We’re living through a time of huge cultural shifts, including in the property industry. Within a few short years, there has been such a rise in the number of private renters that mortgaged home owners will soon be in the minority.
Experts predict that by 2025, just seven short years away, the number of households owned by mortgage holders will be under six million. At the same time, the number if households living in private rented accommodation will be slightly higher, at six million. Continue reading →
Richard Carr reviews a new development project, which will look to offer affordable office space in the UK’s most prosperous city.
High office space demand
Does London have affordable office space?
London is the UK’s economic heart with its lucrative finance and technology industries. Figures show that London is one of the largest city-economies in the world, with a gross domestic product (GDP) of £565bn, which is roughly 17% of total UK GDP. Many companies have a base in this prosperous city, making demand for London office space extremely high.
Strong demand has pushed average London office rents to new heights. Prices in premier London commercial locations can be particularly high. According to Business Zone, for instance, the West End has the highest office rental prices in the world, at an average of £100 per square. For many firms, especially smaller enterprises, office space in some parts of London is simply unaffordable.
New figures suggest that one out of every five homes in the UK’s capital city of London is worth at least £1m, writes property developer Richard Carr.
Expensive housing market
London is the UK’s most populous and crowded city. People from around the world flock to London because it is the heart of the UK’s economy, as well as a premier global financial and technology hub. There is an increasingly strong demand for a dwindling supply of living spaces in London, meaning that its average house prices have experienced extraordinary growth in the past few years.
The latest index from the Office for National Statistics (ONS) reports that the average London house price grew by 14.5% in the year to April 2016. The ONS has implemented a new formula to determine its average UK residential property values, so the average London house price is actually lower for April (£470,000) than it was in March under the old system (£552,000). Despite this change, average London residential real estate values continue to hover around the half million mark.
With the EU referendum taking headlines on a daily basis, property developer Richard Carr examines how leaving the EU would affect the UK’s property market.
What will happen to the UK property market if Britain leaves the EU?
The problem with referendum’s like leaving the EU and events such as the general election, they create an element of uncertainty which generally has a negative effect upon the housing market. As was seen in the run-up to this year’s general election, with buyers and investors unsure on which policies would be introduced the market stalled somewhat until clarity was achieved.
Richard Carr expects a similar situation as the referendum draws closer, buyers and sellers will want to play safe until an outcome is reached.
Analysists are only able to forecast and predict what impact leaving the EU will have upon the property industry and a lot of it will come down to how the economy is impacted generally. However, a survey conducted by KPMG found that 66% of real estate experts felt that leaving the EU would have a negative impact on inbound cross-border investment.
Sales of super prime property in the capital decreased during the final stages of 2015 with critics pointing the finger at the rise in stamp duty implemented in late 2014, writes property specialist Richard Carr.
Stamp duty has affected prime property in London
Sales of £10million plus homes in London supposedly fell by a third during the final few months of last year as increased transaction fees put buyers off.
Knight Frank, international real estate firm, saw super prime transactions fall by 16% during the same period that stamp duty increases were implemented. For example, under the increased stamp duty regulations the transaction tax on a £10million property rose to £1.1million from £700,000, which equates to an additional 4% on top of the sale price.
Further changes will be made to the system in Spring when a further three percentage point increase will be put in place for buy to let properties and second homes.