Tag Archives: real estate
Massive London regeneration plan to include 24,000 new homes
One of the largest regeneration schemes in London for decades has taken a further step forward and received the seal of approval from the UK government, it has been announced. The Mayor of London, Boris Johnson, intends to establish a Mayoral Development Corporation to lead the transformation of Old Oak Common in West London and create a brand new part of the city with up to 24,000 homes. Now the Secretary of State for Communities and Local Government, Eric Pickles, has confirmed that he supports these plans and an Order has been laid before Parliament to create the new body, which will be known as the Old Oak and Park Royal Development Corporation (OPDC). Subject to parliamentary approval, the new corporation will come into existence on 01 April 2015 and the Order will be followed by a similar piece of legislation to give the OPDC planning powers. A vast High Speed 2 (HS2) and Crossrail Station is due to be constructed at Old Oak Common by 2026. The new station will be the size of Waterloo, handling 250,000 passengers a day and acting as a super hub between London and the rest of the UK, Europe and the world. Johnson said that this represents an opportunity to bring unprecedented regeneration to the area and he believes that the OPDC is the best way to unlock the enormous potential of the site and deliver a £15 billion boost to London's economy over 30 years. The Corporation will act as a single, transparent and robust body to spearhead the regeneration of the 950 hectare site that straddles the London boroughs of Hammersmith and Fulham, Brent and Ealing ‘The vast new station at Old Oak Common presents us with an almost unprecedented opportunity to transform an area the size of a small London borough into a thriving new part of the capital, with unrivalled transport links to central London, the rest of the country and beyond,’ Johnson said. ‘London will shortly become home to more people than ever before and there is no doubt that this scheme will provide a real shot in the arm as we look to provide the new homes and jobs that we desperately need,’ he added. Pickles said house building is a key part of the Government's long term economic plan. ‘This deal will create a whole new community in West London, delivering up to 24,000 new homes and over 50,000 new jobs, with excellent transport links both into the capital and across the country. This is on top of the efforts we've made to get the country building again, which has helped deliver over 141,000 homes in London since the end of 2009,’ he added. The OPDC will look to emulate the success of the London Legacy Development Corporation that continues to lead the post-Olympic regeneration of Stratford and East London. The Mayor's Office believes that the regeneration opportunity could provide almost 14% of Greater London's employment needs up to… Continue reading
Bottom end of US housing market rebounds
Many home owners in the US at the bottom third of their markets are finally in a position to sell, according to the latest index data. Owners of the country's lowest valued homes emerged from 2014 in a stronger position than previous years, with home values up 6.8% year on year, the latest quarterly report from Zillow shows. Properties in the lower third of home values bottomed out in January 2012 with a median value of $84,100 but by December 2014 they had bounced back to a median value of $101,400. While home owners in the bottom price tier are still 17% below their pre-recession peak values, this is a distinct improvement from the 31% value loss they suffered when home values hit rock bottom in January 2012. Returning value means many with lower valued homes who had been in negative equity are now able to sell or refinance, boosting low end inventory, which has been tight for the past few years. Going into the home buying season in 2015, buyers can expect to find more homes on the market and less competition from all cash bidders, the report also points out. Metros with the biggest jump over last year in low end inventory are Las Vegas, with 66.% more low end homes on the market in December 2014 than December 2013, Riverside, with 47.3% more and Washington D.C. with 45.7% more. Homeowners of lower valued homes are emerging from negative equity and are able to sell just as many in the millennial generation prepare to buy homes, pushed into the housing market by rising rents and abysmal rental affordability. ‘In many ways, for the housing market to fully normalize, it has to start at the bottom. More lower end home sellers will help meet demand from entry level buyers, and these sellers in turn will re-enter the market in search of a slightly pricier home, which will entice more middle and upper tier sellers to list their homes,’ said Zillow chief economist Stan Humphries. ‘As the economy gets stronger, we expect more young adults to strike out on their own, moving out of friends' and parents' homes. This will create strong demand in coming months, especially for less expensive homes,’ he added. Rents continued to rise, and at the end of December the Zillow Rent Index had increased 3.3% year on year, to $1,345. Continue reading
Majority of UK landlords not getting enough from lenders, it is claimed
Despite the recent launch of new mortgage rates and new terms for buy to let landlords, a new study shows that over three quarters of landlords believe that banks are not doing enough to support them. Just 17% of landlords feel they are getting enough support from lenders and one in ten have faced problems securing a buy to let mortgage, says the research from online letting agent PropertyLetByUs. The research also reveals that 87% of landlords believe the mortgage fees for buy to let loans are too high, while just 13% believe the interest rates are reasonable. This comes as figures show that over 70% of landlords have taken out a mortgage in the last six months to purchase a buy to let property and 19% have taken out a mortgage to refinance a loan. ‘Our research shows that lenders have some way to go to reassure landlords that they are supporting the buy to let sector. However, since the banking crisis of 2007, there has been a gradual increase in the availability of finance for buy to let landlords and the choice of mortgage products today is better than it has been for a long time,’ said Jane Morris, managing director of PropertyLetByUs. She explained that buy to let lenders typically want rent to cover 125% of the mortgage repayments and many are now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals. The best rate buy to let mortgages also come with large arrangement fees. ‘Landlords need to be cautious with mortgage fees as they can substantially push up the cost of a mortgage, especially if landlords are only fixing, or tracking for a short deal period. The biggest fees are typically those charged as a percentage of the loan, but even flat fees can run to £2,000,’ said Morris. ‘There are currently some good buy to let mortgage products on the market. For example, the lowest rate available now is 2.2% from Principality Building Society. It comes with a £994 fee and requires a 40% deposit. The total cost on a £150,000 mortgage would be £7,594 for the deal term,’ she explained. ‘For a longer term deal, The Post Office has a five year fixed rate at 3.65% with a £995 fee for a 40%. A £150,000 mortgage would cost £28,370 over five years,’ she added. Continue reading
