November 2011

South Hackney Moves Into Prime Bracket – Knight Frank

Top-end developments, new transport links, luxury retail and leisure facilities have pushed the City of London, London’s business district, and the surrounding half-mile ‘Fringe’ into the Prime bracket

The City and its surrounding area now join established Prime areas such as Mayfair, Knightsbridge and Belgravia, says Knight Frank. The estate agency says it will add the City and its Fringe to its monthly Prime Central London Index of property prices, which has been tracking luxury property values since 1976.

Gráinne Gilmore, head of UK residential research for Knight Frank, said, “Four main factors make an area stand out as a prime location in central London: good levels of top-end housing stock, a central location, good transport links and excellent retail and leisure facilities. This combination delivers a higher than average propensity for growth in capital values.

“The City Fringe is a less-developed market than the City, although the western fringe of Clerkenwell and Farringdon is more established. But there are signs that the eastern fringe of Shoreditch and Spitalfields is catching up, with growing demand for property by city workers keen to enjoy the wide range of nightlife and cultural opportunities the area offers

“The eastern fringe has already benefitted from the recently completed East London Line, and Crossrail will also be a boost to the area, as there will be new stations in both the eastern and western fringes.”

“The last, but arguably, one of the most important factors in the move to prime for the fringe is the new tech hub which has emerged around Old Street in the fringes. Referred to by David Cameron as “Silicon Roundabout”, the area now plays host to hundreds of tech start-ups,and to Google’s new office building. Workers in this industry who choose to live nearby, in one of the liveliest areas of the City, will drive demand for residential units in this neighbourhood.”

Trendy Shoreditch - Click image to go to article

Cost of rents in London at record high

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

FT Feature: King’s Cross

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.

King's Cross - click to go to FT article

ECB cuts interest rate to 1.25%

ECB officials, meeting under the presidency of Mario Draghi for the first time, cut the benchmark interest rate by 0.25 of a percentage point to 1.25 per cent.

The decrease in the ECB rate will see the cost of a typical €250,000 tracker mortgage fall by about €32 a month.

Annual construction of new homes falls to half the level needed to keep up with demand – adding further pressue to London rental market

Government statistics show that the number of newly built homes fell last year to just under 120,000 – half the level needed to keep up with growing national demand. London saw the largest decrease (27 per cent) in new home building with just 18,000 new properties coming on to the market. Overall the UK now has a shortage of around a million homes, with the deficit rising by 100,000 homes a year as people live longer and increasingly live alone. This will surely add further pressure to the rental market. Read more at the London Independent’s website.