Tag Archives: market



July 15 / Marketing, Property

State of Real Estate Market: July 2016

Each month we report on the current state of real estate, but this month has been dominated by one single topic: Brexit.

Yes, on June 24th we discovered that the UK will be saying ta’ra to the EU, leaving the world in a state of shock. And you can be damned sure that this has affected the state of real estate in July.

Property trusts suffer hard

There is often no better long-term investment plan than a property trust. But by their very nature, they will collapse in the event of mass-withdrawals. Post-Brexit, too many people have been trying to withdraw cash from these trusts, resulting in suspended accounts until the properties can be sold.

Commercial property is boosted

It’s not all doom and gloom, and a real boost to the commercial property market was delivered when the developers of the Cheesegrater in London (aka Leadenhall Building) announced that the building had been filled. With rent in the building reaching up to £100 per square metre, this is a real post-Brexit blues boost that the property sector has been needing.

Investment opportunities are rife

A US private equity firm this month announced it will be investing £1 billion in UK property, following the cut prices available, both to residential and commercials real estate. The opportunity for buyers is clear, and great deals are available among the uncertainty. We all know property bounces back, so now is the time to buy.

So there you have it. July 2016 was the month that Brexit dominated the property market. Let’s hope next month gives us respite and something else to talk about. But remember, now is the time to buy!

 

July 14 / Marketing, Property

Serviced offices market to dramatically increase

According to the latest issue of Estates Gazette, the serviced office market is to see a sixfold increase in value over the next 10 years. This follows from strong levels of growth over the past decade, which saw a 67% increase from 2005 – 2015.

With a current value of £16 billion, and a projected value of £126 billion by 2025, the services offices market is certainly a good opportunity to be looking at right now. But why the rise?

Of course, growth in business is behind the expected increase, especially so in people-powered workplaces. Small firms and start-ups, for example, have grown massively in the past decade, thanks to numerous accelerator programmes, both private and government funded.

The growth in professional services and the communications sector has also seen a need for serviced offices, as has more flexible and accommodating work habits, with internationalism playing a big part.

If you’re a UK based firm, then this next bit of information may help in choosing where to direct your efforts beyond London. Manchester, Birmingham and Leeds, respectively, are hotspots for people-powered business, and should be key targets for setting up serviced offices.

But don’t forget, internationalism is behind this trend, so make sure to set your sights further than the UK alone. Brexit or no Brexit, we’re a global economy.

July 13 / Marketing, Property

Property in the UK after Brexit

52% of those reading this article will be thoroughly chuffed to see that the UK is moving away from the EU. 48% of you might be a little less chirpy.

Either way, PM Theresa May has said ‘Brexit means Brexit’ so it looks like we’ll have to deal with it and move forward.

So, we ask how this is affecting the property market in the UK, in the immediate aftermath of the unexpected result.

Firstly, what’s happening now? A lot, is the simple answer. For one, it turns out that some purchasers had ‘Brexit-clauses’ written into their contracts, that have allowed them to walk away from deals when the result went the way it did.

This, combined with smaller interest in property currently, has meant zero growth in the London property market, and a standstill during the Brexit period.

It has been widely reported that property trusts aren’t doing all too well either, since attempts to withdraw cash means property must be put up for sale. This takes time, and so some trusts have had to suspend withdrawals, due to too high demand.

But it isn’t all doom and gloom. For Britons looking to buy, now is the time! With prices not increasing, and less demand overall, a good deal on a property can be brokered.

So if you were a Remainer but were also in the market for a new home, look on the bright side and grab a bargain!

June 20 / Property

Office property sales down globally

Office property sales account for a great deal of real estate investment, but recent news tells us that, across the globe, office property sales are down in the first quarter of 2016.

Real estate firm JLL found global activity totalled $133 billion in Q1 of 2016, which is 14% lower than Q1 of 2015. It is also the weakest performance since 2013.

Despite this being a global issue, the EU referendum still manages to sneak its way into some of the reasoning behind Europe’s decline in office property sales, with the uncertainty causing a 15% drop in sales volumes.

While this is bad news for investors looking at workspace property, the decline in sales will have the knock on effect of more competitive pricing. Time to grab a bargain!

How are property sales going for you? Get in touch and let us know.

June 14 / Marketing, Property

State of the real estate market: June 2016

Another month, another set of figures swinging from one end to the other. Welcome to the world of real estate. Let’s take a look at the property market, as it stands, in June.

Cost of renting increases

This should come as no surprise, and feels like we’re a broken record, but once again, the cost of rental property has increased across the UK – not just London!

The average rent for a one-bedroom property has risen to £746 per month, which is around 48% of the average person’s wages. In London, people can expect to pay 57% of their wages, with the average rent for the same style property at £1,133.

Good news for landlords of course.

Lack of housing

More broken records coming. As you would expect, driving the increased cost of renting, is a lack of new housing in the UK. And figures coming out now, looking at May this year, showed UK property supply down by 5%.

The north of England is being hit worst, where the lack of property (accounting for 47%) is seeing the biggest drop. But while London isn’t faring any better (in general), some boroughs are doing okay – for example, Merton saw supply increase 30% in May.

House prices increase

This all points towards higher house prices. Yes, despite the EU referendum looming over the property market, house prices are still managing to be on the up, with a 8.2% rise in the past year, across the UK, with a rise of 14.5% in London.

Unfortunately, the north of England continues to be hit worst, with the north east seeing only a 0.1% increase in prices – hardly comparable to the UK-wide figures. So, depending on how it may affect your commute, you’re likely to get a house for less than the average £209,054 if you head up north.

Newsletter

Get news updates sent straight to your inbox
  • This field is for validation purposes and should be left unchanged.