The UK government has realised that there is a need for new property in London to be built and that this can only be achieve if the restrictions on construction are loosened.
That is according to Steve Turner, head of communications at the Home Builders Federation, who explained that the coalition now needs to take the next step and cut even more red tape restricting home builders in next week’s budget.
He explained: “We need to see decisions made in terms of the new planning system; we need to see measures to free up public land and initiatives to help first-time buyers and people who can’t get mortgages.”
Mr Turner added that there has been a “realisation” within government that house-building levels are not great enough and this will helpfully be addressed in the near future.
It follows the publication of a report by the Institute for Public Policy Research, which revealed that demand in the property market could outstrip supply by 750,000 over the next 15 years if more new homes are not built.
London Property News
Prime London property is not restricted to the big five of Kensington, Knightsbridge, Belgravia, Chelsea and Mayfair.’Prime’also relates to areas of London where property is much sort after on the basis of the community, culture and nationality.
The Americans live in St Johns Wood because that’s where The American School is. The super-rich Russians want to live in Knightsbridge, preferably within walking distance of Harrods and the French always want to buy in south Kensington near the Lycee Francais School.
This phenomena isn’t confined to Central London; There is a huge Jewish community in and around Golders Green in north London and not far away is where Greeks and Turks have settled.
A walk through Stockwell in south London will take you into an area known locally as Little Portugal because London’s Portuguese population lives there. Similarly, the biggest concentration of Koreans outside Korea is in, of all places, New Malden – again in south London.
Cuts to affordable housing in London and other parts of the UK will be bad news for first time buyers, a lobby group has warned.
William Griffith, spokesman for PricedOut,stated that any government wanting to be fair “should not be keeping free bus passes for the wealthy whilst shelving investment in housing for the young”.
His comments follow a report by the National Housing Federation which asserted that potential cuts to the housing budget could be so extreme that the government will be unable to fund more than 243 affordable homes in London and the south-east up to March 2015, in addition to those secured under the previous administration’s spending plans.
However, if the national housing budget had not been touched, up to 103,000 affordable homes could have been constructed in the same region within five years.
London Property to Rent.
The London property market has held up better under the recent financial downturn because it is very open and offers confidence to investors, the Royal Institution of Chartered Surveyors (Rics) has stated.
Chief economist Simon Rubinsohn commented that consumers are still buying investment properties in London as the capital represents a “particularly appealing location” because of its “pivotal place in world finance”.
“It is seen as something of a safe haven and although there was clearly a wobble with the crisis in the financial sector as the credit crunch unfolded, its resilience has been clearly demonstrated subsequently,” he pointed out.
Mr Rubinsohn also explained that property buyers tend to move away from international markets when the market becomes weak, turning instead to familiar options where they feel more comfortable.
His comments follow research by CB Richard Ellis, which found that London retained 27 per cent of all cross-regional global property investment transactions during 2009 and the first six months of this year.
Residential property values declined through much of the United Kingdom for the first time in over a year, according to the Royal Institution of Chartered Surveyors (RICS). Ian Perry, representing RICS, noted that the reason behind the decline is related to an increase in the supply of properties for sale, as well as a much more cautious approach to buying, on the part of many Britons. Many potential buyers are fearful of the possibility of another economic slowdown this year and as such, property prices may continue to slip in the coming months.
But Trevor Kent, once the head of the National Association of Estate Agents, now points out that homeowners and landlords must be careful when examining national statistics on the residential property sector and avoid attaching too much importance to them. There are very significant discrepancies from one region to another. Kent added that just as how “all politics are local,” property values are also based on local realities.
Kent noted that many residential property owners in the UK must be bewildered to hear so much about the supposed recovery over the past year. While property prices in England’s south east, in much of London and even in the North’s Cheshire increased markedly, the improvement was far less pronounced and even non-existent in other parts of the country.
People considering looking for property to rent in London are being told that tenants sharing letted accommodation are an important part of economic prosperity in the UK.
Housing minister Grant Shapps announced that Local councils are to be given greater power over the governance of such abodes in their area, while helping landlords avoid bureaucratic obstacles.
“Shared homes ensure people who want to live and work in towns and cities can do so and are vital to the economy,” he said.
According to the Department for Communities and Local Government, an estimated 8,500 planning applications for places of multiple occupancy that would normally be put in by landlords will be reduced by the new scheme.
Mr Shapps statement might confuse some people looking for property to rent in the London borough of Barnet, as he recently suggested that home ownership would be the government’s priority.
Last week, he announced the scrapping of plans to introduce new regulations on private landlords.
The RLA news Service is reporting that Britain’s residential landlords expect that property prices in London will increase by another 1.48% over the course of the next 12 months, according to statistics published as part of the Young Index. Nearly 8 out 10 landlords (78%) believe that residential property values in London will either increase by modest proportions or will remain at current levels. These finding suggest that much of the anxiety that surfaced in the buy-to-let sector following the financial crisis of late 2008 has subsided and has been replaced by a form of cautious optimism last seen immediately before the economic troubles began.
Yet there seems to be a stark difference between expectations for properties in London when compared to anticipated values in the rest of the country. The Young Index shows that most landlords predict either stagnation or a modest decline in values through much of the country. In fact, the anticipated decline in property prices this year for the rest of England stands at 0.58%. But it is important to remember that even this figure is an improvement over more pessimistic predictions late last year that prices would fall by an average of 1% in the coming year.
Many landlords are intent to stay in the buy-to-let business over a long period of time. The Young Index found that 47% of respondents expected to be letting properties 10 years from now. This represents a noticeable increase compared to last year, when only 35% of landlords were comfortable seeing their role in the buy-to-let sector as a long-term commitment.
Change of use of London Commercial Property.
When buying a commercial investment property for conversion into residential units, it is important to ensure that an application for planning permission for ‘change of use’ has not been rejected. The conversion of a building from one type of business use into housing is a complex proposition. You should never buy an investment property on the assumption that ‘change of use’ is possible without serious research into the planning issues and a detailed conversation with local planning officers. Many commercial property sales are achieved only when they have ‘subject to planning’ attached. This means that the deal will only be completed, and the full purchase price paid, when planning permission is granted.
Paramount Investment‘s experienced investments team can assist with other commercial property sales covering many sectors. We can advise in all areas of investment and development such as residential, leisure, office, retail, industrial, healthcare and student housing.
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Commercial Property Investment News
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The London Rents Map shows average private sector rents for different types of home across London. Mayor Boris Johnson said the website, which he described as a ‘brilliant one-stop shop’ for both landlords and tenants, is part of his efforts to support London’s private rented sector.
Mr Johnson said, “It is hugely important for London’s economy, diversity and dynamism to have a thriving private rented sector, which accommodates people from all walks of life and encourages newcomers to the capital.
“We know that people looking to rent sometimes don’t know where to go for the right information, so this new website is about supporting the market by making that information available,” Mr Johnson added.
Simply type in a postcode, borough, or Tube station and the website will list the average price per week for any size of private property, from a room in a shared flat up to a four-bedroom pad.
The data on average rents is given at postcode district level (SW19 or E7, for example), and is based on a sample covering the last 12 months so does not fully reflect the most recent short-term trends in the market.
