Tag Archives: london
London prime property rent rises set to outpace house growth in 2015
London prime property prices are expected to grow by 3% to 5% in 2015 but strong tenant demand is expected to boost rental prices by 10% over the next year, the latest forecast suggests. Uncertainty over the outcome of the general election is likely to boost the corporate lettings sector in particular and London property prices will ease into a slower rate of growth, according to estate agent Marsh & Parsons. They expect prime London house prices to rise up to 5% in 2015, compared to the 11.4% increase witnessed over the past 12 months. Annual growth is forecast to be strongest in outer prime London where typical house prices are 25% lower than across prime London as a whole, fuelling higher demand. But in the most expensive prime central areas of the capital, prices will climb by 3%. Marsh & Parsons expects the feel good factor to remain into 2015 for sellers and with mortgage rates as competitive as ever, it is also continues to represent a good opportunity for buyers too. ‘The London housing market gave a stellar performance in the first half of 2014, but there won’t be quite the same encore next year. However, the curtain certainly isn’t going down on price growth. After touching the brakes in recent months, property values will continue to climb steadily again in 2015, albeit at a more modest and orderly pace,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘Demand for prime London property remains stable, and after adapting to the mortgage market reform (MMR) changes and tighter affordability measures introduced this year, buyers are more motivated than ever, maintaining sales momentum and ensuring that property prices will not stand idle,’ he explained. ‘The general election will act to stimulate the market, removing much uncertainty and drawing a line under any hesitation from buyers and sellers, but this isn’t to say that the first five months of the year will be a write off as London won’t stop working,’ he added. Marsh & Parsons expects more vigorous growth in prime London rents, forecasting increases of 10% throughout 2015. The firm points out that following a period of largely stagnant rental prices, rents in prime London have climbed steadily during 2014, and the pace of growth will pick up over the next 12 months. Corporate tenancies have grown 14% in 2014 compared to the same period in 2013, and burgeoning demand for corporate lettings and relocations will ensure continued expansion of this sector next year. ‘The rental market will be where much of the action takes place in 2015. Those relocating to the capital for work are now biding their time before purchasing their own portion of London property, until question marks surrounding additional property taxes are erased,’ said Rollings. ‘This will push demand in the corporate lettings sector even further, and the biggest rental increases are predicted to be among one or… Continue reading
Bank of England figures show home buying lending has gained ground this year
Overall lending for buying homes in the UK gained much ground in the third quarter of 2014 compared to last year as the residential property market continued its recovery. The latest figures from the Bank of England shows that the proportion of lending for house purchase was 71.8% of total residential loans to individuals, approximately 1.7% higher than in the second quarter of the year. The figures also show that the amount of gross advances for house purchase was 20% higher compared with the third quarter of 2013 at £40.1 billion. However, the proportion of lending to first time buyers decreased by 0.4% to 21.7% after reaching a peak in the second quarter of 2014. But the value of residential loans advanced to first time buyers increased over the quarter to £12.1 billion, the highest quarterly amount since the third quarter of 2007. The proportion of gross advances at a loan to valuation (LTV) of over 90% decreased by 0.3% over the quarter to 4.3% while the proportion of gross advances to borrowers with a single income multiple of more than four times decreased by 1.1% to 10.8% after having increased for five quarters in succession. The proportion of gross advances to borrowers with joint income multiple of more than three times decreased slightly by 0.2% quarter on quarter to 28.6%. The proportion of gross advances that is a combination of an LTV over 90% and loan to income multiple of over 3.5 times for single income borrowers or 2.75 times for joint income borrowers, decreased over the quarter by 0.3% to 3.1%, having increased for the previous three successive quarters. According to David Newnes, director of Your Move and Reeds Rains estate agents, initiatives like Help to Buy and higher LTV lending provided welcome relief for potential first time buyers combatting stagnant interest rates on their savings and underwhelming wage growth in their quest for a deposit. But he warned that the loan to income caps could become a potential sticking point for first time buyers, and layers of mortgage regulation are threatening to further dampen demand for homes. ‘However, the government has extended an outstretched hand to aspiring buyers with last week’s stamp duty reform, which is a welcome gesture for the lower rungs of the housing ladder,’ he added. Continue reading
Major new development announced for London’s Canary Wharf
Plans to create a new waterside community on the eastern edge of Canary Wharf in London with up to 3,610 homes and more than 17,000 jobs have been approved by the Mayor of London. Major new development announced for London’s Canary Wharf Plans to create a new waterside community on the eastern edge of Canary Wharf in London with up to 3,610 homes and more than 17,000 jobs have been approved by the Mayor of London. It is the latest in a series of new developments that Mayor Boris Johnson hopes will help tackle the severe shortage of homes in the capital city, especially affordable homes. The new development, on land formerly known as Wood Wharf, will transform a vast 13.6 hectare site that has been semi derelict and underused for decades. In addition to new housing, including affordable housing options, the scheme will include a variety of business and retail units, hotel, leisure facilities, a new primary school and a doctor's surgery. There will also be up to 35,000 square meters of retail floor space, a community centre and a network of parks and public squares and the centrepiece will be a 57 storey cylindrical residential skyscraper facing the waters of South Dock, designed by Herzog & de Meuron, the Swiss architects behind the Tate Modern and the Bird's Nest Olympic stadium in Beijing. Developer Canary Wharf Group will also be contributing in excess of £60 million towards Crossrail and an additional £27.5 million for other infrastructure needs. This will include over £10 million for local transport improvements, some of which will be used to improve the nearby Preston's Road roundabout. At least 25% of the new homes will be affordable but a review mechanism has been put in place that could see the number of affordable homes rise to 40% and 80% of the affordable homes will be affordable rent and the remainder will be intermediate housing. ‘This vast development will transform a currently derelict brownfield site beyond all comprehension into a thriving new community with thousands of new homes and jobs. This is exactly the kind of scheme that we need to accommodate London's booming population that is set to break through the nine million mark within the next decade,’ said Johnson. According to Sir George Iacobescu, chairman and chief executive officer of Canary Wharf, the new development will reinforce Canary Wharf's position into the future as one of the most exciting and vibrant places to live and work in London. ‘The new phase of Canary Wharf will include up to 3,610 new homes, and 1.9m square feet of office buildings designed to accommodate the fast growing technology media and telecoms sector as well as financial and professional services firms,’ he explained. ‘It will offer high street retail units to complement Canary Wharf's existing retail offer, as well as affordable housing on site. It will also include substantial new green parks and dockside walks, a library, a large GP surgery, a school for 420 children, a community sports hall… Continue reading
