Provisions in October’s Comprehensive Spending Review (CSR) for Government spending on housing may also have an impact on the attractiveness of the private rented sector as an investment. The CSR cut the affordable housing fund by 50% from £8.4 billion to £4.5 billion. At the same time, it was announced that although rental terms for existing social rented tenants will remain unchanged, new tenants will have to pay rents set at 80% of the market rate, up from the current threshold of 50%. New social housing tenants will also not have the security of “tenancy for life” but rather a “flexible tenure” based on regular means-testing. The result of these changes could be an increase in demand for private rented stock.
New Homes in London
There was, however, a significant change to the social housing benefit system which currently accounts for £20 billion a year in spending. A national capping system is to be introduced ranging from £250 per week for one-bedroom to £400 per week for four-bedroom properties. This is likely to have significant implications for tenants in central London in receipt of housing benefits. Where landlords do not reduce rent levels to match the capped levels, there is the potential for tenants to be unable to meet their housing costs and be forced to relocate to cheaper areas. Broadly speaking there could be a shift from Inner to Outer London and beyond, thereby freeing up some private rented stock in Central London to non-DSS tenants. The latest indications at
the time of writing were that this proposal would not be implemented until April 2012, giving more time for housing benefit recipients to make any necessary changes in response to the capping scheme.
Monday, 20 December 2010
Tuesday, 31 August 2010
Where Does the Term Barbican come from?
A barbican is a term which is used Latin word known as “barbecana”, which means outer fortification of the castle or city. In roman languages such as Persian or Arabic “bab-khanah”, this means ‘towered gateway’ and ‘gate-house’ and in the mediaeval English ‘burgh-kenning’, which means a fortified gateway or outpost like an outer defense to a castle or city, or any tower located over a bridge or gate that was used for the defensive purposes.
Now it is clear that the barbican came to such a meaning and you might have some doubts how the name or term used to the place or area. The Roman fort that became part of the London city property, the wall had towers on both the side of the gate that was later called as Cripplegate. However there are competing says from as far away as Persia and Arabia for the origin of the term itself. The Persia suggest that the Barbican term may be came from joining two Persian words ‘barbar’ and ‘khanah’, which means ‘house on the wall’ however most of the people say that the are not able to find any examples of usage of words. The Arabs are not ready to give up, they also claims that the Arabic word known as ‘barbakh’, which means a channel or canal through which the water flows may have been the source of the loop-hole meaning.
Lastly, and still firmly in the Middle East, they claims the Persian or Arabic bab-khanah, which means gate house, that was usually used for the towered gateway. But, they concede which it is hard to get from that to a Latin type of the term. Several surveys haven been done regarding this particular term and in 1640, Sir Henry Spelman explained the term as a combination of ‘burgh’, which means tower and ‘ken’, which means watch or see.
Now it is clear that the barbican came to such a meaning and you might have some doubts how the name or term used to the place or area. The Roman fort that became part of the London city property, the wall had towers on both the side of the gate that was later called as Cripplegate. However there are competing says from as far away as Persia and Arabia for the origin of the term itself. The Persia suggest that the Barbican term may be came from joining two Persian words ‘barbar’ and ‘khanah’, which means ‘house on the wall’ however most of the people say that the are not able to find any examples of usage of words. The Arabs are not ready to give up, they also claims that the Arabic word known as ‘barbakh’, which means a channel or canal through which the water flows may have been the source of the loop-hole meaning.
Lastly, and still firmly in the Middle East, they claims the Persian or Arabic bab-khanah, which means gate house, that was usually used for the towered gateway. But, they concede which it is hard to get from that to a Latin type of the term. Several surveys haven been done regarding this particular term and in 1640, Sir Henry Spelman explained the term as a combination of ‘burgh’, which means tower and ‘ken’, which means watch or see.
Tuesday, 5 January 2010
Thursday, 26 November 2009
studio apartment in an attractive red brick Victorian mansion
A charming ground floor studio apartment in an attractive red brick Victorian mansion block superbly located immediately opposite the Brunswick Centre with is superb restaurants, cafes and shops. Russell Square, Euston and Kings Cross St Pancras International Stations are all within easy reach. The apartment is located to the rear of the block and features stripped and polished wood flooring to the main room.Kings Cros Property
MAIN FEATURES
* Studio Flat
* 249 Sq ft/23 Sq m
* Ground Floor
* Victorian Mansion Block
MAIN FEATURES
* Studio Flat
* 249 Sq ft/23 Sq m
* Ground Floor
* Victorian Mansion Block
Thursday, 5 November 2009
A flawed credit report meant we lost our dream homes
While banks and building societies are cutting rates to meet lending targets before the end of the year, a number of borrowers’ applications were turned down due to mistakes on credit files, and also for supplying disputed information to lenders, by credit reference agencies.
In this situation, borrowers with good credit history can have their mortgage applications delayed or turned down merely for relying on data from these agencies. An eager buyer can miss out on buying his dream home because of a black mark on his credit file. There has been many letters from readers struggling to get mortgages because of credit file mistakes.
Experian, the credit reference agency repairs mistakes within 24 hours of receiving a notice from a bank or building society, but Nationwide is under no legal obligation to fix such problems promptly.
Banks and building societies supply the information given to the agencies under data sharing agreements. Consumers who do not sign up to an agency are not alerted when information is supplied that lowers their credit score.
Experian do not hold responsibility on the accuracy of the information supplied by banks and building societies. They also have no obligation to ensure inaccuracies are corrected within a set time. They say, “We would hope lenders would want to ensure that the information was correct and do so within a reasonable time frame”.
However, John Mann, Labour MP and a member of the committee is to make investigation on credit reference agencies and they are set to come under pressure; imposing tougher standards on the information they keep. These investigations are followed by a Treasury committee inquiry into the industry. A report is to be published this month or early next year.
In this situation, borrowers with good credit history can have their mortgage applications delayed or turned down merely for relying on data from these agencies. An eager buyer can miss out on buying his dream home because of a black mark on his credit file. There has been many letters from readers struggling to get mortgages because of credit file mistakes.
Experian, the credit reference agency repairs mistakes within 24 hours of receiving a notice from a bank or building society, but Nationwide is under no legal obligation to fix such problems promptly.
Banks and building societies supply the information given to the agencies under data sharing agreements. Consumers who do not sign up to an agency are not alerted when information is supplied that lowers their credit score.
Experian do not hold responsibility on the accuracy of the information supplied by banks and building societies. They also have no obligation to ensure inaccuracies are corrected within a set time. They say, “We would hope lenders would want to ensure that the information was correct and do so within a reasonable time frame”.
However, John Mann, Labour MP and a member of the committee is to make investigation on credit reference agencies and they are set to come under pressure; imposing tougher standards on the information they keep. These investigations are followed by a Treasury committee inquiry into the industry. A report is to be published this month or early next year.
Tuesday, 30 June 2009
MARKET ACTIVITY AT HISTORIC LOW
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.
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.
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
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