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Prime central London experiencing shortage of three bed homes to rent
As the lettings market in the capital continues to thrive, one leading national estate agent is experiencing a shortage of rental properties available, particularly for three bedroom homes which are in high demand. The demand for three bedroom homes for rent in central London is seemingly insatiable, according to Zoe Rose, head of London lettings at Strutt & Parker. ‘As soon as we get a good one on our books, it lets in a flash. We recently let a three bedroom lateral top floor apartment on Cranley Gardens in South Kensington for £1,300 per week within two days on its first viewing and similarly we let a three-bedroom apartment on Ladbroke Gardens within one week for its asking price of £1,500 per week,’ she explained. She said that while buy to let investors often believe owning a one or two bedroom flat is a failsafe option when it comes to attracting tenants and optimising rent, the firm’s experience suggests that it’s actually three bedroom homes that are the most sought after at present. Indeed, Rightmove recently reported that more than a third of its top 5,000 most viewed homes were all three bedroom properties. ‘Owning a three bedroom property is clearly good news for landlords. They are a great investment because they have such broad appeal. Prospective tenants include young couples, small families and older couples looking to downsize. At a time when there has been a surge in working from home, having a spare room to use as an office is also very attractive to tenants,’ Rose pointed out. Strutt & Parker’s latest figures for lettings transactions in the third quarter of 2014 also indicate that it’s the larger, more expensive properties that are performing most strongly. When compared to the same period last year, transactions are up 18.4% for properties between £2,000 and £2,999 per week, up 14% for properties between £3,000 and £3,999 per week and up 16.7% for properties over £4,000 per week. However, lower priced properties costing less than £999 per week to rent, were down 7.5% on last year and properties between £1,000 and £1,999 per week were also down very slightly by 1.4%. Rose predicts that 2015 will be a good year for landlords with property in the prime central London market. ‘We are anticipating a 2.5% increase in lettings prices in prime central London for 2015 and we’ve already seen 2% growth for lettings in 2014,’ she explained. ‘This slow but steady growth will be underpinned by the simple fact that there are still so many people out there that can’t afford to buy a home in London and these people will continue to rent. Not to mention the large number of people who enjoy the flexibility of renting and the threat of rising interest rates rising will also play an important contributing factor,’ said Rose. ‘We currently have 25% less property available for… Continue reading
Councils in England will help self builders find land, UK govt pledges
Anyone in England who wants to build their own home should be able to turn to their local council for help to find a suitable plot of land under new plans published by the UK’s housing and planning minister. Brandon Lewis unveiled the details of a new Right to Build plan which he said will make custom build a more realistic option for more people. This comes at the same time as a government supported Private Member’s Bill on plans for a Right to Build register is being taken forward through Parliament by the MP for South Norfolk Richard Bacon. Eleven areas are already pioneering the Right to Build scheme, developing a register of prospective custom builders in the area and matching them up to shovel ready sites. The consultation seeks views from local planning authorities, the custom build sector and prospective custom builders about what they would like to see from the Right to Build. ‘Custom build should not be the preserve of a select few but a realistic opportunity for anyone who wants to build their own home and that’s why we’re supporting this Bill. Eleven areas are already leading the way on the Right to Build. And our plans for this Right across England will help more people turn their ambitions into reality and clear the way for a new generation of custom builders,’ said Lewis. He pointed out that it is just one of a range of measures to help aspiring home owners, and to get Britain building, adding that house building levels are at their highest since 2007 and rising. ‘House building is at the heart of the government’s long term economic plan, including supporting people to design and build their own homes which can often be at a lower cost than buying an existing property,’ Lewis explained. ‘This will not be a free for all and those looking to build will still need to go through the normal planning application process,’ he added. Other measures include a £150 million investment fund to support delivery of up to 10,000 serviced plots, making custom builders exempt from paying the community infrastructure levy and scaling back section 106 tariffs. The government also introduced a £30 million Custom Build Homes Fund in October 2012, which has made available repayable finance for larger multi-unit projects and grant funding for community custom builders. Continue reading
African lion starting to roar louder than the Russian bear in prime London market
The Russian bear is roaring less now in the prime London property market as the African lion takes over with rich Africans spending over £600 million on real estate over the last three years. New research suggests that wealthy buyers from just six countries; Nigeria, Ghana, Congo, Gabon, Cameroon and Senegal, are snapping up luxury property in the city. Nigerians are the top buyers in London spending over £250 million and buyers from Africa favour key addresses in Mayfair, Belgravia and Knightsbridge. Overall African oligarchs now account for 5% of all ultra prime residential sales by value, up from 2% 24 months ago, according to the data from top end agents Beauchamp Estates. The top 10% of buyers are spending £30 million upwards on homes while 80% spend £15 million to £25 million on London property and they prefer newly built or newly refurbished properties, the research also shows. They also want a property with parking as trophy cars are a passion amongst wealthy families. They are also renting luxury homes and will spend £10,000 to £15,000 per week on a top London property but tent to seek short term lets of six weeks to three months. There are 15 key addresses favoured by African buyers: Eaton Square, Belgravia, Holland Park, Kensington, Addison Road, Kensington, Charles Street, Mayfair, Grosvenor Square, Mayfair, The Bishops Avenue, Hampstead, Winnington Road, Hampstead, Regents Park (mansions), Compton Avenue, Highgate, Templewood Avenue, Hampstead, Avenue Road, St Johns Wood, Campden Hill Road, Kensington, Kensington Palace Gardens, Kensington, One Hyde Park, 100 Knightsbridge and The Knightsbridge Apartments, Knightsbridge. Prime London residential property is seen as a good, safe, secure and stable investment by wealthy buyers Africa but there are also historic cultural and community ties. There is a 70,000 strong Nigerian community living in London, Ghana has a 56,000 strong community in the capital, whilst the Gabonese London community consists of some 3,000 people. Wealthy Africans are also keen to send their children to top schools in and around London such as King’s School Canterbury, Wycombe Abbey, Cheltenham Ladies College, Eton, Harrow and Bradfield. The Nigerian Embassy in London has estimated that Nigerian nationals now spend over £300 million per annum on fees, study equipment, tutoring and accommodation at British schools and university. ‘It is going to be the African century and these six countries are the standard bearers in the London property market. Continental African buyers or luxury tenants in London are currently where the Russians and Ukrainians were five years ago,’ said Gary Hersham, director at Beauchamp Estates. ‘They have the resources and desire to purchase or rental luxury homes in prime central London, but they have less knowledge of the best properties and addresses and seek our local knowledge and insider advice on where to buy and what makes a good investment. At present virtually all the transactions are for end use, not rental investment, which indicates that the African buyer market in London has significant room for growth… Continue reading
