Tag Archives: london
UK’s regional office investment market strengthening
The UK’s regional office investment market experienced a slow start at the beginning of the year but investor appetite strengthened, according to the latest analysis of this market. Indeed, turnover in the investment market reached £1.48 billion in the first quarter of 2015, s almost double the turnover during the same period last year, and 5% higher than the previous quarter and the highest single quarter since the end of 2006. The regional office market report from Knight Frank also shows that Birmingham and Manchester proved to be the most popular destination for investors in the first quarter of 2015 with two major transactions of £131 million and £92 million. The report points out that given the substantial weight of money targeting regional offices, and following further yield compression both Birmingham and Manchester now command a premium over the UK’s other core markets, at 5%. These cities are closely followed by Bristol and Leeds, at 5.25%. At the other end of the spectrum prime office yields in Sheffield moved up 50 bps to 6.75% in the first quarter. This gives a 175 bps spread of prime yields, which is the largest seen in over 10 years since the fourth quarter of 2003. However the report also points out that prime headline rents remain under upward pressure. Two markets saw headline rents increase during the first quarter, with Birmingham rising to £30.50 per square foot and Leeds to £26 per square foot. The firm anticipates further rises in office rents during the remainder of the year and given current named requirements of 4.58 million square feet, which is the highest in five years, it expects to see higher levels of occupational demand in the second quarter back above the five year average. ‘We could potentially be heading towards a perfect storm of improving occupational markets and sustained capital markets, which hopefully will trigger new developments .With the growth of PRS also, this will be provide a major boost to regeneration schemes,’ said Stephen Hodgson, head of regional offices, Knight Frank. Continue reading
Majority of UK tenants face higher rents at end of tenancy agreement, it is claimed
Almost two thirds, 60%, of UK tenants have seen their rent increase on their current property at the end of each tenancy agreement, new research has found. And many are forced to pay additional fees, averaging over £100, to letting agents to renew their contracts, according to a study by mortgage and loans provider Ocean Finance. Landlords increase rent by an average £84 a month, or £1,008 a year, at the end of each tenancy agreement, the figures show. On top of that, 13% of renters are also hit by charges from letting agents of £117 on average for renewing their tenancies. The study shows that over half of tenants stay in the same house for five years or more, which could see them paying almost £600 in letting agents’ fees to continue renting their home. According to the figures from the Office of National Statistics, prices on private rentals increased by 2.1% in the year to March 2015, driven by the buoyant market in London and the South East. ‘The buy to let market is booming at the moment, driven partly by the London market, although there are strong hotspots across the country,’ said Gareth Shilton, Ocean’s spokesperson. ‘As demand for rented properties continues to outstrip supply, and many people struggle to get on to the housing ladder, landlords are in a strong position to continue to increase rents each time a tenancy agreement ends,’ he pointed out. ‘On top of rental increases, tenants are facing rip-off fees from letting agents, not just to take new tenancy agreements, but also to roll-on an existing tenancy for another six or 12 months,’ he added. Continue reading
Call for new legislation to create national property insulation standard in UK
All new and existing homes in the UK should have to meet national insulation standards with incentives such as a cut in stamp duty for properties that meet them, it is suggested. A new report from the Institution of Mechanical Engineers also calls for insulation installers to have to sign up to a certification scheme similar to Gas Safe registration. It wants the government to urgently introduce legislation for a national insulation programme to cover every UK home that would declare all building stock as ‘national infrastructure’ and provide incentives, such as a reduction in stamp duty, for homeowners to install insulation to national standards. For those who cannot afford to pay, a national scheme to cover the cost of work would be funded by general taxation and the report also calls for installers of energy demand reduction measures to be trained to meet a mandatory competence registration, similar to the CORGI certification / Gas Safe Register for gas installers. ‘The UK’s housing stock is some of the most poorly insulated in the developed world, largely because of the age of much of the countries domestic dwellings and the failure of successive governments to take the meaningful action required on energy efficiency measures,’ said Dr Tim Fox, lead author of the report and a fellow of the Institution of Mechanical Engineers. He pointed out that the amount of money and fuel that is wasted on heating poorly insulated homes is appalling. ‘The UK is facing a future of depleting UK gas reserves. It is clear that it is time for urgent action to improve energy efficiency in UK homes,’ said Fox. ‘Incentives could include schemes such as enabling sellers to offset the cost of upgrading their insulation to national standards against the stamp duty payable on the sale of the home,’ he added. He also want the government to recognise the importance of the installer community in achieving its energy security and decarbonisation goals for heat provision and introduce ‘free’ training alongside a new mandatory competence registration for installers of energy efficiency and sustainable supply systems. I According to the report, the UK’s current heat infrastructure evolved in response to the availability of abundant supplies of affordable North Sea gas but is no longer fit for purpose to meet the country’s future energy security challenges, social needs and decarbonisation aspirations. Continue reading
