Archive for the 'London Property Market' Category

Westfield London - Part 1

Published
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Property Know Team
on June 11, 2008
in London Property Market
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Surprisingly many people in the United Kingdom do not know about the Westfield Development (The White City Redevelopment). A survey conducted found out that only 52% of surveyors had heard of the development. its surprising because it is going to be one of London’s and UK’s biggest development as of present. The Westfield London is a new and exciting shopping centre development in Shepherd’s Bush, London. The centre is being developed by the Westfield Group, at a cost of an estimated £1.6billion.

When completed in late 2008 the centre will boast a retail floor area of 150,000m². Consequently, it will take the crown of the largest shopping mall in Europe within an urban area from the Manchester Arndale, and be the third largest shopping centre in the UK behind MetroCentre and Bluewater. The completed centre will feature around 270 stores, including House of Fraser, Marks & Spencer, Debenhams, Waitrose, Next and a Cinema de Lux multiplex cinema.

This means that the whole of W12 is currently going being redeveloped to accommodate the shopping centre. New transport links (ranging from; taxi’s, bus stations and underground stations) are being built and refurbishments of general public areas. This is a joint effort between the Hammersmith and Shepard’s Bush Council and The Westfield Group. Planned completion is by October of 2008.

Our full views on the impact on surrounding Property Market post completion will be in Part 2, next week.

London Property Prices: Are they dropping?

Published
by
Property Know Team
on May 25, 2008
in London Property Market
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There is currently a great amount of speculation in the London Property Market. Will it drop? Has it dropped? Is it dropping? In short the answer, is yes - certain parts of London have dropped in price, however Central London prices will hold strong.

Following up from a previous post “30 Year Low for Property Sales” talks about property sales in the UK dropping and that asking prices have had to been dropped. And we at the London Property Market side, completely agree.

We have always held to the opinion that the best place to invest is in Central London (places such as South Kensington, Queensway, Notting Hill Gate, Knights Bridge, Regents Park, St Johns Wood etc). If you look at that specific part of Central London, the prices have not changed much compared to the rest of the UK and Greater parts of London.

Why is that?

Lets look at the Supply and Demand, in Central London it is a known fact there is NO MORE LAND to build property on. So supply will pretty much or less stay the same, however demand will always increase (due to population growth, it is Central London where people want to live, Foreign Investment etc). So even if there is a dip in the local economy, there will be foreign investment to pump into the London Property Market. Demand will be increasing, and supply will stay the same - hence prices will increase! The hardest thing in buying in Central London is that the “barriers of entry” are extremely high. To get a decent 400-500 sq/ft 1 bedroom apartment, you will most likely be looking for a minimum of £375, 000 and go up to well the millions!

How about outside Central London?

The problem about outside Central London (mainly Zone 2 onwards) is that there is still Land to develop properties. Lets take Canary Wharf for example, which was a “boom” zone for buyers and investors. But if you look at the Canary Wharfs Property Market, owners are having problems to cover their mortgage payments and value of their properties are depreciating! And why is that? There is so much development that supply in Canary Wharf keeps on increasing - so it can meet demand. So prices are either stable or going to decrease due to Supply over lapping Demand. This is the current situation.

So just be very careful when you invest in property at the moment. The markets are soft in many areas in the UK, so you will have more chance of getting a good deal. In Central London, throw a bit more caution.

All the best!

Pimlico A Hidden Gem in London

Published
by
Property Know Team
on November 13, 2006
in London Property Market
. 1 Comment

IS this true? A Hidden Property Gem in Central London?

Destination: Postcode SW1 and Traditional Stucco Mansions – Pimlico
Public Transport: Pimlico Underground Station – Victoria Line

Pimlico is situated right next to Belgravia and Westminster, and is often overlooked by many property hunters for reasons that remain unknown to the Rent A Home London Team. It is on the edge of Zone 1 on the Victoria Line, and is blessed with the waterfront of the River Thames. Its close link to the Victoria Underground station, provides it with easy access to Victoria Coach Station and Train Station – which both provide Public Transport to all areas of the United Kingdom.

Pimlico is an ideal location to live in Central London, especially since it is still undervalued. It is not a sought after place by many of the high flyers, because it currently does not have the reputation of the likes of Chelsea, Fulham, Notting Hill Gate and so on. The area is roughly delimited by Victoria Station to the north and the River Thames to the south, spanned by Vauxhall Bridge, which allows ready access to Vauxhall. The entire district was formerly owned by the property owning Grosvenor family.

Pimlico’s most famous attraction is the Tate Britain on Millbank. This is the original Tate Gallery and is home, as the name suggests, primarily to art of specifically British origin. The district’s association with fine art has been reinforced by the Chelsea College of Art and Design’s recent move to the former Royal Army Medical College next to the Tate. This has also had the happy result of opening up the spacious college quadrangle so that the three extensive and elaborate red brick college blocks can be appreciated.

One set back is the lack of shopping areas available to Pimlico, however since Public Transport is close by, it is very easy to take the London Underground to Oxford Circus or other shopping areas nearby.

“Developers are hastily converting townhouse offices into flats and two large new developments are pencilled in for the southwestern corner: Grosvenor Waterside, ritzy apartment blocks built round an old dock, and Chelsea Barracks, which developers are now fighting over. These developments will blur the border between Chelsea and Pimlico. Typical buyers at the moment are “City workers in the second salary tier”, says Dawes. “Those with seven-figure bonuses still chase places like Notting Hill because Pimlico isn’t fashionable, but it will be in about three years. It’s the next hotspot.”

“Everyone agrees that Pimlico prices will keep rising. “We’ve lots of investors who can’t believe how cheap it is, when it’s so good for commuting to the City and has great infrastructure,” says Dawes. “Pimlico has further to go in terms of prices than Belgravia,” says Young. The area is brilliantly situated, with Tate Britain, the Thames, Kings Road and Belgravia’s Elizabeth Street shops within a short walk. Victoria station serves Kent, Sussex and Gatwick as well as Oxford Street and the City. Politicians can nip to Parliament within the requisite eight minutes when summoned by the division bell.”

http://property.timesonline.co.uk/article/0,,14050-2443923,00.htm

London – Property Market News

Published
by
Property Know Team
on November 9, 2006
in London Property Market and Property Know
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london westminster

London – Property Market News

The Property Know Team Formerly the Rent A Home London Team; has randomly composed some interesting facts about London’s Property Market and Property News in general.

Did you know – that in FIVE (5) years from now, the average home will be £400, 000. Well that is for London only. Currently the average house price is £330, 000. Also the London Housing Federation are predicating that in five years time, you will need a salary averaging £80, 000 to get an “average” mortgage! For your information: The average house price is calculated from the average from the; average price of a detached house, a semi-detached house, a terraced house and finally flats/apartments.

Do you watch Location, Location on Channel 4? Well from their Best and Worst Places to live for 2006 – London’s boroughs/areas scored the highest for, unfortunately, the worst places to live! Hackney came first, and tower Hamlets came second and Islington came fifth! So think twice – if you are planning to move there!

To have an atheistically pleasing bathroom or a new kitchen or not? Well in the view of the Rent A Home Team – we have always thought that it would be more beneficial and cost effective to either expand your property, by creating more space or adding another room (loft conversions etc). They both roughly cost the same price, and we all know that the more rooms the more expensive the property. A One bedroom house or a Two Bedroom house? You tell us! So do not jump into renovations, and calling your local builder to fit a new kitchen or go on a spending spree in B&Q or Homebase. You might splash around £2000 - £4000, and chances are in proportion of what you spend is what the increase in value will be! On the other hand – if you add another room you will hit the jackpot!

Sources: http://www.housing.org.uk/regions/aboutus.asp?region=4 & http://news.bbc.co.uk

Problems for London’s King’s Cross

Published
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Property Know Team
on November 2, 2006
in London Property Market
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London’s King’s Cross is a major Railway Hub for the North of England. Combined with Euston, St Pancras and King’s Cross they all cater for the National Rail Trains going up to places such as Manchester, Birmingham, Sheffield and yes – all the way up to Edinburgh, Scotland! King’s Cross is just on the outer rim of the London Transport Zone One (1) which makes commuting relatively easy with the Piccadilly, Northern and Victoria Underground Lines all going through King’s Cross.

For those who do not know London’s King’s Cross is currently going through a major regeneration project. Actually a really big transformation costing a hefty £2 Billion! The King’s Cross Railways Land project is currently in doubt, due to a miscommunication between the local community.

The property developer Argent, had a proposed plan which included 44% of affordable homes. Of the 67 acres that the Argent Scheme is meant to cover that is a great deal of affordable housing already! The 67 acres includes conservation areas and listed buildings, and it was given permission by Camden Council!

BUT now the £2 billion transformation of King’s Cross may have hit a minor delay! Why? The Local Community are complaining that they were not informed about the change in the percentage of proposed affordable housing, from 44% to 50%! So the overall 6% of the 67 acre land to provide London with affordable housing! This is only a hiccup on behalf of the King’s Cross Railways Land Project, and hopefully it will be resolved soon!

As a £2 Billion regeneration project with 50% affordable housing seems good to the Rent A Home Group and in fact that should apply to anyone who is out there looking for properties in the already expensive London Property Market!

Excuse the pun, but yes – the project won’t be “derailed” – it is only a minor delay! So keep your eyes out for those affordable houses in King’s Cross!

London King Cross

Spotting Potential in London

Published
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Property Know Team
on October 30, 2006
in London Property Market
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Don’t be too scared to buy in areas that may currently seem less desirable at the moment in time, especially in London. There are rough areas and places in London that are currently run down, but hopefully due to regeneration projects will slowly pick up in value. So keep an eye on the London Property Market properly and you maybe able to see these areas. At the Rent A Home London Team, we believe that Stratford and East London are up for a huge revamp that will effect the property prices! (Again, just to cover our backs – it is only our opinion!)

I mean lets take for example Notting Hill, now currently one of the most sought after places for the young and rich to live! I mean, it formerly used to be a down-at-heel ghetto, now a trendy upmarket one, Notting Hill is a vibrant and bohemian area. Properties include grand family villas and stuccoed terraces, lots of conversion flats, council properties, and sizeable enclaves of housing association properties.

Forty years ago Notting Hill was a notorious ghetto populated by poor immigrants and driven by racial strife. But a steady process of gentrification has transformed the area - residents from the old days would say for the worse - into one of the trendiest and most fashionable in the capital.

Prices have risen sharply in response to an influx of luvvies, media folk, politicians, and wealthy City types who flock to its stylish restaurants and up-to-the-minute watering holes. But despite this the area remains socially diverse and multiracial and still retains its vibrant street life and bohemian atmosphere. The bustling, pleasantly scruffy Portobello market attracts thousands every weekend in search of an elusive bargain, while the annual carnival, once a flashpoint for racial conflict, is now a well established celebration of multicultural Britain. A gastronome’s delight, Notting Hill is home to Books for Cooks and an extensive selection of restaurants offering cuisine from every corner of the globe.

Properties include grand family villas and stuccoed terraces, lots of conversion flats, council properties, and sizeable enclaves of housing association property. Nearest tubes Ladbroke Grove, Latimer Road (Hammersmith); Notting Hill Gate (Circle, District, Central); Westbourne Park (Hammersmith).

There are probably many of us who dream to own a property in that area of London, but can currently only dream of that for now! So remember do not be too discouraged when looking at areas that may currently seem less “desirable”, sometimes you have to look more into the long term scale of things. Rather going for short term returns, think more of a long term game - take it like a marathon.

So all the best! Keep your eyes out for those properties in London!

Wood Wharf - another Canary Wharf?

Published
by
Property Know Team
on October 27, 2006
in London Property Market
. 0 Comments

Following up from the previous post on the developments that will hopefully be booming forth from Canary Wharf comes Wood Wharf. Situated right next to Canary Wharf, it seems to be part of the expansion plan that the British Waterways Company have to the East of London. The plan is to turn the 20 acre Wood Wharf into an additional North Eastern Corner of the Isle of Dogs.

Just like Canary Wharf, Wood Wharf was historically used for the shipping and storage of cargo, for Wood Wharf’s case it was Timber.

So what do the British Waterways Company want to do with Wood Wharf?

Since they have the freehold of Wood Wharf, they can pretty much or less do what they want! But as wise budding property investors they are planning it to be another extension to Canary Wharf. A complete re-haul of the place and turning it a big regeneration project. Unlike some Property Companies, they are looking more towards a long term strategy and are weighing up the pro’s and con’s of developing certain properties.

Their main goals are to provide:
• New Employment Opportunities
• New Secure Places to live
• Enhance and preserve the water space in the surrounding area
• Create new community facilities and retail/leisure services

What have they come up with?

British Waterways Company are calling in “The Master Plan”. With the aim of creating; 3.4m square feet of commercial floor space, 1,500 new homes, open public space and a new canal bisecting the site.

So keep your eyes open for Wood Wharf. This is all planned to be completed by 2011, a year before the Olympics come to London.

Thinking Outside The Box - Greater London

Published
by
Property Know Team
on October 23, 2006
in London Property Market
. 0 Comments

Taking another look outside the London Property Market, and peering into the edge of Greater London, Kent.

Kent is a county in England, south-east of London. The county town is Maidstone. Kent has land borders with East Sussex, Surrey and Greater London, and a defined boundary with Essex in the middle of the Thames estuary. Kent also has a nominal border with France halfway along the Channel Tunnel. The two cities in Kent are Canterbury, the seat of the Archbishop of Canterbury, and Rochester, the seat of the Bishop of Rochester.

Ferry ports, the Channel Tunnel and two motorways provide links with the European continent. There are airports at Manston and smaller airfields at Headcorn, Lydd and Rochester.

Kent Property Market versus London Property Market

Rental value growth in Kent has been less volatile than the South East and London, over the past ten years. Kent has experienced a 2.5% increase in rental return values, notably higher than the UK average of 1.9% and compared to a 0.9% for London (These Figures are for Office Rental). Not bad for outside London hey?

With regards to its Residential Performance, 2006 has seen a great improvement in terms of house sales. For the annual percentage rise some places have seen rises of up to 8.1% (Dartford), however taking the flipside there have been places with a -2.1% - so be careful! The overall annual percentage growth for the County is expect to be around 4% - 6% which is slightly above the National Forecast.

However these figures are forecasts and with the strife happening in the Middle East, and the increased oil prices and the uncertainty of Interest Rates we can only try to forecast as accurately as possible and take in the potential threats to the forecasts.

Areas that are anticipated for strong growth are the Dartford and Tunbridge Wells areas, both of these areas are in Greater London. Many London Property investors expect the ever increasing Property Prices of London to have a ripple effect on its surrounds areas; such as Dartford and Tunbridge Wells. In these ares there are a large number of “buy to let” investors who are striving on a strong rental demand, and are averaging gross yields of 4.6%.

The set back about Dartford and Tunbridge wells is the lack of public transport available. Both areas have direct access to London however, the journey times can take up to an hour with a normal average of 40 minutes travelling time. Kent Council are looking at ways to improve the current Public Transport Infrastucture.

London and Dartford
Greater-London-Dartford

Property Life Outside Central London

Published
by
Property Know Team
on October 19, 2006
in London Property Market
. 0 Comments

Yes, believe it or not there is property life beyond Central London. Outside “Zone 1” of the Public Transport Zone in London, a great deal of what is considered London Property Market Growth is starting to slowly bloom. Places such as Dartford, Croydon, and Blue Water which are only 20-30 minutes away from Central London are starting to go with the flow and have started to have build their own “exclusive” Property Developments. This means slight lower prices due to its location, however a compromise for a train journey away from Central might be just worth it. If you see the plans for Dartford;

The Bridge, Dartford

One of the county’s most innovative developments, The Bridge, is now underway following a Development Agreement between Dartford Borough Council and ProLogis Developments Ltd. The project will see the old Joyce Green Hospital and Littlebrook Lakes site at north Dartford transformed into a new and vibrant community. The Bridge will encompass 1,500 high quality homes, a science park with innovation centre, business park and a ‘primary school of the future’ at the heart of the new residential area.

George Wimpey plc will be developing the first phase of 1,100 homes over the next seven years, which will be set among the existing environment of mature trees and water ways. ProLogis, the world’s largest distribution company, will be at the helm for the office, industrial and distribution development.

The 264 acre project will also be a vital link in the new Fastrack transport system, which will connect Dartford and Gravesend town centres with Bluewater, Darent Valley Hospital and Crossways Business Park. A new bridge is to be constructed over the M25 to provide a Fastrack route between Dartford Station, Temple Hill and The Bridge to Crossways.

The Area for Regeneration
kent-dartford-the-bridge

A nice River Side Estate coming in. It has the similarities of the Properties Developments surrounding ExCel near Canary Wharf. So don’t just limit yourself to Central London because you can easily get great returns on Properties outside Central London. Especially if you are a first time buyer it may be in your interest to look outside Central London.

All the best!

Source: http://www.kentpropertymarket.co.uk/regeneration/thameside.htm

London and the Olympics 2012 - Part One

Published
by
Property Know Team
on October 15, 2006
in London Property Market
. 0 Comments

London 2012 Old Olympics Logo

As the majority of us know, London has won the bid for the Olympics 2012 to come and be played in London. This is a great achievement for London especially in the eyes of many British to beat the French to it – made it even better!

London now has to prepare for the Olympics and the expected estimated figure of 8 million event tickets to be sold for the summer of 2012. The amount of people to be around in London is going to be absurd, especially with the current transport infrastructure. There is going to be a vast amount of money “pumped” into the Olympics by London (& the UK Government) and The International Olympics Committee (IOC) to help generate London into a state of an art Olympic accommodated city. Funding will be required to build new stadiums, to accommodate the vast amount of visitors and also to improve the current transport infrastructure of London.

These are rough forecasts of the costs and revenue for the London Olympics:

Costs:
* £560 million for new venues, including £250 million for the Olympic Stadium.
* £65 million for the Olympic village.
* £1.5 billion to run the Games.
* £200 million on security.

Revenue:
* £1.5 billion from a special Olympic National Lottery game.
* £625 million from a council tax surcharge of £20 per year for London households.
* £960 million from IOC television and marketing deals.
* £450 million from sponsorship and official suppliers.
* £780 million from ticket sales.
* £250 million from the London Development Agency.
* £554 million from licensing.

Further expenditure, notably that on infrastructure, will be counted as outside of the Olympic budget.

Figures taken from (http://en.wikipedia.org/wiki/2012_Summer_Olympics)

The main areas chosen for the Olympics to take place are in Stratford and Lower Lea Valley in London. These two areas are governed by Newham, and will be undergoing extensive cosmetic regeneration!

What does this have to do with Rent A Home London?

Simply because in our eyes this means a property value increase! Property developers have and will also spot this opportunity and have and will start to inject vast amounts of capital for further property developments in the East & South Eastern parts of Central London.

There has been an increase in Property Developments around the Royal Albert Hall near the “Excel” Exhibition & Conference Centre in London Docklands.

Why here? The Excel Exhibition & Conference Centre, is a confirmed host for the London Olympics – and it is planned to host boxing, judo, taekwondo, weightlifting and wrestling events.

The Excel Exhibition & Conference Centre London ExCeL-olympics-london

Property Developers are in the industry and know what will cause their properties to be sought after, thus having an impact on demand and eventually increasing their prices.

Excel London Olympics

Following the trend here? We hope you are!

Well that is all for now – but we will be posting more up about the London Olympics and its relationship to the Property Market!

Some good up to date information about the London Olympics provided by the BBC - Olympics Section