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Landlord and Tenant News: Buy to let lending up

Thu, 10 May 2012 17:11:37 +0100

Buy to let lending rose by 32 per cent year-on-year, according to data from the Council of Mortgage Lenders (CML).

Data from the body shows that new buy to let lending for the first three months of 2012 was £3.7 billion, down five per cent compared to the final quarter of 2011, but up compared with the same period last year.

The figures also showed that the total number of buy to let mortgages currently stands at 1.4 million with a collective worth of £159.4 billion.

Overall the buy to let sector now accounts for 12.8 per cent of total outstanding mortgages.

CML director general Paul Smee, said: "Even though buy to let lending is running at only around a third of its peak levels, the sector is continuing its gradual expansion. It has become an important part of the overall landscape of housing provision in the UK."

Malcolm Harrison, spokesman for the Tenancy Deposit Scheme, recently advised landlords to do some research before selecting a buy to let mortgage and making a purchase as the property markets in various regions differ greatly.

Residential Landlords News

London Commercial Property News: Capital remains key hub in commercial growth

Mon, 30 Apr 2012 10:44:23 +0100

The strength of commercial property in London continues to drive the UK market, figures from CBRE show.

The firm's Prime Rent and Yield Monitor found that the nation's capital continued to perform despite severe economic troubles hitting other UK cities.

Industrial premises and offices in prime London locations showed encouraging growth of 0.4 per cent during the first three months of this year.

Nick Parker, senior analyst at CBRE, said: “The message coming from these results is clear; London remains the key hub for UK commercial real estate growth. In all three major sectors, London experienced positive growth in Quarter one, with Central London shops the jewel in the crown of UK property."

He added that there has been significant rental growth in the retail market despite current economic uncertainty, with premises in the West End proving particularly buoyant.

Indeed, some London retail rents have grown by as much as 2.4 per cent this year.

London Commercial Property News

Buy to Let Investment News: Market restrictions not an issue because of potential yields

Tue, 17 Apr 2012 14:17:47 +0100

More people are looking to take advantage of the vibrant buy to let market despite lenders restricting deals and asking for larger deposits.

Lee Grandin, director of Landlord Mortgages, feels that the current yields available from both residential and commercial lets means that people will find a way to jump over any hurdle which is presented to them during the buying process.

"The rates aren't putting people off because the yields are good. It is just a case of whether they do physically have enough funds to purchase a property because the deposits are quite substantial," he said.

"It is a very attractive market if someone has the money for a deposit. It is not a market where those that aren't asset-rich can purchase; you do need to have some kind of resources because the deposits are still quite significant."

He added that while buy to let rates are not as competitive as they were five years ago, property investors have accepted this and become more savvy about weighing up their options.

London Property Market News: Overseas investment will boost London property market

Wed, 07 Dec 2011 16:45:25 +0000

Investment from overseas will ensure that the central London property market remains buoyant in the new year, it has been claimed.

Richard Kauntze, chief executive of British Council for Offices (BCO), said that growth will remain "very modest" in the coming 12 months, however, central London will fare best due to cash injections from overseas buyers.

"For the centre of London, I think it is generally upbeat because [it is seen to be a] safe haven. London is very special internationally - so it has all kinds of advantages that most other cities elsewhere in the world don't have. But the economy is still in a difficult place and I think there is nervousness about tenants committing unless they really have to," he added.

He added that currently a lot of Greek, Italian and Spanish money is coming into London, however, this may stop if the eurozone collapses.

IP Global recently said that property in London is performing well despite eurozone nations struggling.

London Property Market News

London property investment: Commercial property in London performing well

Mon, 05 Dec 2011 11:48:29 +0000

London property investment remains strong amidst trouble in the eurozone, according to IP Global.

Data from the property investment company said that property investments in the capital are outstripping the property yield benchmarks set by the UK’s Land Registry, making it a strong option for investors.

Islington was singled out as the strongest performing area, with annualised returns of 11.5 per cent, while Tower Hamlets and Southwark also contain some strong projects.

Robert Pearce, director of IP Global, commented: "The mature legal framework that underpins the UK property market, low cost of borrowing and under supply of housing stock in key areas of central London are all factors that have attracted foreign investment to London, especially from Gulf countries."

He added that this trend is likely to continue into next year as Middle Eastern investors seek long term stability.

Mr Pearce recommended that investors diversify their portfolios into new London boroughs.

It was recently reported that the housing market in London is also performing well, with the Residential Landlords Association suggesting demand for rented houses will be high.

London Commercial Property News

London Property News: Scheme offers affordable housing in London

Mon, 24 Oct 2011 12:05:13 +0100

Affordable housing in London isn't as difficult to find as many people believe.

A number of new houses and apartments have been built in the city of late that offer a comfortable solution to first time buyers without breaking the bank.

With rising property prices and a lack of high LTV mortgages available, it's no surprise that the age of the average first time property buyer has shot up to 37.

But a new developments in Croydon and Hackbridge could be just the tonic for young people with ownership aspirations.

Builder Taylor Wimpey has started a scheme that allows buyers to purchase one of their own new build apartments with a deposit of as little as £8,500.

The scheme, entitled "FirstBuy", is backed by the government and incorporates a loan of 20 per cent from the Homes and Communities Agency (HCA) and Taylor Wimpey – which is to be repaid at the end of the mortgage term.

However, first time buyers may want to consider the few options for 95 per cent mortgages out there. At present Skipton Building Society, Yorkshire Bank and Clydesdale all offer products with just a five per cent deposit.

London Property Market News

London Property News: Shoreditch tipped to become 'the next Bond Street'

Wed, 19 Oct 2011 09:56:16 +0100

Investors keen to buy into the hottest London property development opportunities may want to look at the Shoreditch area of the capital, with a new report noting that this is set to be transformed into a 'mini Bond Street' over the next few years.

According to Reuters, while the area, which is located just to the east of the heart of London, is currently 'edgy', high-end retailers such as Ralph Lauren and Vivienne Westwood are now eyeing up new business opportunities there.

This could mean that Shoreditch is transformed into an affluent neighbourhood with high rents and high-earning residents within the space of just five years.

Indeed, one landlord with five properties in the area told the news agency that it is like the Meatpacking District in New York City, in that it is on the verge of being transformed from a slightly dodgy, undesirable area into one of the city's most attractive postcodes.

Notably, as well as the prospect of luxury fashion houses setting up shop, it is anticipated that the recent arrival of Google will help drive London property development in this part of the city.

The internet giant's decision to set up a technology hub in the east of the capital was welcomed as "great news" by the chancellor George Osborne at the end of last month.

London Property Market News

London Commercial Property News: London investors 'should look at areas of regeneration'

Fri, 14 Oct 2011 17:53:37 +0100

Overseas property buyers in London have been advised to consider buying homes in areas that are seen as 'up and coming' but may not be considered as desirable postcodes just yet.

Peter Mindenhall, writer and researcher at IPINGlobal.com, suggested investing in "any area where transport links and being developed or increased", while "regeneration is also an important factor to consider from an investment angle".

"At the moment the London property market in general is performing comparatively well and will likely continue to do so for some time to come. However, areas highlighted to undergo improvements during the next few years will benefit most," he added.

Mr Mindenhall's comments came after the Financial Times cited research showing that London was the focus of the largest proportion of inward investment into European commercial property over the last year and a half.

The newspaper explained that non-European bodies including governments, private equity investors and pension and insurance funds injected more than £8 billion into commercial property in London in the 18 months to July 2011.

London Commercial Property News

London Commercial Property News: Commercial property 'witnessing slow recovery'

Fri, 14 Oct 2011 09:05:41 +0100

Investors in commercial property in London might be pleased to hear that market performance is "slowly coming back", according to Deloitte.

Neville Kahn, reorganisation services partner at the company, commented: "There are certain different industries that are particularly being affected by the reduction in consumer spending - retail being the main one. But generally, things are slowly getting better."

He noted that the interaction between landlords and those who rent retail property in London has also improved over the last two years, and they are now able to hold "mature conversations".

"It is about having a grown-up conversation," he added.

Mr Kahn's comments came after the Royal Institution of Chartered Surveyors reported that office space in London continued to outperform the rest of the country in the second quarter of this year.

Office space also outdid the industrial and retail sectors in occupier and investment markets, the research revealed.

London Commercial Property News

London Rental Property News: Rental property demand 'continues to rise'

Thu, 13 Oct 2011 15:51:05 +0100

Landlords with property to rent in Kilburn, London, might be glad to hear than tenant demand is continuing to climb, according to data from Paragon.

The buy to let funding specialist noted that 44 per cent of landlords report tenant demand increased during the third quarter of this year against four per cent who thought it had declined, while one in two landlords say they expect demand for property to rent in London and other parts of the UK to keep rising in the next 12 months.

Nigel Terrington, chief executive of the mortgage lender, commented: "Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole.

"More people than ever before are relying on the private rented sector so it is positive to see that landlords are looking to invest in their portfolios and are also diversifying the types of property in which they are investing in order to meet tenant demand," he added.

London Rental Property News

Building & Construction News: Speak to small lenders about self build finance

Wed, 12 Oct 2011 17:08:16 +0100

Those who are interested in self build properties should speak to their lender about the different UK mortgage offers available, according to the Building Societies Association.

Speaking at the Grand Designs Live event in Birmingham, mortgage policy advisor Colette Best advised self builders to discuss with their local lender about how to finance their project and how to get the best deal.

"Self-build is still considered quite specialised so a lot of the major lenders won't offer these products, so it is a good idea to speak to your local building society who are more likely to be willing to lend to you for self-build," she recommended.

"The biggest mistake you can make is just to go to one big lender because chances are that they are going to have an automated system that is going to kick your project out before you even get the chance to speak to anyone. Instead, think small and think local."

Ms Best added that when the building project is finished, homeowners will have "a really great" loan to value on their property, which stands them in good stead to get a mortgage on the finished home.

Building & Construction News

Buy to Let Investment News: London 'a strong market' for buy to let

Wed, 12 Oct 2011 15:11:51 +0100

Prospective landlords looking to secure buy to let funding for a new property will find London is "still a strong market in terms of capital growth".

This is the view of Alan Ward, chair of the Residential Landlords Association, who cited research from the organisation showing that most landlords are looking at investment over 15 years.

"There will always be investors moving in and out of the private rented sector because it enables people to control their financial destiny through investment in housing. But the risks remain the same; values can fall as well as rise, as we have seen," he pointed out.

Mr Ward's comments came after a survey from Townsends revealed that void periods for property to rent in London, Hampshire and Surrey are virtually non-existent, particularly for one and two-bedroom homes.

This could persuade more people to consider buy to let as an additional source of income, if they are able to secure funding for their investment.

Buy to Let Investment News

London Commercial Property News: London property market 'a safe haven'

Mon, 10 Oct 2011 12:53:10 +0100

Commercial property in London continues to be a draw for overseas investment because it offers "greater security of income" than many other locations in the world.

This is the view of property expert Mat Oakley, who noted that the UK also offers longer leases than anywhere else, while the costs of maintaining and insuring the building "are the tenant's problem rather than the landlord's problem".

"This essentially makes UK commercial property a pretty unique investment in terms of the security of the income that you get. It is always popular in times of instability elsewhere in the world. At the moment, global investors are pretty firmly looking for safe havens, and the UK - in particular, London - always does very well in those periods," he pointed out.

Investors looking for offices for sale, rent & lease in London will find that the market is probably one of the few Western commercial property markets that is currently showing upward rental growth.

"You are getting the best of both worlds," Mr Oakley added.

London Commercial Property News

London Commercial Property News: 'There is a divide' between central and outer London properties

Wed, 05 Oct 2011 11:57:49 +0100

Companies looking for commercial property investments in London should be aware that there is "a central London/outer London divide", according to the British Council for Offices.

Richard Kauntze, chief executive of the organisation, noted that the centre of the city boasts "ultra premium" parts of the market, such as the West End, where property attracts some of the highest rents in the world.

However, other parts of the capital are starting to "really come up", he said.

"One place that is striking is Paddington, which as a business location was considered very 'fringy' by many - there was a railway station and not much else. That area, like many round railway stations, had an unattractive reputation.

"Those kind of areas on the outskirts of inner London, if you like, still have enormous potential and they generally do offer significantly cheaper rents than the more traditional centres of the West End and [the] City, but are still very well connected and very central," Mr Kauntze added.

London Commercial Property News

London Commercial Property News: London's Midtown 'has a lot to support businesses'

Tue, 04 Oct 2011 14:49:24 +0100

Businesses searching for commercial property in London might find offices in the Midtown area of Holborn, St Giles and Bloomsbury.

Tass Mavrogordato, chief executive at inmidtown, explained that companies need to weigh up the expense of living in a prime area against where they need to be in order to thrive.

"Once you're here, yes I think there is a lot to support businesses. And the other great thing about being right in the centre of the city is that you have great transport connections. You can get to the West End really quickly - you can get anywhere - and I think access for communications is key today," she noted.

While the Midtown area is traditionally populated by legal firms because of its proximity to the law courts, "there tends to be a real mix of service industries [and] different professions", Ms Mavrogordato said.

"We have got some creative industries now as well and quite a mix of hospitality, so we have a lot of hotels located here."

London Commercial Property News

London Property to Rent: Student accommodation 'very lucrative'

Wed, 28 Sep 2011 12:00:43 +0100

People looking to invest in student accommodation in London could be making a lucrative move, according to Easyroommate.co.uk.

Director of the website Jonathan Moore explained that student housing can be one of the most profitable forms of property investment if it is managed correctly.

"At present, students are paying an average of £325 per month for a room across the UK, and on average there are four students per home. This means the average student landlord will be earning over £11,700 in rental income over the course of the academic year," he pointed out.

Landlords should not worry yet that the increase in tuition fees will reduce university place uptake as the rise in charges could actually work in investors' favour.

"As fees increase, cost-conscious students will be looking to save money wherever possible, and we anticipate a growing number will elect to move to digs for their first year and avoid university halls altogether to keep costs down," Mr Moore explained, adding that student housing is on average 23 per cent cheaper than living in halls.

London Property to Rent

Investment Finance News: Landlords thinking of expanding portfolios

Thu, 22 Sep 2011 17:22:02 +0100

The majority of buy to let landlords are thinking about investing in more property in the next year, according to research from Assetz.

Over three-quarters (76 per cent) of investors believe now is the right time to expand their portfolios, whereas just one in ten are holding off purchasing more residences because of the economy.

Stuart Law, chief executive of Assetz, commented: "The buy to let market is booming with landlords returning in considerable numbers, encouraged by the excellent rental returns currently available as well as the prospect of long-term capital growth if property prices continue to strengthen.

"UK residential property in the right locations is increasingly viewed as a safe haven, offering investors a long-term, low-risk investment for their cash," he pointed out.

The research also found half of those surveyed are prioritising long-term capital gain, while 44 per cent are looking to secure income from their investment.

Investment Finance News

London Commercial Property News: London is best place for businesses

Thu, 22 Sep 2011 17:00:05 +0100

Finding commercial property in London is one of the best decisions a business can make in terms of the location's potential.

This is the view of Richard Kauntze, chief executive of the British Council for Offices, who pointed out that international companies and players have very little choice apart from the capital in which to settle down.

"Generally air, road [and] rail routes into the capital work very well, so transport is fantastic in many respects. It has a wonderfully talented pool of labour - there is a hugely talented and diverse work force that employers can draw on, which is obviously fundamental for any business," he noted.

Firms choosing commercial property for sale in London will also benefit from the "full package" of its amenities, culture, food and open spaces.

Meanwhile, major high street retailer Debenhams has signed a pre-let agreement to build a 145,000 sq ft building in London's Regent's Place.

London Commercial Property News

London Property to Rent: Check size of university before investing in student housing

Thu, 22 Sep 2011 16:58:47 +0100

Landlords looking to invest in student accommodation in London should do their homework before splashing the cash.

This is the advice from Stuart Cook, acquisitions manager at Freshstartliving.com, who suggested would-be landlords look at the size and type of university in a city and work out how many students would be looking for residences each academic year.

"Our research has found that there was a shortfall of accommodation for students in all cities across the UK, with around 100,000 units needed urgently. So long as the investor invests in a property close to the university with good transport links, they will be able to let it and see a good return," he noted.

Such property has, in the past, been "highly lucrative", meaning it was harder for landlords to secure.

"But the recession and increasing demand have changed much of that. Student accommodation is now a highly sought-after commodity," Mr Cook added.

London Property to Rent

London Commercial Property News: London office developments changing face of certain areas

Tue, 20 Sep 2011 13:32:36 +0100

Businesses looking for commercial property in London are likely to stay within the central areas, according to the British Council for Offices.

Richard Kauntze, chief executive of the organisation, noted: "All the activity is pretty much confined to within the Circle Line. Once you go beyond that there is very little, if anything, going on in terms of office development."

However, Midtown offices - those located in St Giles, Bloomsbury and Holborn, are "very much on the way up", he pointed out, referring to the Central St Giles development as an example of heightened property market activity in the area.

"The area between the City and the West End was a neglected area. That is changing, not least because rents in more traditional parts are so high and there have been some good development opportunities," Mr Kauntze said.

"I think you will see the character and the range of office offers within those areas continue to develop as the market picks up, which I think in central London, will continue at a reasonably steady pace."

He posited that commercial property for sale in London's West End is still attracting interest, while new developments, such as Heron Tower and The Shard, are finished and nearing completion respectively.

"Many of the occupiers who will go into these buildings will be international companies that have big and complicated requirements, and frankly can only be in London. If they're going to be in Europe they are going to be in London and they need a high quality building and someone who is going to build it for them. They are only going to be in the centre," Mr Kauntze added.

Meanwhile, Miles Shipside, commercial director of Rightmove, mentioned interest in office space in London this autumn could be on the increase as buyers "chase a more limited choice of fresh properties".

"With the continuing turmoil in the financial markets, and the threat of a Greek default, we are seeing a flight to safe assets," he added.

London Commercial Property News