TSI
Warning to UK home owners over invasive plant controls
Buyers and sellers in the UK are being advised to check for signs of the invasive Japanese knotweed plant in gardens, or else they could face criminal prosecution. The government has announced measures aimed at controlling the spread of non-native plants, including the invasive Japanese knotweed and those who fail to identify, destroy and remove these plants from their property could be fined up to £2,500 or be given an anti-social behaviour order (ASBO). According to Alison Wacey, a partner at Stratford on Avon firm Lodders Solicitors, both vendors and purchasers of residential property are now deemed to have a duty of care when it comes to selling and buying houses: ‘Checking for Japanese knotweed and other prolific, invasive plants should be regarded with similar importance as checking for signs of damp or a faulty roof at a property,’ she said. ‘When a valuer visits the property before sale, home owners should ask them to include investigating for evidence of these invasive plants. Similarly, once the purchaser’s surveyor is appointed, this is the buyer’s opportunity to have the property checked for evidence of these non-native plants,’ she explained. ‘Japanese Knotweed is very resilient, can even grow through tarmac and cause structural damage, and will grow vigorously after being cut down. One of the most effective ways of getting rid of it is to dig down up to three metres to ensure all the roots have been removed, a massive, but necessary undertaking,’ she added. She also pointed out that the removed plant is classed as ‘contaminative waste’ and there are controls on its disposal, which have to be adhered to and also carry an additional expense. ‘Not only do home owners run the risk of criminal proceedings for not identifying and removing the weed before sale of the property completes, but there could also be potential repercussions for them from their buyers if they should be hit with a hefty bill for removing the weed, for example, or perhaps damage from it to a neighbouring property, or even a criminal prosecution,’ said Wacey. ‘Additionally, home owners have to be just as vigilant with checks of the plant is found on neighbouring properties; if it is found in your own or a neighbours garden, the value of your home will be severely affected,’ she continued. ‘It’s a case of buyers, and vendors, beware of this knotty problem. Take proactive steps to avoid falling foul of the law and deal with it properly if you identify an invasion on your own or a neighbouring property,’ she concluded. Continue reading
UK retail property market needs to take online shopping into account in 2015
A dwindling supply of well-located retail property stock in the UK will continue to drive South East and London rental growth, which will be factored into pricing by investors, according to a new analysis. Well-placed good secondary retail assets with solid demographics, will sell well and overall schemes with the broadest consumer appeal will thrive at the expense of the poorer quality ones, says the latest UK retail property market outlook 2015 report from Knight Frank. Key attributes could be the quality of tenant mix and accessibility, although the out of town market has moved steadily towards fun shopping, the report suggests. ‘As we have seen with high streets and shopping centres, the best out of town parks now provide an increased focus on a strong leisure and catering offer aimed at prolonging dwell times and boosting expenditure, the report explains. One potential cloud on the horizon, with the growth of online sales bringing store networks under ever increasing scrutiny, is the forthcoming rush of lease expiries will provide retailers with an unprecedented opportunity to reduce property costs by downsizing their portfolios. ‘This is likely to reinforce the polarisation already being seen in the market, with secondary/weaker schemes suffering at the expense of the better schemes, bringing with it greater divergence in investment performance. That said, while the rise of online shopping may result in smaller store portfolios, the growth in click and collect is helping to maintain the importance of the store,’ the report adds. Knight Frank predicts that omni channel retailing will become the dominant norm in 2015. Occupiers will need to implement in store technology advancements in order to keep the consumer engaged and enhance the customer experience. Retailers should embrace strategies in which mobile, online and in-store experiences should complement, rather than compete with, one another. The firm also predicts that the first half of 2015 is likely to be dominated by uncertainty surrounding the general election. However, retail sales will receive a boost from a buoyant labour market, lower inflation on the back of the fall in oil prices. Slower but still positive house price growth will continue to support strong consumer confidence. But the retail market continues to be driven by structural change due to the growth of online shopping and profit margins for bricks and mortar retailers will continue to be squeezed by non-store sales and an increasingly internet savvy population. The news that the Chancellor in his Autumn budget will cap the inflation linked increase in business rates to 2% and undertake a full review of the structure of business rates is welcome news to the retail sector, according to the report. ‘However, fundamental changes need to be implemented going forward especially with consumer’s increasing preference to shop and buy online rather than in store,’ it adds. Continue reading
Ski property market in French Alps likely to be boosted by low interest rates
With snow finally arriving across the French Alps a flurry of interest is expected in ski property, especially since interest rates offered by lenders in France are so low. Rates below 3% were available in 2014 and the beginning of 2015 may herald even lower rates in France as the long term outlook for growth in Europe remains weak, according to John Busby, private clients director of French Private Finance. He pointed out that the TEC 10 index dropped below 1% for the first time in December, hitting 0.86%. ‘It is worth stressing again that this is now the rate investors will receive when lending to the French Government for a 10 year period. Hopefully this drop will continue to make it through to retail mortgage rates and so buyers will continue to benefit, said Busby. He also pointed out that it seems that the controversial social charges of 15.5% which were added to French capital gains and rental income tax are in fact illegal under European law and many people who sold a property during 2014 are now making cases to reclaim the tax which they have overpaid. ‘This is also reassuring news for those looking to buy over the busy ski property season,’ added Busby. According to Francois Marchand, general manager at Erna Low Property, the ever lower interest rates offered by the French Banks and a weakening Euro versus the Sterling has triggered earlier property searching by clients in the French Alps. ‘Enquiries from savvy investors are up 20% year on year since the end of the summer. Site visits have been taking place since the beginning of September,’ he said. He explained that over the past 12 months, many exciting new developments have appeared in the French Alps with a few new hot spots for investors for example Châtel, part of the Portes du Soleil ski area. Erna Low Property has sourced a few new property developments ready for this ski season or for next December 2015 with leaseback options. Les Gets, also part of the Portes du Soleil and a short drive from Geneva Airport, having been short of new property developments for sale for a few years, due to a need to upgrade the draining systems and water supplies, now has a greater variety of new properties for sale. Tignes les Brevieres has long been popular for its flexible leaseback investment with the British market, with direct access to the world renowned Espace Killy ski domain and in the same ski area, La Plagne has a new leaseback property investment, ski-in ski-out, of fully furnished apartments ready in December 2016. ‘Over the past two years, we have experienced a great increase in activity levels, the winter season has started in the middle of summer for us, which is something we last saw in 2008,’ said James Ross, sales manager at Erna Low Property . ‘It appears that the French Alps is enjoying a renaissance as a favourite… Continue reading
