. The September seasonally adjusted figure is 5.4% higher compared with the same month last year while the number of non-adjusted transactions was around the same level as in August. Overall the provisional seasonally adjusted UK property transaction count for September 2015 was 106,030 residential and 10,300 non-residential transactions. Meanwhile, the latest Land Registry data shows there were 1,513,920 applications in the month of September, topped by the South East with 349,215. Some 373,424 were applications were in respect of registered land (dealings) 680,982 were applications to obtain an official copy of a register or title plan, 210,635 were searches and 88,229 were transactions for value. Peter Rollings, chief executive officer of Marsh & Parsons, believes that there was a real step change in the gears of housing market activity over the summer. ‘Since June property sales have been ticking along nicely, with this month on month rise the latest cause for optimism. There’s now clear blue water between sales levels now and a year ago and we’re seeing real eagerness from buyers,’ he explained. ‘Already, many buyers and sellers will be using the countdown to Christmas as their deadline to move home and complete transactions, meaning activity often picks up the pace in autumn,’ he added. But he pointed out that London is a city of two halves at the moment. ‘At the top end, buyers are more cautious, and are taking their time to get used to steeper Stamp Duty on million pound plus property sales,’ he explained. ‘But at the mid and lower range of the market where domestic buyers tend to dominate there remain high levels of demand facing up to restricted housing stock. Here we’re seeing good activity when property is priced correctly, and longer chains than ever as sales activity stacks up,’ he added. Continue reading
UK commercial property investment set to reach new record high in 2015
Investment volumes in UK commercial property are set to exceed £70 billion in 2015, the highest on record, according to the latest research to be published. Almost £50 billion of transactions were completed in the first three quarters of this year and, with a healthy pipeline of deals, quarter four volumes should exceed £20 billion, as they did in 2013 and 2014, says the report from Carter Jonas, the UK property consultancy. Based on an analysis of Propertydata figures, total deal volumes for the first nine months of this year were up by 17% against the same period in 2014 when they were £41.7 billion. Much of this capital came from overseas investors, up 45% on the same period last year at £24.2 billion in 2015 up from £16.6 billion in 2014, accounting for nearly 50% of total investment. By the year end, international investors will account for over 50% of the UK market for the first time, compared with a market share of less than 25% some 15 years ago, the report points out. Most of the growth in activity has been driven by a sharp rise in deals involving hotels, leisure and specialist property assets, with investment volumes boosted by a number of sizeable portfolio deals. Investment volumes in offices and retail warehousing rose by 12% to 13% over the same period. ‘There is still plenty of capital chasing commercial property, with this year set to be record breaking. However, with the market edging towards its natural peak in the cycle, a pause for breath seems likely in 2016,’ said Darren Yates, head of research at Carter Jonas. ‘Moreover, investors will need to factor in headwinds such as the anticipated interest rate rise and the EU referendum may start to play on investors’ minds,’ he added. The report also points out that significant yield compression is already a feature across the mainstream sectors. As such, good value investment opportunities are becoming difficult to source, particularly in central London and, increasingly, in the large regional cities. Investors are therefore considering value-add investments and development as a means of generating better returns. Assets outside the mainstream sectors such as student accommodation and the private rented sector (PRS), which offer higher yields and diversification benefits, are also seeing significant interest. Demand for the smaller established cities such as Oxford, Cambridge and Bath has also risen sharply, in recognition of their strong performance, particularly in 2014. However, supply is also restricted in these locations, which could add to downward pressure on yields. ‘Whilst we will continue to see further yield compression in some parts of the market, this could taper off in the next three to six months. However, when viewed against current bond rates, property yields still offer good value and, with rental growth coming through, there is still an incentive to invest in UK commercial property,’ said Mike Prosser, partner in the investment team at Carter Jonas. Continue reading
A roof terrace for a helipad is one of the unusual demands from buyers in London
Roof terraces strong enough to take a helicopter’s weight, squash courts in the basement and car galleries to display vehicle collections are among some of the most extravagant home buyer requests in the prime London market. A survey from agents Marsh & Parsons also shows that there have been enquiries from prospective owners and tenants looking for recording studios, panic rooms, staff living quarters and swimming pools or hot tubs. Overall, the most popular property requirements are more traditional. Aside from the usual number of bedrooms, a south facing outdoor space is the most common request in London property searches, closely followed by off street parking and separate home offices or studios. The holy trinity of transport links, shops and London parks show no signs of being toppled as the top three amenities buyers want to be close to, cited by all Marsh & Parsons agents polled. In Kensington, proximity to Hyde Park or Kensington Gardens is closely sought after, while in Barnes the duck pond is the centre of many property searches. After outdoor space, school catchment areas are the next most important amenity to be close to. In terms of interior design, wooden flooring is de rigueur, with almost a third of agents identifying it as the most popular style trend at the moment, just ahead of bi-fold doors. Ikat patterns and prints also remain a popular choice. Wireless speaker systems are currently the most sought after home item. More than a quarter of Marsh & Parsons agents cited integrated AV systems as a must have for top end London purchasers at present, with Sonos systems revealed to be the brand of choice. Other popular features in the luxury market include temperature controlled wine cellars and log burners. ‘No matter what your budget when looking for a new home, there are some fundamentals that are ubiquitous. Being close to shops, parks and tube stations are the ultimate must haves, but many London buyers have to compromise on one or more of these asks, as such optimal locations come with a price tag to match,’ said Peter Rollings, chief executive officer of Marsh & Parsons ‘Some buyers and tenants come to us with very unusual and specific requests, but luckily London’s rich and varied housing stock provides a wealth of choice, and properties to suit even the most particular of tastes from staff quarters to tree lined driveways. But no matter how lavish the requirements are, the chances are that we’ll have fielded a similar enquiry before,’ he added. Continue reading
