Tag Archives: real estate
Agents report rush of business in Scotland after referendum vote
Scotland has seen renewed activity in the residential real estate market in the weeks after the historic referendum vote. Agents across the country have reported an upsurge in sales, many of which they believe had been delayed due to the upcoming vote. Indeed some buyers had asked for a clause that allowed them to get out if the vote had been a Yes. Momentum has accelerated significantly according to estate agency Strutt & Parker which reports that early indications suggest that the property markets will make up for lost time after an understandably quiet few weeks in the build-up to the vote. It has three offers made on the first working day following the referendum and across Scotland Strutt & Parker has launched 14 properties since then and is preparing another 15 for sale. The agency has organised more than 100 fresh viewings in the last week, received 11 offers and held several successful closing dates for best and final offers. This is set against very subdued activity in the month leading up to the referendum. ‘There has been a demonstrable rise in activity levels. After a lull prior to the referendum, the telephones are ringing again with inquiries from both potential vendors and purchasers,’ said Andrew Rettie, partner in charge of the firm’s estate agency in Scotland. He pointed out that the autumn market is traditionally strong but it has this year been delayed by at least a month. ‘However, the referendum is now behind us and the uncertainty surrounding it is consigned to the past. We know that Westminster is committing to plans for Devo Max and we hope these will be clarified as soon as possible,’ said Rettie. ‘Most of the buyers and sellers I have spoken to are relieved that the referendum is out of the way and that they can get on with their business life, and make the decisions they may have delayed in recent months. It is early days but evidence from the past week suggests the market will kick off from this point and that we will see a renewed vigour in the autumn,’ he added. Strutt & Parker was instructed to sell a sporting and agricultural estate early on the Friday morning after the vote which is now being prepared for the market. It also held a successful closing date for a farming and residential estate in Argyll on the Tuesday after and launched a Borders estate a week after. Other estate agents report selling 50 properties in the week after the vote. Continue reading
London’s Midtown saw highest levels of commercial rental growth in first half of year
Midtown experienced the highest levels of rental growth of any central London office market in the first half of 2014, according to new research by IPD and Farebrother. Offices rents in Midtown increased 5.9% in the six months to June 2014, ahead of the West End and The City, which posted growth of 5.6% and 4.7% respectively. Data from IPD and Farebrother shows that rents in Midtown, which exceed £70 per square foot at prime buildings, now exceed pre-2008 levels by 1.3%. The unparalleled rental growth in Midtown, driven by a strong occupational market, is pushing capital forwards and the data shows they grew 9% in the first half of the year alone. This was comfortably ahead of the central London average of 8%, albeit marginally behind the West End, where values increased by 9.5% over the same period. Capital values have been the key driver of performance in the Midtown office market, where returns surged to 11.1% in the first half of 2014, almost double the performance posted in the same period last year. This is set against a backdrop of central London Offices delivering a return of 10.6% for the same period, with only the West End, perennially Europe’s best performing market, delivering superior returns at 11.4%. ‘Midtown is central London’s most over-subscribed office market. The demand/supply imbalance means that availability is likely to drop below 4% at some point,’ said Alastair Hilton, head of investment at Farebrother ‘The strength of the occupational market is really driving rental growth, and we are seeing leasing deals being done at unprecedented levels on prime assets. This is really underpinning performance throughout Midtown, where returns have increased significantly since the same period last year. The challenge for investors is the lack of liquidity in the market set against an increasingly competitive background,’ he added. According to Colm Lauder, IPD senior associate, Midtown has proven to be a strong location for investors since the central London office market started to recover, leading investor total returns for six of the quarters in the last two years. ‘Over the past five years, capital values and rents have been on an upward trajectory in Midtown, driven by robust occupier demand across a broad spectrum of industry sectors,’ he pointed out. ‘Given these market fundamentals, Midtown will remain one of central London’s most compelling investment propositions for the foreseeable future,’ he added. Continue reading
Almost two thirds of tenants think they will never be able to buy a home
Nearly two thirds of tenants in private rental accommodation in the UK believe they will never be able to buy a home of their own, according to new research. Just 35% of tenants think they will be able to get on the property ladder, says the survey results from online letting agents Property Let By Us. It says that rising rents and soaring house prices have made property ownership a distant dream for many tenants. The number of people living in private rented accommodation has risen from 2.2 million in 2002/2003 to nearly 3.9 million last year. The number of people renting from private landlords now outstrips those in council and housing association homes for the first time. Half of those renting privately are under the age of 34, with private rentals outstripping social housing for the first time, according to data from the Department for Communities and Local Government. Home ownership has fallen to its lowest level for a quarter of a century and the number of people renting has almost doubled. More than a third of England's 14.3 million home owners are now aged 65 and over as young people have been frozen off the property ladder. Just 1.4 million home owners are aged between 25 and 34, the age group most likely to be raising families, while 96,000 are aged between 16 and 24. ‘Recent figures show that house prices leaped by another £18,000 in the year to August, hitting yet another record high of £189,306 on average,’ said Jane Morris, managing director of Property Let By Us. ‘This is more bad news for would be home buyers. The reality is that home ownership is changing in the UK and over the next 10 years, we are going to see increasing numbers of people renting rather than buying. Rising rents have meant that many tenants, particularly young people have been unable to save a deposit and the recent mortgage changes have made it even harder to secure funding,’ she explained. She pointed out that the growing demand for rental accommodation is good news for landlords. But as the market continues to expand, it evitable that this will bring greater Government scrutiny to the sector. Legislative changes like immigration will put more and more responsibility on landlords and tighter controls will have to be introduced to ensure basic standards of accommodation are maintained and any deviance is punished effectively,’ said Morris. ‘Professional and law abiding landlords will benefit hugely from this expanding market with rising asset values, increased tenant demand and good, stable rental income,’ she added. Continue reading
