Tag Archives: london
Farmland values in England expected to be steady in 2015
Farmland values in England increased by 2.5% over the last six months of 2014 and are expected to rise by 3% in 2015, a new report shows. But there is considerable regional price variations. Farmland in the South and East of England achieved values of around £14,000 per care whilst in the South West it was £9,000 per acre, according to the data from Carter Jonas. Location, type and quality remained key factors in achieving prime values together with the strength of the local market, the firm points out. The report also shows that the supply of land remained increasingly restricted, with a total of almost 120,000 acres being openly marketed across the UK in 2014, a 15% decrease from its previous year's level. As a result of the tightening supply of openly marketed land, the volume of off market sales increased significantly during 2014, accounting for a third of all Carter Jonas transactions in 2014 as clients increasingly considered seeking out private deals in order to gain exposure within the sector. This trend is expected to continue and will help to sustain the continued capital value growth forecast during 2015. Overall, demand became increasingly localised across the farmland market during 2014, with lot sizes over 1,000 acres proving most attractive. The diversity of demand is shown by the fact that farmers accounted for the highest proportion of transactions completed by Carter Jonas during 2014 at 28%, closely followed by lifestyle at 24% and investors at 20%. ‘The halo effect surrounding London remained significant and is expected to build momentum during 2015 as the Capital continues to thrive in performance and remuneration levels are set to outpace inflation. The halo effect is particularly prevalent in the country house market with a maximum of 50 acres, although holdings with larger parcels of land continue to benefit, albeit to a lesser extent,’ said Andrew Fallows, partner in Carter Jonas' national farms and estates team. ‘The inevitability of increasing interest rates, currently predicted to occur in the second half of 2015, is also expected to impact the general tone of the land market and our forecasts predict that average land values will increase 3% during 2015,’ he added. Continue reading
Prime central London transactions slowing but prices remain stable
The introduction of a new stamp duty propertytax structure in December, the forthcoming general election and the spectre of a mansion tax have created a level of uncertainty within the UK’s prime property market, it is claimed. New research from prime central London agency W.A.Ellis, a JLL company, shows a sharp reduction in prime central London transaction levels. The firm compared sales transactions within Knightsbridge, Chelsea, Belgravia and Kensington post code areas and found that transactions in January 2015 fell by 34% compared to a year ago. This reduction is most sharply felt within the house sector, with only nine sales occurring in January 2015, contrasting with 25 in January 2014, a reduction of 64% and the firm has seen a large number of houses being withdrawn from the market as discretionary sellers adopt a ‘wait and see’ more cautionary approach until after the election. The research also shows that while the transaction levels have dropped year on year, the average rate per foot of all the houses sold across the postcodes has remained stable at around £1,800 per foot. ‘Comparing year on year transactions within the same month only provides a snapshot, but the overriding sentiment at the upper end of the market is undoubtedly one of caution until the political path becomes clearer,’ said Richard Barber, director at W.A.Ellis. ‘At the lower end, however, we predict an increase in activity from the over 55s, releasing deposit monies from pensions to fund either buy to lets or investments for their children and we expect this to have a strong upward effect on the market between £200,000 and £1 million,’ he explained. He also explained that whilst the Mortgage Market Review (MMR) has had a curbing effect on the amounts that first time buyers can borrow, the so called bank of Mum and Dad is likely to subsidise the shortfall in mortgage funds, particularly as the market in equities and gilts is looking unpredictable. The firm’s research also shows that the prime central London lettings market saw a flourish of activity in the first week of January, followed by a steady stream of enquiries, viewings, and subsequent new tenancies. The firm forecasts that central London rents will rise 3% over the course of 2015. ‘January saw activity across the entire breadth of the market, with well-presented one and two bedroom properties letting with relative ease. Substantial houses gained much deserved attention, too, from families who have, no doubt, been hibernating over the Christmas period,’ said Lucy Morton, director and head of agency. She pointed out that demand for new build property, particularly in W2's prized Merchant Square development, is most definitely on the up, and the firm is seeing tenants’ expectations on quality of finish and furnishing increase considerably. ‘Stock levels remain high as many would be vendors with pre-election nerves opt to list their properties on the rental… Continue reading
Over 55s boost property equity release in UK to record high
The total value of equity release lending in the UK reached almost £1.38 billion in 2014, the highest since records began in 1992, according to the latest industry figures. The 2014 total was up 29% from 2013, bringing the equity release market back above pre-recession levels, the data from the Equity Release Council also shows. It points out that home owners aged 55 and over are increasingly use their housing wealth to boost their finances and help with living costs in later life. On a quarterly basis the value of equity release lending totalled £365.7 million in the final quarter of 2014, an increase of 18% year on year and it reached £741 million for the second half of the year. There was also a six year high in new customer numbers with more than 5,700 over 55s releasing equity from their homes in the last three months of 2014 and there were 5,712 new customers in the final quarter of the year, the largest amount in a single quarter since the fourth quarter of 2008. It pushed the total number of new equity release customers in 2014 to 21,336, a 13% increase from 2013 and the largest yearly figure since 2008. Customer numbers have now grown for four consecutive years since the recession. The average value of equity release lending also hit a new milestone in 2014, reaching £64,787, up 14% from the previous year and exceeds the previous record of £60,504 in 1998 by 7%. Some 66% of new equity release customers chose drawdown products in 2014, in contrast to just 25% of customers in 2006. Lump sum products now account for 34% of new plans while home reversion account for less than 1%. However, drawdown products account for a smaller share of the market by value at 60% or £825 million during 2014, as these products allow retirees to take smaller sums as and when they need them, often allowing more of their housing wealth to be preserved. ‘These lending figures show that 2014 was truly a record breaking year for the industry. Equity release is proving to be a crucial tool for financial planning in retirement, and is allowing retirees to improve their standard of living and give them more flexibility to support themselves or family members,’ said Nigel Waterson, chairman of the Equity Release Council. ‘Many retirees have more wealth tied up in property than anywhere else, so it is only logical that this forms part of their plan to enjoy a comfortable retirement. The new pension freedoms won't change the fact that many people do not have enough savings for later life. There is a danger that people's pension pots will be here today, gone tomorrow, but housing wealth is the one constant that many in this generation can rely on for support,’ he explained. ‘Increasing awareness of the available products and their benefits means that equity release will continue to thrive in 2015… Continue reading
