Written By Em

Em

Em Morley

New Luxury Apartments (Complete with Gin Garden) Go on Sale

Published On: September 24, 2015 at 5:59 pm

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The latest luxury apartment block in London is set to go on sale today (Thursday 24th September). Residents will enjoy its gardens, set 55 storeys up, and the highest botanical gin garden in the capital.

Developers Ballymore and EcoWorld, who created the sky pool plans at Battersea’s Nine Elms (/sky-pool-suspended-over-nine-elms/), will start selling the Wardian development in Canary Wharf today.

Alongside the typical concierge, private gym and cinema, the luxury block will also feature a sky garden, one of which measures 37.2 square metres.

The 624 apartments will be spread across two new towers, named after the Wardian case – a sealable glass container for growing or exporting plants.

The towers will feature heavy foliage, from sunken gardens outside the lobby to exotic plants in the rooftop bar.

The 25-metre open-air swimming pool will be “set within a flourishing tropical environment”1.

Both towers, one of 50 storeys and the other of 55, were approved by Tower Hamlets Council last year and are due to be completed in 2019.

Prices start at £395,000 for a studio flat and £525,000 for a one-bedroom apartment. The penthouses are priced from £2m.

The area is popular with foreign investors and, although the homes will not be on sale abroad until next weekend, marketing has already begun in Kuala Lumpur.

Huw Morgan, of Camlins, the landscape architect that worked on the project, explains the concept: “Green space is one of the most sought-after commodities in London, and Wardian London capitalises on this with abundant planting of more than a hundred different exotic species of plants and flowers across the development.”1

1 http://www.theguardian.com/business/2015/sep/24/londons-highest-botanical-gin-garden-goes-on-sale

One in Ten Landlords Stop Tenants Changing Energy Supplier

Published On: September 24, 2015 at 4:55 pm

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One in Ten Landlords Stop Tenants Changing Energy Supplier

One in Ten Landlords Stop Tenants Changing Energy Supplier

More than one in ten landlords have stopped their tenants changing energy suppliers, adding £161m to utility bills every year, according to a new study.

uSwitch.com’s survey of 500 landlords revealed that a third of property investors wrongly believe that stating a preferred supplier in a tenancy agreement means that renters cannot switch.

Ofgem, the energy regulator, says that property owners can suggest a supplier but the tenants that pay the bills do not have to use them.

uSwitch’s Ann Robinson comments: “Tenants are half as likely to switch as homeowners.

“Landlords who unfairly refuse tenants their right to switch are standing in the way of more affordable energy for millions.”1

1 Unknown (2015) ‘One in ten landlords block change of energy supplier’, Metro, 24 September, p.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EasyProperty looking at foreign markets

Published On: September 24, 2015 at 4:27 pm

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EasyProperty has announced that it is to explore the possibility of exporting its online agency business model out to other countries.

Chief Executive Rob Ellice said that his agency, which operates in the residential, lettings, sales and commercial property sectors, has been considering ventures in the United States in Germany. It has also looked at business opportunities in Australia and in New Zealand.

Overseas interest

Earlier in 2015, easyProperty’s former chief marketing officer Chris Welch said that the firm had received contact from firms in the Middle East, the Far East and Scandinavia.

‘The British housing market is near the tipping point-more people than ever before are considering online sales and lettings,’ commented Mr Ellice. ‘A lot of people from other countries are looking at how we’re achieving that,’ he continued.[1]

EasyProperty looking at foreign markets

EasyProperty looking at foreign markets

Just this week, the firm launched a new advertising campaign to mark its move into residential sales. ‘Consumer behaviours have changed,’ continued Welch. ‘No one walks into an estate agents’ office any more to begin their search for a property. Home-sellers are better-educated and more knowledgeable than ever before and are realising there are alternative options that give them the same end result as a high street agent at a much lower cost.’[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/9/easyproperty-eyes-taking-online-agency-structure-into-foreign-markets

 

Searching for Happiness? Try Northern Ireland

Published On: September 24, 2015 at 3:52 pm

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Searching for Happiness? Try Northern Ireland

Searching for Happiness? Try Northern Ireland

If you’re looking to move house or buy an investment property for happy renters, then look to Northern Ireland rather than Derbyshire.

Co Fermanagh and Omagh have been named the happiest places to live in the UK, according to a study by the Office for National Statistics (ONS).

Bolsover, in the East Midlands, was found to be the unhappiest area.

But those prone to worrying should avoid Pendle in Lancashire, which was ranked the most anxious place on the list.

The ONS warns that the data suggests a “growing inequality”1 between those who rate their lives highly and those reporting low levels of happiness.

1 Unknown (2015) ‘Moving home? It’s fun in Fermanagh’, Metro, 24 September, p.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlords under pressure as yields slow

Published On: September 24, 2015 at 3:18 pm

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Following a considerable period of buy-to-let boom, landlords and investors alike are beginning to feel the strain, with average yields dipping across England and Wales.

Total yields for houses in multiple occupation (HMOs) fell by 1.3% to 9.3% between the first and second quarters of 2015, whereas yields for typical buy-to-let properties fell less sharply, from 6.4% to 5.8%.[1]

Regional differences

With some landlords and investors feeling the squeeze, the regional data is very different. Research from HSBC shows that the average rental yield in Manchester is 7.98%, taking pole position in the best place to make a buy-to-let investment. Kingston-upon-Hull and Blackpool came next on the list.

Manchester’s position has been built on property prices and strong rental demand. The survey by HSBC indicates that prices in the region have increased by 4%, from £104,244 in 2014 to £108,870. Average rents remained at a steady pace, up from £8,316 to £8,628 in the second quarter of the year.[1]

The complete top-ten was as follows:

Location % of housing stock privately rented Average house price Average annual rent Rental yield
Manchester 26.85% £108,870 £8,628 7.98%
Kingston upon Hull 19.02% £69,135 £5,400 7.81%
Blackpool 24.16% £79,654 £5,856 7.35%
Forest Heath 21.80% £171,322 £12,432 7.26%
Coventry 19.02% £116,946 £8,424 7.20%
Southampton 23.42% £151,415 £10,800 7.13%
Nottingham 21.64% £89,312 £6,288 7.04%
Liverpool 21.75% £90,426 £5,928 6.56%
Cardiff 20.32% £150,892 £9,624 6.38%
Portsmouth 22.28% £155,696 £9,900 6.36%

[1]

Landlords under pressure as yields slow

Landlords under pressure as yields slow

Top location

‘Manchester has one of the largest student populations in Europe and demand for rental accommodation is strong and by comparison with other regions, housing is cheaper,’ said Peter Armistead.[1]

He feels that the city is, ‘undoubtedly a great place to invest,’ and said, ‘as a seasoned property investor, I have built a successful, mid-sized portfolio of buy-to-let properties in South Manchester. Over the last 12 months I have enjoyed average yields of 6% across my 80 properties. While location is an important factor when considering a buy-to-let investment, the most important lesson I have learned is that landlords need to treat their property as a business. Treat it seriously and get yourself surrounded by a great team of professionals who are better than you.’[1]

‘Whilst the recent property price rises are generally a good thing for home owners, they can be a double edged sword for investors.  With yield cooling, monthly profit margins will be squeezed and investors now more than ever need to make sure they have a solid business plan which is risk management focused. If investors are acquiring buy-to-let properties, it is vital that they purchase below market value in the right area.  This may mean taking on properties that require refurbishment.  As long as all the refurb the costs have been accurately factored into cashflow with a contingency budget, then investors have the potential of higher yields on ‘nearly new’ properties,’ Armistead concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-feel-the-pressure-as-yields-cool.html

 

 

Market Analysts Should Focus on Transactions, Says Hamptons

Published On: September 24, 2015 at 2:59 pm

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In its Market Insight report for July-August this year, Hamptons International insists that transactions are a much better indicator of the health of the property market than house prices.

It explains that a rise in activity shows that it is “easier to move up and down the housing ladder to find the most suitable home”. Additionally, it can benefit the overall economy, as people move for work.

During the financial crisis, transactions dropped much further than prices in terms of percentage. They have also recovered much slower, even in London and the south, where Hamptons describes the markets as being “most buoyant”.

“Compared with last year the level of activity is still subdued, but that may now be beginning to change,” notes the report. “As economic conditions improve and confidence grows, we would expect pent up demand to begin to shift.”

Hamptons has found that zones 2 and 3 in London and the zone 6 commuter belt have experienced an increase in activity in the last few months. This is due to the slowdown in the prime and central London markets, where affordability pressures have caused buyers and investors to look elsewhere.

Further out of the capital, better value for money is also causing activity to pick up.

The latest figures on the time it takes to sell and the difference between asking prices and achieved prices also indicate a rise in demand-led activity.

However, the news has been full of stories emphasising a lack of housing supply, which is “frustrating a market improvement”, according to Hamptons.

It is being felt all over the country, with the amount of stock available for sale and the number of new instructions all down on this time last year.

“That means that price growth will creep up everywhere unless stock picks up too,” warns Hamptons. “In addition, the supply of credit is still a barrier to some potential movers, particularly those whose homes haven’t recovered to their earlier levels.”

Additionally, there are the first time buyers struggling to raise the huge deposits required by mortgage providers.

But it’s not all bleak, Hamptons believes the future could be positive.

“While buyer enquiry numbers are still down on last year, this looks like it may be beginning to change,” it reports.

“The net balance of buyer enquiries reported by the RICS [Royal Institution of Chartered Surveyors] survey tends to lead transactions by around six months and this has picked up sharply recently. That should augur well for a much better market in the coming months.”1

1 http://www.hamptons.co.uk/research/market-insight-julyaugust/focus/