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The value and potential rental yields of commercial properties will be largely impacted by energy efficiency in the future, it has been claimed.

Ian Fletcher, director of policy for the British Property Federation (BPF), believes that as well as location and office space, many firms will think seriously about energy costs and the building's carbon footprint when looking to buy or rent.

"I definitely think it has been slow to take off in terms of property values reflecting energy efficiency, but the industry should be in no doubt that the UK has some very challenging energy efficiency targets to meet over the next two or three decades," Mr Fletcher said.

"The way of the world is that property is going to have to improve its energy performance. Therefore it will become an issue that is important to values and the way that people do business."

His comments come shortly after the Royal Institution of Chartered Surveyors (RICS) released a report which said that climate change will, by 2030, have added an extra £355 million to collective sum businesses pay for their gas and electricity.
 

Property investors in London are switching their attention from traditional townhouses to luxury super-sized apartments, it has been claimed.

According to Stephen Dyer, managing director of Ideal Property, cash rich buyers from overseas are shying away from the giant houses of Chelsea and Kensington are instead looking to move into spacious new developments.

And as a result of this, professional investors are following the trend and restructuring the types of properties in their portfolios.

"If the only market appears to be from these super-rich people from abroad then that's who you're going to develop for, so I guess you would have to find buildings that exist in London that you can develop in that way," Mr Dyer said.

He added that a number of new developments are already under construction and the market is set to grow considerably this year.

A recent study from Hampton International’s found that biggest number of overseas buyers last year came from Russia.

The second half of this year will be a strong period for commercial property in the heart of London.

Andrew Burrell, head of forecasting at Jones Lang LaSalle feels that concerns about the crisis in the eurozone are currently forcing companies to hold with expansion plans in London but that will change after the summer.

"Our general view is that things will pick up in the second half of the year. At the moment, things are weak because people are debating, people are not prepared to do things that they would in a more confident market," he stated.

He added that regardless of the current climate many firms are expanding and need to move to new premises so transactions will continue regardless.

According to a recent study by investment firm IP Global, Islington is the best performing region of the capital with annualised returns of 11.5 per cent.

A large number empty homes in England could make sound investments for property developers and potential landlords.

A survey published this week by the Halifax shows that the number of uninhabited private and local authority owned homes in England has risen by 1.8 per cent over the past 12 months.

This means that at present there are currently 662,105 properties standing unused.

But at a time when some experts are saying that there is a shortage of quality homes for rent, there must be some potential for redevelopment out there.

And the report does show some positive changes, with the total number of empty private home actually falling to its lowest level since 2008.

Private long-term empty homes (those empty for more than six months) account for 44 per cent of all empty housing, while the remaining 54 per cent is taken up by short-term empty private homes and all empty public homes, including council and social housing.

Long-term empty homes now account for 1.6 per cent of all private homes in England. The north-west has the biggest problem as 63,696 home are standing empty, accounting for over a fifth (22 per cent) of the total national figure.

Martin Ellis, Halifax housing economist, said: "Whilst it is encouraging that the number of private homes in England that have been empty for at least six months has declined over the last few years, it is still at a high level, particularly in the context of the country's ongoing housing shortage.

“Locally, the existence of empty homes remains a particular problem in a number of areas, especially in the north-west. In some cases, the proportion of empty homes is more than double the national average."

Last month, Manchester-based Fresh Start Living said that disused buildings make great investments for would be landlords as they can often be purchased at a knockdown price and renovated relatively easily.

They may sound obvious but when looking to buy a hotel, there are three things you should take into account.

Thomas Wuhrer, owner of international hotelier firm HOTELINVEST, said that anyone looking to make an investment in the market needs to assess the location, the likelihood of a solid return and security of the property.

He also suggested that you look for hotels that are close to blue chip companies as they are likely to attract a wealth of business visitors and will hold their value well.

“Hotels are mostly built in top locations, for example the city centre - where the increase of real estate reaches an average three per cent per year,” Mr Wuhrer stated.

Hotels, bars and restaurants in London were last month tipped as three of the key areas that will help Britain out of the recession.

A study by the Oxford Economics in conjunction with the British Hospitality Association (BHA) said that the hospitality trade will continue to grow despite a tough economic climate, creating thousands of jobs.
 

London Commercial Property News

When looking for an ideal place to rent to students it might be advisable to look at buildings that are currently out of use.

Manchester-based Fresh Start Living says that too many would be landlords merely look to purchase properties that are already in residential use in the predominately student areas.

However, they suggest that landlords could be cutting their options short and may actually get a better deal if they explore the option of buying a disused or derelict building.

"Disused buildings can usually be obtained very cheaply and transforming them into student accommodation is very easy and cost effective. By taking advantage of unused buildings, developers can usually obtain planning permission very easily," said Stephanie Sowerby, marketing director at FreshStart Living.

She added that a lack of funding for universities means they are having to cut down on the level of accommodation they offer themselves and this could give property investors more opportunity to make it in the lucrative student market.

According to specialist mortgage provider Paragon, student rents far exceed the financial yield made by landlords on other types of tenanted property.

London Rental Property News

London property development remains a key plan for house builders because price growth is much greater in the capital compared to other parts of the country, new research suggests.

The proportion of housing start sales in London has risen from just under nine per cent to more than 13 per cent in the past four years.

The report, conducted by CBRE, found that the average UK home price has seen a 24 per cent increase over the past five years, but the figure falls to just six per cent if London is excluded, demonstrating the gap between London prices and the rest of Great Britain.

London property sales are also driving the sales of new build apartments, making up 38 per cent of the total number of sales across the UK.

Jennet Siebrits, head of residential research, CBRE, told Whathouse.co.uk: "Over the last 15 years, the price differential for apartments in London has increased from 50 to 100 per cent which means that house prices in the capital are now double that of the national average.”

London remains particularly popular for overseas buyers with SPF Private Clients suggesting that three out of every five looking for properties valued in excess of £5 million are from other countries.

London Property News

People who need to secure buy to let funding in order to expand their portfolio might be pleased to hear that average mortgage rates have fallen in the last 12 months.

Research from Defaqto revealed that the average two-year fixed rate for a buy to let mortgage at 75 per cent loan to value has dropped from 5.78 per cent in September 2010 to 4.86 per cent last month, while three-year product have seen average rates fall to 5.56 per cent from 6.03 per cent last year.

However, those looking to buy flats and houses for sale in Mapesbury, London, in order to rent to tenants will still find a buy to let mortgage is significantly pricier than an equivalent residential mortgage.

Defaqto insight analyst for banking David Black commented: "People should factor mortgage fees into their calculations as, like the interest rate, they tend to be much higher for buy to let mortgages than for residential mortgages, and can make a real difference to the overall cost of the mortgage."

Buy to Let Investment News
 

Those who are interested in self build properties should speak to their lender about the different UK mortgage offers available, according to the Building Societies Association.

Speaking at the Grand Designs Live event in Birmingham, mortgage policy advisor Colette Best advised self builders to discuss with their local lender about how to finance their project and how to get the best deal.

"Self-build is still considered quite specialised so a lot of the major lenders won't offer these products, so it is a good idea to speak to your local building society who are more likely to be willing to lend to you for self-build," she recommended.

"The biggest mistake you can make is just to go to one big lender because chances are that they are going to have an automated system that is going to kick your project out before you even get the chance to speak to anyone. Instead, think small and think local."

Ms Best added that when the building project is finished, homeowners will have "a really great" loan to value on their property, which stands them in good stead to get a mortgage on the finished home.

Building & Construction News
 

Commercial property in London continues to be a draw for overseas investment because it offers "greater security of income" than many other locations in the world.

This is the view of property expert Mat Oakley, who noted that the UK also offers longer leases than anywhere else, while the costs of maintaining and insuring the building "are the tenant's problem rather than the landlord's problem".

"This essentially makes UK commercial property a pretty unique investment in terms of the security of the income that you get. It is always popular in times of instability elsewhere in the world. At the moment, global investors are pretty firmly looking for safe havens, and the UK - in particular, London - always does very well in those periods," he pointed out.

Investors looking for offices for sale, rent & lease in London will find that the market is probably one of the few Western commercial property markets that is currently showing upward rental growth.

"You are getting the best of both worlds," Mr Oakley added.

London Commercial Property News

In order to tackle the housing shortage that exists in the UK, the government should be considering allowing more greenbelt developments to be approved.

Stuart Law, chief executive of Assetz, argued: "That would definitely be more helpful because eventually we're going to have to build more houses and the greenbelt is one of the locations we can do it.

"The country needs more houses. Somehow we're going to have to address that problem and building on the greenbelt makes sense."

Mr Law also noted that the government is not likely to raise house prices in the future because it would result in more people paying off UK mortgage debt that is worth more than the value of their home.

"They would have to build an enormous amount of houses to drive prices down by one third. They would have to build a million houses at least, to even begin to bring prices downwards," he added.

Meanwhile, government plans to reform the planning permission systems have been criticised by the National Trust, which claims they could allow for unchecked development of greenbelt land.

Brownfield Property Development
 

The level of interest in self build properties shows how the sector has bounced back from the recession, according to BuildStore Financial Services.

Raymond Connor, chief executive of the company, explained: "In the last year, self build has made a notable comeback from the recession and is continuing to see steady growth in demand and output.

"With the changing housing market creating the perfect conditions, self build is set to become 'the norm', reaching similar levels to those in Europe."

Mr Connor added that his company's land-finding database saw a 20 per cent year-on-year increase in new subscribers last month and currently boasts around 8,000 self build and renovation opportunities.

Meanwhile, East Staffordshire Borough Council has given planning permission to an application to build 212 new homes on greenfield land.

The development will include 12 detached self build properties, along with a sports pitch, allotments and 14 commercial units.

Building & Construction News

Finding commercial property in London is one of the best decisions a business can make in terms of the location's potential.

This is the view of Richard Kauntze, chief executive of the British Council for Offices, who pointed out that international companies and players have very little choice apart from the capital in which to settle down.

"Generally air, road [and] rail routes into the capital work very well, so transport is fantastic in many respects. It has a wonderfully talented pool of labour - there is a hugely talented and diverse work force that employers can draw on, which is obviously fundamental for any business," he noted.

Firms choosing commercial property for sale in London will also benefit from the "full package" of its amenities, culture, food and open spaces.

Meanwhile, major high street retailer Debenhams has signed a pre-let agreement to build a 145,000 sq ft building in London's Regent's Place.

London Commercial Property News
 

Landlords with property to rent in London and other parts of the UK are increasingly turning their thoughts to expanding their portfolios, an independent property industry expert has said.

Malcolm Harrison commented that many landlords are right to be optimistic about their buy to let prospects, as the rental market will "remain very tight" until there is more housing stock and a wider range of UK mortgage offers for first time buyers.

"There is no house building, there is a shortage of decent housing in many areas and you can't get a mortgage, so quite a lot of people are going to be very dependent on buy to let investors," he pointed out.

"I think [landlords] are right to be cautiously optimistic anyway because we don't know what is happening with the overall economy yet."

Mr Harrison's comments come after LSL Property Services published research showing half (49 per cent) of landlords think now is a good time to invest in their portfolios, with 86 per cent are planning to do just that in the next few months.

Investment Finance News
 

More investors could be searching for derelict properties in London in the next few months, according to Capital Economics.

Kelvin Davidson, property economist at the consultancy, explained that there is not much distressed property for sale "and quite a lot of money chasing it … so I would think that an increase in the number of properties to buy for whatever reason - whether it be foreclosure or whatever - would actually be quite welcome".

He pointed out that if the supply of property available for sale rises because of forced sales of distressed property, house-hunters should see prices going down because "the seller just has to sell and they will take whatever price they get".

Mr Davidson's comments came after research from the Royal Institution of Chartered Surveyors revealed that worldwide demand for distressed property increased significantly in the second quarter of this year, driven in particular by specialist funds.

Property Repossession News
 

Owners of property in need of restoration have been urged to check the credentials of any tradespeople they let into their home to carry out improvements.

Stuart Carter, head of PR and marketing at TrustMark, explained that many householders require services quickly in the event of a DIY emergency, so they are likely to "go into panic mode".

"What is so amazing is when you think of some of the checks that we make when we look at taking out household insurance to make sure we get good value for money. Yet, they will [...] invite somebody into their home - into their most important asset - and allow them to start knocking it around without [doing] those checks," he pointed out.

Mr Carter's remarks followed research from Sainsbury's Home Insurance showing that 13 per cent of homeowners have fallen foul of cowboy traders in the last five years and have had to pay a collective £3.7 billion to remedy botched jobs.

Property Repossession News
 

Owners of properties needing modernisation are best off calling in the experts when it comes to complex repairs and refurbishments, according to the Chartered Institute of Plumbing and Heating Engineering.

Kevin Wellman, operations director at the organisation, pointed out that bringing in professionals can help waylay further expenses down the line if an improvement project goes wrong.

"The professional, registered plumber can come in and firstly ensure that the system is sound again and that he will be using quality fittings," he noted.

"When some homeowners do their own home improvement work, it can be quite shoddy. It is one thing to have a temporary repair just to stop a problem, but permanent repairs should most definitely be carried out by the professionals."

Mr Wellman's comments came after research from Which? found four in ten boiler engineers failed to fully service a boiler, while two of them recommended expensive and unnecessary work be carried out on the heating unit.

Property Repossession News
 

Owners of property in need of restoration have been advised to put checks and balances into place before hiring tradespeople to carry out work.

Stuart Carter, head of PR and marketing at TrustMark, explained that prevention "is always better than the cure", meaning homeowners should be able to negate their fears by finding someone they can trust to complete restoration work on their property.

"Common sense has got to be put into play here. In that case, certainly ring three firms and ask them what they think it would cost to come out. First of all, is there a charge just to come to the site? Also, don't pay them in advance until the work is done," he suggested.

"If you are looking at bigger jobs, then yes, without any question you should have a written quote."

But owners of properties needing modernisation should not just be tempted to opt for the cheapest quote, because other companies may offer services better suited to the job at hand, Mr Carter added.

His comments came after Which? research found 2.5 million people have had a dispute with a builder or decorator in the last three years.

Property Repossession News

Nearly one in three people (30 per cent) in the UK would consider constructing their own self build properties, according to research from Norwich & Peterborough Building Society.

A survey from the mutual found 12 per cent would embark on a self build project within the next year if they could secure UK mortgage offers.

For one in four (26 per cent), the prospect of spending less money on building a new home rather than moving to an established one was the main draw, while 42 per cent liked the idea of a property that was designed to suit their specific needs.

Richard Barker, mortgage manager at the building society, commented: "Self build is a market with huge potential which could have many benefits for those willing to carry out a self build project, not to mention the benefits for the general economy and some of the problems surrounding the housing market in this country."

Figures from the National Self-Build Association show 15,000 people construct their own home each year in the UK.

Building & Construction News
 

Self build properties could become more common in the future if its model changes, Homebuilding & Renovation magazine has posited.

Jason Orme, editor of the publication, commented: "There are several things that need to happen before it becomes mainstream and the key one is for the process to be de-risked."

This means removing all the elements that could deter people from self-building, for example, worries about dealing with builders and concerns about getting a fixed price for their finished property.

"Under the model that I think the government is keen to develop, it will be a much more mainstream option because those issues won't be on the table. It will be a softer self-build in a way and that is really where it will become more mainstream," Mr Orme noted.

His comments come in light of a letter sent by housing minister Grant Shapps to key players in the UK mortgage lending market, which asked them to support a self-build 'revolution' by providing funding to those interested in such projects.

Building & Construction News