Tag Archives: city
UK’s first affordable rent to buy homes to be built in south west city
Plans have been announced for the UK’s first affordable rent to buy homes to be built on a development in the south west of England. Plymouth based housing companies Persimmon Homes and Rentplus have signed an agreement to develop 19 new affordable rent to buy homes in the city to help tackle the region’s housing shortage and help people into home ownership for the first time. The properties are part of a 139 home development built by Persimmon Homes at William Prance Road, Derriford, as part of Plymouth City Council’s Get Plymouth Building programme. ‘With average house prices in the South West now close to £230,000 and in some places more than £300,000 and average earnings in the region among the lowest in England, we have an unbelievable housing situation where many houses cost more than 10 times the average annual household income,’ said Rentplus chief executive, Richard Connolly. ‘Rentplus is designed to make housing accessible for all those who wish to own their own home and we look forward to working with partners in Plymouth and across the country to help tackle the housing crisis,’ he added. The first homes at Palmerston Heights are now complete and Rentplus is working with Tamar Housing Society to identify suitable tenants in need of an affordable rented home who aspire to buy their own home in the future. The Rentplus homes are available at affordable rents up to 80% of the local market rent for an agreed period of between five and 20 years. Once the rental tenancy has finished, residents are given the opportunity to buy their Rentplus home and will be given a 10% deposit by Rentplus to do so. Palmerston Heights is close to a historic 19th century fort and includes a mix of two, three and four bed houses and one and two bed flats available on the open market or through rent to buy and shared ownership schemes. An additional five social rented homes will be managed by local social landlord Tamar Housing Society. The Rentplus homes will be marketed and allocated to households by Tamar Housing Society through Devon Home Choice housing register which enables local households to be considered for affordable housing which becomes available in the area. Figures from the South West Housing Initiative show the region is the fastest-growing in the country, but has the nation's biggest regional housing crisis. A report from the National Housing Federation shows that private renters in the South West are spending 35% of their earnings on rent, the third highest rent to income ratio in the country. A study in June 2013 found there were more than 10,000 households on Plymouth’s housing register, underlining the importance of building new homes in the region. Julie Barnett, chief executive of Tamar Housing Society, believes it is vital to provide affordable housing to those… Continue reading
City of London office market sees strongest recovery on record
Rents for City of London offices have proved more resilient in recent years than during previous market downturns and recoveries, according to new research. The analysis from real estate firm Knight Franks indexed City of London office rents at 100 for the pre-downturn peaks recorded in the fourth quarter of 1989, the third quarter of 2001, and the fourth quarter of 2007. This showed that rents in the most recent downturn found a floor and moved into recovery far sooner than during the early 1990s and early 2000s downturns and overall the City office market has seen its strongest recovery on record. Also, the current recovery is proving to be far more enduring than that seen after the early 2000s downturn. Indeed that market cycle lasted just six years, with the arrival of the global financial crisis in late 2007, the report points out. It also explains that the outlook is good as it is over seven years on from the market peak for rents, and growth is still occurring, and expected to continue. ‘These figures demonstrate that the City office market has proved far more resilient in recent years than anyone would have imagined back in 2007 when the financial crisis began,’ said Bradley Baker, central London tenant representation partner at Knight Frank. ‘One of the keys to the City’s success has been its’ significant diversification away from an over-dependence on the financial sector in the past and instead embracing and attracting technology and media firms such as Saatchi & Saatchi, Amazon, Hachette and Uber,’ he explained. ‘Unlike previous downturns, the current recovery began within two years of the initial crash and has been sustained for over five years. This compares favourably to the 2001/2003 and 1989/1991 crashes which took over three and four years respectively to post a recovery, and even then they were short lived,’ he added. Continue reading
International tenants dominate top end of central London prime rental market
International tenants and low stock levels are key features of the current prime central London lettings market, especially at its uppermost levels, according to the latest analysis report. Domestic tenants, including students and middle ranking pied-a-terre seeking business commuters, tend to dominate the rental market price band of £300 to £1,000 per week, according to the review from prime lettings specialist E J Harris. But the £1,000 to £4,000 per week price band is characterised by bankers and corporate tenants and above £4,000 per week the market is dominated by ultra-wealthy visitors from Russia, Africa, the Middle East and Asia. Using research from their own client database, local market intelligence and drawing on wider industry figures, the firm has produced a guide to top addresses, tenant profiles, typical apartment/house sizes for different rental price brands across the prime sector. It found that rental values have increased by 1% in prime central London over the past three months, achieving an average gross yield of 2.92% and the average rent per square foot in is currently £54. Tenants seeking rental properties on the market for £300 to £500 per week in prime central London can expect to find one bedroom apartments, providing 300 square feet of accommodation, typically located in Shepherd’s Bush, Holland Park and Bayswater. Tenants in this price brand are normally individuals or young couples aged 25 to 35 who looking for a pied-a-terre in the capital or young graduates who have landed their first job. Stock in this price brand is currently down 10%. Those searching for homes available to rent for £500 to £1,000 per week can find one or two bedroom apartments, providing 700 to 900 square feet of accommodation. Tenants will typically find a wider choice of properties available at that price range in Notting Hill, Marylebone and East Mayfair where the district borders Oxford Street. Tenants with this price brand are often students from wealthy families, whose parents are willing to pay their entire rent and deposit up front in order to secure the property they want. This price bracket also includes European and American corporate tenants who are relocating to London, and are typically couples with children or young single professionals. Stock within this price band is also currently down 10%. Tenants looking to spend £1,000 to £2,000 per week can expect to find two bedroom apartments offering 1,000 to 1,500 square feet of living space and situated in Mayfair, Belgravia or Marylebone. Typically, tenants searching for properties at this level are socialites seeking luxury pads or corporate tenants relocating to London, usually for a three-year stay. Stock in this price band is currently up 5%. E J Harris reveal that tenants able to spend £2,000 to £4,000 per week will find two and three bedroom luxury apartments situated in Belgravia, Mayfair or Knightsbridge. The typical profile of tenants seeking homes at this price range are CEO’s and… Continue reading
