Tag Archives: london
International students add £600 million to London’s private rented sector
The 107,000 international students studying in London contribute some £600 million in rental income to the capital’s rental market, new research has found. The wealthiest Chinese, Russian and Malaysian students typically spend up to £1,500 per week to live in plush addresses in Mayfair, Knightsbridge and South Kensington, says the report from private rental market lettings firm E J Harris. Using data from their own client instructions over the last three years and drawing on figures from the Government’s Higher Education Statistics Agency (HESA), the firm analysed the number and country of origin of foreign students in the capital, where they choose to live, the type of properties they let and how much they spend in the private rental sector. There are some 107,000 international students studying in London, 40,000 from continental Europe and 67,000 from the rest of the world. Overall they spend £1.32 billion on tuition fees, some £1.36 billion on accommodation and subsistence of which £600 million goes on private lets or halls of residence costs and £121 million through friends and family visiting them in London whilst they study. By country of origin, the largest group of international students studying and living in London come from China who make up 18% of all foreign students in the capital, followed by students from the USA at 9%, India 7%, Hong Kong 5%, Malaysia 4% and Nigeria 4%. Other significant foreign student nationalities are people from Saudi Arabia, Singapore, Pakistan and Canada. On an annual basis some 20% of the firm's clients in inner London are students. Of these 50% are foreign students, the balance are British students. They are normally 18 to 22 years of age from affluent families. The report suggest that the accommodation for these students is predominantly provided by the bank of mum and dad although some receive special grants from their respective countries. The wealthiest overseas students tend to prefer living in Mayfair, Knightsbridge, Marylebone and South Kensington, whilst others and British students tend to live in Notting Hill, Bayswater, Shepherds Bush and Kingston Upon Thames. The most affluent international student clients are from China, Thailand, Russia, Malaysia and Nigeria. The top spenders can afford to pay £1,500 per week for an apartment in Knightsbridge or Mayfair. For example, on Old Brompton Road, just by the underground station, there is an apartment building extremely popular with affluent overseas students. However, the majority of overseas students typically pay £500 to £600 per week for a two bedroom apartment in Notting Hill, South Kensington, Shepherds Bush or Bayswater. In Shepherds Bush the Sinclair Mansions apartment building is very popular with students and whenever a flat becomes available there are up to 500 enquiries from students from around the world wanting to secure the let. 'There are over 100,000 international students studying and living in London and their numbers are rising. University applications from overseas students are… Continue reading
West London prime property market out performs rest of sector in London
Residential property growth in the prime west London market is outperforming the rest of the sector in the city, new research shows. The area starting in Hammersmith and heading west to Ealing saw average property values grow by 4.1% in the second quarter of 2015, leaving annual growth at 0.5% compared to the small falls seen in other prime London markets. The value of properties priced over £2 million, the majority of which are concentrated in Hammersmith and Chiswick, fell 2.2% over the past year, the data from real estate firm Savills also shows. At the top end of the market, buyer caution has been evident, the firm's report says, and the the price falls largely resulted from stamp duty changes announced in the 2014 Autumn Statement and uncertainty surrounding a mansion tax in the run up to the general election. Stronger growth was recorded in the lower value markets, particularly in the £750,000 to £1 million market where buyers benefited modestly from the stamp duty reform. In the prime markets below £750,000 although price growth was positive, it was slower as new mortgage regulations limit the amount buyers can borrow. Average values in Ealing are around 25% cheaper than Hammersmith and Chiswick and consequently saw the strongest growth, of 3.9% over the past year. 'Since the election some of the deferred pent up demand is beginning to flow back into the market, although the new stamp duty rates are still keenly felt by buyers at the top end of the market. This has restricted any significant increases in both prices and transaction numbers and we expect this to continue over the rest of 2015,' the report explains. Nonetheless, Savills is forecasting price growth to return to the market in 2016 and values to rise by 22.7% over the five years to the end of 2019. In the prime west London rental sector average rents increased by 1.2% over the three months to the end of June, leaving rental growth flat on an annual basis. But Savills says that corporate relocations play an important part in the west London prime rental market and are a growing source of demand. Over the first half of 2015 some 67% of tenants were renting due to employment relocation compared to 55% in 2014. 'Over the next five years, the London economy is forecast to continue strengthening, particularly in the technology and telecommunications industries, which will underpin demand for prime rental property over the medium term,' the report points out. However, it also points out that a potential risk to the sector is the level of new stock being brought to the market by overseas investors in certain locations on the fringes of prime London. In west London the largest prime development region is White City, which may lead to rents coming under pressure in the surrounding areas. But, across the prime London markets as a whole Savills expects rents to rise by 17% over the course… Continue reading
Remortgage valuation surveys up over 100% year on year in UK
Remortgaging activity in the UK increased in August, outperforming all other areas of the housing market, according to the latest research. The number of valuations for remortgaging rose 25% compared to July and on the back of this growth, the number of remortgage valuations is now up by 102% compared to August 2014, the data from Connells Survey and Valuation shows. However, total valuation activity was more muted in August. The number of valuations across all sectors, including remortgaging, rose by 7% compared to July, up 48% compared to August 2014, driven in large part by remortgaging. According to John Bagshaw, the firm's corporate services director it is concern and media attention about an interest rate rise in the near future is the key driver of this surge. 'Due to the very low Bank of England base rate, there are currently some very appealing remortgaging deals on offer from lenders. But home owners have been influenced by a powerful perception that these deals will not last,' he said. He pointed out that underneath the short term surge, remortgaging is also driven by a longer term shift. People are increasingly looking to upgrade their home rather than trade and so, for a slightly different purpose, are also keen to take advantage of cheaper mortgage deals. Meanwhile, the wider picture looks encouragingly stable. First time buyers and home owners are far more optimistic about the housing market now than they were at this point in 2014 and this is evident from the strong, steady growth seen throughout 2015 so far. The data also shows that the number of valuations for existing owner occupiers looking to move home has grown by 3% since July. This leaves activity on behalf of home movers up by 30% compared to August 2014. A similar picture emerges for first time buyers. The number of valuations carried out in August for those looking to take a first step onto the property ladder rose 1% month on month and 31% on a twelve month basis. 'Home mover and first time buyer activity has seen sizeable and speedy growth over the last six months, so a period of more stable growth is a sign of consolidation. It shows that these sectors command long term momentum and demonstrates a more stable optimism from households about the future,' said Bagshaw. 'For those moving up the ladder, low mortgage rates are combining with property price growth as a basis for their next purchase. Meanwhile, first time buyers don’t have the benefit of this natural deposit, but are showing remarkable fortitude in the face of price rises, buoyed by a jobs market that is increasingly showing real wage growth,' he added. In the only section of the market to see a drop in August activity, valuations for buy to let purposes dipped by 5% on July. Despite this, compared to a year ago, the total number of valuations… Continue reading
