How will Brexit impact the commercial building market?

The uncertainty surrounding Brexit and the ongoing negotiations has led to questions over the future of every sector of business. And commercial property is no different.

Following the vote in June 2016, investment in commercial property did fall somewhat. Hotels, office space and retail properties took the biggest hit. However, there is still plenty of demand from tenants and, while initial numbers suggested tentative behavior, it could be a market correction, not a crash. Continue reading

UK’s Property Market experiences growth post-Brexit

Following eight months of steady progress the UK’s residential property market is picking up with prices and buyer demand rising, writes property developer Richard Carr.

Growth

richard-carr-discusses-new-planning-bill

Property market enjoying post Brexit growth

According to the Royal Institution of Chartered Surveyors (RICS), 8% of surveyors reported an increase in buyer enquires in September 2016, which is a significant turnaround based on June when a net balance of 34% of respondents report a drop.

Despite this small positive there’s still the major use around the supply of new homes. As a result, the number of new instructions being received by agents fell once again meaning the average level of stock on estate agents books remains close to historic lows at just over 45 properties.

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UK house building output continues to rise

Developers and the construction industry are continuing to do their upmost to lift the country from the housing crisis with the latest figures revealing that new house building increased in July, up 5.6% on the previous year.

Orders

Richard Carr Uk House Builders

Output is increasing

The amount of orders being placed for new homes increased by a massive 25% between the first and second quarter of 2016, which is the highest increase since 1967 when growth rose to 44.1%.

A major factor in the increase was the amount of new orders being received in the second quarter of the year for private new houses, which increased by 28.2% to a level of £3.5billion. That level is the highest second quarter for nine years when, back in 2007, it was £3.6billion.

Once again, the quarter on quarter increase highlights that the gloomy Brexit predictions are yet to be realised.

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London set to become home to the largest residential tower in the west

Plans have been announced that could see the London Docklands area become home to the tallest residential tower in Western Europe, writes property developer Richard Carr.

Investment

Richard Carr Spire London

Spire London

The project is being funded by a leading Chinese residential developer, which is another indicator that Britain will remain strong and get stronger following Brexit.

Greenland Group revealed plans for Spire London, which is expected to stand 67-storeys high and have a gross development value in excess of £800m.

The development, which will be located adjacent to Canary Wharf, will provide a staggering 861 apartments, with 765 of them being available for private sale.

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Asian Investors Express Interest in UK Property

Richard Carr comments on recent reports, which suggest that Asian investors are increasingly expressing interest in the British property market. Asian investor interest, these reports indicate, has climbed in the wake of Brexit.

Assessing Brexit

Before the referendum, many experts raised fears that Brexit would dampen UK real estate sector activity. However, recent research indicates that the number of residential properties advertised for sale in the UK rose following Brexit, while average British house prices decreased by 0.2% on average. Meanwhile, mortgage availability remains mostly unchanged after the vote.

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Strong Fundamentals to Support UK Property Growth

Previous research shows that despite Brexit, the UK’s housing market remained strong in June 2016. A new study from CBRE, a leading commercial property adviser, indicates that sturdy economic fundamentals will support British house price growth throughout 2016.

Encouraging price growth

Property Wire writes that CBRE sees current British house value growth of 5.1% as encouraging. The commercial property adviser added that UK residential property prices should expand by an average of 3% in 2016. In the second quarter of 2016, house price growth was strongest in the Outer Metropolitan area (12.4%) and London (9.9%), but weakest in the North (1%), year-on-year.

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Planning application approvals on the up in London

There has been more good news for the property market this week with new data showing that the number of planning application approvals for new homes in London has increased by 46% on last quarter, writes property developer Richard Carr.

Momentum

Richard Carr London Homes

Planning approvals on the rise in the capital

Richard Carr believes this rapid increase shows that there is plenty of confidence in the market at the moment with planners putting more applications in and authorities working quicker and more effectively to get them approved.

If the government are to have any chance of getting the country out of the current housing crisis this has to continue.

In the second quarter of 2016 some 6,310 new homes were approved out of a possible 8,280 applications, an approval rate of 76%, according to the London New Homes Monitor from estate agents Stirling Ackroyd.

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Post-Brexit opportunities for global investors

As property developer Richard Carr predicted, much of the post-Brexit gloom is lifting and many markets are predicting positive outlooks heading into 2017.

Global appeal

Richard Carr on post-brexit opportunities

Brexit looks set to offer new opportunities

The fluctuations in many markets following the UK’s decision to leave the European Union are beginning to right themselves with the real estate market uncertainly appearing to be shorter lived and less severe than many investors first feared, according to new analysis.

LaSalle Investment Management’s mid-year Investment Strategy report said that the correction in real estate pricing is expected to be largely restricted in the next 18 months, whilst medium term capital inflows into real estate will only be interrupted, not reversed.

Also, besides from the country’s slightly unclear political landscape, given the UK’s ultra-low interest rate and bond yield environment, real estate yields are only expected to increase by 40 to 50 basis points by the end of 2017.

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House prices rise for the fifteenth quarter in a row

The UK’s house prices have now risen 15 quarters in a row and are now up some 36.6% since the height of the financial crisis in the spring of 2009, writes property developer Richard Carr.

Growth

Richard Carr House Price increase

Can house price increases ever be moderated?

During the second quarter of 2016 house prices in the United Kingdom increased by 1.8% on the previous three months and a massive 8.5% based on the same period a year earlier.

As a result, the typical house price of a standardised UK property rose to a record figure of £215,582 from £211,868.

Despite the country wide increase, there’s still huge disparity throughout the regions. For example, London house prices have increased more than double the UK average and nearly four times greater than in Northern Ireland.

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