Mayor criticises London council for poor affordable housing record

The Mayor of London has intervened in a planning by the borough of Kensington and Chelsea overs it lack of affordable new homes.

The development in Notting Hill Gate includes offices, a new public square, a doctor’s surgery and step free access to the local tube station but not enough lower priced homes, according to the Mayor.

Sadiq Khan is concerned that the borough has consistently failed to meet targets for new and affordable homes, In the 2016/2017 year only 17 affordable homes were given planning permission by the council. From 2013/2014 to 2016/2017, the borough delivered just 332 affordable homes or only 34% of the target of 986.

Kensington and Chelsea Council refused the application for the development of Newcombe House at the end of January because of the height of the proposed buildings in relation to their surroundings.

The development would be spread over six buildings from two storeys to 17 storeys. The existing Newcombe House is 12 storeys.

The application will now be subjected to further scrutiny by City Hall planners before a public hearing later in the year.

At the hearing, interested parties will be able to speak for and against the development before the Mayor makes his decision.

‘Having considered all evidence available to me, I have decided to take over this application and subject it to further scrutiny. The number of homes in this development won’t reverse the chronic under delivery of new and affordable housing in the borough, but I’m calling this application in to determine if those homes it could deliver and the other public benefits outweigh the reasons the council gave for refusal,’ said Khan.

‘I have also asked my planners to work with the applicant to see if more genuinely affordable homes can be delivered,’ he added.

https://www.propertywire.com/news/uk/mayor-criticises-london-council-poor-affordable-housing-record/

Property registrations at Land Registry plummet by over a quarter

The number of residential property sales received for registrations fell by more than a quarter between January and February, Land Registry data shows.

 Data for February shows there were 79,203 residential sales submitted for registration, down from 108,842 in January, a 27% drop.

 Of the registrations in the report, the Land Registry said 23,559 sales had taken place in February itself, of which 378 were for £1m and over.

 The Land Registry said 216 sales were for properties in Greater London for more than £1m, while there were two sales in Cardiff for over £1m and one in Manchester.

 The most expensive residential sale in February was a terrace property in Kensington & Chelsea for £10.7m, while the cheapest was a terrace property in Chester-le-Street, County Durham, for £19,000.

Meanwhile, Nationwide has reported that house price growth was “subdued” in March.

Its House Price Index for March shows that annual growth slowed from 2.2% in February to 2.1%, leaving average values at £211,625.

It was described as the third consecutive month of annual falls, with a fall of 0.2% in March. 

However, looking at the non-seasonally adjusted numbers, prices were actually up annually by 2.08% and up monthly from £210,402 in February to £211,625 in March.

Regionally, London was the only part of the UK to register a fall in average prices, with an annual drop of 0.5% to £473,776.

Robert Gardner, Nationwide’s chief economist, said: “Overall, we expect house prices to be broadly flat, with a marginal gain of around 1% over the course of 2018.”

Commenting on the figures, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “This is another survey demonstrating the relatively volatile nature of the present housing market – up one month, down the next – as buyers and sellers come to terms with new market realities.

“Clearly prices are softening in some areas more than others and people are moving much less often because it is so expensive to do so. It is only those who are recognising the change in market conditions who are getting on with moving.”

The Nationwide figures come as mortgage approvals dipped in February, overturning a six-month high reached in January.

Bank of England data shows there were 63,910 mortgage approvals for house purchase in February, down 4.7% from the 67,110 reported the month before. It is also below the previous six-month average of 65,162.

http://www.propertyindustryeye.com/property-registrations-plummet-by-a-quarter-in-february/

Part 2 : From Mum at Home to                    £120 Million property empire

Part 2 : Amazing story of Nicole Bremner who started out as a stay at home , mother of 3 to become the owner of a £120 million property empire. This part, Nicole talks about her future projects and her excitement about joining Quorum Property Club and forming the Devonshire Forum.

https://www.youtube.com/watch?v=XOR9dWWbtAU&t=4s

• Recent squeeze on landlords’ profits ‘could be coming to an end’

                                                                                                                                                                                                                                                                                                                                                                                                                           

Rents increased 3% annually in February to £857 per month on                average helping to offset recent tax hikes for landlords, new                            figures show.

The East of England and the East Midlands saw rents rise faster                than anywhere else at 2.9% each to £894 and £652 per month respectively, according to the latest Your Move Rental Tracker                    for England and Wales.

The average rent in the East of England now stands at £894 a                  month – the highest outside of London - while in the East Midlands              a typical property is let for £652 per calendar month.

All but two regions – London and the North-East – saw prices                    increase in the last year, Your Move’s figures show.

Unsurprisingly London remained the most expensive area to                        rent at £1,276 a month, down 0.3% year-on-year.

The North-East remains the cheapest region to rent a home,                          with prices down 2% in the last 2 months to £535 a month.

Once again, northern regions offered the best returns to                                investors, with the North East ahead of the pack. Properties                          in this region delivered an average yield of 5% this month -                              higher than anywhere else.

The North West was close behind as the average property here                  returned 4.9% to investors. At the other end of the scale,                     landlords in London saw the smallest percentage return at                         3.2%, down 0.29% annually The other areas with low percentage           returns were the South East and South West regions, which both        recorded an average of 3.3% this month.

Martyn Alderton, national lettings director at Your Move, said:                    “While much of the UK was snowed under at the end of the month, February proved to be another positive month for the rental market.

“Areas outside of London continued their strong recent growth, with impressive performances in the East of England and the East Midlands.

“Landlords are also enjoying more stability than they have been in recent times. This suggests that a recent squeeze on landlords’ profits could be coming to an end, which is good news for those looking to invest during 2018.”

https://www.landlordtoday.co.uk/breaking-news/2018/4/recent-squeeze-on-landlords-profits-could-be-coming-to-an-end

Developers putting a new emphasis on more affordable new homes in London

The development landscape in London has changed in the last two years with some areas having the potential for residential property prices to outperform the wider housing market, according to new research.

They include areas such as Mayfair, King’s Cross, Earl’s Court and Farringdon in central London, as well as Camden, Shoreditch and Hackney, along with the Royal Docks, West Ham and Leyton.

The analysis from real estate firm Knight Frank looks specifically at the potential performance of new homes in these areas and takes into account transport and infrastructure impact on prices between now and 2021.

Since the firm’s previous development hotspot report published in 2015, there have been a number of changes triggered by political and economic policies with planning in particular seeing significant changes following the election of current London Mayor Sadiq Khan.

The new development hotspots report features a wider geographical spread than previous reports. In terms of values, the majority are localities where new build developments are priced at under £800 per square foot and most are also outside zone 1. This emphasises the changing landscape for development in London, with a greater focus on affordability, the report says.

One of the biggest impacts is likely to come with the opening of the Queen Elizabeth Line (Crossrail). ‘In many cases the opening of the high speed rail link from the end of next year has already been priced into sales values in and around station hubs, although for stations where large scale development is still in the pipeline, pricing could reflect this in the future,’ the report explains.

‘The changing dynamics of the London market in the last two years have also had an impact on the performance of some of our 2015 hotspots. Some of these areas have not seen the growth in pricing over the timeframe forecast, but are still seen as areas of opportunity,’ said James Keegan of Knight Frank’s residential development consultancy.

‘The financial demands of undertaking large urban renewal projects are material and it is essential that it is recognised by all parties that pump priming prices is a necessity, not only to ensure financial viability but also to encourage developers, through profit, to commit to these projects,’ he explained.

‘Given the current conditions, particular attention and emphasis is needed to ensure the built environment is of the highest quality. In particular we believe many schemes need to over stretch the upfront cashflow to deliver exemplar product set into a high quality realm. Where successful, the rewards will follow,’ he pointed out.

‘However, it is important that these are not seen just as super profit, instead they should be considered in the context of each scheme’s long-term heritage and environmental contribution,’ he added.

Among the locations highlighted is Earl’s Court where prices currently at £1.650 per square meter are forecast to rise to £2,100 by 2021 while in Camden prices are projected to rise from £1,100 to £1,500 over the same timescale.

East London has a number of areas where prices growth is set to be strong. The report forecasts that in the Royal Docks prices are set to rise from £800 per square foot to £1,000, in West Ham from £700 to £950 and in Leyton from £675 to £800.

The report points out that the net supply of new housing London rose to 39,560 in 2016/2017, compared to the 66,000 new homes a year needed in the capital and this imbalance looks set to continue.

‘There are a number of areas of the capital where large scale development projects are currently taking place, many of which won’t be fully completed for a number of years. As demand continues to outstrip supply, these new neighbourhoods are expected to benefit and have the potential to outperform the wider market. However, the changing policy landscape could weigh on new supply in some areas,’ it concludes.

https://www.propertywire.com/news/uk/developers-putting-new-emphasis-affordable-new-homes-london/

Build To Rent provider unveils plans 

for 1,500 new homes

Build To Rent provider Get Living has revealed plans to invest up                    to £180m in 756 units in Leeds.

Acquired by Get Living in June 2017, the plan for the development              is to create a ‘rental neighbourhood’ within a five-acre site on the        South Bank of Leeds. The site currently has lapsed planning consent        and Get Living intends to submit a detailed planning application                 for the site in July, with a view to work starting in 2019.

This is the first investment in Yorkshire for Get Living, which already manages 2,000 homes in two London neighbourhoods, including                at the former London 2012 Athletes’ Village now known as                      East Village. 

Get Living has also submitted plans for a £200m, 727-home            development in Glasgow city centre.

The South Bank development would feature a co-working hub                   for tech businesses and start-ups, as well as landscaped green          spaces. Get Living is also working with Canal and River Trust,                        to discuss how the scheme could open up access to the canal.

https://www.lettingagenttoday.co.uk/breaking-news/2018/3/              build-to-rent-provider-unveils-plans-for-1-500-new-homes

I've inherited a house – should I sell it or repair it and rent it out?

I’m 26 and earn just over £20,000, so a buy-to-let mortgage would be a big undertaking - Virginia Wallis

Perth may be scenic - but taking on the repair of a property from miles away could end up as a nightmare. 
Photograph: Alamy 

Q: I have inherited my grandmother’s house (which an estate agent has valued at £160,000 at the most), while my brother also inherited another small property that she had been renting out before she died. She was blind during the last few years of her life and her friend took over all her financial affairs. Sadly he mismanaged these and a large amount of unpaid tax and other fees were due to be paid after her death. Luckily a friend stepped in and lent us the £43,000 needed to pay this off and allow us to inherit the properties. I therefore need to raise money to pay half of what we owe this friend, plus £10,0000 to £15,000 to bring the house up to a suitable condition to rent out or sell as it has been empty quite a while. I’ll also need several thousand pounds more to repair my mother’s home, which is in a bad state of repair. The question is whether this money should come through a mortgage or the sale of the property? Friends and family seem to have such differing views on the matter, which makes me very anxious.

The house is up in Perth in Scotland, but I currently live and work in London and don’t have plans to move back there anytime soon. I’m 26 and earn just over £20,000, so a mortgage would be a significant undertaking. However, as I understand it I could get a buy-to-let mortgage if I am receiving rental income of course. Would it be better to raise a mortgage and let it out via an agent (perhaps I should get a mortgage now since I will undoubtedly wish to get on the property ladder at some point) or should I sell and put the money in the bank where it might earn less, but could be a safer, hassle-free option?

I’m concerned that a buy-to-let might not be a wise in an area such as Perth where property prices took the biggest hit in the country in 2017. But on the other hand would it be a prudent time to sell? Maybe I should cut my losses now? Or is there some truth to the saying “safe as houses”? HD

A : Apart from the potential nightmare scenario of managing a building project from nearly 500 miles away, the major flaw in your possible refurbish-to-rent plan is that you will struggle to find a buy-to-let mortgage lender willing to make you a loan. The majority of lenders will lend only on properties that are ready to be lived in. The limited number of lenders who offer mortgages on properties in need of renovation do so only to established landlords and not to novices. Your other problem is that while the renovation work is going on, you’ll have no rental income coming in so you would have to find some other way of paying the monthly mortgage payments and, as you say, taking on a mortgage on your current salary would be a significant undertaking. And I suspect that, if you are paying rent in London, you are unlikely to be able to afford a mortgage on top.

So, in essence, there’s no actual decision to be made as selling the property is the only realistic option. Raising money by selling rather than mortgaging the property is also cheaper as there’s no interest to pay. Once you’ve cleared your share of the debt to your friend and covered the repairs to your mother’s home, you should still have a tidy sum left over. If you’re determined to become a landlord, you could use it as a deposit on a buy-to-let property. Alternatively, you could use it to buy a home of your own.

https://www.theguardian.com/money/2018/apr/02/ive-inherited-a-house-should-i-sell-it-or-repair-it-and-rent-it-out