The property market is showing modest signs of an improvement in many areas of the UK, so George Osborne will be very wary of doing anything to undermine confidence.
There is some evidence to suggest that the stamp duty land tax (SDLT) exemption for first time buyers has triggered an increase in home purchases. The Chancellor may extend it beyond the current 24 March 2012 deadline or replace it with some form of SDLT exemption for all newly built homes to encourage house builders to restart developments that have been shelved in recent years.
At the other end of the housing scale, new anti-avoidance legislation targeting SDLT schemes on high value residential and commercial property – of which there are many in the region – could be announced.
These rules would attempt to crack down on practices such as paying for a building and its fixtures separately to keep the total cost below a stamp duty threshold, placing a property in an offshore company and selling the shares in the company rather than selling the property directly, and artificial use of SDLT sub-sale relief.
However, the much discussed ‘Mansion’ Tax seems unlikely to be introduced. The revenues it could bring in are relatively small and a potential PR nightmare while restricting the tax to foreigners could be seen as very unwelcoming to foreign business investment.
Property Market News
Sunday, 18 March 2012
Wednesday, 14 March 2012
Government Backed Mortgages a Boost First Time Buyers
Under a new programme, developed jointly by the Home Builders Federation (HBF) and Council of Mortgage Lenders, 95% percent mortgages will be made available to existing homeowners as well as first-time buyers (FTBs) on new-build properties (houses and flats) worth up to £500,000.
The announcement has been widely welcomed by first time buyers and house builders, but there are fears that the scheme could generate its own financial crisis; with the requirement of just £11k deposit for a £225000 house, the scheme has been condemned as an artificial prop for the Housing market, and a bubble ready to burst.
Defending the programme Grant Shapps said that the criteria for lending under the new scheme were much stricter than the sub prime pre credit crunch crisis.'The problem was sub-prime lending, not 95 per cent mortgages, which operated perfectly well in this country for many decades. The problem was lending to people who simply couldn't afford to pay back the mortgages.'
UK Building and Construction News
The announcement has been widely welcomed by first time buyers and house builders, but there are fears that the scheme could generate its own financial crisis; with the requirement of just £11k deposit for a £225000 house, the scheme has been condemned as an artificial prop for the Housing market, and a bubble ready to burst.
Defending the programme Grant Shapps said that the criteria for lending under the new scheme were much stricter than the sub prime pre credit crunch crisis.'The problem was sub-prime lending, not 95 per cent mortgages, which operated perfectly well in this country for many decades. The problem was lending to people who simply couldn't afford to pay back the mortgages.'
UK Building and Construction News
Thursday, 1 March 2012
US and Canadian Property Investors In Europe
U.S. and Canadian property investors will do more deals in Europe this year than their Far Eastern and Middle Eastern counterparts, capitalising on North America's relative economic strength, property consultancy CBRE said.
North American investors accounted for 30 percent of the total number of cross-border deals in Europe last year, up from 21 percent in 2010. It was the largest slice ahead of 13 percent of deals from 'other European countries' and the trend will continue this year, said Jonathan Hull, EMEA head of capital markets at CBRE.
Larger U.S. deals included Morgan Stanley's purchase of the Galleria Shopping Centre in St Petersburg, Russia, for about 840 million euros ($1.1 billion).
Boston Properties, the property firm run by Mort Zuckerman, the publisher and proprietor of the New York Daily News, is reportedly close to making its London debut with the 285-million-pound purchase of the Drapers Gardens office block in London's financial district.
Canadian pension funds, which escaped the worst of the global credit crisis, are investing more overseas because they own much of the best domestic real estate. The property arm of the Ontario Municipal Employees Retirement System is developing the London skyscraper known as the Cheesegrater with British Land.
Reuters
North American investors accounted for 30 percent of the total number of cross-border deals in Europe last year, up from 21 percent in 2010. It was the largest slice ahead of 13 percent of deals from 'other European countries' and the trend will continue this year, said Jonathan Hull, EMEA head of capital markets at CBRE.
Larger U.S. deals included Morgan Stanley's purchase of the Galleria Shopping Centre in St Petersburg, Russia, for about 840 million euros ($1.1 billion).
Boston Properties, the property firm run by Mort Zuckerman, the publisher and proprietor of the New York Daily News, is reportedly close to making its London debut with the 285-million-pound purchase of the Drapers Gardens office block in London's financial district.
Canadian pension funds, which escaped the worst of the global credit crisis, are investing more overseas because they own much of the best domestic real estate. The property arm of the Ontario Municipal Employees Retirement System is developing the London skyscraper known as the Cheesegrater with British Land.
Reuters
South East Housing Crisis Deepens
Docklands Flats & Houses For Sale & Rent: South East Housing Crisis Deepens: Fewer than half of the houses needed being built in the South East as housing crisis deepens Summary of Results In the South East; Fewer t...
Thursday, 23 February 2012
One Commercial Street Development Launched
Redrow has announced the global launch of its One Commercial Street development; an iconic mixed use development set within a prominent 23 storey tower incorporating stylish studio, 1, 2 and 3 bedroom apartments and featuring spectacular views across the skyline of the City of London and with over 100,000 sq ft of Grade A retail and office space.
One Commercial Street is located to the East of The City of London, the historic core of London and now the leading centre of Global finance. Set above Aldgate East Tube Station, the development is within close proximity to key financial offices including the Gherkin and Lloyds of London.
Redrow list their top reasons to buy
Stunning views across the metropolis
Excellent transport links
Close proximity to top London Universities (Kings College, LSE, UCL)
Desirable Zone 1 location with a multitude of local amenities and famous attractions
London Property Development News
One Commercial Street is located to the East of The City of London, the historic core of London and now the leading centre of Global finance. Set above Aldgate East Tube Station, the development is within close proximity to key financial offices including the Gherkin and Lloyds of London.
Redrow list their top reasons to buy
Stunning views across the metropolis
Excellent transport links
Close proximity to top London Universities (Kings College, LSE, UCL)
Desirable Zone 1 location with a multitude of local amenities and famous attractions
London Property Development News
Monday, 6 February 2012
Korean Teachers’ Credit Union Invests In London Office Block
The Korean Teachers’ Credit Union, with 20.9 trillion won ($18.5 billion) of assets, plans to buy a 12-story office building in London in the first half as declining property prices boost returns.
The credit union will visit the site this month and may team up with three or four Korean institutional investors to buy the property worth 299 million pounds ($471 million), said Lee Kun Ho, executive director at the Seoul-based organization that provides loans and insurance to its members. He declined to identify the tower as he’s still in talks.
“The price is still attractive enough for us to earn around 6 percent annually, and possibly further returns upon selling the building after a few years,” Lee said in an interview on Jan. 31, adding that prices for some properties are falling as banks put more buildings that were repossessed earlier up for sale to increase liquidity.
The credit union is planning its purchase as a two-year recovery in U.K.’s commercial property values petered out in the second half amid Europe’s sovereign debt crisis. The average value of the nation’s commercial real estate dropped 0.02 percent in November from October, the Investment Property Databank said last month. Values fell 44.1 percent from June 2007 to June 2009 and then rose by 17.9 percent in the following months through November.
The investment will be made while London, Europe’s most- active commercial property market since the start of the global financial crisis, is losing some of its allure as rising prices and prospects of a U.K. recession deter investors. The city slipped to 10th place in a ranking of 27 European cities, according to a survey of more than 600 brokers, investors and money managers compiled by PricewaterhouseCoopers LLP.
“Asian investors with sufficient liquidity can seize the investment opportunity amid financial turmoil in Europe and the U.S.,” Lee said.
The 41-year-old credit union joined a group of investors that bought a San Francisco office tower occupied by Wells Fargo & Co. in 2010 for $333 million in the city’s biggest commercial property deal in three years.
Bloomberg
Saturday, 4 February 2012
London's Prime Housing Market Affected by Shrinking Bonus Payments
Reuters reports that shrinking bonus pools in London's City financial district will reduce bankers' clout in the British capital's buoyant prime housing market this year, with hedge fund managers set to outspend them for the first time, data from Savills showed.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End district.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money.
Savills said it expects international investors to retain their position as London's biggest buyers of prime housing in 2012 with a predicted spend of 4 billion pounds, as many continue to favour London for its safe haven status.
The property consultancy said on Wednesday that while banker bonuses were a key factor behind rocketing London house prices in 2006-7, their importance has been overtaken by overseas investors and buyers from the hedge fund and private office-populated West End district.
"Until that point, there had been a strong link between house price movements in the capital and bonus payments, but that link is now broken and the market's dependency on City bonuses is much reduced," Savills said on Wednesday.
Buyers from the West End financial district are expected to spend 1.5 billion pounds on London houses priced over 500,000 pounds this year, while City bankers are predicted to spend just over 1 billion pounds in bonus money.
Savills said it expects international investors to retain their position as London's biggest buyers of prime housing in 2012 with a predicted spend of 4 billion pounds, as many continue to favour London for its safe haven status.
Thursday, 2 February 2012
Buy to Let Mortgage Availability Increases
Mortgage lenders are beginning to loosen their lending criteria to prospective buy to let (BTL) customers.
Raising the finances needed to improve a property or expand a portfolio has been a headache for many landlords over the past couple of years but according to Mortgages for Business, BTL products at higher loan to value (LTV) ratios are becoming more available.
Indeed, there are now more than 20 BTL mortgages from six different lenders at LTVs of up to 80 per cent.
David Whittaker, managing director at Mortgages for Business, stated: "This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than homeowner lending."
And it's certainly a good time for landlords to expand their property portfolios as the yields available have never been greater in many parts of the country.
Research conducted by specialist mortgage provider Paragon late last year found that properties let to students provide a landlord the highest possible yield, with an average of 7.62 per cent, while shared houses are the second best performer at 7.56 per cent.
Landlord and Tenant News
Raising the finances needed to improve a property or expand a portfolio has been a headache for many landlords over the past couple of years but according to Mortgages for Business, BTL products at higher loan to value (LTV) ratios are becoming more available.
Indeed, there are now more than 20 BTL mortgages from six different lenders at LTVs of up to 80 per cent.
David Whittaker, managing director at Mortgages for Business, stated: "This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than homeowner lending."
And it's certainly a good time for landlords to expand their property portfolios as the yields available have never been greater in many parts of the country.
Research conducted by specialist mortgage provider Paragon late last year found that properties let to students provide a landlord the highest possible yield, with an average of 7.62 per cent, while shared houses are the second best performer at 7.56 per cent.
Landlord and Tenant News
Monday, 23 January 2012
Property: Property Outlook for 2012
Property: Property Outlook for 2012: Most homeowners expect property prices to rise in 2012, according to a new survey. But despite the findings, confidence in the market has ...
Tuesday, 3 January 2012
Freehold Property For Sale: British Property Remains a Safer Bet Than Stocks a...
Freehold Property For Sale: British Property Remains a Safer Bet Than Stocks a...: Lofty apartments in London's prime boroughs, chic chalet's in the finest Alpine ski resorts of France and Switzerland, and 2 bed semi's in S...
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