Posts with tag: London

£1,001 – The Cost of a Holiday Apartment in London hits a New High

Published On: March 22, 2017 at 11:38 am

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What makes London so appealing to the millions of visitors pulling them in every year? People pour in from all over the world, be it to visit, work or just live. Well, we think we know the answer – there are few more cosmopolitan places in the world.

The huge demand is being met by building new Crossrail links into central London and construction of new housing – such as the Battersea Power Station project – these will certainly help to cope with the influx.

So how is this affecting property prices, hotel prices and, in particular, Airbnb rentals? Since the launch of Airbnb, hoteliers in London haven’t had it easy. It took a while for Londoners to really embrace the sharing economy and put their own homes up for rent on the short-term accommodation website, but they’ve never looked back since.

We compared listings from five of the top cities in the world and worked out average prices (in pounds) for a one night stay. As you can see from the graphic, London apartments have an average rental price of £143 per night compared with the most expensive city we checked, which was Sydney, way out ahead at £178 per night.

Visitors looking to spend a romantic seven-day holiday in the UK’s capital city will have to fork out a whopping £1,001 just for their Airbnb stay – that usually won’t include a breakfast – but you will have the luxury of your own private kitchen.

The graphic above displays the cost in GBP of a seven-night stay in each city. Paris, world renowned for being one of the most romantic cities in the world, is the cheapest out of all the famous cities, at just £616 for a seven-night stay.

So, is London worth it? Is the inflated price good value compared to its neighbour Paris? Well if you don’t fancy paying £143 a night for your London stay, then why not stay outside Zone 1 of central London?

The graphic below compares the average London price with the five lowest prices boroughs of London:

As you can see, there’s good value to be had if you’re not particular as to where you’ll be staying. Compared with the most expensive boroughs in London, you can save more than 50% of your accommodation costs by staying in Zones 4, 5 and 6.

Renting an Apartment in the Top Financial Centres of the World

Published On: March 16, 2017 at 9:44 am

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The findings of a new study conducted by apartment search platform RENTCafé expand the understanding of the rental housing markets in the world’s top financial centres.

The research explores the average monthly rent for one-bedroom apartments measuring between 55 and 85 square metres (600 and 999 square feet) in the 30 most powerful financial hubs in the world.

Renting an Apartment in the Top Financial Centres of the World

Renting an Apartment in the Top Financial Centres of the World

Among the most potent global financial centres – as ranked in Z/Yen Group‘s Global Financial Centres Index – New York City is home to the world’s highest rents, pegged at $3,680 per month for a one-bedroom apartment home.

Given the increasing global mobility of today’s workforce, the RENTCafé study aims to put rent prices in these cities in context for professionals working in the financial and economic sectors, and provide an overview of potential alternatives to the city they currently live and work in. While most of these urban business hubs have been well-known for asking high rents, the analysis reveals just how much a renter needs to shell out on housing every month and how these cities compare to each other when it comes to apartment rents.

Surprisingly enough, London – currently the leading financial centre of the world – is one of the least expensive cities for renters seeking the benefits associated with living in a thriving business hub. The British capital’s £1,351 average rent ($1,650 in US dollars) means it is only the 20th most expensive rental housing market among the world’s top financial centres.

New York City’s average $3,680 (£3,014) landed the home of Wall St. in 1st place, followed by two further US cities: San Francisco with $3,360 (£2,752) and Boston with $2,930 (£2,400).

Coincidentally, Hong Kong is in 4th place both when ranked by financial performance and average rent ($2,740 or £2,244). Other, financially lower-performing cities with higher rents than London include Geneva ($2,320 or £1,900), Zurich ($2,200 or £1,802), Singapore and Tokyo ($2,050 or £1,679), Sydney and Dubai ($2,040 or £1,671), Los Angeles ($2,030 or £1,663), Washington, DC ($1,940 or £1,589), Shanghai ($1,910 or £1,564), Beijing ($1,900 or £1,556) and Paris ($1,730 or £1,417).

The average rent for one-bedroom apartments in most of the top-performing financial markets is above the £1,000 mark ($1,221), but there are exceptions, like Toronto (£983 or $1,200), Munich (£909 or $1,100), Taipei (£745 or $910), Montreal (£696 or $850) and Casablanca (£674 or $820).

For the US cities analysed in the report, RENTCafé used average rent data provided by Yardi Matrix, the source for rents in Canadian cities was Point2Homes, and Global Property Guide provided the average rents for the remaining international markets, with the exception of London (GOV.UK), Tokyo and Osaka (Utinokati), Hong Kong (HK Rating and Valuation Department) and Dubai (Bayut).

How You Can Add £200,000 to the Value of your London Property

Published On: March 15, 2017 at 9:12 am

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Two architects have added £200,000 to the value of their London property by completely overhauling the former bedsit. And although they don’t advise anyone to live in the home while transforming it, it could be a good project for landlords…

Gary and Claire Tynan found it difficult to save for a home of their own while renting in north London, and originally planned to build their own property on a plot of land. However, this option was beyond their budget, so they decided to do up a flat instead.

The Canonbury bedsit they remodelled is 1,000 square feet and part of a 1870s historic building.

Having transformed it into a modern masterpiece, the pair has added £200,000 to the value of their home.

So how did they do it, and how can you too?

Open plan 

The biggest change is the open plan living room, which now takes up half of the whole flat. Divided by a huge partition, the space includes a living, dining and kitchen space.

The design is stylish, smart and practical, with lots of ideas on how to split the space and encompass storage, which is always a winner with tenants/buyers.

Although the building had a quirky warehouse feel that the couple liked, the kitchen was tired and old-fashioned. Reworking the living area into a spacious and practical space with monochrome finishings completely altered the feel of the home.

The bathroom 

The bathroom was particularly bad when the pair bought the property – the grout was mouldy and the joists were rotting. But the couple acknowledged that it was light and had potential.

Sorting out the plumbing was particularly important, as the pair moved into the home while they were working on it. After sorting out the bedrooms, they tackled the “revolting” bathroom.

Ensuring a property has a contemporary, clean and practical bathroom is essential – it is almost as important as the kitchen when adding value to a home, so it’s worth investing in some quality fixtures and fittings.

Bedrooms

Although the flat is in a conservation area, you don’t need planning permission for most internal work (although you must check!), so adding in another bedroom was an easy decision.

The Tynans purchased the property in January 2016 and were already expecting a baby. This made having a third bedroom a priority, so they added a small nursery off one of the two main bedrooms.

Generally speaking, the more bedrooms you can offer a potential buyer/tenant, the more money they are willing to spend. But you must ensure that the space is actually big enough to be a bedroom and will be financially viable for you.

Design features

With a keen eye for detail, the architects have created a completely modern and metropolitan feel. Predominantly black and off-white, the property is a blank canvas that can be adapted as their family and tastes grow.

The most important aspect of the design to incorporate into your own investment is the simplicity. Not only is simple design currently very on trend, but it is also timeless and elegant – and shouldn’t cost too much money.

Taking the couple’s key themes on board, you can make essential changes to your property investment that will prove lucrative – both in terms of the rental income you can receive and capital growth potential.

Have you been inspired?

10 First Time Buyer Hotspots in London that make Great Investments

Published On: March 14, 2017 at 10:56 am

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Wherever first time buyers are heading, that’s usually where landlords can secure a great investment opportunity. As such, London estate agent Portico has highlighted ten first time buyer hotspots where landlords can receive high tenant demand and strong yields:

  1. Walthamstow

Walthamstow is a vibrant and thriving postcode that is rapidly redeveloping. Fashionable cafes and independent shops are popping up constantly, and first time buyers are flocking to this part of Zone 3, conveniently located at the end of the Victoria Line.

Property here is excellent value for money, with the average flat costing around £300,000.

  1. Peckham

The fictional home of Del Boy and Rodney Trotter is now a hipster paradise, with rooftop bars on top of multi-storey car parks, anti-chain restaurants and affordable properties.

The average price of a one-bedroom property stands at a reasonable £350,000, although you could secure an ex-council home for around the £250,000 mark.

  1. Finsbury Park

With house prices in London at an all-time high, a lot of first time buyers are turning away from the more expensive parts of the capital – like central Islington – in favour of cheaper yet well connected postcodes, like Finsbury Park. It’s just a couple of stops from King’s Cross, so it’s ideal for commuters.

In fact, there are many good value pockets of north London that are attractive to buyers and tenants, such as Holloway, Caledonian Road and Stoke Newington.

  1. 10 First Time Buyer Hotspots in London that make Great Investments

    10 First Time Buyer Hotspots in London that make Great Investments

    Wandsworth 

Average house prices in the Battersea area are high compared to other parts of the capital; it’ll set you back around £485,000 for a one-bedroom property. But that doesn’t stop Wandsworth in Battersea being an extremely desirable place to call home.

The average age of a first time buyer in London is edging closer to 40, and that fits the demographic of this area – young professionals in their 30s looking for two-bedroom properties, great schools, a middle class feel, open space and fantastic amenities.

  1. Bethnal Green 

Huge numbers of buyers are heading to Bethnal Green in search of warehouse conversions, quirky properties and a young, trendy vibe.

This east London location is also already popular with landlords, as rental yields are high (around 5.3% near Bethnal Green station) and demand from tenants is strong.

  1. Acton/Ealing 

Crossrail will soon be launching in Acton, making it an excellent choice for young first time buyers and tenants who work in the City or West End.

As well as an imminent transport upgrade, the W3 postcode offers period property and a quaint village feel – perfect for those thinking of starting a family. There is also a string of healthy brunch spots, bakeries and traditional pubs to enjoy on the lively Churchfield Road.

  1. Stoke Newington

Stokey, as it is affectionately called by locals, has come on leaps and bounds in terms of regeneration over the last five years, with a large number of new apartments popping up to accommodate growing demand.

First time buyers are attracted to the Victorian property stock, the arty, creative vibe and the village feel. There’s a farmer’s market on the high street at the weekend, and shops are brimming with indie labels and vintage finds.

  1. Leytonstone 

If you’re looking for a fantastic investment, Leytonstone will not disappoint.

Still revelling from the Olympic effect, Portico expects house prices in affordable Leyton to continue rising this year, so your property investment could get a big boost from both cosmetic renovation and capital growth.

  1. Tottenham

Crossrail has powered Tottenham’s popularity and regeneration, transforming the area into an up-and-coming hotspot.

And with journey times of just 15 minutes into central London, the area is slowly becoming a firm favourite with those looking for value and space for their money.

  1. Ilford

Ilford is one of the best value areas in London and, although house prices have been rising since the announcement of Crossrail, the average price of a two-bedroom property is still an extremely reasonable £280,000.

Better still, buyers looking at this part of east London can jump straight into a house rather than a flat – this will also appeal to tenants, making it a great investment hotspot.

Are you looking at any of these areas for your next buy-to-let property?

Private Renting to Match Homeownership Levels in London by 2025

Published On: March 14, 2017 at 9:53 am

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Private renting in the capital will match the levels of homeownership in London by 2025 – just eight years away, according to a new report from the Mayor of London.

Private Renting to Match Homeownership Levels in London by 2025

Private Renting to Match Homeownership Levels in London by 2025

The study, titled Housing in London: 2017, will form the basis for the Mayor’s forthcoming London housing strategy.

It shows that private renting was once the single largest housing tenure in London, but shrank from 46% of all households in 1961 to just 14% in 1991, a decline that was similarly matched across the rest of the country.

By 2011 – the latest date quoted in the report – the private rental sector accounted for 26% of all London households.

In contrast, social housing made up 35% of housing in the capital in 1981, before dropping to 24% in 2011.

The Mayor of London’s new report, which will provide evidence for his key strategy, forecasts both social renting and homeownership to continue falling in the capital, while private renting will grow.

By 2025, it expects both private renting and homeownership to each account for 40% of all London households, while social renting will make up just 20%.

The 114-page report analyses historical data on housing tenures in the capital, certain demographic, economic and social trends, before addressing the crisis that is now blighting Londoners.

It assesses housing supply and the number of empty homes, the costs of buying and renting a home, along with the serious issue of affordability, and the need for housing across the capital. In addition, the study considers mobility and decent homes.

To read the full report from the Mayor of London, click here: https://files.datapress.com/london/dataset/housing-london/2017-01-26T18:50:00/Housing-in-London-2017-report.pdf

As ever, we will continue to keep you up to date on changes to the London property market, particularly private renting, at Landlord News and through our handy – and FREE – monthly newsletter – sign up here: /register/

A Third of Sellers in London are Reducing Asking Prices

Published On: March 13, 2017 at 11:06 am

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Around 30% of London property sellers are reducing asking prices, while realistically priced homes are being sold within 71 days, according to data from HouseSimple.com.

The report shows that, in some parts of the capital, a third of sellers are reducing asking prices, with more prices trimmed in west London than any other part of the capital.

While the figures don’t take into account the number of asking prices corrected by estate agents in the first few days of being listed, Rightmove has also released a report that warns sellers that they could pay for over-pricing their homes.

West London

In the past 10 years, the lack of stock on the market and high demand have pushed house prices up in the capital, while in west London, the Crossrail effect has particularly boosted values, as buyers sought to invest in areas set to benefit from the high-speed link to central London.

Alex Gosling, the CEO of HouseSimple, comments: “Prices in areas such as Ealing have risen so much due to Crossrail that they couldn’t possibly carry on going up at the same rate. We now may be starting to see buyers push back a little as they feel prices have reached unaffordable levels.”

A Third of Sellers in London are Reducing Asking Prices

A Third of Sellers in London are Reducing Asking Prices

Buyers are particularly cautious due to a combination of market uncertainty and last year’s Stamp Duty hike, claims the report. In recent years, buyers and sellers relied on a market where prices were almost guaranteed to increase by around 20% in a year, but that is no longer the case.

Reducing asking prices is a natural correction in a market that is catching up with a slower pace of growth than in recent years.

Richmond

Richmond has suffered the largest number of cuts in the capital, with almost 37% of listings reduced in price.

Richmond upon Thames was named as the happiest place in the capital last year, with residents being among the healthiest and wealthiest in the country. House prices average £643,000 – up by 0.4% on last year.

Paul Price, the Manager of Richmond estate agent Hamptons International, says: “There’s been a shortage of good quality properties for the best part of two years and the strategy for some estate agents trying to secure instructions is to over price homes. So we’re not necessarily seeing a fall in values, but more realistic asking prices.”

However, he adds: “The Richmond market is bulletproof; there’s a huge underlying demand for property at the right price.”

Hammersmith & Fulham 

A similar 36% of sellers are reducing asking prices in neighbouring Hammersmith & Fulham – the second highest in the capital.

However, the average sale price has also dropped, from £772,000 to £756,000, over the past year.

The Branch Manager of Hamptons, Robert Stewart, comments: “Fulham has always been very City-orientated in terms of buyers, and the mood of the market reflects the mood of the City fairly accurately. People are more nervous about the future because there’s a lot going on in the world.”

Hounslow 

As one of London’s cheapest boroughs, Hounslow should be in fairly high demand, with buyers seeking more affordable options. However, the decision to award Heathrow Airport a third runway is likely to cause a rise in noise pollution, and the larger footfall passing through is likely to add to congestion on roads and rail links.

The Founder and CEO of eMoov.co.uk, Russell Quirk, says: “As a result, many have been deterred from buying, which has resulted in falling demand within the local market. Not only are sellers lowering their prices to account for this cool in buyer demand, but also to secure a sale so they can vacate the area.”

Are you reducing asking prices to secure a sale in the capital?