Education
New body launches in UK to bring professionalism to multi home rental sector
With the residential rental sector attracting more investors than ever before the first cross-industry organisation dedicated to driving the professionalism in the sector has been launched. The UK Apartment Association (UKAA) said it will focus on driving up standards of customer service and delivery to ensure that all renters are given the best possible experience. Its creation has been championed by Housing Minister Brandon Lewis, who is calling on the industry to work together to deliver more homes for rent and better standards for tenants. The UKAA aims to differentiate the multi-family housing market from the amateur ad hoc rental service provided by small scale landlords that currently make up the bulk of rentals. ‘I want to see the private rented sector respond to the nation’s housing needs by providing new forms of supply and improved quality and choice,’ said Lewis. ‘I welcome the UKAA as a body that can help build the capabilities of the build to rent sector in this country, bringing together the needs of private renters with the institutional capital that wants to invest in meeting their demands,’ he added. With more than nine million renters in the UK and vast potential for that number to grow, there is a huge opportunity for build to rent developments as an institutional asset class. In recent months alone, the number of developers and investors committing to projects has risen but there is still a distance to go before renting becomes the professional, service led industry backed by large institutional investors that it is in the United States. As the first international partner of the US-based National Apartment Association (NAA), the UKAA will benefit from the experience of the US multi-family industry. A federation of nearly 170 state and local affiliates, NAA encompasses over 69,000 members representing more than 8.1 million apartment homes throughout the United States and Canada. ‘The NAA is eager to bring industry training, best practices and networking opportunities to the UK. In addition, our US members are increasingly seeing opportunities for global growth and are looking to NAA for guidance when entering a new market. Our partnership with UKAA will be invaluable to our association as we address the growing need for a global rental housing industry,’ said Doug Culkin, president and chief executive officer of the NAA. As well as providing a valuable platform for the industry, the UKAA aims to lead educational training, customer service delivery, study tours and provide a suppliers’ forum, market data and a range of resources. A growing number of high profile companies and professionals from across the sector have already signed up as members including Atlas, Hermes, Greystar, Manchester Life and Savills with suppliers including Roomservice by CORT and Yardi. The UKAA is working in conjunction with all of the other industry bodies and is in the process of establishing regional branches, which are so far under way in Manchester and Scotland. ‘This evolution of the rental sector… Continue reading
Agents predict a good year for French property sales to overseas buyers
Having seen prices fall in recent year, the residential property market in France is set for stability in 2016 with agents predicting that it will be a good year for overseas buyers. In particular agents believe that low interest rates for mortgages in France and a better currency exchange rate for British buyers will entice many into buying a home in the country in the coming year. It is still a buyers' market but properties are definitely selling much better than previous years. When owners are keen to sell and are willing to be realistic with their prices, a buyer is usually found quickly. Among those predicting a strong year for sales in France is Tim Swannie, director of Home Hunts. The firm is seeing interest from UK based clients as well as buyers from across mainland Europe, particularly Scandinavian countries, Belgium, the Netherlands and Switzerland, and also from the Middle East, China, South Africa and the United States. He pointed out that the French Riviera property market has remained relatively buoyant throughout the economic crisis but really took off in 2015 and he believes that it will continue in the same direction in 2016. ‘I think prices will remain stable and we may even see a small increase. Other areas which are proving very popular are Provence, Languedoc Roussillon and the Dordogne as well as vineyard properties around the Bordeaux area,’ he explained. Trevor Leggett, chairman of Leggett Immobilier, describes the current market as offering buyers a ‘once in a decade’ opportunities. ‘British buyers have benefited from a weak euro, cheap borrowing and the lowest French property prices in years. Subsequently they have been snapping up bargains all over France. In 2014 sales to UK buyers made up 70% of our business, last year this rose to 77%,’ he said. The average age of people buying was 53 and the bulk of buyers were people approaching, or at, retirement age. ‘We know that France always comes out on top of the quality of life surveys and it has one of the world's best healthcare systems so it's no surprise many people want to spend their golden years here,’ said Leggett. ‘However, we also saw a significant number of young professionals and families snapping up bargains, we saw a rise in the 40 to 50 age group with many families looking to take advantage of the excellent education system and a less stressful way of life,’ he added. The firm found that south west France was exceptionally popular with data showing increased sales in all regions. The biggest increase in buyer numbers was along the south coast in Languedoc Roussillon and PACA. The firm didn't see any significant changes in average spend but did see quite a big jump, around 25%, in buyers seeking a mortgage for their purchase. ‘This leads us to believe that buyers have confidence in the French market and the prospects of long term capital growth with fixed rate… Continue reading
Peripheral areas in prime central London market set to help prices rise by 3% in 2016
Peripheral areas in central London such as Shoreditch, Kings Cross, Battersea and Shepherds Bush could be the new engine room of the London prime property market in 2016, it is suggested. These locations are likely to contribute to anticipated price growth of around 3% across prime London, according to an outlook analysis from boutique search agent Banda Property. It also suggests that strong competition among British home buyers for middle level housing in the £1million to £2 million price bracket will focus on outer central areas which offer quality flats and family houses with gardens, good schools, transport links and village amenities. Overall, the prime central London market is set to benefit from a surge in demand for investment properties early in the year as buy to let investors and second home buyers rush to beat the April deadline and avoid the new additional 3% stamp duty, the report explains. However, the firm expects that the numbers of new foreign buyers entering the market from Russia, the Middle East and Asia will be smaller than in 2015, as a result of higher costs and unfavourable exchange rates. But despite the Chancellor sending a negative message to investors with further stamp duty increases, Britain is still regarded as the best in Europe if not the world for real estate investment thanks to its tolerant and secure society, stable economy, transparent financial and legal systems and world class education ensuring it remains an attractive option for internationals seeking somewhere to live. ‘If the effects of the last stamp duty rise are anything to go by, we may well see a surge in activity as second home buyers and investors try to close before April. This will temper potential annual capital growth to the relatively moderate level of 3% overall and value will become more important than ever,’ said Louisa Brodie, head of search and acquisitions at Banda Property. ‘I’m confident that the London property market is resilient, as demonstrated this year, when despite hugely negative press and challenging regulation changes, the market has slowed but still remains an attractive proposition to buyers with a long term view,’ she explained. ‘British homebuyers will dominate in 2016, buying up good value properties in the peripheral ring around the prime locations. They are broadening their horizons beyond the obvious areas such as Chelsea and Belgravia, looking instead to places such as Battersea, Kings Cross and Clerkenwell as well as Shepherds Bush and Ealing in the west, in order to secure more square footage for their money,’ she pointed out. ‘With the key sections of Crossrail coming into operation by 2018, we will see particularly strong growth along the corridors of operation in the coming year,’ she added. Continue reading
