TSI
Positive outlook for sales and lettings markets in south and east London
The sales and lettings market in the South East of London are set to be buoyant in the coming months due to high demand, according to a new analysis report. There has been a notable migration of buyers from parts of North and West London setting up home in the Royal Borough of Greenwich thanks to it being comparably good value for money, according to the report from JLL. The associate director at the firm’s Blackheath office, Graham Lawes, said that this, coupled with high local demand, is fuelling the prices and momentum is set to continue throughout the year. ‘For City workers, the accessibility to Canary Wharf is a huge attraction. Young professionals and high earners are drawn to the area thanks to the addition of new boutiques, high end restaurants and bars opening in the historical borough. Families are also attracted to the Royal Borough thanks to its excellent local schools with impressive Ofsted reports,’ he explained. He pointed out that it is widely regarded that parts of the South East of London will see prices rise beyond the national average and that there is a huge disparity from one side of London to the other. The imminent arrival of Crossrail will add to this. ‘Blackheath and Greenwich will continue to attract interest but I anticipate Lewisham (SE13) Charlton (SE7), Woolwich (SE18), Plumstead (SE18), and Abbey Wood (SE2) to see the largest growth percentages over the next year as properties there are excellent value,’ added Lawes. The area’s rental market has also been strong, according to Charlotte Russell, assistant lettings manager of JLL’s Greenwich office. ‘This year, the rental market in Greenwich and Blackheath has been particularly strong for one and two bedroom properties. These properties have achieved up to 18% increases in rents year on year in some areas, largely due to relocation for employment into Canary Wharf and the City,’ she said. ‘Such relocations have positively impacted the rental market, particularly now that Greenwich is offering riverside developments to match Canary Wharf, and this has increased both the popularity of the area and spectrum of tenants. Additionally, we are seeing more people staying in their properties longer term with minimal void periods between tenancies,’ she explained. Looking ahead to spring, the firm anticipates that the rental market will remain buoyant, particularly going in to the warmer months, when tenants prefer to move with riverside living likely to remain popular with potential tenants. ‘We hope that new developments such as Platinum Riverside, Greenland Place, Peninsula Tower, and the ever growing Royal Arsenal Riverside in Woolwich, will keep the market in good supply as the demand increases,’ added Russell. In the City and East London property sales market there is likely to be a focus on what happens with Canary Wharf with the estate being sold to a Qatari led bid and planning passed to develop Wood Wharf. But in the… Continue reading
BSA calls for more financial help for young UK home buyers
The UK’s annual Budget will be unveiled next week but ahead of the announcement the Building Societies Association has written to the Chancellor of the Exchequer asking for urgent help for buyers. The BSA says that younger buyers in particular need concerted help to buy their first home and has suggested a way in which money could be raised to give it to them. The money raised by the government from the sale of the NS&I 65+ Pensioner Bonds, estimated to reach £15 billion by the current closure date of 15 May, could be used to offset an initial investment in affordable housing projects, the letters says. Specifically, the BSA letter says that this money could make a lasting difference if it was used as seed funding for perpetually affordable housing developments using a model such as a Community Land Trust. ‘Using the money raised from the Pensioner Bonds to make affordable housing available to young people seems a neat way for a scheme that benefits those 65 and over, to also help younger people who face such a chronic shortage of affordable housing,’ said Robin Fieth, BSA chief executive. The letter also calls for the government to boost the range of providers within the house building sector, including specific support for small to medium size builders, custom and self build builders and co-operative and shared housing models. ‘The UK’s volume house builders alone cannot alleviate the acute shortage of housing in the country,’ it adds. Next week, two days before the Budget, the BSA will launch its housing manifesto for the forthcoming general election which will include a call for the creation of a new housing ministry with a Secretary of State with a seat in the Cabinet. It says this would be better than the current situation when housing is spread among a variety of government departments. The BSA is also backing the idea of a cross political party 15 year plan for the UK’s housing market based on national and regional long term demographic changes, employment, environmental concerns and infrastructure. Continue reading
Sales transactions down while lettings thrive in prime London property market
Sales in London’s prime property market have continued to fall for the second month in a row in 2015, with transactions down 22% year on year. According to real estate firm W.A. Ellis, a JLL company, this comes on top of a 34% year on year fall in sales recorded in January. A breakdown of the figures shows that the most dramatic reduction is sales of houses within Belgravia, Chelsea, Knightsbridge and Kensington which have dropped by 100% from 40 sales in 2014 to 19 in the same period this year. ‘Whilst at first glance, these figures may sound alarming, it is always the same in the run up to an election, particularly when property and potential taxation surrounding it, has been at the forefront of all parties’ manifestos,’ said Richard Barber, director at W.A.Ellis. ‘That said, if one uses the same parameters, namely houses sold in the preceding postcodes in previous election years, 2010 and 2005, 47 and 38 houses were sold respectively. He pointed out that an interesting trend that the firm has observed recently is the off market sales sector. ‘With sentiment amongst domestic buyers so cautious, it is not surprising that vendors wish to keep their houses away from the internet, where its exposure and time on the market can so easily be measured,’ he said. ‘There have certainly been several off market sales recently, but these will not contradict the general downward trend in transaction levels,’ he explained, adding that while the top of the prime central London market may be undergoing a weaker period in the face of the election, London’s suburbs are still experiencing strong growth, fuelled in part by buy to let investors benefitting from a reduction in lenders stress testing. He explained that loans of up to 75% (LTV) can now be acquired and the stress test for rental income has in some cases been reduced from 125% to 110%. ‘This is good news for investors, however one must remember that the government, as of 06 April, will be clawing back greater Capital Gains Tax revenues from both foreign owners and corporate structures on all capital gains made after this date,’ said Barber. ‘whilst the outlook for the market over the next 64 days remains tentative, we are still registering strong international interest at the very upper end of the market which is indicative of London’s perception as the number one safe haven and front runner for long term capital growth over the next 10 years,’ he added. In the lettings sector Lucy Morton, director and head of agency at W.A.Ellis, said that the firm is seeing both savvy investors and a cautious buyers entering the lettings dynamics. ‘The savvy investor is looking to buy to let to increase their portfolio prior to the election foreseeing that there could well be a boom in the sales market once the uncertainty is over and a government in place… Continue reading
