Landlords are seizing an opportunity to boost rental yields as London house prices fall at an increased rate compared to the rest of the UK. House prices in the capital fell by 3.8% in the year to February, the biggest annual fall in more than a decade, according to the Office for National Statistics. Over the same period, house prices across the country rose by 0.6%. Traditionally the capital's high prices have pushed landlords seeking higher yields to other parts of the country, such as university towns in the north of England. However, falling prices in London mean rental yields are on the up. "For prospective investors who have long been keen to enter this market yet have been kept out by high property prices, now marks an opportunity to secure a solid investment at a slightly discounted price”, said Shaun Church of Private Finance.
The Daily Telegraph (17/05/2019)
Residential property transactions fell 0.3% month-on-month in April, according to data from HMRC, though were still up 0.8% on last year. Transactions for non-residential properties increased 9.5% on a monthly basis and increased 7.1% on April last year - showing demand for commercial real estate remains strong despite the ongoing Brexit uncertainty. Brian Murphy, head of lending at Mortgage Advice Bureau, said the figures point to a "degree of resilience" amid political turmoil.
City AM (21/05/2019)
Nearly a fifth of people in Britain have abandoned plans to move because of Brexit, according to a new survey. Instead, they are opting to spruce up their homes, contributing to a spike in sales of 23% at independent furniture stores over the past year. “The uncertainty around Brexit has led to a tough economic climate and is taking its toll on house prices and on large retailers,” says Higor Torchia, of software provider Vend, which carried out the poll. Brits spent an average of £310 per customer from January to March this year on furnishings, with the top items including mirrors, coffee tables and artwork.
The Mail on Sunday (19/05/2019)
British Land says it is hoping to hear this summer if Southwark Council will give the green light on the first buildings in its sweeping Canada Water redevelopment scheme. The company is looking to turn 53 acres of rundown land on the abandoned Daily Mail printworks and the disused Rotherhithe police station, close to Canada Water Underground station, into a new town centre and 3,000 new homes. The application is for three buildings totalling 576,000 sq ft and outline planning for the 1.8m sq ft first phase with a development value of £700m; the first three buildings will provide 265 homes, with around 35% affordable.
Five “atelier-style” townhouses at One James Lane in Leytonstone are currently on the market. Set over three floors, each level has its own outside space, and an open-plan living area with a wood-burning stove and storage for logs. Prices start at £825,000 for over 1,300sq ft of space.
Evening Standard (12/05/2019
London’s residential property market has stalled – with subdued house price growth and a sharp drop in housing completions, according to a new analysis published by Centre for London. House prices in the capital were shown to be falling by 1.4% in the final quarter of 2018 when compared to the previous year - a fourth consecutive month of falling prices, with transaction volumes falling by 12% during the same period. However, the same stats revealed that London’s rental market has seen increases in rents paid. “Lower house prices in some areas of the city have enabled more Londoners to buy their first home, but reduced supply is leading to increased rent levels, putting pressure on those who cannot afford to get on the ladder,” said Silviya Barrett, Research Manager at Centre for London.
24 Housing (13/05/2019)