Investment
London to get another 11 new housing zones
The Mayor of London has announced 11 new Housing Zones that will provide 24,554 new homes and create new neighbourhoods across the capital. An additional £200 million has been designated to the final 11 zones, which stretch from Havering to Kingston and Enfield and bring the total number planned in London to 31 which will see 77,000 new homes built. The aim is to boost housing supply, stimulate building and produce the new low cost homes London needs to meet its growing population. Some 34% of the 77,000 new homes will be affordable, alongside transformational regeneration of key town centres, train station hubs and housing estates. The Mayor made the announcement as he officially opened a new affordable housing development in the heart of London's West End. Trenchard House, spanning across Broadwick and Hopkins Street, is a former derelict Metropolitan Police hostel, on Greater London Authority acquired land released by the Mayor. The site has undergone a £54 million redevelopment to build 78 new homes, including 65 affordable one to three bedroom apartments. The affordable apartments are intermediate rent with some offered at 75% discount to market rates. Exact rents are based on resident's incomes, and many of them work night shifts in the theatres and bars surrounding Soho and will now be within walking distance of their jobs. The site, which had lain vacant for almost 13 years, is one of the 414 hectares of land transferred to the Mayor with every surplus site owned by City Hall now released for development. The intermediate homes are part of the 100,000 affordable homes the Mayor is on track to deliver by the end of his term. ‘Meeting the unprecedented demand for housing after 30 years of historic failure to build new homes is a critical issue affecting the capital. That is why I have led an enormous programme of regeneration with my 31 housing zones that will transform communities across London, creating nearly 80,000 new homes, plus new transport hubs and schools,’ said Johnson. ‘This new housing development in the heart of the West End is delivering a life line to hard working local people who were priced out of Soho and desperate to reside nearby their places of work. These apartments are just some of the 100,000 new affordable homes being delivered over my two mayoral terms,’ he explained. ‘This site forms part of more than 400 hectares of developable land the GLA inherited and which I have now released every inch of, to ensure as many homes as possible are built throughout London,’ he added. As part of the Mayor's commitment to double house building, London's Housing Zones will unlock regeneration on hundreds of hectares of brownfield land across the capital. The special status has been awarded to areas identified and packaged up by local authorities. It removes all unnecessary planning restrictions, combined with the funds to maximise development, and fast track homes and supporting infrastructure. Continue reading
Sales prices still rising in Miami at beginning of 2016, latest data shows
Sales prices in Miami continued to rise in January as existing single family homes and condominiums sold close to list price, according to the latest data from real estate agents. The median sales price for single family existing homes rose 13.7% year on year in January from $237,500 to $270,000, according to the figures from the Miami Association of Realtors, but single family home prices remain at 2004 levels despite four years of increases. The median sales price for existing condominiums increased 8.8% to $205,000 from $188,500 a year ago. Miami-Dade County existing condo prices have risen in 55 of the last 56 months, a period encompassing more than four and a half years. ‘On the heels of a historic 2015 that saw Miami real estate register its most-ever single-family home sales and its third-most total residential transactions, Miami properties remain in high demand,’ said Mark Sadek, 2016 chairman of the association’s board. ‘Properties are selling for higher prices and near asking. While total residential sales decreased in January, single family home and condominium sales remain consistent with historic averages,’ he added. Total existing Miami-Dade County residential sales, which posted a record year in 2013 and near record years in 2014 and 2015, decreased 12.1% from 2,043 sales in January 2015 to 1,796 last month. January 2016’s total sales are in the range of Miami sales during the past five Januarys. Miami-Dade County single family home transactions were 14.4% lower year on year in January, from 963 to 824. Existing condominium sales declined 10% in January 2016, from 1,080 to 972. ‘Strong sales are important for a healthy residential real estate market, but it is not sustainable to set a new all-time sales record each year. Miami-Dade County’s five years of record sales have been unique in the US real estate market. It is anticipated Miami will continue in a sales range consistent with a strong market,’ explained Teresa King Kinney, the association’s chief executive officer. Miami-Dade has continued to experience a significant year on year decrease in distressed sales. Increased competition from new condominium construction has also played a role in the lower total residential sales. Only 22% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 34.9% in January 2015. Short sales and REOs accounted for 4.4% and 15.7% respectively, of total Miami sales in January. Short sale transactions dropped 50% year on year while REOs fell 42.2%. Single family home sales increased 18.3% year on year in January in the $250,000 to $400,000 sector, growing from 241 to 285. This sector represented about 34.6% of all total single family home sales in January 2016. Existing condos priced at $150,000 to $300,000 range saw a 25.1% rise in January sales, increasing from 299 to 374. The median days on the market for all Miami properties increased in January. New mortgage disclosure rules, known as the TILA-RESPA Integrated Disclosures (TRID), could be playing a… Continue reading
Research suggests many UK buy to let landlords plan to sell up
The proportion of landlords in central London who intend to sell property has quadrupled since last year’s Budget, according to new research. Just 4% of landlords in central London had plans to sell property when surveyed before last year’s Budget but new figures from the National Landlords Association (NLA) show that has risen to 19%. The 15% increase in intention to sell property is the highest witnessed across the UK over the last six months. Landlords with property in the North East have seen the smallest increase compared to other regions of the UK, rising from 17% in June to 24% in January. According to the NLA the restriction to mortgage interest relief for individual residential landlords announced during last year’s Summer Budget will leave many landlords worse off, forcing some basic rate tax payers into a higher tax bracket and leaving higher and additional rate payers with considerably bigger tax bills. The NLA has labelled the changes the Turnover Tax, because landlords’ tax will be calculated on the rental income they earn, rather than their profits. ‘Local property markets vary greatly across the United Kingdom, but we are seeing a loss of confidence across the board as many landlords realise they won’t be able to remain in the market,’ said Richard Lambert, NLA chief executive officer. ‘If landlords follow through with their intentions over the coming months this could lead to a massive sale of property, as we have previously warned. However, this may not be a straightforward process, especially for those with stock in low demand areas,’ he pointed out. ‘We urge those considering selling up to think about when they will need to do so, and to plan ahead now in order to minimise the risk of losing money as a result of a failure to sell,’ he added. Separate research shows that 59% of landlords are shelving plans to make further investments in buy to let or even selling their existing properties with tougher mortgage rules, the stamp duty change and mortgage interest tax relief behind their thinking. The research by property crowdfunding platform Property Partner also found that 27% of landlords had little or no awareness of the changes which are likely to affect their financial circumstances. Some 41% of those questioned say they plan to continue buying properties for rent, 38% say they are switching strategies. Continue reading
