Tag Archives: london
Rental values in prime central London down to lowest level for a year
Annual rental growth in prime central London fell to 2.4% in September, which was the lowest level it has been since September last year, the latest data shows. The report from international real estate firm Knight Frank also shows that the number of tenancies agreed in the three months to August fell 5.9% versus 2014 while prime gross rental yields remained at 2.96%. The slowdown came against the backdrop of jittery financial markets, with nerves over the state of the Chinese economy spreading to commodity and mining stocks, compounded by declines among carmakers, according to Tom Bill, head of London residential research at Knight Frank. ‘This current overriding mood of uncertainty means companies are more hesitant about recruiting and are more conservative with relocation budgets for senior executives, which has dampened demand in the prime central London lettings market,’ he said. ‘As a result, the number of tenancies agreed in the three months to August fell 5.9% compared to the previous year and the number of viewings declined 10.2%. Such declines suggest the trend for falling rental value growth will persist in the short term,’ he added. He pointed out that the trend is less marked in both lower and higher price brackets. ‘Demand among younger professionals remains strong while demand at the super prime level of £5,000 per week and above has been buoyed by the fact tenants have moved across from the sales market due to last December’s stamp duty increase,’ explained Bill. Continue reading
Scotland’s rural property continues to tempt buyers from south of the border
Rural property in Scotland is attracting buyers from all over the globe, but especially from south of the border in the UK due to exceptional value for money, says a new report. There is a total pool of approximately £300 million in farms and estates in Scotland but political and legislative uncertainty slowed last year’s market, according to the analysis from international real estate firm Savills. Indeed last year only nine estates sold compared to more than twice that amount in a typical year but the firm expects that number to bounce back in 2015 now that the general election is over and the new land and transaction tax has been introduced. ‘There are a number of low ground and sporting properties new on the market and we anticipate a greater number of sales being completed in 2015, compared with last year, with a number having already been agreed. This is proof that the appetite for Scottish estates remains unabated, particularly from foreign climes,’ said Faisal Choudhry head of research in Scotland. ‘Shrewd buyers may consider 2015 as an opportune time to secure their properties ahead of the stronger competition that may arise. Scotland is offering terrific value for money and will need to continue to do so in the current climate to overcome any potential concerns that buyers may have. A better understanding of the Land Reform changes is helping to allay concerns from those who had been holding back,’ he added. He also explained that uncertainty posed by Common Agricultural Policy (CAP) reform and poor weather restricted the volume of farmland coming on to the market in the first half of 2015, with low supply upholding values. Current values are closely linked to location, land quality and the residential weighting of the farm and there is a widening value gap between the most and least sought after land, the report points out. Prime arable land is likely to sell for between £7,500 and £9,000 an acre, while secondary land might reach between £5,000 and £7,500 and there is a shift in buyer profile with the farmland market now being driven by farmers rather than investors. English buyers are continuing their close interest in Scottish farmland, spurred on by the record value gap and Savills Research projects that average UK farmland values are set to grow by around 4% per annum over the next five years. Continue reading
Prime central London price growth falls as stamp duty change effect persists
Annual price growth in the prime central London property market fell to 1.3% in September, the lowest rate since October 2009, the latest data to be published shows. Annual price declines were in excess of 3% in some markets in the west of the city as higher stamp duty introduced towards the end of last year is still having an effect, according to a new analysis report from Knight Frank. Month on month prices fell by 0.1% and an east/west divide around Hyde Park has emerged. The firm’s data also shows that new prospective buyers declined by 34% but viewings only fell by 4%. However, sales volumes in September rose from August and were on track to match September 2014. Rising transaction costs appear to have sparked a flight to quality, according to Tom Bill, head of London residential research at Knight Frank. ‘Activity has certainly increased following a subdued summer period as buyers came to terms with an increase in stamp duty and a July Budget that curbed exemptions surrounding resident non-doms,’ he said. ‘Furthermore, some high quality stock has come onto the market, which has driven demand. However, rising supply is not uniform across prime central London and there is not yet clear evidence that new demand will keep pace with any supply increase,’ he explained. He believes that part of the reason why new applicant levels are down is a growing trend among buyers to find the right property on the internet before registering. ‘Underlying demand remains strong but buyers have become more circumspect and stringent in their requirements due to the stamp duty increase. Demand is particularly strong for properties in the best condition and on a prime floor, street or square,’ said Bill. ‘So, while the anticipated gear change materialised as summer moved into autumn, there was no sense the market is entering full-blown recovery mode after what has been a subdued 2015,’ he added. Continue reading
