Tag Archives: real estate
New committee formed to promote Build to Rent sector in UK
The British Property Federation (BPF) has announced the creation of a new committee that will focus on promoting the emerging build to rent sector. At a time when the housing crisis is acute and private renting has overtaken the social housing sector as the second largest tenure in the England, the committee will reinforce the important role that build to rent can play in increasing housing supply and tenant choice. It will work to ensure that both local and central government continue to support the sector, and create the right conditions to encourage investment and speed up delivery of this new housing product. The committee, which will be formed as a sub-set of the BPF’s residential committee, will be chaired by Andrew Stanford, UK residential fund manager at LaSalle Investment Management and former head of the government’s Private Rented Sector Taskforce. Adam Russell, acquisitions manager at FizzyLiving, will act as vice-chair. ‘Build to rent fits so well with so many of the new government’s priorities, delivering new supply of quality rented homes, accelerating the speed of housing development, making good use of brownfield sites, supporting place making and meeting customer needs,’ said Stanford. ‘There are many innovators in this new market and I am so pleased we have brought many of them together, in this new group, to drive that important dialogue with local and national government forward,’ he added. Continue reading
Commercial property demand up in UK as supply falls
Demand from business for commercial property in the UK rose for the eleventh consecutive quarter, while available space fell for the ninth successive period, the latest sector market survey report shows. The Royal Institution of Chartered Surveyors (RICS) says that as a result, rents are expected to rise at the fastest pace since its survey began in 1998 with 46% more respondents forecasting higher, rather than lower, rent rates going forward. Offices remain the segment of the market where rental expectations remain most buoyant, while retail continues to lag although even in this area, momentum is picking up, while prices are expected to keep rising over the next 12 months. The picture is not dissimilar in the investment market, where purchase enquiries rose again; 53% more surveyors reported an increase in prospective investors over the quarter. Meanwhile, availability continues to decline, exerting further upward pressure on capital values. There were also reports of greater overseas buyer interest, with 36% more respondents seeing more enquiries from overseas investors. Across the whole of the UK, but excluding London, 95% of respondents believe that current commercial market valuations are either at or below fair value, this is roughly unchanged since the first quarter of 2015. However, in London 50% of contributors now feel that commercial property valuations are 'expensive', an increase from 45% in the first quarter. RICS says it was interesting that given the upcoming referendum on the UK’s position in the European Union, when asked if Britain leaving the EU would have significant negative implications for the commercial property market, 44% of respondents felt it would, while 32% believed it would not. Reflecting the high degree of uncertainty, 24% reported they did not know at this point. ‘The results of the latest survey suggest the price of commercial real estate will continue to move higher over the next 12 months and quite possibly by another 10%,’ said Simon Rubinsohn, RICS chief economist . ‘Fortunately, the strength of the occupier market is providing some underlying support for the market. Indeed, the feedback we are getting from around the country tells us that the economic expansion is continuing to broaden out with both tenant demand, and just as significantly, investor interest, rising in all areas,’ he added. Continue reading
Average UK home values up almost 3% in first half of 2015
The average value of homes across Britain rose by 2.75% during the first six months of 2015, with all regions seeing price growth, according to new figures. At the start of July the average price stood at £270,674, up £6,974 on January’s figure of £263,699, the data from property website Zoopla shows. A breakdown of the data show that although there is general growth the rate of growth varies from region to region. Scotland experienced the highest rate of growth, with an average increase in property values of 6.6% or £11,382, taking the average home value in Scotland to £183,230. The next best performing regions were the North East and North West registering a 3.1% and 3% increase respectively. Wales was the worst performing region for property price increases over the first half of 2015 with an average rise of only 1% or £1,584. Among the 50 largest cities in Britain Edinburgh registered the largest growth in house prices since January 2015 of 8.2%, representing a £20,465 increase in the average home value in the city. Next was Colchester in Essex which saw property prices rise by 7.6% or £19,088, during the six month period, followed by Aberdeen with a 6.4% or £15,416 rise in values. London saw prices rise by only 2.5%, below the national average, but this amounted to a rise of £14,385 because of the higher price of property in the capital city. Yorkshire had three of the 10 worst performing cities for house price growth in the first half with Rotherham seeing a fall of 2.1% or £2,752. Wolverhampton, Newcastle upon Tyne and Middlesbrough also saw a modest drop in average houses over the period. ‘While national property price growth saw a slow start to the first half of the year, it recovered strongly towards the end of the period. The strong regional figures across the board indicate an economy which is returning to health, with a series of Government incentives designed to encourage home buying helping to boost demand for property in all parts of Britain,’ said Lawrence Hall of Zoopla. He explained that the surge in property values in Scotland can, in part, be explained as a post referendum bounce, as businesses and capital flood back to Scotland, after withholding investment during the volatile September referendum period in 2014. ‘A post general election feel good factor must not be discounted as more devolution promised has given property prices a bounce as Scots anticipate more jobs and investment coming their way,’ he added. Continue reading
