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Rents in prime Home Counties market in UK down 0.8% in third quarter
Prime rents in the English Home Counties fell by an average of 0.8% in the third quarter of 2015 despite robust activity levels but are up 4.1% year on year, according to the latest data. The prime rental market in these counties around London, tends to be very seasonal and the three months leading up to September are often among the busiest of the year as tenants look to complete moves before the new US and UK school terms start in August or September respectively. This year was no exception, according to the index report from international real estate firm Knight Frank, with the number of tenancies agreed in the three months to September 54% higher than over the preceding three month period. But while activity levels have been robust, rising stock levels across the prime market, have meant that some landlords have been willing to reduce asking rents slightly in order to remain competitive, according to research executive Oliver Knight. ‘As ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period,’ he said. ‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector. The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries,’ he added. He pointed out that the market continues to attract international tenants with some 38% of new renters across the prime Home Counties market coming from outside of the UK between July and September in Ascot, Cobham and Esher where corporate tenancies are more prevalent this rises to 51%. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor. Continue reading
Some 200,000 new homes announced for the east of London
A new masterplan has been unveiled that will see 200,000 new homes built in the east of London, adding to a number of major developments already taking place in the area. The Mayor of London, Boris Johnson, announced the City in the East masterplan which includes development from London Bridge to the Isle of Dogs and Greenwich Peninsula, right through to Ilford in Essex and Dartford in Kent. He said that it is designed to bring together a vast number of major developments that are already taking place in the capital, known as designated Opportunity Areas, which have been identified as London's major source of brownfield land with significant capacity for new housing, commercial space and other development. In 2004, the Mayor's Office estimated East London had the capacity for 52,000 new homes. But detailed modelling, which includes linking 13 Opportunity Areas, carried out by City Hall but now a minimum of 203,500 homes could be delivered over the next 20 years. The City in the East document also contains a series of maps, which for the first time brings to life how the city is moving eastwards, covering much of the Thames Gateway, and could benefit from improvements to transport infrastructure such as Crossrail and HS1. Plans show an overground extension to Barking Riverside, which will enable the creation of 10,000 new homes and could be operational by 2020. The blueprint also includes longer term potential to place the A13 in a tunnel, deliver a new station and build new homes in the area. These projects are one of a number being made possible by Transport for London's Growth Fund, which is designed to target transport improvements in areas where there is potential to unlock new homes and jobs. It envisages how land across East London could be split up for commercial and industrial use and suggests where new schools, work space and hospitals could be located. ‘East London is already enjoying incredible growth and the City in the East plans reflect how we make the area an even better place to live and work over the next 20 years,’ said Johnson. ‘This blueprint reflects identified areas of land in London to build on and it will allow us to co-ordinate not only housing and commercial developments, but significant transport infrastructure to ensure this part of the capital can continue to flourish with hundreds of thousands of new jobs that will help the capital to remain the best big city in the world,’ he added. According to Alex Williams, director of borough planning at Transport for London, said that east London is expected to be one of the largest growth areas in the capital, with the population set to increase by 600,000 in the next 15 years. ‘Transport schemes such as the Overground extension to Barking Riverside and new river crossings will truly transform the area. London's transport network is vital to the economic and social wellbeing of this city… Continue reading
Home owner confidence in UK housing market up 4% year on year
UK home owners’ confidence home owners in the property market has risen 4% year on year with expectations that prices will rise by more than 7% in the coming six months, new research shows. Some 92% are anticipating prices in their area to rise within the next six months, a steady increase from a year ago when only 88% were confident, according to the latest Zoopla Housing Market Sentiment Survey. The research also found that almost half of home owners, 41%, were planning to improve their property. In addition, 9% of respondents said they plan to refinance their house, a 3% increase from the end of 2014, as mortgage rates remain at historical lows. The proportion of respondents planning to sell property has risen to 19% having bottomed out at 15% last year as more home owners look to capitalise on rising prices. The East of England has the highest percentage of optimistic home owners, with 97% expecting the price of property in their area to rise over the next six months. Home owners in London and the South East are almost as confident, with 96% of respondents across those regions expecting price appreciation. Despite home owner confidence around house prices, sentiment around the accessibility of funding is more volatile. While the percentage of respondents declaring it harder to get a mortgage now than three months ago has almost halved from 49% to 26% since the Mortgage Market Review (MMR) was introduced in April 2014, the fact that more than a quarter of homeowners have noticed a recent increase in difficulty suggests that it isn’t all plain sailing, the report says. It also suggests that with ongoing speculation around when the Bank of England will raise interest rates and lenders maintaining a watching brief, it may well be that competitive products aren’t quite as freely available as they were in the earlier part of the summer and borrowers previously spoilt for choice are noticing the change. ‘As the end of the year approaches, homeowners are the most optimistic they have been in some time. With the brightening national economic outlook this bodes well for the property market in 2016,’ said Lawrence Hall of Zoopla. ‘While traditionally the estate agency market tends to take a break over Christmas in terms of completions and viewings, home owner confidence shows no sign of slowing down and many individuals use the end of the year as a landmark to evaluate how much their property has appreciated over the calendar year,’ he explained. ‘The only slight chink in the armour is the fact that a sizeable number of people still feel securing a mortgage is becoming more difficult, despite the fact that the MMR was implemented with consumers’ best interests at heart,’ he pointed out. ‘It could also be an indication that the supply of… Continue reading
