Although investment activity was negligible, in April 2009 our investment department sold a freehold building of six apartments and a shop in Gray’s Inn Road, WC1, for Grainger plc, who acted as adviser to the owners, an offshore company. With rental returns falling and buy-to-let funding almost impossible to obtain, it is not
surprising that in the first half of 2009 the only other investment sale that we transacted was in Wimbledon, where we acquired five flats from a housebuilder at a discount.
Given overall market conditions, we had expected to see greater evidence of forced sales of investment stock, but there have been few examples to date. In June 2009, Wharfside, a scheme on Prestons Road, E14, north of Canary Wharf was heavily marketed by developer Galliard. Trinity Capital which forward-bought the scheme
and then sold it on to individual investors was reported to have dropped its deposit after individual investors failed to complete.
Barclays Bank, which funded the development, subsequently instructed the developer to market the flats for sale at discounts to the original asking prices of 30%-50%. As a result in May 2009, onebedroom flats were back on the market at prices from £165,000 and two-bedroom apartments starting at £230,000, and the scheme was
sold out by mid-June.
One of the Government’s declared aims in its housing policy is to increase investment in the private rented stock, especially by institutional landlords. Recent and emerging legislation, however, is acting as a deterrent in the residential investment market. From October 2008, Energy Performance Certificates (EPCs) became mandatory for private rented and commercial property, the need for
the EPC being triggered by the granting of a new lease or tenancy agreement after that date. In the context of Assured Short-hold Tenancies, many landlords will have had to pay for EPCs during the first half of 2009 as lease agreements expired.
When added to lease agreement fees, inventory costs, the Tenancy Deposit Scheme, Gas Safety Certificates and, of course agents’ costs, we do not see the potential for the private rented sector to grow further in the present economic context.
On 14th May 2009, the Department of Communities and Local
Government published a Green Paper (for consultation), which
amongst other measures recommended a National Register for
residential landlords. This proposal has been made in order to
improve standards in a sector which has mushroomed in size due to
the buy-to-let phenomenon and the advent of “accidental landlords”.
“The Rugg Review” of the sector, commissioned by the Government
from academics Julie Rugg and David Rhodes of the University of
York, found standards to be uneven across the sector, with concerns
about a minority of “rogue” landlords. If implemented, the National
Register will mean landlords paying an annual registration fee (of
around £50 according to The Times). As a bi-product, the allocation
of a license number to each registered landlord will make it easier for
the Inland Revenue to identify tax evaders.
Tuesday, 30 June 2009
Wednesday, 11 February 2009
Ridgmount Gardens, WC1E - £675,000
A wonderfully light and spacious top (fifth) floor, two bedroom apartment in one of Bloomsbury's most sought after portered mansion blocks. This property is ideally located just moments from the excellent and varied amenities that the West End has to offer. Residents of the block also benefit from use of the delightful private gardens of Ridgmount Gardens which are immediately opposite the block.
MAIN FEATURES
* Two Bedrooms
* 771 sq ft/72 sq m
* Fifth floor
* Use of private gardens
Monday, 15 December 2008
new homes market
Hence, an investor who agreed to buy a unit for £500,000 off-plan with either explicit or tacit support from a mortgage lender, now finds that the lender is valuing it at £375,000, leaving the purchaser unable to complete because at this valuation alternative funding could not
be arranged to meet the purchase price.We have huge sympathy for valuation surveyors, who were subject to litigation by the banks and building societies in the early 1990s crash, accused of over-valuing residential units in a falling market. It is, however, an all too convenient way for banks to legitimately (but often cynically) reduce their loan book exposure to the residential property sector in the current market by putting pressure on valuers, and this is a further example of the banks’ lending policies forcing the market to fall artificially.
In October 2008 research released by Dresdner Kleinwort revealed that some lenders were asking surveyors for both current and 90-day forecast valuations. In effect, this is driving down the valuations at a faster rate, with urban flats in some provincial cities falling 40-50% compared to reductions for houses of 20%. London, and central London Property in particular, presents a very different case to provincial city centres with a high proportion of overseas and “second-home” pieda- terre purchasers. Values are declining at a less steep rate, themarket for sales and rentals is under-pinned by broader and deeper demand and in many parts of Midtown and the City new supply is limited Docklands- Limehouse , however, does look vulnerable in the short-term.
It has a greater dependence on major blocks, including high-rise, high-profile forward-sold schemes, is dominated by buy-to-let purchasers and surrounds Canary Wharf which could be the epicentre of financial sector job losses during 2009. At the end of 2008 over 3,000 residential units, representing 62% of current construction in Midtown, City and Docklands, were located in the heart of Docklands in E14. In Midtown, in contrast, only 223 units were to lack of funding for land acquisition and development now. Some developers with cash are already taking advantage of falling land prices to build land banks for the recovery, accepting that they are unlikely to get funding for construction in the short term. There is still interest from developers for good sites in Midtown, City and Docklands, with up to 20 bidders for one City site in November 2008.
be arranged to meet the purchase price.We have huge sympathy for valuation surveyors, who were subject to litigation by the banks and building societies in the early 1990s crash, accused of over-valuing residential units in a falling market. It is, however, an all too convenient way for banks to legitimately (but often cynically) reduce their loan book exposure to the residential property sector in the current market by putting pressure on valuers, and this is a further example of the banks’ lending policies forcing the market to fall artificially.
In October 2008 research released by Dresdner Kleinwort revealed that some lenders were asking surveyors for both current and 90-day forecast valuations. In effect, this is driving down the valuations at a faster rate, with urban flats in some provincial cities falling 40-50% compared to reductions for houses of 20%. London, and central London Property in particular, presents a very different case to provincial city centres with a high proportion of overseas and “second-home” pieda- terre purchasers. Values are declining at a less steep rate, themarket for sales and rentals is under-pinned by broader and deeper demand and in many parts of Midtown and the City new supply is limited Docklands- Limehouse , however, does look vulnerable in the short-term.
It has a greater dependence on major blocks, including high-rise, high-profile forward-sold schemes, is dominated by buy-to-let purchasers and surrounds Canary Wharf which could be the epicentre of financial sector job losses during 2009. At the end of 2008 over 3,000 residential units, representing 62% of current construction in Midtown, City and Docklands, were located in the heart of Docklands in E14. In Midtown, in contrast, only 223 units were to lack of funding for land acquisition and development now. Some developers with cash are already taking advantage of falling land prices to build land banks for the recovery, accepting that they are unlikely to get funding for construction in the short term. There is still interest from developers for good sites in Midtown, City and Docklands, with up to 20 bidders for one City site in November 2008.
Friday, 17 October 2008
London property boosted by GBP150m green-light
A new £150 million property development in London's East End has been given the green-light.
The Wood Wharf project is expected to house around 4,000 people at a site adjacent to Canary Wharf.
The joint venture between Canary Wharf Group, British Waterways and Ballymore Properties will take around ten years to build and will include six new towers, office space and 1,600 new homes.
The venture will provide around 454,000 sq metres of mixed-use space, with a 'commercial heart' at its centre.
The go-ahead has been given in spite of concerns from the Commission for Architecture and the Built Environment (CABE) that the east end of the development could become a 'ghetto' due to the high proportion of affordable homes.
'In consultation with specialist affordable-housing expertise, we originally sought to place the affordable, social-rented and intermediate housing closest to the new park and to the existing residential community on the eastern side of the site with good local access, rather than locating it on quaysides adjacent to office buildings," a spokesman for the developers told Architect's Journal.
That situation has now been resolved, with the housing spread more evenly through the project, leaving the developers free to begin work.
The Wood Wharf project is expected to house around 4,000 people at a site adjacent to Canary Wharf.
The joint venture between Canary Wharf Group, British Waterways and Ballymore Properties will take around ten years to build and will include six new towers, office space and 1,600 new homes.
The venture will provide around 454,000 sq metres of mixed-use space, with a 'commercial heart' at its centre.
The go-ahead has been given in spite of concerns from the Commission for Architecture and the Built Environment (CABE) that the east end of the development could become a 'ghetto' due to the high proportion of affordable homes.
'In consultation with specialist affordable-housing expertise, we originally sought to place the affordable, social-rented and intermediate housing closest to the new park and to the existing residential community on the eastern side of the site with good local access, rather than locating it on quaysides adjacent to office buildings," a spokesman for the developers told Architect's Journal.
That situation has now been resolved, with the housing spread more evenly through the project, leaving the developers free to begin work.
Wednesday, 21 May 2008
Monday, 7 April 2008
UK house prices fall by 1.7% in first quarter of 2008 - Nationwide
"The annual rate of house price growth slowed dramatically in every part of the UK in the first quarter of 2008, bringing the average rate in the UK down to less than a third of the rate at the end of 2007. The annual rate of house price growth in the first quarter of 2008 was 2.2%, down from 6.9% at the end of 2007. House prices slowed most sharply in Northern Ireland where the annual rate fell from 24.2% to -3.4%, but this still leaves average prices more than £15,000 higher than at the end of 2006." - Fionnuala Earley, Nationwide's Chief Economist.
Monday, 28 January 2008
University Street, WC1E - Two Double Bedrooms Flat
In one of Bloomsbury's premiere portered mansion blocks, Hurford Salvi Carr are offering for sale a two double bedroom second floor apartment in Paramount Court. The property is in need of complete modernisation but comes with a long lease. The flat would make an ideal buy to let investment or pied a terre. Paramount Court is very centrally located at the north end of Tottenham Court Road. Warren Street would be it's closest under ground station but Euston, King's Cross and Goodge Street are all close by.
MAIN FEATURES
* Two Double Bedrooms
* 728 Sq ft/ 68 Sq m
* Portered Mansion Block
* Close to Euston
Property in Bloomsbury | Property in Clerkenwell
MAIN FEATURES
* Two Double Bedrooms
* 728 Sq ft/ 68 Sq m
* Portered Mansion Block
* Close to Euston
Property in Bloomsbury | Property in Clerkenwell
Wednesday, 16 January 2008
House price gloom 'recalls 1990s'
Property prices london are falling to an extent not seen since the 1990s housing recession, a surveyors' body warns.
The Royal Institution of Chartered Surveyors (Rics) said 49.1% more surveyors saw price falls in December than reported a rise.
This was the gloomiest figure since November 1992.
Prices have been hit by last year's interest rate rises and tighter lending criteria, Rics said. Other surveys have also indicated the market is slowing.
Recent data from the Department of Communities and Local Government revealed that prices fell by 0.8% in November, compared with a slight rise of 0.1% in October.
The latest research from the Halifax bank and the Nationwide building society suggested the market weakened further in December.
Mortgage approval levels also fell to a three-year low in November. City of London Property
The Royal Institution of Chartered Surveyors (Rics) said 49.1% more surveyors saw price falls in December than reported a rise.
This was the gloomiest figure since November 1992.
Prices have been hit by last year's interest rate rises and tighter lending criteria, Rics said. Other surveys have also indicated the market is slowing.
Recent data from the Department of Communities and Local Government revealed that prices fell by 0.8% in November, compared with a slight rise of 0.1% in October.
The latest research from the Halifax bank and the Nationwide building society suggested the market weakened further in December.
Mortgage approval levels also fell to a three-year low in November. City of London Property
Wednesday, 9 January 2008
Wednesday, 2 January 2008
UK house prices fell for a second consecutive month in December
UK house prices fell for a second consecutive month in December, the Nationwide building society says.Prices dropped 0.5% in December after slipping 0.8% in November, but property prices were still up 4.8% year-on-year from December 2006, it said.
The average price of a UK property rose by £8,334 over the year, putting it at £182,080 at the end of 2007.Nationwide said that this month's interest rate cut should help the market recover somewhat later in 2008.
"The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year," said Fionnuala Earley, Nationwide's chief economist.
Rankings
Nationwide data also showed that St Albans was the most expensive place to buy property in a survey of 30 towns and cities.
The average house price in the Hertfordshire town rose 13% to £347,563 over the year.Belfast saw the biggest rise in house prices, up 32% over the year to £306,698 - an increase of £201 a day.Durham and Newcastle saw the survey's only fall in house prices.
Average prices fell 3% in both places to £152,902 and £178,309 respectively.
'Worse position'
Nationwide said lower interest rates in 2008 should help demand recover a little, but said it was unlikely that there would be a big recovery like the one seen after the interest rate cut in 2005.
"This is mainly because housing affordability is starting from a much worse position than in 2005, while interest rate cuts have started from a higher and more restrictive level," she said.
The three-month on three-month rate of growth - a smoother indicator of house price trends - fell from 1.4% in November to 0.9% in December, the lowest since November 2005.
Nationwide said the turmoil in the financial markets resulting from the US sub-prime mortgage market, as well as the problems experienced by Northern Rock, had undermined confidence in the property market.
The Bank of England's monetary policy committee voted unanimously to chop interest rates from 5.75% to 5.5% at its last meeting.
Many analysts expect further cuts in the new year to support the flagging housing market and the wider economy.
The average price of a UK property rose by £8,334 over the year, putting it at £182,080 at the end of 2007.Nationwide said that this month's interest rate cut should help the market recover somewhat later in 2008.
"The housing market has weakened significantly in the closing months of 2007 after holding up more strongly than expected in the earlier part of the year," said Fionnuala Earley, Nationwide's chief economist.
Rankings
Nationwide data also showed that St Albans was the most expensive place to buy property in a survey of 30 towns and cities.
The average house price in the Hertfordshire town rose 13% to £347,563 over the year.Belfast saw the biggest rise in house prices, up 32% over the year to £306,698 - an increase of £201 a day.Durham and Newcastle saw the survey's only fall in house prices.
Average prices fell 3% in both places to £152,902 and £178,309 respectively.
'Worse position'
Nationwide said lower interest rates in 2008 should help demand recover a little, but said it was unlikely that there would be a big recovery like the one seen after the interest rate cut in 2005.
"This is mainly because housing affordability is starting from a much worse position than in 2005, while interest rate cuts have started from a higher and more restrictive level," she said.
The three-month on three-month rate of growth - a smoother indicator of house price trends - fell from 1.4% in November to 0.9% in December, the lowest since November 2005.
Nationwide said the turmoil in the financial markets resulting from the US sub-prime mortgage market, as well as the problems experienced by Northern Rock, had undermined confidence in the property market.
The Bank of England's monetary policy committee voted unanimously to chop interest rates from 5.75% to 5.5% at its last meeting.
Many analysts expect further cuts in the new year to support the flagging housing market and the wider economy.
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