Neighbourhood Watch: Islington, London

Neighbourhood Watch: Islington, London

Islington. One of London’s trendiest and most electric areas, Islington defines posh meets street as the hub of independent theatres, clubs and boutiques. Retail From the chic Upper Street to the down-to-earth Caledonian Road and Chapel Street, Islington is undeniably the arts corner of North London. Additionally, Islington Square is a major shopping hub for

Neighbourhood Watch: Islington, London

Islington.

Islington Area.

One of London’s trendiest and most electric areas, Islington defines posh meets street as the hub of independent theatres, clubs and boutiques.

Retail

Islington Square.

From the chic Upper Street to the down-to-earth Caledonian Road and Chapel Street, Islington is undeniably the arts corner of North London. Additionally, Islington Square is a major shopping hub for the area, comprising a collection of mixed size retail units with double height ceiling included.

Exmouth Market.

Boasting a strong sense of community, Exmouth Market, offers fantastic local shopping emphasising quality, speciality and variety. Offering primarily food stalls, Exmouth Market is home to local and specialist farmers to small region continental delicacies.

Education

City University.

The main campus for four universities including City University, a world class higher education institution, Islington is a popular student area with fast and efficient transport links to central London via Highbury & Islington Station an Angel Tube Station.

Culture

The Screen on the Green.

Famed for its off the beaten path culture, Islington’s culture appetite is anything but mainstream.

Islington’s Screen on the Green famous for hosting the legendary 1976 gig featuring The Buzzcocks, The Clash and the Sex Pistols is a fantastic cinema mixing Hollywood with home comforts. The single screen Edwardian cinema boasts an in-cinema bar serving food and drinks and your choice of comfy cinema seats or double couches.

The Almeida Theatre, Islington.

A supporter of new talent and a driving force in off-West End, The Almeida Theatre is a 325-seat theatre producing a diverse range of British and international drama with some of the world’s best artists. Supported using public money by Arts Council England, the theatre fundraises £1.3 million annually which, combined with ticket sales, contributes to its £4.2 million turnover.

Sadler’s Wells.

On the other side of the spectrum, Sadler’s Wells is the world’s number one venue dedicated to delivered the gold standard of UK and international dance. From circus to flamenco, Sadlers Well has something for everyone.

Cuisine

The Albion.

Islington mixes historical heritage with contemporary facilities from culture to eateries. Remaining form the Georgian era, The Albion, is an elegant and tranquil pub offering a country atmosphere. Serving traditional British food and broadcasting sporting events, the beer gardens complete with a flower bed of roses, is a popular choice for many a Londoner looking to relax.

Radici.

Boasting a diverse community demand, Radici celebrates the heritage of acclaimed chef Francesco Mazzei’s Calabrian and Southern Italian roots. Top choices on the menu range from a wood-fired oven cooked pizza to delicious cocktails concocted by drinks maestro Simone Caporale.

Regeneration

Andover Estate.

Following World War II, a number of Islington’s suffered considerable damage. To restore the area to its former glory, Islington Council spent several years regenerating Annover Estate and Marquess Estate.

Islington Architects worked with the local community to provide simplified pedestrian routes with clearly defined semi-private and public areas, by installing fob access gates for residents, and improving sightlines, lighting, and paving materials. The new features stretch to semi-native plantings in the courtyards, and a new central square.

Final Note

A magnet for innovation and famed for its eclectic neighbourhood, Islington is loved by students, young professionals and businesses for its tranquil atmosphere and thriving community spirit.

Ready to see London properties? Email us at info@tarquinjones.com for more details.

 

 

info@tarquinjones.comNeighbourhood Watch: Islington, London
read more
All Hail Battersea

All Hail Battersea

Battersea, London London is no stranger to regeneration. Some of the trendiest areas in London are a product of redevelopment. Hackney was once the poster district for London’s crime and today the regenerated factors is now a beacon of creativity and very much a tourist attraction for oversea visitors. Likewise, Streatham, a significantly wealthy area

All Hail Battersea

Battersea, London

London is no stranger to regeneration. Some of the trendiest areas in London are a product of redevelopment. Hackney was once the poster district for London’s crime and today the regenerated factors is now a beacon of creativity and very much a tourist attraction for oversea visitors. Likewise, Streatham, a significantly wealthy area in the 1920s, when left to its own devices has lost this reputation.

The Millionaire Millennial

As millennials begin their journey into investment, the desire to follow in the property footsteps of their parents has dwindled. Instead of desiring luxury areas such as Knightsbridge, the investors of today are favouring the electric atmosphere of Battersea, Peckham and Brixton.

Theatreland 2.0

Today a prime location for London’s regeneration scheme is none other than Battersea. At one point, the South West London area was famous for the industrial slums by Clapham Junction and the housing estate which garage musical collective, So Solid Crew were founded on.  In a bid to compete with their traditionally luxurious counterparts such as South Kensington, the Borough of Wandsworth has invested in the future of the borough to benefit from London’s reputation of a thriving cultural scene, most dominantly, theatre.

Situated beside Battersea Powerhouse, the 200-seat Turbine Theatre, opening in August 2019 is expected to be a celebration of new writing led by Artistic Director, Paul Taylor-Mills.

“I’m elated to be launching a brand-new theatre at the iconic Battersea Power Station. The vision is a simple one, to enable world class artists to tell stories that enchant at the Turbine Theatre and eventually play beyond our London home. We’re interested in being the starting point for new shows and also reimagining the older ones. It has been a lifetime dream of mine to have a home for my ideas that feels authentically ‘me’”.

A Battersea of the future

Battersea Power Station

Once an industrial powerhouse, Battersea Power Station is an iconic member of London’s skyline featured in films including Children of Men, The Dark Knight. Since being decommissioned in 1983, many developers have placed bids to breath new life into the iconic landmark with proposals including a theme park and football stadium.

In 2012, S P Setia Berhad, Sime Darby, and Employees Provident Fund agreed to acquire and develop the historic site into London’s newest neighbourhood. The first phase, Circus West Village featuring apartments, shops, cafes and restaurants opened in Spring 2017.

The next phase includes the highly awaited opening of Battersea Power Station itself and the Northern Line extension, both anticipated to be ready in 2021. Additionally, the Power Station will see a new high street, Electric Boulevard, which will include shops, cafes, restaurants and approximately 539 homes including luxury penthouses.

The £9 billion 42-acre development, is set to comprise three floors of shops, bars and restaurants, including an entire floor dedicated to food. There will also be a boutique cinema, a 1,500-capacity event space, 450 metres of riverside frontage and a six-acre power station park beside the Thames.

Taking full advantage of the growing tech sector, the power station will be a business hub featuring 1.25 million sq. ft. office space. 500,000 sq. ft. of has been secured by The Apple Group for its new London Campus while No 18, a Swedish business members club, is leasing 40,000 sq. ft.

Final Note

London will continue to be beacon of economy, culture and education, so London will continue to be a hotspot of investment.

Philip Mason, international sales director at Battersea Power Station Development Company, said at a recent media briefing for Phase 3A: “Besides the iconic building, there is always a reason for everyone to come here. The Northern Line Extension (Battersea Power Station) will be a boon to attract more investors and visitors, giving accessibility to the two hubs of the city – the financial and cultural districts.”

“London is never going to be cheap. Those who wanted to invest, better do it now. A lot of people from overseas have already started investing in London,” Mason added.

info@tarquinjones.comAll Hail Battersea
read more
The rise of the DINK

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates

The rise of the DINK

In 2019, there are more child free adults than ever before. While, for those born in 1946, only 9% had no children at the age of 45, whereas for women born in 1970, this figure has risen to 17%. A US study discovered that 1 in 5 women enter menopause without children. Additionally, birth rates among women in their twenties declined by 15% between 2007 and 2012.

The reasons why so many couples adopt a Dual Income, No Kids lifestyle, commonly known as DINK, is varied. For some the financial burden of raising a child is more trouble than its deemed worth and for others, it means sacrifices to lifestyle and career aspirations. Without the responsibility of children to cater to, the rise of DINK, the demands for property are not what they were for young professionals of Baby Boomers and Generation X.

What DINK mean for the property market?

Imperial Square, Luton

ONS figures showed that in 2017 the proportion of women never having children has doubled in generation.

Leisure & Amenity

Infinity Towers, Liverpool

Young professionals today are interested the trendy new neighbourhoods. Without the pressure to consider a property’s proximity to schools and day-care the focus for many tenants now is convenience. After working all day, and in some instances earning from a second job, the Millennial generation are interested in homes which offer closeness to shops and travel links.

Work Life Balance

The Tannery, London

In 2019, the UK is more career driven than ever before. A booming economy mixed with the impending launch of HS2 and mass regeneration schemes, means over 250,000 jobs are being launched in the UK by 2030. As a result of this, generation rent is drawn to city centre properties to stay in the heart of their working life.

Student Housing Demand

Marvel House, Plymouth

In 2018, 2.3 million students were recorded to be in higher education. Entrepreneur reported that 24% intend for pay for higher education via savings and 38% plan to work during their university studies. Higher education is at an all time high since the launch of the postgraduate government student loan. As more students stay in education for longer to gain qualifications such as an MBA and PhD, often via part-time study, instead of starting families the demand for student housing will increase.

Luxury Lifestyles

Hadrian’s Tower, Newcastle

Without adhering to the practicalities of raising children, tenants are desiring homes to suit their personalities and lifestyles. For example, 2019 saw an increase in properties with pools and audio door entry systems. Favouring state-of-the-art design specifications including private lounges, the demand for luxury property is increasing across the country.

Travel Pursuits

Epic Hotel, Liverpool

A chief reason, many adopt a DINK lifestyle is the sizeable disposable income, which can be used for travel. The rise of the staycation, has seen a dramatic increase in domestic holidays. As cities within the Northern Powerhouse gain regeneration, the rise in UK’s tourism to serene areas will benefit from the child-free movement.

Entrepreneurship

The Bridge, Kirkcaldy

Among Generation Z, working to suit your lifestyle is a priority. Entrepreneur announced 41% of Generation Z intend to start their own businesses instead of continuing the Millennial trend of side jobs. The rise is e-learning opportunities focusing on creative arts and business is predicted to be worth four times more than the higher education market. As a result of this, the demand for office space will increase.

Old Age

Bryn Illtyd Ltd, Wales

Without the comfort of having children to take care of them in old age, DINK jetsetters will be desiring Care Homes in the future.

Final Note

As the economic climate changes, the demands for property respectively alters. With more favouring an enjoyable lifestyle and the financial benefits that come along, the demand for family friendly property has seen a sharp reduction.

 

 

info@tarquinjones.comThe rise of the DINK
read more
London Property Investment

London Property Investment

Despite the impending presence of Brexit, London stands tall as a property investment icon, Boasting world-class theatre, state-of-the-art education and a £565 billion economy. A melting pot of culture The capital is the largest city in both the UK and European Union with an estimated 8.8 million population. Covering 607.12 sq. miles, equalling to 22,250

London Property Investment

Despite the impending presence of Brexit, London stands tall as a property investment icon, Boasting world-class theatre, state-of-the-art education and a £565 billion economy.

A melting pot of culture

The capital is the largest city in both the UK and European Union with an estimated 8.8 million population. Covering 607.12 sq. miles, equalling to 22,250 residents per square mile, London continues to be in high demand for property. Offering an array of industries from retail to fashion, London is considered one of the most diverse cities in the world for ethnicity and religious beliefs.

Christian 48.4%
Muslim 12.39%
Hindu 5%
Jewish 1.82%
Sikh 1.5%
Buddhist 1%
Other 0.6%
No Religion 20.73%

 

Of the 8.8 million people living in London, 37% were born outside of the UK; two thirds from outside of the European Union. According to the 2011 Census, 262,247 people living in London were born in India. As more opportunities are conceived in London the numbers are predicted to grow to up to 10.5 million by 2035.

YEAR POPULATION GROWTH RATE
2035 10,556, 486 0.63%
2030 10,228,051 0.78%
2025 9,840,742 1.13%
2020 9,304,016 1.39%
2019 9,176,530 1.45%
2015 8,661,381 1.49%
2010 8,044,433 1.41%
2005 7,501,217 0.62%
2000 7,272,819 0.68%
1995 7,029,508 0.68%
1990 6,794,400 0.16%

 

An American in London

The rise of the tech sector in London, most predominately Silicon Valley Tech Giants, have boosted London’s property market. US property investors are soaring through Marylebone, Mayfair, and Chelsea. Accounting for 6% of all sales by foreign buyers in London, second only to Chinese buyers, President Trump’s relaxation of tax laws governing repatriation of money held over-shore which has freed hundreds of billions of dollars for investment in blue chip assets.

Saudi Arabia £13.4 million
Turkey £10.8 million
Germany £9.8 million
Russia £9.1 million
USA £7.3 million

 

Property developer, Knight Frank established that Americans have paid an average of £7.3 million for Central London homes this year in Marylebone. Liam Bailey of Knight Frank claims “the pound’s weakness against the dollar since the Brexit referendum combined with weaker underlying prices had made London more affordable, but the huge sums being ploughed into the tech giants and hedge funds are the driving factor.

There has been a significant uptick in demand for prime property from relocating US employees, entrepreneurs, and business owners. Among the market leaders are Google’s £1 billion European headquarters in King Cross, Facebook’s engineering hub at Rathbone Place and Amazon UK’s headquarters in Shoreditch.

The new face of the tech sector

The past decade has seen London evolve into the tech hub of Europe, with a new generation of leaders. The millennials leading the tech sector demand action on major issues including climate change, mental illness and work life balance. Commercial property is seeing their influence and meeting their perquisites via ping pong tables, remote working capabilities and multipurpose spaces.

The tech sector is expected to be the leading industry in London in the next ten years. Currently, Canary Wharf hosts more than 35,000 tech workers. In preparation for the upcoming economic changes, property developers are already preparing to accommodate this.

Image: CanaryWharfGroup

Wood Wharf is set to become the districts largest regeneration development. A major requirement for this generation of leaders is access to outside space and the latest 5G networks. A £5m sq. ft project with more than £2m sq. ft of commercial leasing, distinctive workplaces, and interconnected public space is being built to meet the demands of the tech-heavy tenant.

Hotspot Neighbourhoods

London attracts all sorts of people for its variety of experiences. In 2019, the most in-demand region is East London. London has always been notorious from its innovative creative scene, and with more independent galleries, creative start-ups, young professionals and couples are heading to the regeneration sector of East London.

Generation DINKY

ONS figures showed that in 2017 the proportion of women never having children has doubled in a generation. A Savills study reported that the DINK generation (Dual Income No Kids), possessing a combined income of £80,000 where the older partner is 26-35 are heading towards South and South East London including prime riverfront addresses from London Bridge, Bermondsey and East Putney,

“There is definitely the attraction of water at play,” says Lucian Cook, head of residential research at Savills and author of the report. “They are going to be slightly less concerned about family things,” he says. “It’s all about leisure and amenity.”

London of the Future

As the capital city, London is continuously subjected to regeneration to continue its position as an economic powerhouse of Europe.

Tulip Tower

The 1000ft proposed Tulip Tower is intended to reside by the Gherkin, making the skyscraper the second tallest structure in Western Europe, featuring a viewing platform with rotating pods. The Tulip will include a restaurant and sky bar in addition to a floor for educational purposes during school hours.

Infinity Pool

Designers Compass Pools, are proposing a ‘world’s first’ transparent infinity pool on top of a 55-storey building providing 360-degree views of London. To not jeopardize the view, a spiral staircase will rotate and rise through the 600,000-litre pool to provide access.

Hackney Wick

Since the construction of Queen Elizabeth Olympic Park, investors and developers alike, have seen potential in the east London area. Once industrial buildings are being converted into luxury apartments and residential sites such as The Bagel Factory are are drawing in many young professionals for the supply of an alternative social scene.

North Bank

To contest with the South Bank, Westminster Council will fund a £28 million scheme to redevelop the North Bank. Home to Somerset House and The Savoy Hotel, the North Bank will replace Aldwych gyratory system with a two-way road and a new plaza is to be installed by St Mary le strand church. Additionally, the Strand from Aldwych to Melbourne Place to the east will be pedestrianised and lined with cherry trees. The riverbank will be opened up to become a cultural quarter lined with restaurants, bars and a retail to compete the Southbank.

Elizabeth Line

The Elizabeth Line is Transport for London’s new rail line, currently being built by Crossrail Ltd, is expected to service approximately 200 million people every year. Stretching more than 60 miles from Reading to Shenfield, the Elizabeth Line stops at 41 stations, 10 new newly build stations and 30 newly upgraded.

Final Note

As the capital, London is the first stop for regeneration, historical value, education, culture, as evident by its 8.8 million population. Despite Brexit, as long as London continues to be a global phenomenon, it is a formidable location for student, commercial and residential property investment.

Ready to see London properties? Email us at info@tarquinjones.com for more details.

 

info@tarquinjones.comLondon Property Investment
read more
Neighbourhood Watch: Shoreditch

Neighbourhood Watch: Shoreditch

Shoreditch, London Away from the hustle and bustle of London’s infamous Oxford Circus, lives Shoreditch, the home of hipsters embodying everything East London hold dear. The quirky neighbourhood’s gentrification has seen a rise in generation rent craving the E1 postcode. Culture In the heart of London’s creative scene, Shoreditch is thriving with creativity from Geffrye

Neighbourhood Watch: Shoreditch

Shoreditch, London

Away from the hustle and bustle of London’s infamous Oxford Circus, lives Shoreditch, the home of hipsters embodying everything East London hold dear. The quirky neighbourhood’s gentrification has seen a rise in generation rent craving the E1 postcode.

Culture

Mr Cenz and Lovepusher

In the heart of London’s creative scene, Shoreditch is thriving with creativity from Geffrye Museum, street performers and the innovative displays of street art. In Shoreditch’s centre is Rich Mix the independent creative arts venue featuring a bar, cinema and fusion restaurant. Around the corner, Shoreditch Town Hall is the theatrical hub for E1, where musicians including Lea Michele have performed.

Nightlife

The Electric Cinema

As chaotic as Shoreditch is by day, it’s twice as exciting at night. In the summer, rooftop bars including Queen of Hoxton’s are a favourite venue, while BoxPark is enjoyed for its heated outside garden spaces in the winter months. Hotels including The Ace Hotel and The Curtain are a favourite for their vibrant night scene alongside nightclub Electric Ballroom.

Food

Street food reigns supreme in the district, with BoxPark in centre stage. Celebrating Indian, Caribbean and Mexican cuisines among more, and a variety of independent bars, restaurant and coffee shops, Shoreditch caters to the residents with amenities beloved by the local community.

Retail

Right next to Shoreditch High Street Station, Brick Lane Market, is an electric artistic hub, celebrating the 50s, 60s, 70s and 80s alongside independent food stalls selling vegan, vegetarian and gluten-free desserts and drinks.

Start-up Hub

Lyst Shoreditch Office

London remains a hotspot for businesses, and Shoreditch continues to be a beacon for creative start-ups including SuperCarers, JukeDeck, Settled, Winnow, Lyst, TransferWise and Beamery.

A Final Note

As more of the UK, are embracing the creativity of London, combined with underground, rail and bus transport links to central London, alongside National Express, Shoreditch continues to be a hotspot for generation rent.

Ready to see London properties? Email us at info@tarquinjones.com for more details.

 

 

 

 

 

 

 

info@tarquinjones.comNeighbourhood Watch: Shoreditch
read more
Why are more and more businesses and workers relocating away from London?

Why are more and more businesses and workers relocating away from London?

Recent reports have shown that more and more companies formerly based in London are relocating their headquarters to more affordable northern locations. It has emerged that a quarter of companies in the capital have seen staff leave as a direct result of the lack of affordable housing. Many of these are moving elsewhere and big

Why are more and more businesses and workers relocating away from London?

Recent reports have shown that more and more companies formerly based in London are relocating their headquarters to more affordable northern locations.

It has emerged that a quarter of companies in the capital have seen staff leave as a direct result of the lack of affordable housing. Many of these are moving elsewhere and big businesses are following suit to keep a large number of their employees.

The Confederation of British Industry (CBI) recently found that 28% (176) of London’s top companies reported that some of their employees had left because they could no longer afford to live in London. Even at a senior level, 59% of the companies surveyed said they had struggled to recruit mid-level managerial staff because of the housing crisis in London, while 22% had had similar issues with senior level staff.

The average house price in London stands now at over £470,000 compared to the UK average of around £225,000. This means that young working professionals are considering their options outside the capital, and with major transport links being enhanced in the future i.e. HS2, it means that people will be able to pay for easy access into London without necessarily paying London prices.

Even at a senior level, 59% of the companies surveyed said they had struggled to recruit mid-level managerial staff because of the housing crisis in London, while 22% had had similar issues with senior level staff.

Birmingham is one such city that is facing an influx of businesses and their employees relocating there. Deutsche Bank and HSBC have both moved to the Midlands city from London recently to capitalize on the cheaper rates whilst putting their trade in one of the UK’s fastest growing cities. Channel 4 is set to move hundreds of staff out of London to Birmingham as well, just reinforcing Birmingham’s overall appeal.

HS2 will be arriving in Birmingham first and will offer a 45-minute journey into London once complete. This will only lead to an increase in those taking up residence in Birmingham especially from London as it will become a commuter zone for workers travelling to and from the capital.

Eddie Curzon, CBI London director, said: “The potent combination of lack of supply and high prices means businesses themselves are being priced out of the market, as they can’t afford to recruit and retain their workers, from entry-level to senior staff.

“And with two-thirds of firms not optimistic the [London] housing market will become more affordable in the next three years, we have a stark challenge on our hands.”

Where are there more affordable options in the UK?

As a whole, prices in the UK are increasing so affordable options are becoming fewer and fewer. However, there are still major cities in which prices are nowhere near the inflated London prices.

Those in search of more affordable places to live will find the best value for money in the north-east, where the ratio of house prices to earnings is 5.18. However, for a stronger housing market with better growth predicted in the future, many are choosing to invest in the north-west, where the affordability ratio is 5.81, and Yorkshire and the Humber with an affordability ratio of 5.91.

The smart investment option is the North West right now with two of the UK’s largest cities, Manchester and Liverpool, undergoing huge levels of regeneration with relatively low prices in comparison to the capital. They combine great levels of capital growth along with decent rental yields also.

Big government led projects, such as the Northern Powerhouse, has also contributed to the North’s resurgence. Media City in Manchester, home to the BBC, has been a huge success for a number of years and is part of a major regeneration project which has transformed Salford into a more attractive location for homes and businesses alike.

The Midlands is also being touted as a location in which housing is preferable in terms of price than London. The levels of growth there are also exceeding London since Brexit with impressive house price increases of 7.3% in the year to February. This is down to the investment pumped into the region which has led to businesses taking up residence there and boosting the economy.

London is seeing less investment as a result of more and more businesses and their staff moving elsewhere. It’s by no means a doomed market from an investment perspective, but the consensus is that the smart money is going elsewhere at this particular moment in time. Capital growth and rental yields can be found in the northern locations mentioned amongst others.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

 

AdminWhy are more and more businesses and workers relocating away from London?
read more
Rents in Central London according to the experts

Rents in Central London according to the experts

It’s a well-known fact that house prices in the capital have stagnated in the last year or so, and this frustration for investors is now being felt in the lettings market amongst landlords as well. Fewer homes are going on the market and with properties struggling to sell, it may be time to start looking

Rents in Central London according to the experts

It’s a well-known fact that house prices in the capital have stagnated in the last year or so, and this frustration for investors is now being felt in the lettings market amongst landlords as well. Fewer homes are going on the market and with properties struggling to sell, it may be time to start looking outside London and at other major UK cities.

In today’s article, we’re going to look at the wider view that rents in Central London are falling and why so many are shying away from those markets as a result currently.

Rents dropping

Knight Frank recently published research that showed rents in prime Central London have declined by 2.1% in consecutive years in February since 2016. The same percentage drop in rents was seen in the year to January figures as well, leading many to believe this could be a trend set to continue in the near future as far as London is concerned.

This drop in prices is despite the growing demand for property in Central London, with 17.6% more would-be tenants looking to rent homes in the area in January again according to Knight Frank. 6.4% less properties were advertised to rent in the year to January 2018 than the previous year. It is this increasing demand that could see rental values regain some of their strength in the coming months.

How are sales affected?

On the sales side, prime property in London has seen a rising discrepancy between original asking price and final selling price, with the average gap now reaching around 10%.

A statement said: “The prolonged nature of the adjustment in prime London rents is due to the high levels of supply introduced to the market in recent years, including during the period following the introduction of an additional three per cent rate of stamp duty for landlords in April 2016.”

“As new supply moderates and demand strengthens, we expect to see continued upwards pressure on rental values.”

Barratt Homes pulling out of the capital

Barratt Developments, the UK’s biggest house builder, has said it will not seek to build any new homes in central London after being forced to cut prices on existing stock. David Thomas, Barratt’s chief executive, on Wednesday said the builder had not bought any new London development sites since 2014 and confirmed it had no plans to buy any more for the foreseeable future once those were built out.

“We’ve been in a position over the past 18 months where that market has become very challenging to sell,” said Mr Thomas, adding that Barratt had been lowering prices on homes to accelerate sales.

The fact that such a reputable and renowned developer like Barratt’s are starting to recognise London as ailing somewhat does not necessarily mean the capital is doomed, but taking longer than expected to recover from Brexit fears. The oversupply of properties in London is also a major factor in Barratt’s decision, and they now are likely to focus their efforts on outer London areas and other major UK cities, signalling them as the go-to places for investment right now.

A doomed market? Or a temporary setback?

Whilst London has been unrivalled in terms of capital growth for the best part of 10 years, based on current markets and projections, it looks set to merely level out the way it has done over the last year and a half. This signals a major change for the London property sector and many investors are aware of this moving forward. Although demand in London will always be very high, other major UK cities like Manchester, Liverpool and Birmingham have been much more resilient to the Brexit hangover than the capital has. They are where the smart money is going right now, and while London is not a finished market by any means, it doesn’t measure up in terms of the capital growth and high yields that can be found elsewhere.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

AdminRents in Central London according to the experts
read more
Property Investment Areas – Surrey

Property Investment Areas – Surrey

In today’s edition of Property Investment Areas, we’re going to look at a location which many regular readers may find to be a bit left-field for Tarquin Jones. We’ve made no secret that we find London, and in extension outer London, not the ideal investment location for property right now with stagnant growth and low

Property Investment Areas – Surrey

In today’s edition of Property Investment Areas, we’re going to look at a location which many regular readers may find to be a bit left-field for Tarquin Jones. We’ve made no secret that we find London, and in extension outer London, not the ideal investment location for property right now with stagnant growth and low rental yields.

So, some of you may be asking why we are looking at Surrey as a good investment location. The truth is that we don’t limit ourselves to any one area which enables us to source money-making opportunities anywhere in the county.

Here is why we think Surrey is a great property investment area…

Why Surrey?

Surrey is a £39 billion economy – larger than Birmingham, Liverpool or Leeds. It has some of the highest employment rates in the country, a highly skilled workforce and a burgeoning business base.

Surrey is a major international gateway for people and businesses; next to London and the UK’s two largest global airports – London Gatwick and London Heathrow. Surrey is also a location of choice for some of the UK’s largest corporations – including BP, McLaren, Novartis, Proctor & Gamble, Siemens and Samsung – but also home to over 60,000 SMEs.

With plenty of businesses basing themselves in Surrey as a result of a booming economy, this presents an opportunity for Buy to Let investors. Employees of these companies are looking for properties to rent and with this demand rising, more investors are taking notice of London commuter areas like Surrey. This leads me onto my next point…

Increase in demand

This flood of city dwellers escaping to the welcome tranquillity of Surrey hasn’t gone unnoticed on the property market. In fact, in just 10 years, most areas have seen a base increase of over 30% on all categories of properties. Flats in Tandridge have increased a huge amount, rising 56.8% in price since 2007.

This steady increase in house prices is set to continue. It does make sense, as prices continue to rise in the city (both property and living costs) and it becomes a less desirable place to live, Surrey’s popularity ever-increases. This means that, if you buy property as an investment now in such a hot-spot, you can be pretty certain that the price of that property will increase over-time at a good rate.

Commuter London area

It’s true that the city of London has been hit slightly, with property investment slowing and less enthusiasm on the market to take property in the capital. There are a number of reasons for this, including rising property prices, cost of living and a dislike of the busy city life. But, with this outflow from London, many are moving to areas that are far enough out of the city to not be impacted by the high prices but close enough to make a commute bearable. One of those spots is Surrey, and it enables tenants and investors alike to pay for easy access into London without paying London prices.

High quality of living

Surrey is the most wooded county in Great Britain, offering an excellent quality of life in an Area of Outstanding Natural Beauty. It is home to a number of renowned international schools, including the International School of London in Woking, and ACS Cobham International School.

Good scope for student investments

Surrey has over 52 independent secondary schools, and good state education provision, with students achieving above the national average 5+ A* – C grades including English and Maths at GCSE level.

Surrey is also home to two of the country’s best universities- namely the University of Surrey and Royal Holloway:

  • University of Surrey is a UK top 10 university, with Centres of Excellence in cyber security and space engineering. The university is renowned for its research in science and technology, with a more recent focus on business and enterprise. Students are supported to undertake placements in industry as part of their studies.
  • Royal Holloway is a UK top 20 university. The World List of Universities and Other Institutions of Higher Education places Royal Holloway within the top 1 percent of all higher education institutes worldwide.

The quality educational facilities that Surrey provides mean that it is highly attractive from a student perspective. This widens the demographic for potential tenants for your property and lessens the chance of you experiencing void periods. Buying a residential property therefore in Surrey will allow you to capitalise on both the working and student target market.

In short, Surrey is an excellent commuter location but a desirable area to live in in its own right. It will attract plenty of demand for property which looks certain to lead to capital growth and an even higher yield in the future.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

 

AdminProperty Investment Areas – Surrey
read more
HS2 and its effect on house prices in major UK cities

HS2 and its effect on house prices in major UK cities

HS2 is the new high-speed rail network coming to the UK which will massively enhance travel links across the country and reduce travel times. Starting in Birmingham with the first phase due for 2026 and coming to the North West of England due for 2032, the mere mention of HS2 has already driven up house

HS2 and its effect on house prices in major UK cities

HS2 is the new high-speed rail network coming to the UK which will massively enhance travel links across the country and reduce travel times. Starting in Birmingham with the first phase due for 2026 and coming to the North West of England due for 2032, the mere mention of HS2 has already driven up house prices to properties that will be near the stations. Here, I will discuss the effects of HS2 on property and how investors are taking advantage of potential capital growth well before completion.

Travel from major northern UK cities to London will be easier than ever with HS2 in place. Birmingham to London will be a 49-minute journey, and a train from Manchester to London via HS2 will be an hour faster than it is now; down 67 minutes from 127. This is a commuter’s dream, meaning that many will look to live in property which is walking distance from the HS2 terminal in city centres. The increased demand will lead to house price increases, and many investors are putting their money in off-plan property in cities like Birmingham, Manchester and Liverpool to capitalise on this in the future.

A good example model for how enhanced transport links can increase house prices is the Crossrail in London and outer London areas. In London and the South East, the increase in value of residential property close to Crossrail stations, since that project was confirmed in 2007, ranges from 36-60%. Further increases are likely – values tend to get another boost once operations begin – but already smart money is turning to the High Speed Two rail link (HS2), especially now that the route from Birmingham to both Manchester and Leeds has been confirmed.

Over time there is also the distinct possibility that HS2 could invigorate the property market in the whole of the north of the country, thus addressing a problematic issue that has dogged Great Britain for too long: the north/south divide. The government predicts that 70% of the jobs created by HS2 will be outside of London, itself a catalyst for giving a boost to the property market in areas such as Birmingham and even other Midlands cities.

Figures suggest that the East Midlands will gain most as a region in percentage terms – between 2.2% and 4.3% increase in output in 2037 projected, which may prompt a revival in the property market in many northern UK cities in the years to come.

Many big businesses and companies are taking note of the HS2 effect its having on major northern cities. Birmingham has already seen a series of major corporates taking the opportunity to shift large parts of their business out of central London. HSBC and Deutsche Bank have done so recently leading to an increase of those needing property in the city centre. Perhaps most significantly, in March 2015 HSBC announced that it would move around 1,000 jobs from London to Birmingham, much of which is near the proposed HS2 station in Digbeth.

As a result, residential investors have already started ploughing into Digbeth, the area immediately near the anticipated HS2 station in Curzon Street. “There has been a wave of interest from developers in the area around the planned Curzon Street HS2 station,” says Mark Evans, head of regional residential development at Knight Frank. “The station is part of a much wider regeneration of this area and we can see this reflected in land prices.”

A similar story is to be found in Leeds and Manchester – something that both cities’ councils are keen to exploit. In Leeds, the council has designated the area around its main train station – which should start to receive HS2 services in 2033 – as an area to accommodate around 4,000 new homes. In Manchester, meanwhile, the council has designated six zones adjacent to its nascent HS2 station, three of which are expected to deliver significant volumes of residential property.

Due to the fact HS2 is some way off just yet, many big property agents are wary to forecast figures in terms of what the expected growth will be. But because of historical trends of transport link enhancements increasing property prices in the surrounding area i.e. Crossrail and DLR in London, all are confident that HS2 will follow in a similar vein and lead to capital growth for homeowners.

To see all the Tarquin Jones investment opportunities https://www.tarquinjones.com/investments_all/ for more information. Alternatively, you can give us a call on 020 8445 6542 and speak to a member of the team today.

AdminHS2 and its effect on house prices in major UK cities
read more
Realistically, where can house prices increase in the UK?

Realistically, where can house prices increase in the UK?

With the London markets currently not experiencing much in the way of growth, the main question on every investor’s lips is just where house prices can realistically rise in the UK. In this article, I will explain why London prices are likely not going to increase at the same rates they have done historically, and

Realistically, where can house prices increase in the UK?

With the London markets currently not experiencing much in the way of growth, the main question on every investor’s lips is just where house prices can realistically rise in the UK.

In this article, I will explain why London prices are likely not going to increase at the same rates they have done historically, and why other UK cities are primed to experience its own share of capital growth to bridge the gap.

Why is there little growth in London?

An overly simplistic explanation is that Brexit has affected public confidence in London to the point where little growth is happening. It’s an argument that has some merit, but the fact is that prices have been inflated so much that more and more people can’t afford to buy in the capital. Wages and earnings haven’t risen in accordance with house prices, so there’s a strong suspicion that growth has hit a ceiling in London for the time being.

There are some convinced that prices in London are always set to keep on rising due to the unprecedented demand for property there. This has been the driving factor in pushing up prices there to this point. However, the prices rising further leaves the market very vulnerable to any global events that could cause this capital to be withdrawn- think of the credit crunch back in 2007/08.

What about London rents?

The way rents are established for any property is to look at market averages for property and set them according to that. Rents are not set per se by the landlord, its more to do with market conditions which dictate what tenants will pay every month. If there are more people wanting to rent than there are properties for them to occupy, prices will naturally rise until those able to pay the least are priced out.

But this can’t happen indefinitely: each person earns only a set amount, and they can only allocate a certain proportion of their earnings to rent so they can still afford food, transport and so on.

The question is just how much higher can rents go before nearly everyone is priced out? I’d say not very more, and there are reports of London landlords having to cut rent just to keep tenants. That means rents can’t meaningfully rise until incomes do, and whilst they are ever so slightly, its just not in line with the way rents have spiralled out of control.

Room for capital growth and rent increases elsewhere?

In many major cities in the UK, wages have increased much more than private rents and house prices over the past decade. This means they’re much more affordable and that many would be tenants are willing and able to rent.

These renters then are able to actually afford higher rents and house prices to what they’re paying. This means there’s plenty of scope for growth in cities like Manchester, Liverpool and Leeds where there has been huge regeneration leading to stronger economies and higher incomes, but house prices which have not risen beyond affordability levels.

So, there’s certainly room for prices in these regions to increase, but they need a reason to do so. That reason is almost always down to an increase in demand at the cost of supply. An increase in demand comes from a higher population, and a higher population comes from more and more people wanting to live there. This means that more jobs, great transport links and improvements to infrastructure are key to attracting those wanting to buy and rent in the city.

So far, this has been successful in attracting some of the big businesses and companies previously based in London to other major cities in the UK. An example of this is the BBC’s well publicized move to Salford in Manchester creating the MediaCity. This has played a huge role in regenerating the area leading to everything mentioned above- more jobs, better transport links and improved infrastructure.

The imbalance being addressed?

For a long time, most things about the UK have been London-centric. The economy, politics, property etc. This imbalance is being picked up on and just because house price growth has been faster in the south than anywhere else over the last 10 years doesn’t mean that’s bound to continue. Actually, I think it’s less likely because of everything I’ve mentioned in this article.

There’s a limit to how far prices can run ahead of incomes, and we now seem to be testing that limit. Don’t be surprised to see London prices stagnate for the foreseeable future whilst other regions slowly, but surely, begin to catch up.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

AdminRealistically, where can house prices increase in the UK?
read more