Category: Buy to let (33)

The FT reports on how London’s economic geography has changed in the 21st century. The inner city has developed rapidly. Its core is growing faster than its periphery. Immigration from around the world is part of this story, but so too is the influx of younger people of childbearing age, attracted to the lifestyles of gentrified inner areas such as Hackney and Lambeth and their improving schools. There has been a new, diverse baby boom in the capital. And unusually, the past 10 years have seen more people arrive in inner London from the rest of England and Wales than leave.

Click link to go story on FT.com

The FT reports that overseas investors’ appetite for London property sharpened in 2012, as foreign buyers poured £2.2bn into new-build homes, up from £1.8bn in 2011.

Singapore and Hong Kong led the field, with a 23 and 16 per cent share respectively of the central London new-build market, research by Knight Frank, a property agent, showed.

British buyers remained the largest group in the new-build market, accounting for 27 per cent of transactions last year, roughly similar to 2011 levels. But the number of other nationalities buying “off-plan”, or before a property was built, in London rose from 43 to 52, Knight Frank said.

London’s position as an international financial centre, as well as its schools and universities, were key factors attracting foreign buyers.

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A majority of Londoners who rent their home say they have been priced out of property ownership forever.

London Councils, which represents all local authorities in London, commissioned Ipsos MORI to survey Londoners on the capital’s housing stock and market.

The poll found that six in ten renters and half of all private sector renters do not expect to ever be able to buy their own home.

The London Evening Standard reports that thousands of new homes for rent are being built in London aimed at young people who have made a lifestyle choice to be tenants, says David Spittles

London’s resurgent rentals sector is leading a nationwide boom in private lettings that will change the face of the property market over the next decade.

Private renting now accounts for 27 per cent of all homes in the capital and has overtaken social renting, which accounts for 24 per cent.

The influential ratandmouse website reports that FT Advisor picked up on Council of Mortgage Lenders data showing rents beginning to fall and predictions by YouGov’s head of financial services that the UK would be a “nation of renters” by 2020.

The ratandmouse says that the piece points out increasing buy-to-let lending, too, and identifies a new trend among landlords… with rental properties seen as pension investments rather than the basis for larger professional landlord portfolios.

Read more here

BFLS the award-winning, design-led architectural practice behind One Hyde Park have unveiled plans for an eco-tower at Dalston.

The site at 51-57 Kingsland High Street was occupied by the Peacocks Stores, a long-running department store that stands near Dalston Kingsland Rail Station, and thus benefits from excellent transport links.

The part 7-floor, part-18 floor building will have 130 new apartments, plus 1,107 square metres of retail, green walls, and a planted roof garden for residents to enjoy about 50 metres above ground level. In total the collection of green roofs add up to about 1,000 square metres of outdoor space.

The view from Ridley Road

The view from Ridley Road

The view from Kingsland High Street

The view from Kingsland High Street

London rents continued to grow over the past quarter, as an acute shortage of properties pushed up prices.

Desperate tenants are resorting to the job-hunting tactic of handing in their CVs amid fierce competition in the rental market.

London-based Ludlow Thompson reported a “growing number” of unsolicited CVs from prospective tenants, giving information ranging from detailed information about their relationships and pets to more prosaic job records.

Stephen Ludlow, director of Ludlow Thompson, said: “Fierce competition for properties in the London rental market is forcing tenants to go to extraordinary lengths to secure the property they want.”The latest trend is for tenants to send landlords a personalised CV, explaining why they would be a great tenant.

Source: PA

The FT ran a feature on the regeneration of King’s Cross over the weekend. The statistics for King’s Cross Central come thick and fast: there will be 20 new streets, 10 major public spaces and 50 new buildings. Meanwhile, 20 historic buildings and structures are being restored and refurbished. There will be 8m sq ft of mixed-use space and 22 per cent of King’s Cross Central has even now been “taken” with staff and students from Central St Martins College of Art and Design having already moved in.

Kings Cross - click to go to FT article

King's Cross - click to go to FT article

Net migration into the UK rose by 21 per cent last year to 239,000 on the back of a significant fall in people leaving the country and a net increase in migrants from eastern Europe, according to the Office for National Statistics.

This is compounded by the news that the housing shortage in England is set to worsen during the next three years as data reveal planning permission approvals have fallen to the lowest level since the start of 2009.

All of this will surely add up to increased pressure on the rental market in central London.