Tag Archives: real estate
UK student property investment growing, latest figures show
Investment into the UK’s student housing market hit £3.98 billion in the first half of 2015, well ahead of the £2.35 billion for the whole of 2014, the latest data shows. Within that total, London saw a record £1.98 billion of transactions across the first half of the year, according to research from commercial property and real estate services advisor CBRE. The firm said that these numbers come as many investors begin to see the student accommodation market as a higher yielding way of gaining exposure to London’s PRS, with yields at an attractive margin above conventional residential stock. It adds that the record inflows seen in London have caused the fastest change in student housing yields in the whole of the UK, with yields now at 4.75% on a par with the previous peak in 2007. Student housing supply remains constrained across the UK, as a growing number of students chase a severely limited stock of purpose built accommodation in most university towns, according to Jo Winchester, head of student housing advisory at CBRE. ‘So long as demand outstrips supply, upward pressure on both rents and capital values will continue to make the market an attractive proposition for investors, and we don't expect the market to come off the boil for some time,’ explained Winchester. She added that some investors see student housing as a more cost effective way of gaining access to the PRS, both in terms of higher yields and lower capital values per square foot. ‘Although there are differences between residential and student accommodation operational models, some larger student housing operators and investors in the sector are beginning to explore build to let development and investing in the PRS. As this happens, it is possible that the operational models could become more closely aligned,’ she concluded. Continue reading
UK govt announces changes to shake up house planning and get more homes built
A series of planning reforms announced today by the UK government aimed at boosting house building have been widely welcomed by the property and construction industries Under the changes planning permission will be granted automatically for homes on brownfield sites, even over ruling wishes of local authorities in England. But experts warned that councils will not like the move although they have been heavily criticised for not creating local plans and taking too long to make decisions. Ministers will also get powers to seize disused land which is suitable for houses and major housing projects are set to be fast tracked through the planning system. There will be penalties for local authorities that make 50% or fewer planning decisions on time in a bid to inject some speed into the planning process. The rules on extensions in London are to be relaxed in terms of building upwards to match neighbouring levels and the Mayors of London and Manchester are to get power over planning in their cities. The British Property Federation (BPF) said the changes have the potential to be an enormous boon to housing supply but it warned that some of the new measures will only work if the government addresses the severe shortage of funds within local authority planning departments. The BPF also urged the government not to over focus on providing new homes for sale and pointed out that there is also a need for more purpose built rental accommodation in order to combat the housing shortage and deliver a more balanced housing market. Melanie Leech, chief executive of the BPF, British Property Federation, called for a dialogue with both the public and private sectors on how to address the severe shortage of funds which is afflicting local planning departments. ‘The private sector will need to play a part in helping to address this funds shortage, and this needs to be explored fully if we want these new measures to work. We would also have liked to have seen some commitment to growing the purpose built rental sector, which has an important part to play in solving the housing crisis and creating a balanced housing market,’ she said. ‘We warmly welcome the government’s recognition of how a functioning and efficient planning system can contribute to the UK’s growth by creating not just new homes, but also the infrastructure that supports great places,’ she added. Leech explained that a lack of dynamism among local authorities on Local Plans should be addressed by the government being able to intervene. ‘Local Plans are fundamental to growth, and we are firm believers in a plan led system. There are still areas, however, without a Local Plan in place, and so we are pleased to see that government is taking steps to ensure that plans are delivered in a timely fashion,’ she said. ‘A number of recalcitrant local authorities have been dragging their feet and producing bloated local plans that are overly long and simply… Continue reading
House prices up 2.5% in the European Union in first quarter of 2015
House prices increased by 0.9% in the euro area and by 2.5% in the European Union in the first quarter of 2015, according to the latest data to be published. The figures from Eurostat, the statistical office of the European Union, also show that compared with the first quarter of 2014 prices increased by 0.3% in the euro area and 0.6% in the EU. But there is a huge difference between the fastest growing housing markets and those where prices are still falling. The highest annual increases in house prices in the first quarter of 2015 were recorded in Ireland with growth of 16.8%, followed by Sweden at 11.6%, Hungary at 9.7% and the UK at 8.5%. The largest annual fall in house prices was recorded in Latvia where prices are down 5.8%, followed by Italy down 3.3%, France down 1.6% and Slovenia down 1.4%. On a quarterly basis the biggest growth was seen in Romania where prices increased by 4.1% compared with the fourth quarter of 2014, followed by Sweden with quarterly growth of 3.9%, Hungary up 3.7% and Denmark up 3.5%. The largest quarterly house price falls were recorded in Belgium, Cyprus and Croatia with all three countries seeing growth down by 2.8%. There is no data available for Greece or Poland so it is not possible to see how their property markets have been fairing. An in depth look at some of the figures show how property markets, even in countries with strong price growth are wavering. Ireland may have the strongest annual growth but prices fell by 0.9% in the first quarter of 2015 compared with growth of 3.9% in the fourth quarter of 2014. In Spain the market has been pretty stable. Prices are up 1.6% year on year and have been increasing steadily each quarter but this steady growth was halted in the first quarter of 2015 when prices dipped 0.5%. A similar pattern can be seen in neighbouring Portugal. France has seen prices steadily falling and down 1.6% year on year in the first quarter of 2015, but this decline is down from the 2.2% annual fall recorded in the fourth quarter of 2014. Continue reading
