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First Time Property Buyer News: Demand for property continued to rise last month say RICS
Tue, 10 Apr 2012 12:27:33 +0100
The latest figures released by the Royal Institute of Chartered Surveyors (RICS) show that demand from property continued to rise in March.
London Property to Rent: Family housing 'is safe long-term investment'
Thu, 01 Sep 2011 12:15:58 +0100
Landlords with property to rent in London who are thinking of expanding their portfolio should consider investing in family housing.
According to Chris Horne, editor at Property Hawk, family homes represent a better and safer long-term investment compared with flats, "which did suffer from an oversupply".
"A lot of families now, rather than buying, are actually looking to rent. There is increasing demand from families who traditionally would have bought houses and are now either deciding not to or are unable to afford to get on the housing ladder," he pointed out.
In response, landlords are stepping in to cater for the family market rather than just for young professionals.
Mr Horne's remarks came after Royal Institution of Chartered Surveyors research suggested that new tenant demand outpaced supply of rental properties in the three months to July 2011, while 34 per cent more of surveyors reported a rise in rents rather than a fall.
London Rental Property News: Competition for rental homes is hotting up
Wed, 31 Aug 2011 16:58:06 +0100
Individuals looking for property to rent in Hampstead, London, may find themselves facing a lot of competition.
According to Matt Hutchinson, director of Spareroom.co.uk, an average of seven people declare an interest in every room that comes onto the rental market, while homes with desirable postcodes often get snapped up as soon as they become available.
"The rental boom and subsequent rising rents are the knock-on effect of a stagnant property market, caused by the banks' unwillingness to lend to potential buyers, coupled with the soaring cost of living, which means people now have less cash to put towards a deposit," he pointed out.
"It's highly likely that Brits will rent for longer."
Mr Hutchinson's remarks came after Royal Institution of Chartered Surveyors research found one in three (34 per cent) more surveyors reported a rise in rents in the three months to July 2011, although this is down from the 42 per cent recorded in the previous quarterly period.
London Rental Property News: Rental demand 'higher than supply'
Wed, 31 Aug 2011 11:10:05 +0100
Landlords may do well to invest in property to rent in Belsize Park, London, as demand for rental property is continuing to outstrip supply.
According to Royal Institution of Chartered Surveyors (RICS) data, the three months to July 2011 saw new tenant demand outpace supply of rented properties as more people turned to the lettings sector.
RICS spokesperson James Scott-Lee commented: "The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country. This is the case both for houses and flats."
This may be good news for landlords with property to rent in London who are considering expanding their portfolio, as owners of rental property appear to be having less trouble securing mortgage finance than other groups of buyers.
London Commercial Property News: Could demand for office space produce a ripple-out effect?
Thu, 04 Aug 2011 12:05:55 +0100
Simon Rubinsohn, chief economist at the organisation, commented: "There may be some ripple-out effect in other parts of the capital and possibly a little further afield - parts of the south-east or the Thames.
"There is a lot of secondary office space available in various parts of the country reflecting some of the development that took place in the run up to the credit crunch."
However, he noted that these may not be the kind of offices for sale, rent & lease that businesses looking for property in prime central London would choose as an alternative.
Mr Rubinsohn's comments came after research found the value of property in London's prime east end, for example in Canary Wharf and Wapping, rose by 0.4 per cent in the second quarter of this year.
Building & Construction News: Private sector driving recovery in construction
Wed, 03 Aug 2011 14:17:17 +0100
The number of new build properties backed by the private sector continues to boost growth in the construction sector, while spending cuts still take their toll on public sector building.
This is the finding from the latest Royal Institution of Chartered Surveyors (RICS) Construction Market Survey, which revealed that construction of public sector housing declined in the three months to June this year.
Some 17 per cent more RICS members reported a fall rather than a rise in the level of public housing construction, while 24 per cent more noticed a decline in the number of schools and hospitals being built.
Chief economist Simon Rubinsohn noted that the research shows the government's austerity package is affecting the construction sector.
"Public sector related construction projects are being reined in while some tentative signs of recovery are visible in the private sector," he pointed out.
"It is particularly encouraging that development in the private commercial sphere is continuing to pick-up in the face of the challenging economic backdrop."
London Property to Rent: Government plans 'could hurt landlords'
Thu, 07 Jul 2011 17:37:35 +0100
However, this has attracted criticism from organisations that say the proposals will affect landlords negatively.
Andy Riley, national sales manager at Burdens Energy, said the plans are "just another way of skinning the cat".
"Landlords, if they have got to upgrade all of their properties, then it is going to hurt them," he argued.
"[The government is] not instilling any confidence in the market," Mr Riley added.
His comments came after the Royal Institution of Chartered Surveyors raised concerns about the government's initiative, prompting it to set up a project team of staff and members to monitor the situation and see what input, if any, the organisation could have in the process of turning it into law.
London Commercial Property News: Interest in London distressed property 'still strong'
Mon, 06 Jun 2011 12:05:12 +0100
Commercial property in London is bucking the national trend, with investor interest in distressed property refusing to wane.
This is the finding of the latest Global Distressed Property Monitor from the Royal Institution of Chartered Surveyors (RICS), which revealed expected supply of distressed property in other parts of the UK far exceeds demand, possibly leading to further reductions in price.
Results from the first quarter of 2011 showed a net balance of +24 for distressed properties.
The London commercial property market remains strong, although concerns have been raised over rising inflation and indications that there will be another surge in distressed properties coming onto the market.
Simon Rubinsohn, chief economist at RICS, commented: "As the global economy continues to strengthen, central banks must begin to address the spectre of rising inflation; a threat which is compounded in some markets by the continuing European sovereign debt crisis.
"Consequently, the distressed property forecast remains overcast," he added.
London Property Market News: London 'outperforming' rest of the country
Tue, 31 May 2011 09:59:00 +0100
In recent London property market news, it appears that the capital is outperforming other parts of the UK in terms of demand.
The International Business Times reported that research from Colliers International found those behind London property developments are converting offices into residential properties in order to meet demand from buyers.
It also revealed that strong demand in London is forcing rental prices higher, particularly as supply is down in many parts of the city.
Meanwhile, the Royal Institution of Chartered Surveyors (RICS) has urged the property industry to support communities when the government's localism plans come into effect.
Trevor Beattie, chair of the independent Land and Society Commission, which was established by RICS, commented: " Early and active community engagement is good for business and good for communities.
"Developers and planners should not fear greater community involvement and accountability since this can speed up the planning and construction process, reduce risk, and add considerable commercial value," he added.
London Property Market News
London House Price News: Prices rise 0.3% in May
Fri, 27 May 2011 16:59:58 +0100
London house prices may have undergone another hike this month as research shows the value of property across the UK rose 0.3 per cent in May.
The latest figures from Nationwide show prices overall rose by 0.6 per cent on a quarterly basis, although the average price of a home this month is 1.2 per cent lower than the same time last year.
Robert Gardner, chief economist at the building society, commented: "Overall, the modest pace of house price growth in May suggests that the property market is continuing to mirror the lacklustre trends evident in the wider economy."
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said the data reflects a "largely stagnant residential market".
"This would matter less if the availability of rental property, whether privately let or social, was increasing. The upward pressure on rents is a clear indication that this is not the case," he added.
London Housing Market News: London is 'very attractive' to overseas investors
Fri, 06 May 2011 12:11:54 +0100
Overseas property buyers in London are finding the capital "very attractive" at the moment, according to a property expert.
Nigel Ellis, director of a UK estate agency, said London is perceived as safe by international investors.
"Of course, with the pound, the prices to the rest of the world must look pretty attractive. We used to be one of the most expensive cities, but the pound has dropped more than other places," he pointed out.
"It must be the safest place in the world to buy," Mr Ellis added, noting that it does not lie on any fault lines or is subject to major crises, which makes it a "very attractive proposition".
His remarks come after research from the Royal Institution of Chartered Surveyors revealed office space in London continued to outperform all other sectors of the UK's commercial property market in the first quarter of this year.
Building & Construction News: Retrofitting homes 'will be challenging'
Wed, 02 Feb 2011 14:23:38 +0000
Owners of investment properties in London may face a challenge in making their homes energy efficient.
According to Michael O'Doherty, head of climate change for buildings and energy at Manchester City Council, the commercial sector will be "the real challenge" when it comes to retrofitting the UK's housing and commercial property stock.
"When tenants understand the benefits and are prepared to pay a premium for retrofitted, highly energy efficient buildings, that is when the market will move," he noted.
His comments follow the Institution of Chartered Surveyors research that said green building & construction methods should start to replace traditional ones if the UK's housing crisis is to be alleviated.
The report also stated that off-site construction techniques, recycled materials and innovative structural design could make house-building quicker and more cost-effective.
London Property Market News: RICS data shows house sales 'stabilised' in December
Tue, 18 Jan 2011 17:22:53 +0000
London property reports may be showing mixed reviews at the moment, but there are indications that the level of completed house sales stabilised at the end of last year.
According to the latest Royal Institution of Chartered Surveyors' UK Housing Market survey, the number of sales completed by each surveyor stood at an average of 15.2 in the three months to December 2010, compared with 14.8 for the previous quarter.
However, some buyers were affected by the inclement weather towards the end of the year, while the lack of UK mortgage funding options remained a problem for some.
Robert Lazarus, director of residential sales at Paramount, said the outlook was not all bad for the housing market.
"So far this year we've seen that people are able to get mortgages in principle, but there have also been around 30 per cent of our buyers with cash funds purchasing property in the area," he pointed out.
"It is impossible to say what will happen over the next few months with mortgage lending but so far at Paramount we have had a successful January," he added.
Buy to Let Investment News: Buy to let 'is taking properties away from first time owners'
Wed, 12 Jan 2011 15:31:01 +0000
First time property buyers are finding it harder to own their own home not just because of the lack of UK mortgage funding options but also due to so many houses being taken off the market by buy to let funding applicants.
This is the view of Paul Holmes, chief executive of Firstrung, who noted: "Somewhere in the region of 1.5 million housing units have been taken out of the market by the buy to let industry. Now the buy to let landlords have sucked out a huge proportion of property that would normally be occupied by owner occupiers, these people have no option but to rent."
His comments come after a report in the Observer claimed homeownership is at its lowest level in 20 years.
However, the situation does appear to be getting brighter for first time buyers because "there is only one place for house prices to go and that is down quite dramatically".
Meanwhile, research from the Royal Institution of Chartered Surveyors revealed that owner occupier rates have fallen in the UK to 68 per cent.
Buy to Let Investment News
Building & Construction News: Government plans to streamline planning system 'is good news'
Mon, 29 Nov 2010 11:59:59 +0000
Government plans to scrap house building proposals, which would have cost developers an extra £8,000 for every new home, have been welcomed by the Federation of Master Builders (FMB).
Brian Berry, the FMB's director of external affairs, noted: "Anything that streamlines the current planning system and building standards is obviously very good news for the building industry. It is good that the government has recognised the burden it has placed on developments."
However, the government's introduction of the community infrastructure levy contradicts housing minister Grant Shapps' plans to streamline the planning system, Mr Berry pointed out.
"That proviso is important because it is doing good with one hand and then taking back with the other," he added.
Mr Berry's comments come after the Royal Institute of Chartered Surveyors reported that the impact of government austerity measures and concerns over UK mortgage lending access has led to negative feeling in the construction industry.
Property Repossession News: Derelict properties in London 'provide investment opportunities'
Wed, 24 Nov 2010 15:57:40 +0000
Derelict properties in London and other major cities around the world will continue to attract investor attention, according to King Sturge.
Andrew Burrell, partner in research at the international commercial market services firm, said interest in properties needing modernisation increased in the last quarter partly because there has been a recovery at the top end of the market.
"The stuff that was a bargain a year ago - the really good quality stock - is now, in the leading markets like central London, looking quite close to either fair value or a bit overpriced in some cases," he noted.
"When that tends to happen, people tend to move down the risk curve. Distressed property is obviously one of the more risky investments, but it may be one that is more lucrative."
According to figures released by the Royal Institute of Chartered Surveyors, real estate professionals in 20 countries have reported increased interest in distressed properties in the third quarter, compared in 11 in the second quarter.
Property Repossession News
London Property News: London property market 'still in decline'
Tue, 09 Nov 2010 14:37:04 +0000
The Rics research found a "generally cautious attitude" displayed by buyers and a lack of UK mortgage lending options was behind the slow-down in new buyer enquiries, which fell from a net balance of negative-two to negative-12.
Rics spokesperson Jeremy Leaf predicted that transaction activity is likely to remain at relatively flat levels over the coming months, with both supply and demand falling.
"Agents may be cautious about what this could mean for house prices in the short term, but dramatic falls are likely to be limited by a gradual drying up of stock coming to the market."
His comments were echoed by David Amstell, founder of briffy.com, who pointed out that first time property buyers are still affected by the financial climate.
London Property News: Home buyers 'should know their new property'
Fri, 29 Oct 2010 16:35:05 +0100
Before investing in a new property, individuals should have a full report carried out so they know exactly what they are buying, it has been claimed.
David Dalby, residential director at the Royal Institute of Chartered Surveyors, said that buying a home is likely to be the biggest investment people make so it is of paramount importance that they have as much information as possible.
"I would very much like to see a position where people make informed choices about the properties that they buy and that involves knowing what it is that they are buying," he said.
Mr Dalby was speaking following the release of new statistics from the Royal Institute of Chartered Surveyors, which found that homebuyers tend to rely on a mortgage valuation report rather than a proper building survey when they make a new house purchase.
Both more experienced and first time buyers failed to have relevant surveys conducted, the research found.
London property news: RICS urges buyers to carry out surveys
Thu, 28 Oct 2010 17:53:10 +0100
Research conducted by GfK NOP Business on behalf of RICS found that more than half of the poll's respondents wrongly believed that a mortgage valuation report would bring up the details relating to the state of a building that are actually only covered in a survey.
Having a survey conducted on a property will help to make clear any structural problems or issues such as damp, RICS points out.
Residential director at the organisation David Dalby said: "A survey not only gives you a price valuation, but also a detailed report of the state of the property."
He added that with such information, potential buyers are in "a much stronger position" to decide whether to proceed with the purchase or to suggest a better price.
London property news: RICS welcomes GDP data
Tue, 26 Oct 2010 15:36:59 +0100
The Royal Institute of Chartered Surveyors (RICS) has said that the third-quarter GDP figures released today by the Office for National Statistics (ONS) provided a "positive surprise".
Over the quarter, construction output rose by four per cent, the initial estimate from the ONS suggests.
Simon Rubinsohn, chief economist at RICS, said that the construction sector is a key driver of the recovery.
"Over the past two quarters construction output has been responsible for not far short of half of the increase in GDP," said Mr Rubinsohn.
However, he added that the organisation remains sceptical over the strength of the recovery, noting that mixed signals continue to come from the building sector and that sentiment surveys are not yet showing robustness.
Mr Rubinsohn also claimed that more "monetary accommodation" may yet be necessary in order to fully sustain the country's economic recovery.