Posts with tag: London

How Will Brexit Affect the London Property Market?

Published On: June 30, 2016 at 9:57 am

Tags: Brexit,buy to let investors,lettings market,London,London property market

Last week, the country decided to leave the EU. How will the Brexit affect the London property market?

The vote to leave has left the London property market in a state of uncertainty, making buyers, vendors and landlords hesitant about what move to make next. It is believed that homeowners are feeling discouraged from selling following the decision.

But how will London react to the Brexit? London estate agent Portico’s Regional Director, Mark Lawrinson, and representative of the National Landlords Association (NLA), Richard Blanco, give their predictions:

What was happening in the London property market pre-Brexit?

Lawrinson explains: “The prime central London market was showing signs of a slowdown prior to the referendum, and in areas of central London, we had seen prices start to soften following a decline in the number of transactions. However, for London as a whole, most analysts were still forecasting modest growth with hotspots created by infrastructure projects like Crossrail helping to significantly increase values in boroughs like Ealing.”

Will Brexit affect house prices?

There is an argument that the weaker pound will help stimulate demand from overseas investors. Although the pound has weakened, the euro has also lost ground, so the exchange rate benefit of Brexit is likely to apply to investors with currencies tied to the dollar – notably from Asia and the Far East.

How Will Brexit Affect the London Property Market?

However, one of the main attractions for overseas investors to the capital (especially those from outside of Europe) is that London represents a safe haven and a good place to secure assets. Given current levels of uncertainty, it is difficult to determine whether this is still true, and there is a risk that this may diminish demand from these investors, at least in the short term.

There is no doubt that anyone in the process of buying a property may be feeling some hesitation. However, the same is almost certainly true for those selling as well, as in many cases, sellers are also buyers. If this means that both supply and demand will drop simultaneously, then house prices may not be affected as much as people fear.

Lawrinson comments: “Outside prime central London, the market is driven by domestic buyers rather than investors, who will still need somewhere to live regardless of our status outside the EU. They will also continue to need to upsize as their circumstances change, and we expect this market to be relatively unaffected by Brexit.”

In the short term, Portico does not expect to see an immediate drop in prices across London, although the decrease in prime central London prices that began pre-Brexit is likely to continue.

Will interest rates drop?

Blanco highlights that there have been rumours of the Bank of England lowering interest rates to 0.25%, which could help generate more demand from buyers.

However, with rates already at an all-time low, “changes like this are unlikely to be made in the short-term,” says Blanco. “The markets are still volatile and people will be waiting to see what happens over the coming months.”

The full statement from the Bank of England following Friday’s announcement is here: /bank-england-releases-statement-following-eu-referendum-result/

How will the lettings market react?

It is possible that the rental sector may see a boost in the short term, as people look to rent for longer in times of economic uncertainty. This was certainly witnessed in the prime central London market pre-EU referendum.

If this happens now, rent prices could go up, which would, in turn, attract landlords to the market.

Blanco notes: “Interestingly, if Boris, who was broadly pro-landlord as London Mayor, becomes the leader of the Conservatives and then Prime Minister, it’s possible that the aggressive stance the Government has taken recently with tax changes to buy-to-let investments could be reviewed.”

With a new Prime Minister unlikely to be appointed until autumn, changes to taxation for landlords are unlikely to happen anytime soon. Despite the less favourable tax hikes for buy-to-let investors, the lettings market has experienced steady growth so far this year, and Portico expects this to continue post-Brexit.

With improvements to transport across the capital, there are more options for tenants commuting into central London. If you are thinking of investing in the capital, this guide will help you find the right tenants in the right areas: /london-landlord-find-tenants-area/

It is now more important than ever for buyers and investors to buy the right properties. Always research the best areas for strong capital growth and the highest rental yields.

Are You a London Landlord? Find Out About the Tenants in Your Area

Published On: June 30, 2016 at 9:05 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let property,London,London landlords,London property market,tenants

If you’re a London landlord looking to expand your portfolio, you may be wondering where to invest next. With such a range of areas to choose from, it is vital that you target the right tenants and purchase a property that will suit them. This guide will help you find out more about the tenants in the location you’re considering…

While buying the right rental property is crucial to a successful lettings business, finding good tenants is also essential. Although you may know what makes a good tenant, you may not know where they’re looking to rent.

London estate agent Portico has analysed the profiles of 300 tenants that have moved into two-bedroom properties in the capital over the last couple of months to tell you exactly who’s renting where.

Know your market

Not only is it interesting to find out who’s renting in certain areas, it is vital in helping you choose the right property type to invest in. Many landlords will have an idea of the type of tenant they want to rent to, and what kind of property these renters will look for. It is also extremely useful in terms of knowing how to present your property to achieve the highest rent price.

Camden and Bloomsbury

If you’re looking for a buy-to-let property in Camden or Bloomsbury, it is likely that you’ll let to a student.

A huge 73% of the tenants who recently moved into a two-bed property in Bloomsbury are students, hence the low average tenant age of 28, with 62% of renters in Camden being students. Many students renting in Bloomsbury are foreign students studying at nearby University College London, while a lot of students renting in Camden are at the Royal Veterinary College.

As a landlord, students may not be your first choice of tenant, but Portico has found that letting to students is actually extremely advantageous for landlords, for the following reasons: Higher rental yields; an annual market for new tenants; rent is guaranteed by a parent or guardian; and rent is very promptly paid, usually by direct debit. Students are also willing to pay a premium to be within walking distance of their university, and expect little furniture besides a bed, sofa and desk.

Clapham, Fulham and West Hampstead

Do you want to rent your property to young professionals? Then invest in Clapham, Fulham or West Hampstead.

Clapham and Fulham are part of the south London banker belt, and the buy-to-let sector has certainly benefitted from City workers in the area. The majority of tenants in these locations work in finance – from junior, to mid-level, to senior positions – and both spots have a young average tenant age of 29 (Clapham) and 30 (Fulham).

Are You a London Landlord? Find Out About the Tenants in Your Area

West Hampstead also has a high proportion of young professional tenants working in finance. Those living in NW6 are in more senior positions than renters in Clapham and Fulham, however, and the average salary and tenant age is therefore higher.

Young professionals are typically the most desirable tenants for landlords. They often have university qualifications, a reliable, above average income, and are prepared to pay premium rents to live in a popular area. They also tend to look after the property very well.

However, they do have very specific requirements: Young professionals want to be within walking distance of a Tube station and often expect broadband to come with the property. They are usually looking for one or two-bed, modern properties, and will typically turn a property down if it doesn’t have a washing machine or dishwasher.

Battersea and Dulwich

Battersea and Dulwich often attract older tenants who have moved out of the Clapham area to get more for their money and settle down.

Portico found that those looking to rent a two-bed property were typically professional couples that are thinking of starting a family. Families in these areas are looking to rent larger properties with three or more bedrooms. The average tenant in Battersea is 31, while in Dulwich they are 30. A large number of renters in Battersea work in finance, but an even higher percentage (20%) work in professional services. Dulwich also has a high proportion of tenants working in professional services (22%), including health, education and manual labour.

Although the average tenant salary isn’t as high as in other areas – £42,391 in Battersea and £36,718 in Dulwich – tenants who work in professional services are considered extremely reliable, as they are unlikely to change jobs. They are looking for value for money, so are prepared to live a little further out, and a nearby Tube station isn’t a number one requirement. These tenants also don’t always need a fully furnished property, as they often bring a lot of their own furniture with them.

Acton and Hammersmith

As large areas on the outskirts of London, Acton and Hammersmith attract tenants looking for value for money.

35% of renters in Acton and 25% in Hammersmith work in general business roles, so there are people of all ages in different roles in these areas. Although they are a little further out, both locations offer fantastic transport links, ideal for the large number of tenants commuting to office jobs in the City.

Despite a high average age, tenants in Acton and Hammersmith have low average salaries compared to those renting in other parts of the capital – £30,569 in Acton and £38,060 in Hammersmith. Property types vary massively to suit the range of tenants living in both areas, as do rent prices.

The majority of tenants, however, work long hours with long commutes, so they are looking for modern, furnished rental properties that are easy to clean and maintain. A lot of developments are being built to accommodate these renters, with many offices being demolished and rebuilt as flats.

Highbury and Islington

If you want to attract older tenants with a high disposable income, invest in Highbury or Islington.

Tenants in Highbury have the highest average age, at 35, and the highest average salary, at £62,568. Many of these renters work in finance and general business, the majority of which are managers or in very senior positions. The average salary in Islington is also very high, at £54,424, and the average age is 31. The job range here is more varied however, with a large number of tenants working either in professional services or in general business roles, but also a high proportion of renters are in creative, media roles.

These tenants are prepared to pay a premium to live so centrally in areas with fantastic amenities. They usually look for properties with a bit of character rather than new build flats, and are often happy to accept an unfurnished property.

If you are looking for a new, lucrative investment property, it is crucial that you understand what type of home tenants are looking for in certain areas. With claims that London will prove resilient to the Brexit result, now could be a great time to invest!

London House Prices Drop by £40,000 Following Brexit

Published On: June 27, 2016 at 9:37 am

Author: Em Morley

Categories: Finance News

Tags: Brexit,EU referendum,house prices,London,London property market

London house prices have dropped by around £40,000 following Friday’s EU referendum result, according to the latest analysis from estate agent Stirling Ackroyd.

Eurozone buyers can now snap up London homes for up to €50,900 cheaper, reports the agent.

London House Prices Drop by £40,000 Following Brexit

Friday’s depreciation in sterling means that the average property in the capital now costs just €579,200, compared to a record high of €630,100 in November 2015. This change means that homes in London have become €50,900 cheaper for euro buyers, equivalent to £40,900.

The €50,900 reduction in prices amounts to an average 8% discount in the London property market.

The Managing Director of Stirling Ackroyd, Andrew Bridges, comments: “European buyers can now snap up real bargains across London. Overnight, London has become a more affordable global property hotspot – particularly for those paying in euros.”

In sterling terms, London house prices are still historically high, but this masks some underlying cooling in the high end of the market.

The agent found that the top 25% of the London property market experienced an annual decline in prices of 2.4% in the last quarter of 2015 – contrasting to the 8.2% rate of growth recorded in the majority of neighbourhoods.

The most luxurious areas of central London are expected to be hit particularly hard by the referendum result, with Kensington High Street and Notting Hill experiencing sharp falls in house prices during the last quarter of 2015, of 11.8% and 10% respectively.

However, investment firm London Central Portfolio claims that the market will prove resilient to the Brexit.

Bridges concludes: “After the shock of the referendum, calm will return to the market and people will see the bright lights of London are undimmed.

“London’s reputation as a valuable property investment hotspot remains undiminished and the capital will continue to attract an abundance of potential buyers. London will retain its global capital city status.”

London Property Market Will Prove Resilient to Brexit, Says Investment Firm

Published On: June 27, 2016 at 9:03 am

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,London,London property market,prime central london

The central London property market will prove resilient to last week’s Brexit announcement, according to London Central Portfolio (LCP), a leading investment firm.

LCP reports that the impact of Brexit has been amplified around the world by the resignation of the Prime Minister, David Cameron.

While the property market will be hit by the uncertainty caused by these political and economic factors, LCP believes that the prime central London property market will experience a surge in activity. Playing such an important role in global financial markets, LCP claims that the capital’s housing sector will prove resilient to volatility.

Prior to Thursday’s EU referendum, LCP reported that sterling had already dropped to lows not seen since the global financial crisis, with some buyers enjoying discounts of up to £26,000 in the London property market.

London Property Market Will Prove Resilient to Brexit, Says Investment Firm

Friday brought the news that sterling had dropped by a further 10% and is expected to fall even more sharply in the short term. However, it is possible that the Bank of England will keep interest rate rises on hold. The Bank’s full statement following the Brexit can be found here: /bank-england-releases-statement-following-eu-referendum-result/

LCP even claims that interest rates could come down, which it believes could trigger a boom in the prime central London market, similar to that witnessed during the recession.

At present, however, markets are still reacting in shock to the news of the UK’s exit from the EU, which will undoubtedly cause a short-term downturn in the finance sector.

Despite this, LCP anticipates that the markets will recover over the two-year Brexit negotiation period, and London will continue to hold its position as a financial powerhouse.

LCP notes that international investors will continue to be attracted to prime central London’s reputation as an aspirational, cultural and educational centre. It claims that these factors will be unaffected by the Brexit, meaning that investors will still regard the market as lucrative.

Additionally, LCP points out that the EU has played only a limited role in attracting international capital to the London property market, with just 12% of buyers coming from Europe. It says that even if European buyers vacate the capital, there will be very little net effect on the market.

Instead, the firm predicts a surge of new buyers who have sat on the sidelines awaiting the EU referendum result.

In the first half of this year, prices in prime central London dropped significantly in the face of global issues – falling oil prices, uncertainty in China and tax hikes for buy-to-let landlords.

Factoring in the potential for an out vote, price growth in central London fell from its long-term annual average of 8.7% to 4.7%, while investors adopted a wait-and-see attitude. LCP expects that the market will now harden as investors re-enter the market.

Reflecting its predictions prior to the referendum, LCP now believes that international investors will capitalise on a weak sterling and competitively priced market. It insists that the Brexit creates an investment opportunity for new buyers.

The CEO of LCP, Naomi Heaton, explains: “Prime central London real estate is expected to benefit from a flight to quality and the security of blue-chip tangible assets, against a background of highly volatile financial markets.

“It is now likely that property prices in prime central London will increase. Whilst LCP had originally predicted that this would not occur until 2017, the signs are that the re-entry of investors into the market will be more rapid than originally expected.”

London Property Now £26,000 Cheaper for Euro Buyers

Published On: June 22, 2016 at 1:57 pm

Author: Em Morley

Categories: Property News

Tags: Brexit,EU referendum,house prices,London,London property market

Eurozone buyers are flooding the London property market, as prices drop by £26,000 ahead of the EU referendum, according to the latest analysis from estate agent Stirling Ackroyd.

The depreciation in sterling seen in June means that the average house price in London is now just €596,900 for euro buyers, compared to a record high of €630,100 in November 2015. Therefore, property in the capital is now €33,100, or £26,000, cheaper for these buyers.

London Property Now £26,000 Cheaper for Euro Buyers

The €33,200 saving equates to a 5.3% drop in London property prices.

The Managing Director of Stirling Ackroyd, Andrew Bridges, comments on the findings: “European buyers are snapping up bargains across London. A declining exchange rate has meant London is becoming a more affordable global property hotspot, particularly for those paying euros.

“If Britain votes to leave the EU, sterling is set to fall further, so, ironically, London would become even more affordable – and therefore more attractive – to overseas buyers paying in euros. While Eurozone buyers are propping up the temporarily soft market as prices stutter, Brexit might make Europeans much more significant players in London’s property scene.”

Although London house prices are still historically high, the luxury end of the market is experiencing a slowdown.

Stirling Ackroyd found that the top 25% of London’s property market experienced an annual fall in prices of 2.4% during the last quarter of 2015, compared with 8.2% annual growth in the majority of the capital’s neighbourhoods.

The capital’s most exclusive districts, such as the West End, are being hit particularly hard by the forthcoming EU referendum.

Kensington High Street (W8) saw the greatest annual decline in house prices over the last quarter of 2015, at 11.8%. This was followed by a 10% fall in Notting Hill (W11).

Bridges continues: “After the referendum chatter has calmed down, the bright lights of London will be undimmed – whatever the result. London’s resilience is second to none.

“House prices may be cooling slightly in the face of geographical uncertainty, but this is offering bullish buyers opportunities. The luxury areas of London’s property market are feeling the acutest drops in house prices, but these areas typically have a higher proportion of European buyers – meaning exchange rate discounts on property purchases are compensating for any further slowdown.”

He concludes: “Speculation about the aftermath of the result is rife, but London’s reputation as a valuable property investment hotspot remains undiminished. The capital is fully equipped to combat the consequences of either a remain or a Brexit vote, and London will continue to attract an abundance of potential buyers and retain its global capital city status. A ballot paper may prove an unequal opponent to London’s property power.”

Meet the Team at the Landlord Investment Show!

Published On: June 20, 2016 at 10:35 am

Author: Em Morley

Categories: Events,Landlord News

Tags: events,Just Landlords,Landlord Investment Show,Landlord News,London

Tomorrow, the team from Landlord News and Just Landlords will be heading to the Landlord Investment Show in London.

Landlord News offers daily updates and guidance for landlords and everyone else involved in the property industry. Our writers, Rose and Ryan, are dedicated to providing the latest news on all things buy-to-let, housing and finance. Come over and speak to us about any changes to the sector.

Our sister company, Just Landlords, is committed to offering the widest landlord insurance available. Our Landlord Property Insurance has been rated 5-star by Defaqto and includes 33 essential covers as standard. We also offer protection against rent arrears and damage to unoccupied properties. Our expert Samantha will be on hand to tell you everything you need to know about looking after your investment.

Meet the team at the Kensington Olympia on Tuesday 21^st June from 10am onwards.

Here’s a little bit to get you started:

Samantha Miles – Sales and Business Development Director

With years of experience in the housing market, Samantha is the go-to person for all things property.

After working as a negotiator at two estate agents for a number of years, Samantha went on to become a branch manager at Nationwide estate agents in the East Midlands.

Moving slowly into the private rental sector, Samantha was appointed as lettings manager at Halifax estate agents, where she launched the lettings service for the whole region.

It was there that Samantha learnt all she needed to know about renting out property – from compiling inventories to carrying out periodic property inspections.

With a firm knowledge of property and lettings behind her, Samantha joined the Just Landlords team in 2011. Working alongside a dedicated customer services department, Samantha became part of a specialist team providing comprehensive and extensive cover for landlords.

Her unique knowledge of the renting process, alongside a thorough understanding of Just Landlords’ Rent Guarantee Insurance, makes Samantha an excellent source of information and advice.

Come and meet Samantha and the team to learn more about how Just Landlords can protect your investment and rental income.

Rose Jinks – Content Manager

A self-proclaimed internet baby, Rose has grown up through the growth of the digital age, making the web part of her everyday life.

After graduating from a Journalism degree in Southampton, Rose knew that she wanted to provide online news and features. Learning about the digital marketing world helped her get her content out to the right readers.

Rose belongs to a creative and knowledgeable team, providing content for both Landlord News and Just Landlords. After diving straight into the deep end of the property market, Rose feels confident with all aspects of the lettings process, from house price growth to protecting rental income.

Dedicated to staying up to date with property news, Rose brings you the latest goings on and updates of the buy-to-let sector. Come and say hello to find out more about landlord insurance or just have a chat about what’s happening to rent prices and the best places to invest…

Ryan Weston – Content Manager

Ryan With a passion for written communication, Ryan is at home bringing all the latest buy-to-let and property sector news to your fingertips.

After graduating from Sheffield with a Creative Writing degree, Ryan has progressed into a competent writer for the digital market. Covering a wide range of industry topics, Landlord News and Just Landlords provide a fantastic platform to showcase his skills.

Part of a creative and industry-savvy team, Ryan is able to learn about regulations, trends and techniques on a daily basis. He is then dedicated to bringing this knowledge to you, through articles and many specific social media outlets.

Come and find Ryan on the Landlord News and Just Landlords stand for a chat about all things buy-to-let, property and insurance. If you’re lucky, he might even give you a phone charger!

We hope you enjoy meeting our team and sign up to Landlord News to receive the latest industry updates! We may even have a few treats for you to enjoy…