Tag Archives: real estate
Research reveals the diversity of overseas buyers in London’s prime market
Over 30 different nationalities are buying prime property in central London with African making up the biggest group at 43.7%, new research shows. The next biggest group of overseas buyers are from the Middle East, making up 17.1% and then Asian and UK buyers both at 10%, according to the research from independent property buying agency Black Brick. Overall, Black Brick has represented 35 different nationalities, with Africans forming the highest percentage of buyers at 43.7% of all deals, followed by Middle Eastern buyers at 17.1% and then tied in third place Asian and UK buyers at 10% respectively. According to Camilla Dell, founder and managing partner of Black Brick, although the perception is that the majority of prime central London’s overseas buyers are Russian or Middle Eastern, Africans have always had a big affinity with the UK and London. ‘Over the last eight years, we have successfully acquired £236 million of residential property for African buyers from Nigeria, Kenya, Zambia, South Africa and Uganda,’ she said. ‘In particular, we’ve represented numerous buyers from Nigeria. Like a lot of our owner/occupier international clients, many wealthy Nigerians were educated in the UK and send their children to school here,’ she added. Typically, Nigerians like gated, secure developments, as this is what they are used to back home, where most houses and apartments are located within secure compounds. Even though London is of course, much safer than Nigeria, they still prefer to be in secure developments, preferably with a 24 hour concierge or porter, the research report points out.. In terms of location, for lower budgets, many Nigerians love new build developments such as Imperial Wharf, which is even known as ‘mini Lagos in some circles. However, high net worth Nigerian clients prefer to explore new areas and have privacy and opt for properties in areas such as Belgravia and the parts of Chelsea. The research shows that 39% of the firm’s Nigerian clients have bought in either SW3, SW10 or SW1, closely followed by 35% buying in North West London postcodes such as NW8, NW6 and N2. In addition, 58% of our Nigerian clients have been purchasing homes in London with the remaining 42% buying for investment. The data also highlights the fact the services of buying agents are not just for wealthy overseas buyers, with UK purchasers forming the third highest percentage of Black Brick’s buying clients. ‘The property market in London is time consuming, frustrating and difficult to navigate even for local buyers, hence the growing number of UK buyers within our client base. Our British clients tend to be busy executives from the financial services sector, who may have previously been looking for some time on their own, but have become increasingly disillusioned with not being able to find the right property, getting gazumped or having access to off market opportunities,’ explained Dell. She also revealed that 88% of the firm’s UK client base have been owner… Continue reading
UK group suggests special help for oldies to downsize and free up family homes
A group of politians in the UK have called for older home owners to be given support to help them move home so that more properties can be made available for families. According to the All Parliamentary Group on Housing and Care for Older People a Help to Buy style equity loan scheme and stamp duty exemption would encourage older people to downsize. The claim follows an analysis revealing a third of over 60’s would downsize if it was easier, but up to half of older home owners are priced out of local retirement housing. Their report argues that a Help to Move equity loan would help older homeowners with lower value properties ‘bridge the gap’ between the value of their home and the purchase price of a new retirement property. It also said that many older people cannot easily access mainstream mortgage lending, even when they can afford the repayments. The report goes on to argue that exempting older people purchasing homes worth up to £250,000 from stamp duty would reduce their transaction costs, while leading to a net gain for the Treasury because of the consequent moves in the property market. It also points out that the ‘guidance guarantee’, to be brought in with new pensions freedoms next year, as well as a new duty on local authorities to provide care advice, should be wrapped into a comprehensive package together with housing advice, helping older people make decisions about where and how they live after retirement. The report cites analysis by the think-tank Demos revealing 58% of over 60s, equal to around eight million people currently living in seven million homes, are interested in moving. A third of over 60s specifically wanted to downsize, while a quarter said they were interested in buying a retirement property. If ‘Help to Move’ encouraged all those wanting to downsize to move home researchers calculate that 4.3 million family homes would be freed up, easing the pressure on the housing market. However, between 40 to 50% of older home owners aren’t able to afford to downsize in their local area as their family home is not worth as much as new retirement housing, making additional financial support crucial for many older people in lower value properties. The group points to land prices, an overall lack of supply, and limited availability of ‘shared ownership’ options as reasons why retirement housing is unaffordable for many older people. ‘More and more people in their extended middle age are thinking about downsizing. This can mean much reduced fuel bills and maintenance costs, perhaps the release of some capital, and can prevent a forced move in later life. But down-sizing is not easy,’ the group’s chair Lord Best. ‘Our report recommends a Help to Move package of Stamp Duty relief, financial advice and mortgage support like the Help to Buy assistance for younger purchasers to generate the demand that will get more high-quality homes built for this age group,’ he added. Claudia Wood, chief executive of the… Continue reading
Global economic outlook and general election impacting on UK property markets
A more challenging domestic and global economic outlook and political uncertainty in the lead up to next year’s general election are having an impact on property price growth in the UK. According to the latest analysis report from Knight Frank while the first interest rate rise for years is now expected in the second half of 2015, the UK economy is facing additional challenges from overseas. It points to the continued problems in the Eurozone, the withdrawal of quantitative easing in the United States and the fact that global economic growth has also slowed to a six month low. ‘It is a combination of these factors which prompted the Bank of England to push back its expectations of when the first base rate rise will occur. With a much more benign outlook for inflation, the markets are now pricing in a rise in October 2015, with the expectation that the base rate will still only be at 1% well into 2016,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘As a result of the new outlook for interest rates, mortgage rates have receded again, which is good news for home buyers and those re-mortgaging their home. However there are also factors weighing on the mortgage market which are likely to feed through to slower activity, such as the new loan to income criteria from the Bank of England, as well as the new rules for mortgage applications under the Mortgage Market Review started in April this year,’ she pointed out. The analysis report also points out that UK house prices rose by 0.5% in October, with the annual rate of growth slowing to 9%. Prime central London house prices remained static in October, the first month in four years in which no growth was recorded. Annual growth in prime central London prices slowed to 6.5% and rents in the prime Home Counties market fell by 0.8% in the third quarter of the year but the annual rate of growth moved into positive territory at 0.1%. ‘Residential property price growth is slowing across the country, including prime central London where the political uncertainty in the run-up to the election, especially over a potential mansion tax, is tending to weigh on activity,’ added Gilmore. The report records that prime central London prices did not rise in October, but are up 6.5% year on year. But price growth in the prime central London market continues to moderate amid growing political uncertainty in the run-up to next year’s general election. ‘The election is primarily causing unease because of the property tax measures which depend on the outcome. Both Labour and the Liberal Democrats have pledged some sort of tax on higher value properties, whether a ‘mansion tax’ or a re-banding of council tax,’ explained Gilmore. ‘Ed Balls, the shadow chancellor, pledged that those in homes currently valued at £2 million to £3 million a year would not pay more than £250 a month, or £3,000 a year (after tax) as part… Continue reading
