Posts with tag: London

Holiday Let Websites Adding to London’s Housing Crisis, Warns RLA

Published On: August 31, 2016 at 9:28 am

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New research from the Residential Landlords Association (RLA) raises serious concerns that the growth of holiday let websites is aggravating London’s housing crisis, with the majority of property listings available for more than three months a year.

Holiday Let Websites Adding to London's Housing Crisis, Warns RLA

Holiday Let Websites Adding to London’s Housing Crisis, Warns RLA

Recent analysis by the landlord body found that 61% of all the houses and flats listed on Airbnb in London were advertised as being available for more than 90 days per year in June.

The RLA is concerned that some property owners are using holiday let websites to provide long-term accommodation, without having to comply with all the regulations, safety and insurance rules governing the private rental sector.

Planning permission is required for short-term holiday lets in London that are available for over 90 days in any given year, to prevent property owners from avoiding the regulations covering the long-term renting of property to private tenants.

The RLA is now calling on the Mayor of London, Sadiq Khan, and the Government to conduct a review of the policing of Airbnb-style models, to ensure that those advertising lets of more than 90 days have permission and are not trying to get around the law.

Concern has also been raised as to how many social and private tenants are subletting in violation of their tenancy agreements.

The research from the RLA also shows that 41% of all Airbnb listings in London in June were multi-listings, meaning that property owners had more than one property listed, up from 38% in February. The number of multi-listings on Airbnb rose from 12,744 in February to 17,593 in June, signalling how commercialised the website is becoming.

The Policy Director at the RLA, David Smith, says: “London more than anywhere else in the country is in desperate need of more homes to rent and to buy.

“Given the pressures faced in the capital, it is important that properties advertised as being available for more than 90 days a year are genuine holiday lets with appropriate planning permission. Otherwise, as well as taking rental stock off the market for those looking for somewhere to live, they are also putting tenants in a vulnerable position without all the protections offered by a tenancy agreement.”

He adds: “We are calling on the Mayor of London and the Government to work together to improve the policing of such sites to ensure they are not being abused.”

London’s Night Tube Property Hotspots

Published On: August 30, 2016 at 2:15 pm

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London is officially now a city that never sleeps, thanks to the arrival of the Night Tube. In the capital, transport links play a vital role in boosting house prices – so where are London’s new property hotspots?

In the capital, homebuyers and investors will pay a premium for their properties to be close to transport links. And as Crossrail and Crossrail 2 have proved, great infrastructure means great things for capital growth.

So how will the new Night Tube affect London’s property market? The Regional Director of estate agent Portico, Mark Lawrinson, answers some important questions…

Will the Night Tube drive up house prices on the participating lines? 

“Yes it will, but mainly in areas further out from central London, so Zone 3, 4 and 5 outwards,” says Lawrinson. “At the moment, it’s too early to predict an overall price increase.”

He continues: “The Night Tube will appeal to young professionals who work and party in central London, but can’t afford to buy in Zone 1 or 2. The new 24-hour service will mean they can push further out to more affordable areas, while still maintaining the lifestyle they want and without spending a fortune on taxis!”

Which stations are the ones to watch?

Lawrinson explains: “When Crossrail plans were announced, there was a huge spike in demand from both tenants and homebuyers wanting to move into the chosen areas while prices were still affordable, and we expect a similar rate of demand for areas on the Night Tube when the service is fully rolled out.

“Dataloft and SellMyHome have recently forecasted that property prices within half a mile of Night Tube stations will increase by 5-10% above the general rate of growth in the nearby area. This is in line with the rate of growth we have seen in areas affected by Crossrail.

“Most Londoners will have considered Zones 4 onwards out of reach, but the Night Tube has opened up new possibilities. We expect areas at the end of the lines to see the biggest property price rises, such as Cockfosters, High Barnet and Walthamstow.”

London's Night Tube Property Hotspots

London’s Night Tube Property Hotspots

Leyton

The Central Line is one of the fastest lines on the Underground, connecting the east to central London in a flash. It is this fantastic transport link, along with new infrastructure investment and regeneration, that has pushed house prices up in east London at a quicker rate than anywhere else in the capital. Now that the Night Tube has arrived, Portico expects demand for property hotspots such as Leyton to be even stronger than it currently is.

A typical one-bedroom flat in Leyton (Zone 3) is around £290,000, and now that the Central Line is operating 24-hours-a-day on weekends, easterly residents will have even more of an incentive to buy in the area.

High Barnet

Traditionally, High Barnet has been seen as a residential, family area, but regeneration and new contemporary homes have attracted a rush of young professional tenants and homebuyers to this part of north London. Portico believes that the Night Tube will further increase the area’s popularity with a younger demographic.

Walthamstow

Thanks to redevelopment of the town centre, a wave of new shops, bars and restaurants, and a handy location on the edge of the Victoria Line, Walthamstow has been transformed from an undesirable and run-down area into a property hotspot for late 20-somethings.

It has seen huge capital growth over the last few years and is already a hotspot for first time buyers and landlords. Sean Hewitt, the Manager of Portico’s Walthamstow branch, expects the Night Tube to only enhance the area’s desirability. He believes that “smaller one or two-bedroom properties will see the biggest increases, as these are the properties likely to be in demand by the demographic using the Night Tube”.

Cockfosters 

Over the past year, Cockfosters has experienced strong capital growth, due to its affordability, green spaces, instant access to the M25 and the Piccadilly Line into London, which connects to further great transport hubs. But it’s the Night Tube that will really put Cockfosters on the map, says Portico.

Currently, the area offers more houses than flats, and the greater proportion of new builds in Cockfosters are houses, to accommodate this demand. The area attracts young professionals and families who want affordable homes and good schools, but also want to get to central London at the weekends – which is why the Night Tube will only increase demand in Cockfosters.

Tottenham Hale 

At present, Tottenham hale is one of the cheapest areas to buy a property along the Night Tube route, with an average one-bedroom home standing at £300,000. It is already a first time buyer haven, but Portico expects demand to strengthen now that the area has access to a 24-hour Tube service.

What’s more, Crossrail is due to launch in Tottenham Hale in 2017, and it’s a proposed Crossrail 2 location too. With infrastructure improvements comes regeneration, and with regeneration comes house price growth.

Investing along the route

If you’re looking to purchase a buy-to-let property along the Night Tube route, Lawrinson advises: “Look at the demographics of an area and choose a location which is popular with young professionals or young families looking for larger properties within their budget, who also want the option of a central London evening lifestyle. Typically, it’s young professionals and families who want the best of both (i.e. affordable housing or rental prices and a central London lifestyle), so make sure you buy to let in an area that appeals to these demographics.

“The migration of young professionals to outer zones will continue as the areas become more accessible, which will in turn spur regeneration and push up rental and property prices. In other words, investing in the right area could produce excellent rental yields and capital growth.”

Which areas offer the highest rental yields?

Hounslow West: Piccadilly Line, Zone 4 – 5.3%

Hainault: Central Line, Zone 4 – 5.2%

Stratford: Jubilee Line, Zone 2/3 – 5%

Tottenham Hale: Victoria Line, Zone 3 – 4.8%

Stanmore: Jubilee Line, Zone 3 – 4.8%

Walthamstow: Central and Victoria Lines, Zone 3 – 4.7%

Cockfosters: Piccadilly Line, Zone 5 – 4.4%

Brixton: Victoria Line, Zone 2 – 4%

Morden: Northern Line, Zone 4 – 4.4%

Edgware: Northern Line, Zone 5 – 4.1%

High Barnet: Northern Line, Zone 5 – 3.8%

Ealing Broadway: Central Line, Zone 3 – 3.7%

Your Post-Brexit Property Questions Answered

Published On: August 25, 2016 at 10:30 am

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With many prospective homebuyers, investors and vendors still unsure about what the right move is for them post-Brexit, London estate agent Portico has put some key property questions to its resident property expert Mark Lawrinson and financial experts Capricorn Financial Consultancy.

Is now a good time to buy property in London? 

The Regional Director of Portico, Mark Lawrinson, explains: “If it’s an investment you’re after, then as long as you use the advice available to you, you can protect your assets and minimise any risk. Buy in areas that are undergoing gentrification or experiencing infrastructure investment, that offer healthy yields so mortgage repayments aren’t a problem. As London has proven in the past when it bounced back from the recession, it’s an extremely resilient city, so if you are buying with a medium to long-term view, then your investment as a business or home is safe.

“If you’re buying a home, then holding off could be equally as detrimental as it could be positive. For example, a lot of buyers haven’t managed to get on the property ladder because they were determined to chase the lowest prices post the last financial crisis. Unfortunately, while waiting for prices to drop, they did the opposite, and they ended up watching the market rise again to levels unaffordable to them.

“Money is as cheap as it can be to borrow, which makes getting on the ladder that bit easier and moving up it more affordable. Unfortunately, nobody can predict the future, so if you’re in a position to buy today, then don’t hesitate; remember you’re buying a home first and an investment second.”

Your Post-Brexit Property Questions Answered

Your Post-Brexit Property Questions Answered

What are the best mortgage deals currently available?

A Mortgage & Insurance Advisor from Capricorn, Alanzo Seville, says: “The referendum result caused people to pause and consider their position, but over the past month, we have been meeting with clients who are now wanting to press ahead with their property purchase, as they are recognising that the mortgage market is in a very competitive space, with lenders reducing their product rates to attract as much business as possible.

“This month’s decision by the Monetary Policy Committee to reduce the Bank of England base rate has resulted in lenders reducing rates further. This means interest rates are now at historically low levels, so a mortgage which may have previously been unaffordable is now within reach.”

Worked example 

Seville gives an example: “If a couple are looking to purchase a new residential property for £450,000 with a 15% deposit (so £67,500), there is a two-year tracker rate available at 1.54% with monthly payments of £1,546 over a term of 25 years on a capital repayment basis. If they prefer a fixed rate product, there is a 1.65%, two-year fixed rate available with monthly payments of £1,565.

“If the same couple are looking to purchase a buy-to-let property for £450,000 with a 25% deposit (so £112,500), there is a two-year tracker rate available at 2.20% with monthly payments of £634 over a term of 25 years on an interest-only basis. If they prefer a fixed rate product, there is a 2.34%, two-year fixed rate available with monthly payments of £668.

“The mortgage products mentioned above are just a couple of examples of what can be achieved. The exact rate available will depend on your individual circumstances.”

Is now a good time to sell my London property?

If you are looking sell your property this year, Portico advises you to act now and not wait-and-see how the market pans out. “After all, no one can predict the market,” it says.

The agent reports that housing market activity usually spikes during the summer months in London, and there is currently strong demand from buyers looking for a property. If you are thinking of selling, it is very possible that you can achieve your asking price with the help of a good agent. In the current market, simply advertising your property will not get it sold; a good agent will help you get the best price possible in a good market and ensure your property is sold for a good price in difficult markets.

Remember, you are employing a professional advisor who should develop the right marketing strategy for your property and create a plan to get your property sold for the best price possible. A good agent will discuss the plan and strategy they would implement, and give you regular and informative feedback.

If you have any more property questions, get in touch at hello@34.207.192.121, and we will try to help!

Prime property prices on capital commuter links rise

Published On: August 24, 2016 at 11:47 am

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Prime property prices in  London commuter locations have seen a rise during the second quarter of 2016.

According to data released by Knight Frank, property in UK locations on key train lines have seen substantial rises.

Prime positions

In Bristol, where commuters can easily access London’s Paddington station, property prices have increased by 7.4% in the year to June. The second quarter of 2016 saw a 17% increase in new buyer interest and a 19% rise in viewings.

Nearby in Cheltenham, prime property prices increased by 8.6% year-on-year and 2% in the last quarter. In Oxford, prime property values rose by just 0.3% between April and June, taking annual price growth to 0.7%.

Oliver Knight, research associate at Knight Frank, said, ‘after several years of strong price increases, during which the city has comfortably outperformed the wider UK, the latest figures suggest that price growth at the top end of the market in Oxford has started to ease.’[1]

‘While the fundamentals underpinning the market remain unchanged, the reasons for the easing are twofold. Firstly, there was a softening in demand for prime property in the immediate run up to the EU referendum, with potential purchasers adopting a wait and see approach. Secondly and arguably more importantly, recent changes to stamp duty levied on the purchase price of the most valuable properties has made buyers increasingly price sensitive,’ he continued.[1]

Prime property prices on capital commuter links rise

Prime property prices on capital commuter links rise

Imbalance

A rising imbalance between supply and demand is driving price growth in the Cheltenham market. In all, there were 19% less prime properties available for sale in Cheltenham at the end of June in comparison to last year. What’s more, demand has been underpinned by historically low interest rates, with buyers able to gain from very inviting fixed-term mortgage deals.

Nick Chivers, of Knight Frank Cheltenham, believes that the town has some of Britain’s best schools and transport links. He feels, ‘these assets, combined with the on-going imbalance between supply and demand, will continue to underpin sales in the area.’[1]

Meanwhile, Knight observed, ‘Bristol’s continued strong price growth highlights an ongoing trend of demand among buyers for properties in towns and cities that are home to excellent transport links, schools and amenities.’[1]

[1] http://www.propertywire.com/news/europe/uk-prime-property-prices-2016082412304.html

Excess Supply in Prime Central London Leads to Further Drop in Rents

Published On: August 23, 2016 at 9:22 am

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Excess property supply in prime central London has led to a further drop in rents, according to the latest study by JLL.

Excess Supply in Prime Central London Leads to Further Drop in Rents

Excess Supply in Prime Central London Leads to Further Drop in Rents

Activity in the prime central London lettings market was subdued over the second quarter (Q2) of the year, as demand dropped following a rise in the number of properties to let.

Consequently, tenants have had ample choice over the properties they want to live in, which has caused a fall in rents in some price ranges – particularly when properties are not presented to the highest standard. JLL has found that immaculate properties presented in top class condition are not dropping in value.

The Residential Research Director at JLL, Neil Chegwidden, comments: “The main feature of the current market is an oversupply of stock. With weakened tenant demand, the increased supply of properties on the market is not being eroded. Available supply has also been boosted by owners electing to rent out their properties as opposed to selling them, given the diminished demand in the sales market.

“Sources of new demand have been limited in 2016, and this has left existing tenants in a strong bargaining position. Although most are choosing to remain in their current accommodation due to the upheaval and cost of a move, some are moving elsewhere to take advantage of these conditions.”

The surplus of property supply has led to pressure on rents across prime central London, the firm reports. The lower end of the market had previously been relatively immune, but over Q2, rent prices have dropped.

On average, rents in prime central London fell by 1.9% during Q2. In the year to Q2, rents decreased by 4.3%, although declines of 8-10% were recorded across higher rent levels.

However, rental market activity across prime central London has remained stable, with the number of transactions in the 12 months to Q1 down by just 1% on the previous year.

In Q2, activity also picked up slightly, with the volume of transactions up by 12% on Q2 2015. This comprised a 1% decrease in flat lettings and an 8% rise in house rentals.

The Director of Residential Agency at JLL, Lucy Morton, is much more optimistic about Q3: “Whilst the first six months of 2016 were challenging for the prime central London lettings market, Q3 is more active. Along with an increase in transactions, we expect the current oversupply of available properties to diminish as demand increases. We are seeing and letting to an influx of high net worth students and families eager to get settled before the start of the next school year. There is a marked increase in enquiries from relocation agents acting for the City corporations relocating expats into London.”

Do you have a rental property in prime central London? How have you been affected by excess supply issues?

The Average Property Price Across the Night Tube Lines

Published On: August 19, 2016 at 9:33 am

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The Night Tube has finally arrived in London! With services set to commence on the Central and Victoria lines tonight, eMoov.co.uk has revealed the average property price across the network.

The Tube will run past midnight tonight (Friday 19th August) for the first time on the Central and Victoria lines, with the Northern, Jubilee and Piccadilly lines set to follow in the autumn.

Online estate agent eMoov has taken a look at the average property price across the two lines due to open tonight, as well as the increase in value over the last year and the hottest locations for housing demand.

Night Tube Property Prices

The average house price across both the Central and Victoria Night Tube lines is £883,690 – around £300,000 more than the London average.

However, the average house price along the Central Night Tube line comes in just shy of this, at £858,034, while the Victoria line is the more expensive of the two, at an average of £939,812.

The Highest

Unsurprisingly, the Zone 1 stations across the lines dominate the top ten most expensive stops. At a whopping £2.5m, Marble Arch is the most expensive Tube stop across the new service, with Bond Street (£2.3m), Holland Park (£2.3m) and Notting Hill Gate (£2.3m) also exceeding the £2m mark.

Oxford Circus is the fifth most expensive stop on the Victoria line, at £1.9m, joined by Tottenham Court Road, at £1.9m. The Victoria line’s other entries in the top ten most expensive stations are Pimlico, Victoria and Green Park, all with an average property price just below £1.7m. At £1.4m, Holborn completes the top ten across both lines.

The Lowest 

Although the general price of London property is high, there are still a number of affordable options for those hoping to take advantage of the new Night Tube service.

Despite boasting the highest average price, the Central line is also home to the majority of the top ten cheapest stops.

However, the Victoria line hosts the cheapest station, with an average house price of just £347,389 at Tottenham Hale. Blackhorse Road and Walthamstow Central (both at £435,906) are the only other Victoria line entries in the most affordable stations, in ninth and tenth place.

The Central line fills out the rest of the top ten, from second to seventh, with Gants Hill (£362,303), Newbury Park (£362,303), Stratford (£362,886), Barkingside (£368,933), Fairlop (£368,933), Hainault (£368,933) and Leyton (£400,885).

The Average Property Price Across the Night Tube Lines

The Average Property Price Across the Night Tube Lines

Property price changes

Property prices along the Central and Victoria Night Tube lines have increased by an average of 3% in the past year.

The Highest

Warren Street and Euston, both on the Victoria line, have enjoyed the greatest price rises in the last year, of 8%.

The Lowest 

However, Chancery Lane (-6%), Holborn (-5%) and Bank (-5%) have all experienced significant falls in value over the past 12 months. Vauxhall (-0.4%), St Paul’s (-0.1%) and Liverpool Street (-0.1%) have also suffered marginal declines.

Property demand

Property demand across the two Night Tube lines is currently at 25% – just 3% below the rest of the Underground network.

Tottenham Hale is currently the most in demand area across the initial Night Tube service, with property demand at 56%. The Victoria line also accounts for the fourth and fifth hottest Tube stops, with Blackhorse Road (48%) and Seven Sisters (46%).

However, the majority of the most in demand stations on the Night Tube network are located along the Central line.

Woodford (51%) and Leytonstone (49%) are the most in demand stops on the Central line Night Tube service, with Loughton (45%), Barkingside (45%), South Woodford (44%), Snaresbrook (42%) and Leyton (42%) all in the top ten.

The founder and CEO of eMoov, Russell Quirk, says: “In London in particular, property close by to a good transport link, such as an Underground station, will always command more where price is concerned. In fact, transport links have almost become an additional feature of the property itself and a great bargaining chip during the house selling process.

“The introduction of the Night Tube service should only help boost the value of the properties surrounding stations due to benefit from the service. The great thing about the Underground and the night service itself is that you don’t have to live centrally to benefit; you can live out in Zone 4 or beyond and still benefit, not only from the Night Tube, but the cheaper cost of property.”

He explains: “Take the likes of Barkingside for example. It is situated on the Central line, has one of the lowest average house prices on the initial Night Tube network, but is also the seventh highest level of demand, and as a result, has enjoyed one of the largest price increases over the last year.

“The average property in Gants Hill will only set you back just over £360,000, but has also seen the third largest value increase across the Central and Victoria lines. Even Loughton out in Zone 6 is a promising prospect for homebuyers, with demand at 45% and price seeing a 5% increase in the last 12 months.”

Landlords, if you’re looking to take advantage of high tenant demand across the Night Tube network, consider one of the great value locations uncovered by eMoov.