News

MORTGAGE lending in July leapt back to levels last seen five years ago, but some parts of the country are still yet to see any boost from the budding recovery to the housing market.

According to staggering figures released by the Council of Mortgage Lenders (CML) yesterday, gross mortgage lending rose to £16.6bn in July, the largest level since October 2008.

The amount of gross lending is up 29 per cent from the same month in 2012, and rose 12 per cent from June alone, following a deluge of evidence that an upswing in the property market is developing.

However, some parts of the country are still yet to see a boost from rising house prices or increased lending. According to research published today by LSL and Acadametrics Wales, Welsh house prices are still falling, down by £2,500, or 1.6 per cent in the last year, and losing £338 in value from May alone.

Property site Zoopla also reveals a similar regional gap today, finding that London homeowners were less likely to have to reduce the asking price when selling their homes.

Less than a quarter of London sellers have to reduce their asking price, while over 40 per cent of those in Barnsley, Wigan and Sunderland end up cutting their prices.

Ben Thompson of Legal & General’s Mortgage Club said: “At the moment it seems that the only way is up for the housing market”. He added: “It’s crucial that at every stage supply meets demand so that we have a balanced market that is not skewed and is accessible. The market needs to be sustainable and there is still a lot of work to be done to ensure that it is.”

Source: CityAM

Admiralty Arch will be turned into a luxury hotel, flats and a private members’ club after Westminster City Council gave plans the green light.

Prime Investors Capital have been given permission to convert the space into a 100-bedroom five-star hotel. The company leased the building in October last year for 99 years in a move that will raise £60million for the Treasury.

Francis Maude, minister for the Cabinet Office Francis Maude, said: “The plans approved today will breathe new life into Admiralty Arch, transforming it from unsuitable office space into a publicly accessible landmark that everyone can admire and enjoy.

“Historical and architecturally significant buildings like the Arch shouldn’t be sitting empty in the Government’s estate costing £900,000 a year to run. Instead we’re raising £60 million for the taxpayer and working closely on every aspect with Prime Investors Capital (PIC), Westminster City Council and English Heritage to restore it to its former glory.”

Robert Davis, Westminster City Council deputy leader, said: “Personally I am delighted that this building will now see high quality public use.”

The development will see £600,000 go towards affordable housing, well below the “policy compliant” sum of £1million.

Originally designed as a ceremonial passage from Trafalgar Square towards Buckingham Palace, Admiralty Arch is one of London’s most recognisable landmarks.

The plans will see the Grade I-listed building renovated in keeping with architect Sir Aston Webb’s original drawings from around 1910 with many lost designs restored.

Construction will begin early next year and the hotel is expected to open its doors to the public in 2016.

London house prices are set to surge six per cent this year — adding £30,000 to the value of a £500,000 family home, a top estate agent said today.

The new projection comes on the day official figures showed mortgage lending at its highest level since the banking crisis, as buyers flood back into the market. Experts at Savills said they had ripped up their “premature” prediction of “flat” prices in central London after stamp duty rises in last year’s Budget failed to slow down growth.

But the move will reignite fears that thousands of young people are being priced off the property ladder. Lucian Cook, director of Savills’ residential research, said “a clear Bank of London effect” was keeping prices higher as foreign investors and British home-owners alike choose to tie up their money in London bricks and mortar.

He said: “At a global and UK level, London is viewed as a relatively safe place to own property and, once invested, buyers are reluctant to withdraw their equity.” Other factors have been a chronic shortage of supply, record low mortgage rates and easier access to loans following the Government’s Funding For Lending scheme.

Most agents had forecast flat prices or even small falls this year after Chancellor George Osborne put stamp duty of seven per cent on homes bought for more than £2 million, increasing to 15 per cent if bought through offshore companies. It was thought that this would deter foreign buyers, resulting in a cooling of the overall market.

But a July index from agents Knight Frank and researchers Markit, out tomorrow, will show confidence about future price rises at record levels in London households. Although Savills’ projections apply to top central homes, other property experts said much of the rest of London is experiencing similar growth with some of the hottest markets just outside the centre.

Michael Hodgson, chairman of agents Douglas & Gordon, said: “With falls unlikely, we have undercooked our prediction of an eight per cent increase in capital values in 2013. So egg on our face but not as much as some of our illustrious competitors.”

Barclay Macfarlane, head of agents Strutt & Parker in Fulham — where prices are up 13 per cent this year — said: “The threat of a mansion tax and the stamp duty rise at £2 million are two issues that seem to have subsided.”

Source: Evening Standard

NEED TO KNOW | AREA INSIGHT

Parsons Green is loved for its green open spaces making it a popular choice for families after space and areas to entertain young children. The famous Hurlingham Club, a beautiful mansion sitting on 42 acres of private green space, is a big attraction.

The area is attracting people who have been forced out of Chelsea due to even higher house prices. Buyers pay around £900 per square foot in Parsons Green compared to up to £1,500 in Chelsea.

Tucked away between Fulham Road to the north and New King’s Road to the South, the properties are predominantly Victorian terraces and Georgian period homes, many of which are occupied as houses rather than flat conversions. The amenities of Fulham are close by, but the area is a hub for quality eateries, pubs and independent boutiques in its own right.

“Parsons Green is highly coveted. The constant upgrade of an ultimately limited supply of houses is reflected in the rising property prices. However, even following annual percentage increases, Parsons Green still provides relative affordability compared to its neighbouring Chelsea,” says Foxtons Fulham sales manager, Guy Evans.

Source: CityAM

The £8bn regeneration of the iconic Battersea Power Station is helping thrust the area back into the spotlight

Battersea is set to become the most sought after address in London. It is one of the capital’s biggest regeneration zones, initiated by Boris Johnson’s decision to approve the transformation of the famous Battersea Power Station. The move is part of the Mayor of London’s “2020 vision”, in which he is calling for “urgent and bold” action to deliver an additional 400,000 new homes in the capital in the next seven years.

A Malaysian company bought the site in 2012 for a reported £8bn. It enlisted Uruguayan architect Rafael Vindy to transform the derelict spot into a multi-use complex offering 16,000 new homes along with public parks and modern promenades. The residential limb of the development, called Circus West, is comprised of a broad selection of apartment types ranging from studios priced at £338,000 to penthouse suites for £6m.

The new 450-acre neighbourhood will not open until 2016, but in January buyers and investors queued in the bitterly cold weather to get in early in what looks set to be the top residential site in London. Foreign investors have already bought 824 of the 866 apartments.

The redevelopment is special for many reasons. Leading experts predict it will be the last time we see the creation of a completely new district where none had existed before and the changes also mark a second coming for Battersea. The area was first a fashionable address back in the 90s but quickly became overshadowed by its affluent neighbours and later, the flourishing creative scene in east London. The redevelopment of the power station has helped thrust Battersea back into the spotlight.

The American government’s announcement in 2008 that it will move its embassy to the area is expected to result in more hotels popping up to cater for the surge in international visitors. Other embassies are expected to follow suit.

Battersea has also resurrected its creative credentials. The Royal College of Art, once situated in Kensington, has relocated to Battersea Bridge Road and Vivienne Westwood, Victoria Beckham, Simon Fuller’s XIX Entertainment and architects Foster & Partners all have offices there.

Battersea doesn’t have an underground station, which has long been a deal breaker for those who had previously considered buying there, but an extension of the Northern Line will help unlock its full potential. The station will be located outside both Battersea Power Station and on Wandsworth Road. It has been made possible by an extension from Kennington and is set to open in 2020.

The stretch of land along the Thames has changed beyond recognition. Much of the unused industrial land has turned into a hotspot for modern, luxury apartments. Already we’ve seen waterside developments like Albion Riverside, designed by Norman Foster, set up there, along with The Tower further down the river. But there’s more to Battersea’s residential offering than Circus West and the riverside developments.

The interest in those developments has had a ripple effect, as more and more buyers have began looking outwards to the settled communities and its traditional Victorian terraces. Little India and “Nappy Valley”, the area between Wandsworth and Clapham, have become a nestling ground for affluent families due to the large period homes and well performing schools. These areas have also proved popular with City workers with families who want to be far enough from the office to switch off but close enough to allow for an easy commute.

For those after a middle ground between the new and old, Crest Nicholson has launched Shaftesbury Gate, a development comprised of new-build homes designed to complement the traditional Victorian and Edwardian mansion blocks in the neighbourhood. Located in the highly coveted Shaftesbury Estate Conservation Area, the site offers just one and two bedroom apartments; two and three-bedroom duplexes; and four-bedroom townhouses. All are equipped with the modern appliances that you would expect from a new-build but the intimate setting is designed to be an antidote to impersonal apartment blocks.

“Increasingly in London, newly built properties are being sold to overseas buyers as an investment, however, our developments are specifically designed to appeal to the local market in the areas in which we build,” says Crest Nicholson London managing director, Trevor Selwyn. “As a result, we sell predominately to local owner occupiers, meaning developments like Shaftesbury Gate will become real communities with long-term residents as opposed to transient communities of shorter term tenants, as is often the case in larger developments.”

Experts predict the cost per square foot to reach £580, which is still considerably less than Chelsea across the river, where the cost per square foot is £1,500. As a result, Battersea has seen an influx of people who have been priced out of Chelsea and Kensington.

If you’re interested in moving there, now is the perfect time to buy. Battersea has always been a great spot for quality boutiques and excellent independent eateries but that is set to expand, as many restaurant chains and shops are planning to move there to cater for the thousands of new residents.

It’s also the right time for investors to buy. Knight Frank predicts the value of properties to increase by 140 per cent and since the news of the regeneration was announced in 2007, prices have already increased by 15.5 per cent for houses and 9.7 per cent for flats, bucking the depreciation in value experienced in some other London postcodes.

UK HOUSE prices soared to record levels in July, according to online property portal Rightmove.

The average price rose 0.3 per cent month-on-month and 4.8 per cent year-on-year to £253,658.

This is the seventh consecutive monthly rise, the report said.

Prices in London rose 12 per cent to an average of £515,379.

“The market is currently benefiting from the ‘aggregation of marginal gains’ where incremental improvements across a range of key market drivers compound to slowly but surely build momentum,” said Miles Shipside, Rightmove director and housing market analyst.

RIGHTMOVE has doubled its 2013 forecast for house price growth to four per cent after seven consecutive months of gains.

Year-on-year price increases for newly marketed properties rose to 4.8 per cent in July – up £11,561 on this time last year.

Prices rose 0.3 per cent – an average of £860 – since last month, and Rightmove said an “aggregation of marginal gains” had fuelled its optimism.

The property website said there were signs of a broader-based recovery, with all regions’ prices up year-on-year for the first time in nearly three years.

Consumer confidence has also increased. The number of people expecting average prices to be higher in 12 months has doubled from 31 per cent a year ago to 62 per cent now.

Rightmove said it has dealt with five per cent more transactions in the year to date. Meanwhile email enquiries to agents and developers are up 18 per cent on 2012, the number of new sellers has risen by five per cent, mortgage approvals are up by six per cent and it said surveyors are “struggling to cope” with demand.

Source: City AM

LONDON’S Silicon Roundabout was home to more start-ups than any other area in the country during the year to March, new figures show.

The postcode EC1V – a hotspot for technology firms –  saw 15,720 start-ups created over the 12-month period, outstripping some of London’s international financial centres by a considerable distance, according to a survey by UHY Hacker Young.