Overseas Property Blog :: guide to international real estate investment

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Archive for the ‘UK Property’ Category

10 East London City Start-ups to Watch

Europe’s tech industry seems to have found base in East London, or at least that’s how the UK government plans on selling London’s newly expanded Tech City district. The Silicon Roundabout has been stretched out to accommodate a growing number of start-ups and other tech firms, with the government pledging even more support to help attract new talent and add to the areas twitter-happy conversation. While some welcome the attention, others dread overexposure. As industry bigwigs such as Google and Groupon move-in, locals worry that restrictive property prices might soon follow. Either way, Tech City is buzzing, and these are the ten most rambunctious techies on the block.

Cameron’s New Housing Bid: Lend, Build, and Repeat

David Cameron has finally decided to do something about Britain’s troubled housing market, but it’s not sitting pretty with analysts and investors alike. His radical new strategy (his words, not mine) includes: letting first-time buyers access mortgage funds after only putting up 5% in down payments; further pushes for the Right To Buy scheme targeted at social housing, and injecting a (deceivingly) sizable £400 million to resuscitate the country’s moribund construction sector. Also, in a bid to highlight how incredibly serious Mr. Cameron’s government is about resolving the current housing crisis, he even announced to insure lenders against any defaulting mortgages initiated under the said plan. No explanations, however, as to why none of this gloom was apparent last year while carrying out those brutal spending cuts, of which developmental housing bore the deepest gashes.

UK and US Face Buy to Let Boom Hand in Hand

We always talk about the special partnership between the UK and US, and we all know that it will scarcely ever be as “special” as it was between Bush and Blair, at least not until sufficient time to have past for us all to have forgotten the lies Blair told during the time that he was being operated from behind by Bush, but that is another article. But one special relationship that we have no such choice in is the special relationship between our economies and housing markets.

Trump to Fight Scottish Wind-Farm on Every Possible Front

Donald Trump is furious about a proposed off-shore wind-farm near his £750 million golf resort development in Menie on the Scottish Aberdeenshire coast — so much so that he has written a letter to Alex Salmond. In the letter, Trump calls the proposed 11-turbine wind-farm “disastrous and environmentally irresponsible”, one wonders if he would think it was so disastrous or environmentally irresponsible if he wasn’t about to see completion of a golf resort a mile down the beach from it.

London Property Still Prohibitively Out of Reach for First Time Buyers

For the last few years, the London property market has been one of the most talked about in the world. Before the crash it was talked about because of the rapid rate at which property prices were growing, especially prime properties, and the fact that first time buyers were being priced out of the market.

The UK’s BOOMING Rental Market in 2011 – Who Would Have Thought!?

No one was hit harder by the violent crash of the UK housing market than buy to let investors. Landlords went from having no difficulty getting credit to having no chance of getting credit in a very short space of time. The market was just too risky. But now they are having the last laugh, lenders are practically falling over themselves to keep buy to let investors in credit as the UK rental market booms.

There have been near constant reports of rising rental demand and rising rents since the second half of 2010. According to the reports rents rose across the entire UK in 2010, but the most notable rises were, and continue to be in London and the South West. According to Cluttons, rents in Central London rose by a record 19.1% in 2010.

And it hasn’t stopped this year. In RICS second quarter report in the buy to let market, a balance of 35% of surveyors reported rents rising rather than falling, and the also reported rents rising as well with a forecast for 8-10 percent rises in Central London this year.

The growth is hardly surprising. The UK house price correction was nowhere near as expected, or as it would have needed to be to make UK housing affordable — especially in London. And at the same time the crash in the banking system was exactly as bad as expected, or maybe even worse. The banks are barely lending, and even the few first time buyers with good enough credit to get a loan need at least a 10% deposit, which most just can’t raise in the current climate. So, would-be first time buyers are renting and getting used to it.

This is now fuelling record growth in rents according to the latest data from LSL Property Services. In the latest release of its buy to let index the firm reported a 1.2% month on month increase in August. This is the fastest rise recorded by the index in a year, and took the average rent in England and Wales to the record high of £713 per month.

So, the investors who can afford it are building their portfolios at record low interest rates, and with prices still subdued in most of the country (except London and the south). House-builder Barratt have just reported a 25% rise in sales to investors in the first six months of this year compared to last year. This growth is confirmed by the growing number of buy to let mortgage products being released by lenders to meet the growing demand.

Westfield Stratford: Europe’s Largest Urban Shopping Centre Opened Today

Customers gathered outside the new Westfield Shopping Centre in Stratford City today eagerly waiting to explore this brand new mega-centre, which is now the largest shopping centre in Europe surpassing Westfield group’s Shepherd Bush Centre in West London.

Westfield-Stratford_outside

UK Buy to Let Investment Thriving on Simple Economics

row-of-homes-in-london-england

There is a question at the moment, like some sort of mystical force may be at play; over why the UK buy to let scene is currently thriving beyond belief. It is simple economics:

Hardly anyone is buying a home right now, for reasons to be explained below. And home builders are hardly building, primarily because no one is buying, but also because they (the builders) are still licking their metaphorical wounds from the financial strike they suffered, and remain fearful of the economic outlook that lies ahead.

Toppling the Tyrants by Squatting in Gadaffi’s London Palace [video]

A group of what you might call professional squatters, but would be more likely to call opportunistic anarchists have seized one of Colonel Gaddafi’s London Residences. The group calling itself “Topple the Tyrants” occupied the residence in Hampstead Garden Suburb on Wednesday.

London Rents Rising Steeply with High Demand for Flatshare and Affordable Properties

apartment-building-in-londonThe London rental market is booming. According to several sources including the Royal Institute of Chartered Surveyors soaring rental demand is leading to the fastest rent growth in years.

Unfortunately for the young professionals moving to the city, they really need the streets to be paved with gold to be able to afford somewhere to live. With mortgages out of the question for first time buyers, and rents also currently outwith their budget they are being forced to go down the route of a flatshare or choose somewhere downmarket, really really downmarket.

The Guardian introduced us to 23 year old graduate Aaron Frazer, who, after moving to London to take up a job with a charity, has found himself completely priced out of the market.

After attending a “flatmate party” in which those with rooms for rent and those looking for rooms are thrown together in the hopes of finding a connection, a dejected Frazer said:

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