Greater London, a global city and Europe’s most cosmopolitan capital. Between 1997 to 2012 London’s economy more than doubled, growing from £147 billion to £309 billion – this continues to grow. In the last few years, the outskirts of London became prime locations to accommodate the severe demand for housing in the capital.
As Property Investment experts, we wanted to share some key facts and stats on an emerging location, Sunbury on Thames, in Greater London to keep you ahead of the curve.
As experts in the buy to let property market, it is our obligation to keep our audience and clients educated with the latest information on the market and ensuring we are ahead of the curve on key investment trends in the country. Here is a snapshot of the economic drivers of the Liverpool buy-to-let market, we have identified a number of areas which we believe is forcing the property prices in the area to sore. Liverpool has been identified as one of the hottest areas in the UK to invest, and is benefiting from an increase in price year on year.
Below is a visual display of the economic fundamentals of our latest development, The Richmond. With over 30% of the development sold in its pre launch stages, demand is flooding in for this luxury development. Register your interest to find out more.
What is it?
Crossrail is the new high frequency, high capacity railway for London and the South East, also known as the Elizabeth Line. The current line is due for completion and will stretch from Reading, through Central London and to rural Essex.
Crossrail 2 is the newly announced extension of the Elizabeth line, linking the suburban railway network from Tottenham Hale to Wimbledon via a new tunnel through the centre of the capital. The line will stretch from Broxbourne in Hertfordshire (north) and continue through the heart of the capital to Surrey (south). In comparison to its counterpart, Crossrail 1 will connect the East and West of Greater London, with Crossrail 2 focusing on the North & South – splitting the capital and its suburbs into 4 sections.
The Crossrail effect
Since the launch of Crossrail (the Elizabeth Line) due to be completed in 2019, connecting London with Berkshire, Buckinghamshire and Essex; property prices have shown growth rates of up to 50% in some cases this has come to be known as the ‘Crossrail effect’. A fantastic example of this would be the Romford area of Essex, the average property in vicinity of the station has risen from £241,027 to £359,058, which is an increase of 48.9pc.
What does this mean for investors?
Historically, areas in which Crossrail runs, have experienced sharp growth in property prices. Investing into areas that will be included on the Crossrail 1 and 2 lines will mean a low price point and continual growth year on year til the lines full completion – meaning good news for buy-to-let investors targeting commuting families and young professionals. A great example of this is Brentwood, in the east of England, where the average price of a three-bedroom semi-detached family home in Brentwood is £500,000, compared to £325,000 in 2013. In the last year alone, prices have risen by 11 per cent, while other areas in the East of England only grew by 6.4 per cent, according to Rightmove’s House Price Index.
Fionnuala Earley, residential research director at Hamptons International, says: “In the long-term, both Crossrail 1 and 2 will be a significant driver of regeneration and new development, acting as an accelerant to kick start long planned schemes. Locations close to both existing and new Crossrail stations have become the focal point of major regeneration projects across the route outside of central London”
Areas to watch
With developers rushing to the London commuter belts to take advantage of the projected property price increase, we have identified areas which we expect to benefit from the “Crossrail effect” :
Tax change is the biggest issue for buy to let landlords in the UK with many having concerns about how they will manage their business with the changes to mortgage relief finance.
But they should not worry about it, instead taking it as part of the cost of running a business, the Property Wire panel debate on the future of buy to let in the UK heard.
The debate panellists stressed that buy to let is a business, and needs to be run as a business. They encouraged landlords to adopt an attitude that they are in it to make money and therefore they need to make sure they are on top of their costs.
There was a suggestion that London based landlords could look outside of the capital if they are expanding their portfolios in order to improve their yields but there is always the consideration that being near the property you let can be beneficial in terms of building a relationship with tenants and keeping an eye on the property.
But there is no doubt that finding a property at a lower price could be cost effective in terms of paying less stamp duty, achieving higher yields and potentially benefitting from higher capital growth.
Tony Gimple of Less Tax for Landlords, said he believes that landlords should concentrate on yields foremost rather than capital growth and let the economics speak for themselves. He is a firm believer that tax changes just need to be accepted as part of running a business and he does not think the raft of recent changes will put landlords off from investing in the future.
Whether London landlords should look outside of the city for future investment was the subject of intense debate. Richard Blanco, himself a landlord with several properties in London, is not in favour of investing in other cities even although he described the London rental market as ‘dysfunctional’. Blanco, who was also a representative of the National Landlords Association,
There was discussion about the effect of changes on the value of rents and Paul Mahoney, founder and managing director of Nova Financial, explained that it is the market that will determine the rent not what a landlords think they can charge.
Mahoney also pointed out that yields are important in the current market and he believes that cities other than London can make better financial sense, citing Manchester, Birmingham and Liverpool as examples.
There was plenty of advice for landlords on insurance and replying to a question from the audience about Airbnb being an option, they collectively dismissed the idea in London where there is a 90 day limit on renting short term. They also pointed out that such a move could affect insurance and mortgage conditions.
Andy-Wynne Jones, senior underwriting manager at Simple Landlords Insurance, provided plenty of advice. He explained that landlords can save money if they take on risk by looking at their policy excess levels, perhaps accepting a higher excess for lower monthly insurance payments.
There was a general consensus that Brexit is an unknown entity at presents with it virtually impossible to say how it might affect the private rented sector in the UK. The overwhelming conclusion was that landlords need to take change in their stride and remember that they are running a business and adopt the necessary strategies to make it a successful one.
Article Sourced from: Property Wire
Full credit and copy right belongs to Property Wire
Office take-up across the Liverpool city region for 2016 exceeded 500,000 sq ft for the fifth year running, according to the 12th annual Commercial Office Market Review.
Total take-up for 2016 was 523,456 sq ft, down 9.3% from the 576,847 sq ft let in 2015.
The review is produced by Professional Liverpool’s property group and supported by the Liverpool BID Company.
Bill Addy, chief executive of the Liverpool BID Company, said: “It is extremely encouraging to see that take-up remains positive, particularly in the Commercial District, but we do need to address the issues around the shortage of office stock. It’s encouraging to see schemes such as Pall Mall coming to fruition as it will provide the grade A space that is much needed to attract investors to the city.”
Tony Reed, head of Liverpool sales for Bruntwood and chairman of the Professional Liverpool property group, added: “Sector wise, we’ve seen a rise in professional services, along with training and the creative, IT and media sectors. We’re also continuing to see the trend of office space being converted for residential/leisure use, for example, Silkhouse Court, Reliance House and Corn Exchange.”
City centre market
Take-up in the city centre, made up of the commercial district and city fringe areas, was up by 1% with 386,981 sq ft. Of this, 342,714 sq ft was let in the commercial district and 44,267 sq ft in the city fringe.
Commercial district take-up climbed by 13%, with the largest deal being Liverpool John Moores University taking 58,264 sq ft at Exchange Station.
Although the volume of space taken in the city fringe was down slightly on 2015, the number of deals in that market rose from 14 to 22.
In both the commercial district and city fringe, small deals were to the fore as the trend of subdividing larger floorplates into smaller suites continued. This was the case at Cotton Exchange, which secured 21 deals, Oriel Chambers with 16 deals and Graeme House, which netted nine deals.
Out-of-town take-up fell from 193,824 sq ft in 2015 to 136,475 sq ft.
The biggest winners were Knowsley, where take-up climbed by 64%, and North Liverpool, including Bootle and Waterloo, with a 60% increase. The largest deal out of town was Kura’s 34,983 sq ft letting at Caspian House.
As in 2015, there was just one deal for grade A space in 2016, with 5,387 sq ft at Alaska House let to H&T Group. Grade B space accounted for 92% of all deals in the out-of-town market.
Supply of quality stock is cited as a concern. Slightly more than 50,000 sq ft of vacant grade A space remains in the commercial district, down from 91,869 sq ft in 2015. Much of the 1.3m sq ft of vacant office space within the commercial district is of little appeal, with just 445,565 sq ft described as being of grade A or B and ready to occupy.
Across the city region, deals for grade B and grade B* offices – space refurbished to grade A standard – accounted for 115 of the 191 deals completed in the city. Just three grade A deals were completed in the commercial district.
Despite the low level of grade A letting activity, the commercial district saw several major investment deals, with 1.3m sq ft of space sold. The largest buyer, with 350,000 sq ft at Exchange Flags and more than 500,000 sq ft at India Buildings was Shelborn Asset Management.
The full report is available here.
Article Source: www.Placenorthwest.co.uk
Accreditations: The information in this article has been researched and written by Place North West. Please click here to visit the original article.