Written By Em

Em Morley

Urban locations outside of London in demand

Published On: May 13, 2015 at 11:23 am

Tags: top urban locations,town and city living,urban property

A list of the most sought after urban locations to live in outside of the capital has recently been compiled. Town and city dwelling is gaining in popularity in England, with more people looking for urban accommodation than in recent years.

Hotspots

According to the data from Stacks Property Search, Bath, Exeter and Bournemouth top the list for the most desirable areas outside of London. It is no surprise that Bath, with it’s rich history, culture and simple access to countryside, tops the list. Exeter too has fantastic access to the moors, alongside its proximity on the coast, while Bournemouth also sits on the seaside, but can also boast stunning architecture and Premier League football from next season.

Other desirable locations include Cheltenham, Oxford, Brighton and Winchester.

James Greenword of Stacks Property Search believes that, ‘urban property is becoming more and more sought after, and towns and cities that can offer sophistication, culture, great shopping, schooling and facilities, yet remain relatively small and contained with a clear personality are becoming increasingly popular.’[1]

Greenwood believes that, ‘what makes these towns and cities so attractive is that they’re small enough to be friendly with low crime figures, yet large enough to offer everything that residents want.’ He continued by describing them as, ‘a hybrid between a market town and London,’ saying that they don’t have, ‘sprawling suburbs, so everywhere is fairly accessible on foot and they’re surrounded by attractive countryside or seaside.’[2]

Urban perks

‘Urban life on this scale is attractive to numerous types of buyers, including families with older children who don’t want to be hidden away in the middle of the country, retirees who want entertainment and company on their doorstep and the younger generation, many of whom find that large city living is too impersonal,’ said Greenwood.

Urban locations outside of London in demand

Nick Wooldridge, also of Stacks Property Search, believes a number of people leave London to move into towns with good transport links to the capital, as the comedown of city life to country dwelling would be too much. However, Wooldridge suggests that a number of these city leavers enjoy the lifestyle of these other urban locations too much and as a result, never move on.

Wooldridge’s colleague Jo Aldridge believes that, ‘buyers are looking for a mini-London and these towns all meet that brief. There are bucket loads of culture, fantastic shopping, a really buzzing atmosphere, restaurants and bars at all levels of the spectrum, good state and private schools.’ [3]

However, another firm spokesman, Gideon Sumption, pointed out that sacrifices may have to be made by tenants looking for an urban deal. He said that in Bath, tenants will have to sacrifice space both in and out of their property to reap the benefits of urban culture, alongside warning that property prices in Oxford are as expensive as in Battersea.

Addressing tenants, Mr Sumption said:, ‘ research the market carefully before you get too excited about swapping farm shop for designer shop and the walks in the countryside for the town centre stroll.’ [4]

[1-4] http://www.propertywire.com/news/europe/uk-buyers-towns-cities-2015051310498.html

Rogue landlords in London exposed

Published On: May 13, 2015 at 9:59 am

Author: Em Morley

Categories: Landlord News

Tags: London boroughs,prosecutions,rogue landlords

Landlords who persistently cut corners in regard to tenant safety by providing unsafe, unhygienic overcrowded and ill-managed accommodation will hopefully take note of recently released figures.

Prosecutions

Housing consultancy London Property Licensing recently conducted a survey to ascertain how many prosecutions were made under the Housing Act 2004 in London during a three-year period, between 1^st April 2011-31^st March 2014.

The results indicated that 580 prosecutions were carried out across a number of London Boroughs. Offences for which persons were prosecuted included:

failure to comply with an improvement notice to remove hazards from the home
failure to meet restrictions of a Prohibition Order that stopped a home being let out
failure to gain the relevant licence to legally rent out a property
failure to comply with occupation restrictions relating to the number of tenants allowed in a property

Performance

Of all of the London Boroughs, the five with the most prosecutions were:

Newham-359

Haringey 57

Camden 20

Redbridge 19

Southwark 15

Rogue landlords in London exposed

Newham is at the top of the list following additional borough wide licensing since January 2013. Under the new scheme, each rental property in Newham must be licensed before it is rented out to a tenant. However, there are eight London councils that have not issued one prosecution during the period, including Barking and Dagenham and Enfield.

Richard Tacagni, Managing Director at London Property Licensing, said, ‘this latest research should act as a wake up call to landlords who try to evade their legal responsibilities and place tenants’ lives at risk. Councils are cracking down on this unacceptable behaviour. Whilst the vast majority of landlords take their responsibilities seriously, those looking to make a quick profit at the expense of their tenants’ health and safety need to think again.’[1]

Encouragingly, Tacagni also feels that councils that are under-performing are beginning to raise their standards. He commented that, ‘Some of the councils currently at the bottom of the enforcement league table are also starting to up their game. For example, Brent Council has undertaken several prosecutions in recent months. The challenge is now on for all councils to take effective enforcement action where it is needed and justified, whilst working in partnership with good, responsible landlords.’[2]

Further encouragement came in March, with the announcement that financial restrictions on housing prosecutions had been lifted. This means that following a successful prosecution, courts can now serve unlimited fines on offenders, meaning that more severe financial implications now face rogue landlords.

(1-2) http://www.londonpropertylicensing.co.uk/crackdown-rogue-landlords-leads-580-housing-prosecutions-london

Developers Pay £800m Less for Social Housing in London

Published On: May 13, 2015 at 9:31 am

Author: Em Morley

Categories: Property News

Tags: London housing,London property,new build homes London,social housing London

Developers have paid £800m less than was needed for social housing in London since 2011, found new research from market intelligence organisation Estates Gazette.

Between 2004-11, 74 social homes were built for every 100 private new builds. By 2014, this number had dropped to 40 per 100.

Estates Gazette believes that the shortfall could be down to a 60% cut in social housing funding in the last government’s 2010 spending review.

Data Editor at the group, Nadia Elghamry, says: “Historically, 75 affordable homes have been built for every 100 private units, but since the spending review in 2010 which saw a Tory-led government policy slash the housing subsidy by 60%, it has dropped substantially.

Developers Pay £800m Less for Social Housing in London

“Now just 40 social homes are built for every 100. That means at a time when starts on private homes in London have reached a two-decade high, we have seen the proportion of expected affordable housing nearly halve.

“The theory was that cash contributions paid by developers rather than physically building homes on site should have plugged this gap. They have not.”¹

For the same ratio of 2004-11 levels to be sustained, a further 17,297 social homes should have been started since 2012.

Between 2011-13, developers paid almost £467m towards provision for social units rather than actually building the homes themselves.

The Estates Gazette’s study estimates that £1.3 billion would have been needed to cover the cost of the missing homes.

This figure was calculated by assuming the cost of building a home in London is £72,500, not including the cost of land.

The money put towards social housing provision by developers is part of section 106 (S106) funding. This measure allows the proportion of homes to social housing to be exchanged for a financial contribution to the local authority where the development is being built.

Between 2004-10, 70 projects used an S106 agreement, with the money expected to go towards social units. After the coalition government’s spending review, this figure rose to 70 in 2012 and 2013, and 88 in 2014.

The Estates Gazette’s report states: “Simply put, even when assuming no land cost, S106 contributions have not been enough to mitigate the loss in either on- or off-site affordable housing provision.”¹

Chief Executive of housing charity Shelter, Campbell Robb, says: “Only clear rules on how many affordable homes must be built will turn the tide on this worrying trend. Up until 2008, there was a 50% affordable housing target for new developments in London and more genuinely affordable homes were built as a result. There’s no reason this can’t work again.

“Both the mayor and central government need to reinstate clear rules for developers on affordable house building and finally start to curb London’s drastic shortage. If they don’t, ordinary Londoners face being priced out of the city altogether.”¹

¹http://www.theguardian.com/news/datablog/2015/may/12/800m-shortfall-social-housing-london

West Africans buying in London hotspots

Published On: May 12, 2015 at 4:48 pm

Author: Em Morley

Categories: Property News

Tags: Mayfair,Overseas investors,property in London

A leading London estate agent has suggested that a new wave of overseas investors are looking to purchase property in the capital.

Foreign investment in London from the United States, Russia and the Far East has been common for a number of years. Harrods Estates Mayfair Office however claims that there has been a sharp increase in demand from West African buyers during the last year.

Surge

The estate agents claim that sales to people of West African nationality have risen by 40% in the last 12 months. This signifies an increase of 400% compared to two years ago.[1]

Shirley Humphrey, director at Harrods Estates, said that the majority of wealthy West African investors were looking to spend between £2.5-£6.5 million on two or three bedroom apartments. As is common for international investors, Humphrey said that the most offers were for luxury developments, offering round the clock surveillance and facilities such as a spa.

‘Family is very important to them and they prefer to cluster buy more than one apartment in the same building so that they have somewhere for their children, parents and grandparents to stay,’ Humphrey remarked.[2]

West Africans buying in London hotspots

May-fairs well

Humphrey noted that Mayfair is to undergo changes in the upcoming years, with new developments planned, alongside the restoration of many residential buildings. Factor in that the location has notoriously appealed to British aristocrats, it is little wonder that investors from the Middle East, China, India and Russia have already chosen to live in the area.

‘Mayfair offers a village lifestyle in a fantastic central location,’ said Humphrey. ‘The excellent shopping on Mount Street and Bond Street, fantastic restaurants and five star hotels, contribute to the areas popularity and with Hyde Park and Knightsbridge a short stroll away, many of our clients love the location as both an investment and lifestyle choice,’ she continued.[3]

She also stated that, ‘West African purchasers are drawn to living north of Hyde Park or just off Park Lane on Upper Grosvenor or Mount Street and prefer period buildings with newly refurbished luxury interiors which they can move straight into.’ Although buying property for investment purposes, Humphrey thinks that, ‘the key thing for West Africans is owning a home in London which they can use for a minimum of a few months of the year.’[4]

[1-4] http://www.propertywire.com/news/europe/west-african-buyers-london-2015051210496.html

Lettings Sector Petition goes to Scottish Parliament

Published On: May 12, 2015 at 3:24 pm

Author: Em Morley

Categories: Landlord News

Tags: private rental sector,rent controls,Scottish rental sector

Lettings Sector Petition goes to Scottish Parliament

An association representing the private rental sector has organised a petition to be put before the Scottish Parliament to prevent the introduction of rent controls.

The group has the opinion that “there is no role for the regulation of area-based rent limitations in Scotland”¹ and has been launched by PRS4 Scotland, a pressure group including letting agents, landlords, portals and investors.

The issue was raised after the current government consultation, which closed on Friday, included the subject of rent controls.

Veteran letting agent David Alexander is a member behind the petition. He says that politicians could find that tenants or landlords do not accept rent controls.

He states: “Potential landlords will be scared off from entering the sector while many existing ones are likely to disinvest, which can only lead to a reduction in stock.

“At a time when young couples are finding difficulty in raising the large deposits required by mortgage lenders, what we need is more, not less, homes for rent.”¹

Alexander is also against efforts by Scottish MSPs to stop landlords repossessing their properties unless they want to sell it or move in themselves.

¹http://www.lettingagenttoday.co.uk/breaking-news/2015/5/lettings-sector-petition-goes-before-parliament

Post-election property bedlam in Central London

Published On: May 12, 2015 at 3:21 pm

Author: Em Morley

Categories: Landlord News

Tags: buying confidence,general election,property

The Conservative Party’s shock election victory saw an estimated £500m frenzy of quick sales and fresh offers in Central London during Friday alone.

Estate agents and property owners alike were said to have been inundated with calls as the surprise election result gave would-be buyers the confidence to press on with their home buying plans.

Edward Heaton of Heaton and Partners property search agents has suggested that house prices for prime properties could rise as much as 10%, as fears of a mansion tax and abolition of ‘non dom’ tax status have been allayed.

Becky Fatemi, managing director of estate agents Rokstone, feels that the UK, ‘will see a return of gazumping and sealed bids and buyers will feel under pressure not just to offer a good price but also to compete with other people now flooding into the London market.’ She went on to suggest that a number of her clients had been, ‘packed up and ready to go,’ if Labour would have gained an election victory.[1]

Post-election property bedlam in Central London

Bedlam

Gary Hersham, MD of Beauchamp Estates in Mayfair, revealed that he had received 20 phone calls before even reaching his office yesterday, following on from the, ‘bedlam,’ of Friday. And Mr Hersham was not alone. Across the capital, agents reported a surge of post-election deals. Chelsea estate agents Russell Simpson reported that they had completed four transactions with a net value of £50m shortly after the results had been confirmed.[2]

London Agents Strutt and Parker said that they had also experienced a hugely productive post-election day, receiving £30 million worth of offers for properties on their books. Peter Wetherall, of Mayfair based agents under the same name, said that his firm, ‘is currently processing some £29 million worth of offers that were made on Mayfair property to us on Friday straight after the election.’[3]

Head of research at Strutt and Parker, Stephanie McMahon, commented that, ‘the prime central London markets displayed a marked reduction in volumes over the past nine months and this result will likely put an end to that.’ She went on to suggest that, ‘the more property tax-favourable approach of the Conservatives will serve to immediately increase confidence for those buying and selling homes over £1.5 million across the UK and we would not be surprised to see a surge in pent-up activity.’[4]

[1-4] http://www.standard.co.uk/news/london/500m-homebuying-frenzy-in-central-london-after-tory-win-10242312.html