Investment
Mayor of London approves planning of major new homes development
A planning framework which will deliver more than 25,500 new homes and create up to 65,000 jobs at Old Oak and Park Royal has been approved and adopted by the Mayor of London. Old Oak in West London is set to become a new home to a world class High Speed 2 (HS2) and Crossrail Station by 2026, handling 250,000 passengers a day and acting as a super hub between London and the rest of the UK, Europe and the world. The Mayor believes this presents the opportunity to create tens of thousands of new homes and could provide almost 14% of Greater London's employment needs up to 2031, with early estimates of a £7 billion annual contribution to the UK economy. The Old Oak and Park Royal Development Corporation was launched by the Mayor in April and will drive the planning and regeneration of the site that straddles the London boroughs of Hammersmith and Fulham, Brent and Ealing. Earlier this year, the Mayor published an Opportunity Area Planning Framework for consultation, which sets out his long term vision for the area. Following the conclusion of that consultation, the Mayor has now approved the document which sets the strategic planning direction for the area. ‘London urgently needs new homes and commercial space to meet its ever growing population and there can be no doubt that the regeneration of Old Oak represents a real opportunity to meet those needs,’ said Sir Edward Lister, Deputy Mayor for planning and chairman of the Old Oak and Park Royal Development Corporation,. ‘This strategy will mean we can plan for the future of this vast site as we work to create a new, thriving and sustainable part of the capital, where people will love to live, work, play and visit,’ he added. The planning framework aims to create a new urban neighbourhood at Old Oak, supporting a minimum of 24,000 new homes with an additional 1,500 in non-industrial locations in Park Royal. It will see the creation of the new High Speed 2/Crossrail and National Rail interchange to regenerate the area and contribute significantly to London's competitiveness and protect and enhance Park Royal as a strategic industrial location. The Mayor has identified 38 Opportunity Areas across the capital. Opportunity Areas are London's major source of brownfield land with significant capacity for new housing, commercial and other development linked to existing or potential improvements to public transport accessibility. By establishing Opportunity Areas, and working closely with London boroughs and partner agencies, the Mayor will be best able to deliver significant social and economic regeneration. Continue reading
Research shows average fixed rate mortgage deals in the UK are at lowest since 2012
Average fixed rates for two, three and five year mortgages in the UK are at their lowest level since 2012, new research shows, and the number of 10 year fixed deals is beginning to grow. Home owners looking to get the best possible deal should consider fixing their mortgage now whilst providers are cutting rates, says the research report from comparison website MoneySuperMarket. The research looked at average fixed term mortgage rates and found they have crept down to some of their lowest ever levels again, despite speculation of a base rate rise next year. The average rate for a five year fixed deal currently stands at 3.45% while last year it was 4.06% and in 2012 it was 4.67%. Shorter term mortgage deals also follow the same pattern, with the average three year fixed rate coming in at 3.21% today, compared to a rate of 4.8% in 2012. Similarly, the average two year fixed mortgage rate is now 2.9% whereas it was 4.48% in 2012. The research also shows that those looking to secure their mortgage rate for a more substantial amount of time will find that there are now more deals to choose from. There are currently 41 10 year fixed rate products on the market while just last month the total number stood at 35. ‘Mortgage lenders are doing a U-turn, decreasing their rates again after hiking them over the last couple of months. Even though the Bank of England base rate hasn’t risen yet, it’s still a case of when rather than if, so any homeowners looking for a cheaper deal should take advantage of the current low rates,’ said Dan Plant, consumer expert at MoneySuperMarket. ‘Many lenders allow mortgage holders to reserve rates available now for up to six months for a small fee, so even those who still have some time left on their current deal can benefit. However, you should never rush into decisions to do with mortgages,’ he pointed out. ‘Before taking out a mortgage, it’s vital to work out the total cost over the term of the deal, taking both rates and fees into account. Expensive fees can wipe out the potential benefit of a lower rate so do the sums first to ensure you really are getting a great deal. The good news is that we’ve seen fees decrease over the last four years, especially for five year fixed deals, meaning it’s a cheap time overall to be looking around,’ he added. Continue reading
Residential property market in China picked up in third quarter of 2015
The residential property market in mainland China picked up gradually in the third quarter of 2015 amid a series of favourable policies such as cuts in interest rates, relaxed restrictions on foreign purchase and an easing of housing provident fund loans. Luxury home prices rose further in first tier cities including Beijing, Shanghai and Guangzhou, where the markets continued to clear inventories, according to the latest Greater China property market report from international real estate firm Knight Frank. It says that the favourable policies will continue to benefit first tier cites, but are less effective in lower tier cities with high inventory levels and weak demand. ‘With Chinese and Hong Kong’s stock market volatility and concerns over an interest-rate hike in the US, Hong Kong’s luxury home buyers tended to wait and see, while secondary landlords were also firm on asking prices, resulting in declines in home sales, rents and prices in the luxury market,’ it explains. It points out that more residential properties are scheduled to complete next year, which will impose further pressure on luxury home rents and prices. In Taipei, amid the government’s regulatory measures, luxury home transactions declined. Landlords became more inclined to hold and rent out their residential assets, leading to increased leasing supply. Nevertheless, luxury residential rents and prices remained stable during the third quarter and the outlook is one of polarisation. The report says the market will be affected by cooling measures, the launch of a combined property and land tax and market expectations. ‘Premium residences in the downtown area will have prices remaining firm, while non-prime luxury homes will experience downward pressure on prices,’ it adds. For the commercial market, the report says that Chinese stock market volatility coupled with growing fears of a slowdown in domestic economic growth, led to a slower pace of corporate expansion, hence weighting on Grade-A office rents in major mainland cities. On the other hand, the People's Bank of China has actively cut interest rates and the reserve requirement ratio since the beginning of this year, aiming to release liquidity in the financial system and ultimately to boost the economy. Grade-A offices prices in Beijing, Shanghai and Guangzhou rose as investing in such properties became increasingly attractive in such a low interest rate environment. With the completion of more Grade-A office buildings in the cities, rents are expected to face further downward pressure in the future. Hong Kong's Grade-A office market recorded strong performance. With sustained office demand from mainland financial institutions but a lack of supply in core business areas, the vacancy rate fell sharply and companies had to rent at higher rental costs. Due to extremely low availability and high rents in core areas, some firms shifted to more cost effective offices in non-core areas where supply was abundant. This trend is likely to continue next year, the report says, with further growth in office rents in core areas. In Taipei, over 80,000 square meters of Grade-A… Continue reading
