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London Commercial Property News: Lower building costs boosting office development

Fri, 18 May 2012 15:23:58 +0100

Lowering building costs are being cited as the reason why commercial property in London is developing at a faster rate.

According to Drivers Jonas Deloitte's (DJD) Crane Survey, the construction of new offices in London has increased by 44 per cent year-on-year and is now three times greater than three years ago.

In total, there is around 9.2 million square foot of office space under construction in London, which represents a rise of 28 per cent compared with just six months ago.

Key developments currently underway include the Walkie Talkie skyscraper and the Cheesegrater.

Anthony Duggan, head of research, at DJD, said: "While construction continues to rise in the core City and West End markets, our research also shows that activity has returned to King's Cross and the Docklands, as well as a further increase in activity along the Southbank.

"This is a sign that developers feel that the low levels of construction – compared to historic trends – and lower building costs are compelling."

Recent figures from Savills' building and project consultancy team also highlighted that commercial property development is on the up.

London Commercial Property News

London Commercial Property News: Commercial development activity rises for second consecutive month

Wed, 16 May 2012 16:56:57 +0100

Commercial property development activity rose by the second month in a row in April, according to recently-released data.

Figures from Savills' building and project consultancy team show that 8.2 per cent more firms questioned felt that development was on the up compared to those who thought it has declined, suggesting there will be more commercial property in London and elsewhere in the UK available in the not too distant future.

The highest rises in commercial property development were seen in London and the south-east with rises of 18.6 per cent.

The report also showed that companies are optimistic about the future, with 19 per cent stating that they expect activity to increase over the next three months.

"Anecdotal evidence provided by survey respondents suggested that general optimism was supported by expectations of new business wins," a report from the company stated.

Recent figures from CBRE highlighted that industrial premises and offices in prime London locations showed encouraging growth of 0.4 per cent over the first quarter of the year.

London Commercial Property News

London Commercial Property News: London hotels in high demand during Olympics

Fri, 11 May 2012 16:09:56 +0100

Even with a number of new hotels opening their doors, people heading to London this summer may struggle to find a room during the Olympic Games.

Figures cited by the Associated Press show that there are 110,000 hotel rooms in the London area, a third of which are being used by Olympic personnel and many of which are already booked.

"It's almost too late now to get into central London," Miles Quest, a spokesman for the British Hospitality Association, told the news provider.

"(Visitors) need to look outside the central area."

It is hoped that the Olympics effect will continue when the Games have left town with Hotels.com president David Roche stating that many hoteliers are looking to the Olympics to rejuvenate interest in the UK as a tourism destination, providing a much-needed boost to hotels, bars and restaurants in London.

One hotel group which is doing just that is InterContinental which recently posted a five per cent increase in profits in the 2012 first quarter.

The group is sponsoring the 2012 London Olympics and chief executive Richard Solomons confirmed that demand for rooms in the capital has been very high.

London Commercial Property News

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

International Property Investment News: Global retailers drawn to London

Thu, 29 Mar 2012 14:38:57 +0100

International retailers are always looking to invest in commercial property in London, it has been claimed.

Trade association the British Retail Consortium (BRC) said the capital's retail property market is often more resilient than other cities.

According to recent analysis by Jones Lang LaSalle, London, Paris and Moscow are the three most attractive cross-border retail destinations in Europe.

Richard Dodd, spokesman for the BRC, said London is "one of the top choices" in the world for any international retailer who is looking to have a store or multiple stores in the UK.

"It tends to be that London is a bit more resilient to economic times, which is another reason why there is an extra attraction to having a retail operation with stores in London," he said.

Mr Dodd added that while the London property market is attractive, property prices reflect the fact that London has got status as a destination which is in high demand.

"Retailers have got to be doing a lot of business, or else selling high-margin products in order to be able to accommodate that," he said.

Licensed property news: FSB calls on government to support funding for licensed trade

Tue, 20 Mar 2012 13:48:21 +0000

The Federation of Small Businesses (FSB) is urging the government to look into producing schemes which would help those in the licensed trade to raise funds.

The government recently launched its New Buy Guarantee to encourage people to look at the possibility of owning their home, but no finance packages have been set to help small and medium-sized businesses to thrive.

The FSB is calling for the government to look into the possibility of facilitating a peer-to-peer lending system, where business loans can be obtained from a pool of investors.

For those looking for larger amounts of funding, say £250,000 and above, the FSB has proposed that a debt bond market be created.

“We need to accept that in its current form, our banking structure might never fully cater to the needs of the UK’s business community. We need to build alternative routes that connect savers and investors with viable small businesses eager to grow, and thereby introduce innovation and competition to the sector," John Walker, chairman of the FSB, said.

“We challenge the Government to look for short term wins, as well as thinking about the longer term and the kind of financial infrastructure we need to underpin our economy and support small firms to grow.”

Licensed Property News: Hospitality firm Living Ventures plans 2012 expansion

Tue, 03 Jan 2012 08:22:53 +0000

Living Ventures is set to spend £8 million on the purchase and development of pubs and bars in 2012.

The north-west-based restaurant and bar firm intends to add to its 26 premises with seven new Oast House pubs.

The new openings will include new venues in Liverpool and Greater Manchester although the firm is also rumoured to have been looking at a site in the affluent Alderley Edge region of Cheshire.

"I see the Oast House as our onslaught into the 'pub' market, very much focused on the basics and what a pub should actually be in terms of the way it reacts to the whole community rather than just sections of it," company boss Tim Bacon told the M&C report.

Living Ventures announced steady profits in March this year, proving that contrary some reports the licensed trade is still thriving.

Indeed, Pete Brown of the Publican's Morning Advertiser recently said that 2011 has been a very good year for industry and publicans should have every reason to feel confident about what 2012 will bring.

Licensed property news: Pubs taking advantage of growing demand for fine dining

Wed, 19 Oct 2011 14:32:16 +0100

Investors looking to buy a pub and cash in on the enduring strength of the UK hospitality sector are likely to be noting with interest the steady movement towards fine dining in the nation's licensed premises.

Over recent years, the traditional pub model has been, in many places, replaced by the so-called gastro-pub model as landlords recognise the potential benefits of offering good food alongside a friendly welcome and a good pint.

Now, it appears that many establishments are looking to go the extra mile, aiming for the very top of the hospitality market and the financial returns this can generate.

Just this month, the Hand and Flowers in Buckinghamshire became the first pub in Britain to be awarded two Michelin stars, the coveted award for fine dining.

Notably, despite having a world-class chef at work in the kitchen, the historic establishment is still very much a traditional village pub, offering a range of ales on tap and an open fire place.

What's more, the award-winning fare is also affordable, illustrating that investors buying a pub and looking to take advantage of the growing demand for high-quality food needn't go too far away from the traditional model of an English-style pub.

Commenting, Michelin Guide editor Rebecca Burr explained that, while pubs selling just booze may be struggling, those also offering their customers good food tend to be doing well, something that her team see on a daily basis.

She added: "We have inspectors coming back to the office saying 'What recession?'. Many places are thriving."

At the same time, three other pubs in England also won stars in this latest round of Michelin Awards, meaning 13 licensed premises have the world-famous accolade, alongside the 550 establishments listed in its collection of UK guides.

Given that many breweries are closing down and many traditional pubs are struggling for business as consumers continue to keep discretionary spending to a minimum, this could prompt many individual landlords, as well as some pub companies, to diversify into the fine-dining sector over the coming months and years.

Meanwhile, up in Yorkshire, it has been announced that the redevelopment of the former Tetley's brewery in Leeds could take more than ten years to complete.

According to the Yorkshire Evening Post, while the city council has given the green light to plans to revamp the historic site, it could be at least a decade before the building is fully transformed into a mix of new residential and commercial properties.

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: New figures highlight ongoing strength of UK hospitality sector

Wed, 19 Oct 2011 09:55:19 +0100

The potential economic benefits of buying a pub in the UK right now have been underlined with the publication of new performance figures for the hospitality sector.

According to the latest Coffer Peach Business Tracker, the nation's pub and restaurant groups saw a 2.8 per cent like-for-like increase in sales in September when compared with the same month of 2010, Eat Out Magazine has reported.

At the same time, a 6.8 per cent overall increase in total sales was also recorded for the same period, while September's total sales were around 18 per cent higher than August, indicating the hospitality market is proving resilient despite the tough economic climate that hotels, bars and restaurants in London and elsewhere in the country are operating in.

Commenting, David Coffer, chairman of the Coffer Group, said: "The September figures are indicative of the effect of post riot relief and some tremendous weather."

This comes as the leading restaurant group D&D has announced a rise in sales and confirmed that it is looking to expand on the number of establishments in currently owns and operated in London.

London Commercial Property News

London Property News: Olympics legacy to offer best practice for construction

Wed, 19 Oct 2011 09:54:12 +0100

The Olympic Delivery Authority in London has officially launched its Learning Legacy, an initiative geared towards ensuring the lessons learned about health and safety in construction while preparing for the 2012 Games are carried forward in the years ahead.

Over the coming months, the official Olympics organisers will be continuously updating its Legacy programme, taking on board feedback from those working in construction, as well as in procurement, planning and project management.

It is hoped that this will then become a "comprehensive online libraries" for UK businesses to refer to, including construction firms focusing on greenfield developments.

Announcing the news, ODA chairman John Armitt noted that this will be possible due to the remarkable success of the Olympics preparations.

"The scale and speed of the coordinated UK effort to build the venues and infrastructure is unprecedented and the knowledge and lessons gained during construction will both benefit the industry and act as a catalyst for inward investment," he said.

Already the Institute of Civil Engineers (ICE) has welcomed the news, noting the Legacy will help members of its profession overcome the challenges of managing waste and enhancing logistical efficiency.

London Property Market News

Licensed property news: Investors may focus on hotels for sale as sector grows

Tue, 18 Oct 2011 14:33:10 +0100

Hotels, bars and restaurants in London have been tipped to play a leading role in driving the UK economy out of recession, with this both creating thousands of new jobs as well as numerous opportunities for those looking to put money into hospitality sector property.

While growth in the UK economy as a whole remains sluggish, a spate of news reports indicate that the national hospitality sector is bucking the trend, with hoteliers in particular reporting renewed optimism.

According to a study published by Oxford Economics in partnership with the British Hospitality Association (BHA), tens of thousands of new jobs are set to be created by the sector's growth over the next few years.

Notably, this will go hand-in-hand with the construction and opening of new properties, including hotels and restaurants, again spelling good news for investors keen to tap into this potential.

The newly-published report highlights the importance of the next few months to the general wellbeing of not just the hospitality sector but of the UK economy as a whole.

In particular, it is widely-anticipated that the 2012 London Olympics, as well as the Queen's Golden Jubilee, which will be celebrated next year also, will go a long way towards placing the country firmly on the road to economic recovery, just as prime minister David Cameron noted back in the summer of 2010.

Illustrating the extent to which opportunities for property investment in hotels have picked up over recent months, the study found that more than 50 new hotels have been opened in Wales since 2000, with these creating thousands of people, generating millions for the Welsh economy and potentially helping to generate significant returns for investors.

Such a sense of optimism is supported by a separate report, this one the Hospitality Employment Index published by Caterer.com and People 1st.

According to the duo's joint research, the number of new jobs being created in the sector is growing at its fastest rate for more than two years right now, with the upcoming Olympics again being cited as the main driver of this trend.

Notably, releasing their findings, the pair state that such an upturn in employment opportunities is perhaps the strongest signal yet that the hospitality sector is bucking the national economic trend and going from strength to strength in the face of a possible double-dip recession.

Meanwhile, the UK culture secretary Jeremy Hunt has revealed that the government is in talks with the hospitality sector over the possibility of offering Britons discounted rates in hotels, bars and restaurants in London for the duration of the 2012 Games in order to prevent a mass exodus out of the country next summer.

London Commercial Property News: Demand for London office space up again in September

Tue, 18 Oct 2011 12:15:58 +0100

Demand for London commercial property remained strong as summer gave way to autumn, the latest figures published by the Investment Property Databank (IPD) show.

Following on from a strong summer, these latest figures reveal UK commercial property values increased again in September, albeit only by a tenth of a per cent.

Notably, it was once again London that was driving the sector forward, with demand for retail space and offices for sale, rent and lease in the capital seen to be strong.

Releasing the data, IPD UK and Ireland managing director Phil Tily said: "Occupier demand remained strong across the London office market."

"While there was mild yield compression, growth was predominantly off the back of continued rental value growth, which is encouraging given the levels of uncertainty in the wider economy," he added.

This comes soon after property guru Mat Oakley became the latest investment expert to sing the praises of London, noting that the capital represents a safe haven for overseas buyers looking to benefit from both security and good returns.

London commercial property 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

Buy to Let Investment News: Buy to let mortgage rates 'fall in last 12 months'

Thu, 13 Oct 2011 16:44:28 +0100

People who need to secure buy to let funding in order to expand their portfolio might be pleased to hear that average mortgage rates have fallen in the last 12 months.

Research from Defaqto revealed that the average two-year fixed rate for a buy to let mortgage at 75 per cent loan to value has dropped from 5.78 per cent in September 2010 to 4.86 per cent last month, while three-year product have seen average rates fall to 5.56 per cent from 6.03 per cent last year.

However, those looking to buy flats and houses for sale in Mapesbury, London, in order to rent to tenants will still find a buy to let mortgage is significantly pricier than an equivalent residential mortgage.

Defaqto insight analyst for banking David Black commented: "People should factor mortgage fees into their calculations as, like the interest rate, they tend to be much higher for buy to let mortgages than for residential mortgages, and can make a real difference to the overall cost of the mortgage."

Buy to Let Investment 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