Tag Archives: real estate
Most UK landlords won’t use pension freedoms to invest in property
The majority of landlords in the UK don’t plan to take advantage of pension freedoms to invest in property, according to new research. Of those with a pension in place, just 5% are planning on withdrawing a lump sum to invest or expand their portfolio, the research from the National Landlords Association (NLA) shows. It also found that 14% of landlords would consider using a lump sum to invest in further properties, while 11% said they didn’t have enough of a pension to withdraw a lump sum at all, 7% already had other plans for withdrawing a lump sum and 19% were undecided. The research from the NLA, which asked landlords about their plans at retirement, also found that 3% plan to sell up completely, 19% have no retirement provisions in place and 25% plan to sell at least some properties. On top of this some 61% plan to live off portfolio income at retirement and 34% are undecided and will assess the market when they reach retirement age. ‘There has been a lot of talk around pensions being used to invest in buy to let since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into buy to let, it’s clearly not that popular an option for landlords,’ said Carolyn Uphill, chairman of the NLA. ‘Those currently in the market already have an asset to use if they want to expand, their property, and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to withdraw it at all,’ she explained. ‘The NLA offers invaluable advice, guidance and support for both existing and new landlords to help ensure the smooth and successful running of a letting business. It would be advisable for anyone considering or already planning on using a lump sum from their pension for investment in buy to let to look into how the NLA can help,’ she added. Continue reading
Spain is top target for commercial real estate investors in Europe, new poll shows
Active commercial real estate investors see Spain as the top investment target in Europe for next year as values are still below peak, new research suggests. This is a sign of the Spanish commercial market’s recovery, with Germany following close and Germany is next on the list, according to a poll of investors carried out by international real estate firm Knight Frank. ‘The fundamental rationale behind investing in Spain is even stronger than this time last year. Prime CBD office rents have risen by 20% over the past 12 months, but remain nearly 40% below the 2008 peak, and both footfall and sales have been increasing in dominant shopping centres for six consecutive quarters,’ said Humphrey White, head of Capital Markets at Knight Frank Spain. At the same time some 25.4% chose Germany as their preferred target and Knight Frank says that the results mirror the buoyant investment activity seen in the country, with a total of €30 billion invested in property during the first half of 2015, an increase of 35% compared to the first half of 2014. According to Joachim von Radecke, head of German Desk at Knight Frank in London, the increase is driven by the rising flow of foreign capital into the country and the 50% increase of domestic investor activity. ‘Foreign investors’ share of the German market continues to grow, and now accounted for almost 60% of all transactions in the first half of 2015. We saw the usual trend towards the big five markets of Berlin, Frankfurt, Munich, Hamburg and Düsseldorf, with 78% of total office transactions recorded in these cities,’ he added. The UK also featured strongly in this year’s poll, attracting 17.4% of the votes, on the back of the continuing recovery which has now extended to the UK regions. ‘The UK is well ahead of the rest of Europe in terms of the property cycle and has already seen significant yield compression,’ said Chris Bell, managing director of Europe at Knight Frank. ‘However, it is encouraging that rental growth is beginning to re-emerge more widely across Europe, helped by the strengthening of occupier demand and the steadily falling availability of good quality space exacerbated by the lack of development over the preceding recessionary years,’ he added. Continue reading
Newly listed properties in UK hits eleven year low
There is no sign of the supply issues in the UK housing market abating with estate agents reporting that the number of new properties has dropped to an eleven year low. The data from the National Association of Estate Agents (NAEA) shows that the number of properties available to buy per estate agent branch fell by a third in the last month. There are now 38 houses available per branch in August, compared to 55 in July. This is the lowest level of supply seen since January 2004, when 38 properties were also available. The NAEA monthly data report also shows that August saw a dip in house hunters, with an average of 408 house hunters registered per member branch, compared to 462 in July, a 12% drop. The number of sales completed in August rose by one to an average of 10 properties per branch in August, however, sales made to first time buyers fell to the lowest level since July 2014. One in five sales, 20%, were made to first time buyers in August, compared to 23% in July and 24% in June, indicating movement in the market is taking place higher up the ladder and it’s second and third steppers pushing through sales. ‘We’ve been banging the drum about the dwindling supply of housing for a while and this month’s report reiterates what we’ve been saying that there simply aren’t enough houses to match demand and we’re reaching crisis point,’ said Mark Hayward, NAEA managing director. ‘There are now 11 house hunters fighting after every available house which isn’t sustainable. First time buyers are finding themselves being squeezed out of the competition, which of course means it’s taking young buyers longer to get their foot on the first step of the ladder, which will in turn increase pressure on the rental market,’ he added. Continue reading
