London is becoming the leading city in the investment activity in the world. Several surveys and newspapers have risen for the fourth consecutive quarter with 2.78 billion pounds transacted in the main markets of the West End, City and Docklands during 2Q, 2010. This figure shows a 94 percent increase annually and a 70 percent on the preceding quarter.

In an additional boost for the market, on Friday it was said that the Mitsubishi Estate firm has sold the Bow Bells House in the City for about 140 million pounds to a foreign private investor so as to unlock funds for the new expansion and development drive in the capital. The foreign investors started to dominate the market, which is accounting for sixty percent of the deals. It appears that with the financial uncertainty, still obvious that the London property is considered as refuge for equity. This year about 4.45 billion values of property deals have taken place in central London, which is more than twice that for the same period last year which was about 2.11 billion pounds.

High growth in the rental growth, the uncertainty of the economic environment and the devaluation of the sterling pounds against the US dollar are all making the London property viewed as a transparent, liquid and mature market, attractive to foreign investors. Asian and Middle East investors mainly active, as the Saudi Arabian Olayan Group bought the Knightsbridge estate that makes up nearly one third of the West End investment in 2Q.

The City and Docklands market saw 1.1 billion pounds values of properties transacted in twenty two deals during 2Q 2010, this was a jump from 0.56 billion pounds in 1Q and a 57 percent increase annually. There is also some 1.1 billion worth under offer that is expected to complete in Q3.

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The Covent Garden area is a great plan. Here, one can easily find the best restaurants and pubs. And even buying property in Covent Garden is not a difficult task. This place has the best place where you can shop as much as you need. Covent Garden is the region in the London property, England. It is situated in eastern part of west minister city, and southwestern corner of London borough of Camden. Majority of this place is dominated by entertainment facilities, street performers and shopping. Furthermore, it also contains way in to royal opera house

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The 2.6% increase in the property market at the beginning of the year will not affect by General Election according to the London Property dealers. The highest increase in properties after 2007 recorded this quarter of the year.

Many property dealers who were hesitating to do deals have exposed now publishing their properties to the market. What result would be on May 6th people think that there would not be much effect on Property Market. People who are in urgent need are still carrying on despite the reports of decrease in the London property market. Others have hold on for few days expecting some concessions after Elections.
Whatever government comes to power, it will take some time to implement the changes in any law and order. The Conservative Home Protection Scheme has promised payment of £8,000 as free permanent residential care for people of 65 yrs.

1% Mansion Tax is a proposal of Liberal Democratic for the properties worth over £2 million which will affect to limit their buying as not to have heavy tax burdens. Increase in stamp duty from 4% to 5% in £1 million plus properties is another proposal by Labour which would affect on demand of properties
more than £1 million.

However, only consolation from both Labour and Conservative which comes to power is that properties worth upto £250,000 will have a break of stamp duty for two years according to Labour, and Conservative promise to take away this stamp duty permanently.

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The homes which are free from taxes have been dramatically returned for London. It was disappeared virtually because of the increasing booms for properties. Everybody knows the fact there is a huge dip in markets. There was increase of stamp duties previous year. This was a resultant of an amazing offer given due to recession for the first time buyers. The offer was that they were free from the Gordon Brown bills which seemed to be a great burden for most of the new house owners. There has been a huge increase in offering of the houses which down with the threshold in the capital. Especially it was at that time when government decided to raise the cost under the influence of the survey.

There were only few tiny flats which were offered south and eastern part of the London for cheap rates and mainly free from all kinds of taxes. It has took a drastic change as now there are some more available. Any property which has been purchased at a difference of 1% from the threshold will gain you some good amount. The agents criticized that it is not such a big revival and there are all chances to improvise it. The vendors have been very much encouraged by the high thresholds. The encouragement was regarding the reducing possibilities of the price levels such that it seems more realistic. They all come at that times when the reports suggested by the agents at the buyers stalk levels is at the peak. The property market of London especially has faced a great problem of great dip in biddings.

One of the survey recommended by a well known property finders offered online named as Globrix was successful to find a large number of duty properties which are not stamped in Corydon. The properties counted up to 639 in numbers. The boroughs which seemed to be most expensive in Chelsea and Kensington are a single studio which is located at Gloucester Road. It has a single flat and it is less than the threshold level of the stamp duties. There are about five spotted in Westminster. The place where property has been offered for a lowest price is recorded as Dagenham and Barking and Newham. Te magnet for the prices of your house is nothing but is nothing but the higher thresholds as they help you by pulling them down such that it seems realistic.

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The capital of the British has already faced the economic downturn to win the race of the cities global surveys. In the present world you can find too many packages of fiscals and when it comes to multi homes, it is hard too find one at times. At what position do you find London in the charts of popularity? Has the shine of the city taken a down turn due to economic crisis? It is of course a place
where many multi millionaires and international business like to find a house for royal residing. Many have already assumed that London is not an exception for the cities which has dropped down drastically. But the fact us that London propertystill remains at the top. Many experts who are a part of residential researches have already proved it. The creative industries, think thanks, world class headquarters, leading lawyers, medics, design and marketing, top restaurants, non governmental organizations, medias are still successfully surviving in this city. It has been concluded by referring opinions and statistics all over the world. For more than a decade it is accompanying as a leader with New York. The euro introduction, Paris transformed itself as a super centre of Europe.

There are also many predictions made by the pundits that the cities of Asia will lead the world. The tolerance that London showed has still placed it at the main stage. The east cities find difficult to replicate the transparency, openness, culture and all matter as London does. Presently the buyer’s agents, moments and other top agents claim that the activity of the foreign buyers is extremely increased. The decline in the economy helps to provide the properties at low prices for the international buyers. Many experts also say that it is the time to end up with all price falls in the central markets of London .

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After steep house price falls and successive interest rate cuts, RICs reports that home-buyer inquiries increase.

The Royal Institution of Chartered Surveyors (RICs) reports that buyer inquiries rose for the third month in a row during January 2009. Surveyors believe that this signals the start of a recovery for house sales.

RICS spokesperson Jeremy Leaf said: “The latest survey provides further evidence of the eagerness of buyers to try and pick up bargains.

“This interest has yet to translate into sales but transactions may pick up in the coming months if the Government follows through on its recent announcement and introduces guarantees for the issuance of residential mortgage backed securities.

“The latest cut in interest rates may improve confidence for those on the margins, encouraging buyers looking for more attractive finance deals.”

Stephen Ludlow, Director of ludlowthompson comments: “Buy-to-let investors with cash for deposits or outright purchases are benefiting from very keen prices. Low interest rates make the return on rental investments attractive despite pressure on rentals due to increased supply of properties. With fewer places to invest money, more investors may be attracted to property for its immediate rental return and longer term capital growth. However the RICs report shows that the level of house prices is attracting home buyer interest. So as soon as mortgages become easier to arrange investors will be competing with owner-occupiers once more.”

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14th January 2008 – Hamptons International, one of the UK’s premier international residential agencies and a subsidiary of Emaar Properties, has today released the latest figures from its Property Price Tracker, revealing that the final quarter of 2008 set a first for the year, with letting prices across many areas of London falling at a faster rate of decline than sales prices. Figures from Hamptons International reveal that rental prices experienced a fall of 9.8%, which outpaced the decline of sale prices (7.6%) in Q4 2008.

The London Market
The latest findings from Hamptons International are indicative of the recent turmoil within the financial markets, with the economic slowdown now affecting London rental prices. The report reveals:

* Supply of sales property coming onto the market is slowing rapidly with 42% fewer new instructions hitting the market in Dec-08 when compared against Dec-07
* Sale prices were down 7.6% in the final quarter of 2008 when compared with Q3 2008. The largest reductions at the top end of the market were in locations like Chelsea and Paddington where prices fell at close to twice the London average. The smallest reductions in capital values were found in Wimbledon and Pimlico, where values fell by less than 5% in the quarter
* Expected rental prices fell by an average 9.8% in the final quarter. Rental values held up well in Notting Hill and Tower Bridge, with falls of less than 4%. At the opposite end of the spectrum an increase in instructions and far fewer new applicants has significantly affected rental growth in Islington and Wimbledon with declines in excess of 12%
* Across London rental values dropped by an average of £145 per week during the last quarter. The cost of letting a semi-detached or detached property (of more than 2500 sq ft) became noticeably cheaper and available from £23 per sq ft per annum
* Investment returns were more or less static at an average 4.7%, down 11 basis points on Q3 2008. The strongest yields were found in Clapham, the City, and Chelsea. Smaller sized properties (sub 1500 sq ft) consistently offered higher investment returns with yields up around 6.7% achievable

Rob Bruce, research manager, notes, “In the London sales market we are still seeing the largest percentage declines hitting units at the bigger end of the market (3000 sq ft+) with an average decline of 11% in detached five-bed property in London during Q4 2008. Comparatively, an interesting trend is the way demand continues to focus on the two-bed corner of the market – attractive to investment buyers and first-time buyers alike – this is holding prices up more than the market average, down just 6.7% in Q4 2008.”

The Country Market

Unlike London, the market across the rest of the country maintained the trajectory and dynamics of Q3 2008 with a shallower decline in rental prices, outpaced by the falls in average sale values.

* The supply of new sales property coming onto the market is 11% lower than the same time last year while in the lettings market new instructions are 72% higher having a sigificant impact on pricing
* Sale prices were down 5.9% in the last quarter, compared with a decline of 5.6% in Q3 2008. While letting prices were down 3.9% as opposed to 3.3% in Q3 2008
* Smaller properties offering one-bed or two-bed accommodation declined by an average 6%, while larger four-bed semi and five-bed detached properties declined by an average 5.3%. A significant number of locations witnessed smaller drops in value in the last quarter, as the market shows signs of stabilising. The average property in Bath lost just 1.4%, Gerrards Cross declined 2% and Great Missenden fell 2.9% in the last quarter
* The fall of 3.9% in the average weekly rental price represented a decline of around £21 per week. In most locations the declines continued to be most pronounced in the highend sector of the lettings market where corporate activity and cost cutting are biting hardest
* Initial investment yields improved fractionally in Q4 2008 and outperformed the London average, reaching 5%. The strongest yields were in the sub-1500 sq ft sector of the market where average yields of around 6% are achievable. The towns offering the strongest investment return are Godalming, Windsor, Guildford and Maidenhead
* In terms of locations offering more affordable space, many locations are now extremely tempting to the first time buyers locally, many of these locations around the south east offer excellent commutable links to London: Newbury (£175psf), Painswick (£184psf), Oxford (£196psf), or Fleet (£196psf)

Research manager, Rob Bruce added, “For tenants coming towards the end of rental agreements the picture is extremely positive. Competition among tenants has dropped from more than 5.4 tenants per new instruction in 2007 to a ratio of 4.7 tenants per property at the end of 2008. As a result their money will now stretch further and landlords have to be more accommodating to secure a good tenant.”

Figure 1 – Average Investment Yields across London

Figure 2 – Average Annual Rental across London

Figure 3 – Average Investment Yields across Southern England

Figure 4 – Affordable locations under £275 per square foot

For further information please contact:
Rob Bruce, Research Manager – Hamptons International
0207 589 9775, brucer@hamptons-int.com

Jane Jorgensen, Associate Director PR – Hamptons International
0207 589 9775, jorgensenj@hamptons-int.com

Lucy Gaynor, PR Manager – Hamptons International
0207 589 9775, gaynorl@hamptons-int.com

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UK property market has seen a slow down since the property price in London felled rapidly in the late 1980’s and early 1990’s. This decline of the market is known to be after about a decade of boom in both the London property sales and prices. The London property market news shows the change in market trends in real estate property , full london property article

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People living in the London borough of Hammersmith & Fulham could be set to benefit as a new initiative is launched with the aim of reducing crime.

Police and the local council are teaming up to provide residents with the means to mark valuable items.

A solution, dubbed SmartWater, is painted onto goods and cannot be removed.

Invisible to the naked eye, the liquid glows when placed under an ultraviolet light and includes a unique DNA-style forensic signature to prove ownership.

“Once offenders see this forensic technology appearing more and more they will begin to think twice about committing crime,” said Inspector Ruald Coleman, adding: “SmartWater could be anywhere, so my message to thieves is to think twice.”

The solution can also be sprayed onto criminals, remaining on skin and hair for weeks and allowing offenders to be traced to specific incidents.

Hammersmith & Fulham was among the boroughs designated to receive funding to reduce alcohol-related problems last month.

From net-lettings

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Owing to many difficult situations, there may be times that you have to wait, without rushing in for buying a new house. Depending on your financial status, it might be good if you decide to continue renting and then buy.

The first thing to consider before buying is to be sure whether you are secured with your job and employer. You would not be in the home buying market, If your employer is filing for bankruptcy soon. If you also think about changing job then you could be half way through the home buying process. Lenders usually treat a new job within the previous six months as a credit risk factor.When You Shouldn’t Buy a House

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When we say aggressive, we mean that they are offering to buy bulk units in Midtown, City and Docklands at up to 40% below the developer’s or vendor’s asking price.We expect vulture funds to have limited success in 2009 in Midtown and the City, instead they will turn their attention to Docklands bearing in mind the potential upside of the Olympics in 2012. With no sales or slow sales, for some hard-pressed developers and housebuilders outside of London unable to hold their assets for the rental market, bulk sales offer a solution to pay off debt rapidly, even if profit is foregone. In the regions, we have evidence that housebuilders are accepting 40-50% discounts for bulk sales, with 35-40% more typical of the Home Counties.

In Central London, including Midtown, City and Docklands Property, there is little evidence to date of bulk discounts being accepted. Some serious overseas investors with a long-term view are buying at more realistic rates of discount of between 10% and 15%. The movement of capital value and rents over the past 18 months has led to an increase in yields from 5.2% to 5.8%.

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To summarise residential prices fell in 2008 by 10% in Midtown, 12% in the City and 17% in Docklands. The faster rate of price falls in Docklands ( Limehouse Property , Wapping Property ) is due to local supply and demand factors, including the amount of stock under construction in major schemes, a previous reliance on investor purchasers and a weakening of demand from owner-occupiers in the light of both availability of finance and deteriorating job security. The graph does show some flattening of the downward curves in the second half of 2008 in all three sub-markets, which we expect to see continue in the first half of 2009. Comparing Figures 1 and 2, the residential property market in central London has actually fared rather better than the stock market during the current crisis. Although nationally house prices are down in the order of 20% from June 2007 to December 2008, the FTSE 100 Index was down around 38%. In the commercial property market (offices, retail and industrial), according to the Investment Property London.

Databank (IPD), capital values in its UK All Property Index declined by 28% between June 2007 and October 2008. So, as an asset class, residential property actually out-performed its main UK rivals over the 18 month period. 2008 will go down in the annals as a watershed, where a system which permitted excessive greed was replaced by one with a stronger level of regulation and control, while still allowing markets to function and corporate profits to be made. As we enter 2009 with reduced land values and residential prices and banks putting pressure on existing landowners, there are real opportunities emerging for cash-rich individuals and corporate investors to take advantage. This did not pertain at the start of 2008.

Given the long term relationship between the FTSE 100 and London house prices, we expect a further period of declining property prices in the first half of 2009.

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The redevelopment plan of the London’s King’s cross property by the Argent Group. The redevelopment plan worth 2 billion pounds or 3.47 billion dollars got approval from the city’s mayor.
This moved the king cross estate property project closer to the construction which is due to start in 2007
The new in the construction in the king cross property will be 50 new and important buildings, around 1946 homes and somewhat about 250 businesses around the king cross property and St. pancreas train stations bringing it to total construction on an area of about 67 acres or 26.8 hectares.
This project is supposed to be the largest of used industrial land development also known as largest brown field in Europe. London is supposed to have property of highest rend paying in the world for office space, along with the biggest downfall in the vacancy rates the previous year. This is considered to be a major new construction in the city.

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There’s growing unease in the business and commercial world today with news that even homeowners in London have been forced to drastically drop their selling prices to fall into line with the rest of the country.

According to a new report, from property agent Rightmove, vendors in the capital have “recognised the need to price aggressively” in order to make their properties more affordable for potential buyers.

The almost unthinkable a year ago has now happened with London house prices falling by 5.3% in the last month, according to the figures.

Like many other parts of the country, the capital has even found itself falling into ‘negative equity’ territory for asking prices year-on-year.

Meanwhile, it has been predicted that hundreds of thousands of people could lose their jobs over the next two to three years and that unemployment levels may top two million.

The British Chambers of Commerce (BCC) also forecast that the UK economy will enter recession within the coming year.

In its latest quarterly economic forecast, the BCC said Britain was heading into a “technical” recession of two or more quarters of declining output over the next six or nine months.

But a major recession similar to the downturn seen in the early 1990s was unlikely, the organisation said.

The forecast also predicted that unemployment would climb by some 300,000 and could break through the two million barrier if conditions deteriorated.

The main reasons for the slump will be a “very sharp” slowdown in consumer spending growth as households tighten their belts amid soaring bills and falling house prices, the BCC said.

However, as the economic slowdown continues, there is a growing realism among UK businesses that they must take action for the tough times ahead.

According to the latest Business Confidence Monitor (BCM) from the Institute of Chartered Accountants in England and Wales (ICAEW), published today, the BCM Confidence Index declined from -19.7 in the previous quarter to -25.7.

Commenting on the results, Robin Fieth, the ICAEW’s Executive Director of Operations and Finance, said: “The survey paints a stark picture of the challenging business environment that has emerged in the UK over the past year, with the economy facing its most difficult period since the early 1990s.

“This is now compounded by high and uncertain oil and commodity prices creating inflationary pressures and fall out from the UK housing market downturn which has continued to gather pace.

“At the same time we are seeing a new realism among businesses about the need to weather the current economic conditions with projected staff and capital investment both significantly down on this time last year.”

He added: “As an increased number of businesses express concern over late payment, effective cash flow management is now more essential than ever for those sectors with rising input costs, such as manufacturing, transport and storage.”

Also, confidence in the construction and property sectors have fallen sharply as the housing downturn has gathered pace, the report noted.

In addition, sectors reliant on the previously buoyant UK consumer are also feeling under pressure.

With increased inflation causing a squeeze on real disposable incomes, and the housing market slowdown impacting on consumer confidence – now at its lowest since the 1970s – retail and wholesale and hotels and catering also register large falls in confidence.

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