TSI
European commercial property markets sees 30% growth year on year
The European commercial property investment market has continued to gain positive momentum, with transaction volumes reaching €104.9 billion in the first half of 2015. This was a 29% increase on the same period of 2014 and investment volumes for 2015 are forecast to reach €230 billion, which would make it comfortably the best year since the market peak of 2007. The data from the analysis report from international real estate firm Knight Frank shows that increased investment volumes were recorded in the first six months of the year across a wide range of markets, in both the core and the periphery of Europe. The continent’s two largest markets, the UK and Germany, performed strongly in the first half of the year, providing a significant boost to overall deal volumes. The UK is on course for a record breaking year for investment, while the German market has been buoyed the strong performances of Frankfurt and Berlin. The analysis report shows that the revival of activity in Europe’s peripheral countries has continued, as investors move up the risk curve and seek value in non-core markets. Spain and Ireland, which have led the peripheral market recovery over the last 18 months, continue to attract heightened levels of investment, but the most impressive increases in activity during the first half of the year came in Italy and Portugal. It also shows that the weight of money targeting commercial property has led to widespread yield compression, and prime office yields hardened in cities such as Amsterdam, Lisbon, Madrid, Milan and Paris during the second quarter of 2015. Knight Frank’s European weighted average prime office yield moved in to 4.9%, its lowest level since the third quarter of 2007. While investment activity is buoyant in the large majority of European markets, occupier market trends remain more varied. Rental growth was patchy in the second quarter with Dublin, Madrid and Vienna being among the small number of European markets to record increases in prime office rents. However, rental growth is anticipated to become more prevalent in the medium term, on the back of the improving European economy and falling availability levels, particularly for CBD offices. ‘Investment volumes continue to be driven upwards by the strong international demand for European commercial property, particularly from US investors, and by the increasing number of large portfolio deals,’ said Andrew Sim, head of European Capital Markets at Knight Frank. ‘These trends are expected to continue over the rest of the year, and we forecast that annual European investment in 2015 will be more than 20% up on 2014. European transaction volumes are approaching the levels seen at the market peak of 2007, and several countries may well set new records this year,’ he added. According to Matthew Colbourne, associate with the Knight Frank international research team, European occupier markets continue to see mixed trends, in contrast to the widespread buoyancy of investment markets. ‘Office take-up increased strongly in the key German and Spanish markets… Continue reading
Buying a home near a British stately home costs on average £40,000 more
Buying a house close to one of Britain's many stately homes can cost on average £41,000 more than in neighbouring areas, but they also grow in value, new research shows. The average house price in an area with a stately home was £319,203 in May 2015 compared to an average of £277,990, a premium of £41,213 or 15%, according to a study by UK lender, the Halifax. Indeed, it found that some 76% of postal areas with stately homes have higher house prices than neighbouring locations and overall prices command a premium relative to the surrounding area in 54 of the 71 stately homes covered in this survey. Homes close to Kenwood House in Hampstead Heath currently command the highest premium of £770,023 or 120% in cash terms, followed by Ham House in Richmond upon Thames at £513,918 or 116% and Ightham Mote in Sevenoaks at £231,230 or 82%. Outside southern England the areas with stately homes commanding the highest premiums are Tabley House, Tatton Park and Peover Hall and Gardens, all in Knutsford in Cheshire, with an average house price premium of £181,517 or 83%. In all, there are 14 areas with stately homes where properties trade at an average premium of at least £150,000. They include Winterbourne House and Garden in the Edgbaston area of Birmingham at £162,551 or 91%, Highclere Castle, setting of the TV drama Downton Abbey, in Newbury at £155,532 or 44% and Chatsworth House in Bakewell at £154,063 or 89%. The research also found that owners of properties in areas close to Britain's many stately homes have seen the value of their home rise by an average of £89,506 over the past decade, from £229,697 in 2005 to £319,203 in 2015. The 39% increase in the average property price is equivalent to a monthly rise of £746. In cash terms, the average price growth of £89,506 in areas with stately homes is more than twice the national increase of £39,311 or 22%, which has grown from £178,016 to £217,328 in 2015. Average house prices in nearly all stately home areas in the survey increased in the past decade. The largest price growth was in the area of Kenwood House at £822,810 or 140%, followed by Ham House at £451,123 or 89%, and Hatfield House in Hatfield at £228,367 or 71%. The only area to record a fall in average price since 2005 is Coleraine in Northern Ireland, home to Downhill House and Mussenden Temple at a fall of 10% or £12,977. However, there are 17 areas with stately homes where properties trade at a discount to neighbouring areas. The largest discount compared to average house prices is around Wimpole Hall in Royston, where prices are typically around £50,000 or 13% lower than in the county of Hertfordshire. This is followed by Saltram House in Plymouth with values £40,903 or 18% lower, and Osborne House on the Isle of Wight lower by £32,071 or 16% despite the house being… Continue reading
Research suggests UK home owners over 50 with a mortgage could get a better deal
One in three home owners in the UK aged over 50 still have a mortgage and many have never tried to renegotiate for a better deal, new research shows. Mortgagees in this age group have still got around £50,000 to pay and one in 14 think they have been prevented from moving their mortgage to a more competitive deal because of their age. The research by the Saga Equity Release Advice Service also shows that of those home owners in their 70s who still have a mortgage on average they have £40,000 to pay. While many of those in their early 50s still have years of working life to chip away at their debt, around one in seven people in their 70s are faced with having to use their weekly pension to pay off what’s owed instead of using it to enjoy their retirement as they had planned. Saga says that shopping around for a new mortgage could help people pay it off quicker but one in 10 over 50s say they are concerned about their lenders maximum borrowing age and it appears they are right to be worried as 7% say they have been prevented from moving their mortgage to a more competitive deal because of their age. ‘Millions of older homeowners have found themselves abandoned by mortgage lenders and stuck in uncompetitive deals because of the unfair age restrictions that many lenders have in place,’ said Alex Edmans, head of retirement at Saga Personal Finance. ‘If these people had access to a better deal they wouldn’t have to pay as much back each month which would leave them with more money to enjoy their retirement. For those in retirement struggling to meet their monthly mortgage costs it may be worth considering a lifetime mortgage to help ease the burden of the monthly repayments,’ he explained. ‘This may not be suitable for all, so it is well worth speaking with a specialist adviser, who would consider all alternatives and review whether any state benefits could help provide some relief. It is also extremely important that people discuss their options with their family or loved ones and we advise our customers to do this before taking out a lifetime mortgage,’ he added. Continue reading
