Tag Archives: investments
BPF calls for policy measures to support commercial real estate post Brexit vote
The British Property Federation (BPF) has called in the UK Government to consider a raft of policy measures to support real estate, particularly the commercial sector. The calls comes following the publication of the latest report from the Royal Institute of Chartered Surveyors (RICS) which shows a significant decline in confidence, activity and investor interest in UK commercial real estate. The report, covering the second quarter of 2016, says that investment demand for commercial real estate has fallen sharply and that, although some immediate turbulence was to be expected following the European Union referendum, the sector may in fact face a far more significant downturn. The BPF is urging the Government to monitor the situation closely and consider introducing a package of support for the real estate sector, including accelerating its proposed reform of business rates to support activity in the broader business economy. It also wants it to delay the introduction of plans to restrict the tax deductibility of corporate interest expense for a year until 2018, to ensure that the rules are implemented in a way that doesn’t deter investment. And the BBP suggests the introduction of a range of tax reliefs for Build to Rent development, including CIL relief, relief for modular construction, and stamp duty relief for new build to rent developments on the condition that they will be let on tenancies of three years or longer with rent increases tied to inflation. It also wants an absolute and continued commitment to devolution and public infrastructure investment in the HS2 rail project, the East-West Rail Line, Crossrail 2, and an imperative decision on growing airport capacity. ‘This is not the time for knee jerk reactions, but commercial property and a number of the government’s priorities are interdependent,’ said Ian Fletcher, director of real estate policy at the BPF. ‘Ministers must closely monitor developments in the commercial property market and be ready to act in weeks, not months, if evidence continues of a slowdown in investment,’ he pointed out. ‘Commercial property investment is not always an obvious priority for governments because its social and economic impacts are indirect, but construction and development activity flow from it, ultimately impacting on jobs and economic growth,’ he added. ‘In scenarios like this the focus is often on construction, but you don’t get construction without an investment client, so it is essential that government monitors fluctuations in investment very closely,’ he concluded. Continue reading
More people moving out of London with research suggesting it is due to prices
There are more home owners moving out London than ever before with more than 280,000 moving away in 2015, an increase of 3% compared to 2014, a new analysis shows. The exodus is led by young people in their twenties and thirties, suggesting that rising house prices could be behind the decision, according to the research from multi-disciplinary property company Humberts. The report by ResiAnalytics for Humberts, which analyses the newly released data from the Office of National Statistics (ONS), shows that 26% were aged 20 to 29 but this was less than the 30% recorded in 2014, while 23% were aged 30 to 39, up slightly from the 22% recorded in 2014. ‘The average cost of a London house today is almost double the English average at £470,000 compared to £224,000 and consequently we are seeing more and more people cashing in and moving out,’ said Jeremy Campbell-Harris from Humberts’ London Country House Department. He believes that those in their 20s probably struggle to afford to buy a home in London and those in their 30s who may have young children are looking for a bigger home and more peaceful surroundings. Birmingham, the UK’s second city where average house prices are less than half those in London, tops the list of most popular destinations for London leavers. Brighton and Hove, where house prices are similar to those in London, is also popular choice due to being commutable yet on the coast. In third place is Thurrock, followed by Epping Forest, Elmbridge, Bristol, Medway, Manchester, Dartford, Hertsmere, Luton, Reigate and Banstead, Slough, Canterbury, Welwyn Hatfield, Leeds, Sevenoaks, Nottingham, Spelthorne and finally Coventry makes up the top 20 destinations. The research also looked at regions which have grown in popularity over the past five years. The East of England has seen a 4% increase in the number of people moving from London in 2015 compared with 2011. This is in contrast to the South East, which has seen a 3% fall in the number moving to the region. ‘The price of housing in London and the South East has risen so significantly over the years that Londoners are looking for new areas where their money can go further. Of all the regions in England and Wales, the East of England and the South West are the only two regions that have seen increases in the number of Londoners moving there,’ said Campbell-Harris. ‘Better broadband connections, better transport links and great value for money are three main reasons why these areas are proving to be increasingly popular amongst people from the Capital,’ he added. Continue reading
Home sales down by 0.9% in Canada in June but prices up over 11% year on year
Nationally home sales fell 0.9% from May to June in Canada while prices were up 11.2% year on year, according to the latest index data. It means that monthly falls in sales activity has left transactions down 2.6% below the record set in April 2016, the home index from the Canadian Real Estate Association of Canada (CREA) also shows. There is also considerable price differences depending on location. For example if Greater Toronto and Greater Vancouver are left out of the equation prices are up 8.4% year on year. Sales activity was down from the previous month in about half of all markets in June, with declines in Greater Vancouver, the Fraser Valley and Greater Toronto having eclipsed gains in comparatively less active housing markets. ‘While national sales activity remains strong, there are still significant differences in housing market trends across Canada,’ said CREA President Cliff Iverson. ‘While home sales activity and price growth are running strong in B.C. and Ontario, they remain subdued in other markets where home buyers are cautious and uncertain about the outlook for their local economy,’ he added. A breakdown of the figures show that two storey single family home prices continued to post the biggest year on year gain at 15.5%, followed by one storey single family homes up 14%, townhouse/row units up 13.6% and apartments up 9.8%. While prices in nine of the 11 markets tracked by the index posted year on year gains in June, price growth continues to vary widely among housing markets. Greater Vancouver with price growth of 32.1% and the Fraser Valley up 35.5% posted the largest annual gains. Greater Toronto recorded price growth of 16%, Victoria was up 15.7%, up 10.6% in Vancouver Island, up 7.9% in Greater Moncton, up 4.1% in Calgary, up 3.6% in Regina, up 1.9% in Greater Montreal and up 1% in Ottawa but prices fell by 4.1% in Calgary year on year and by 1.4% Saskatoon. The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual, not seasonally adjusted, national average price for homes sold in June 2016 was $503,301, up 11.2% year on year. However, if these two housing markets are excluded from calculations, the average price is a more modest $374,760 and the gain is trimmed to 8.4% year on year. June sales extended trends observed the previous month, according to Gregory Klump, CREA’s chief economist. ‘As was the case in May, the monthly decline in national sales activity was led by the Lower Mainland of British Columbia and markets in or around the GTA,’ he said. ‘In keeping with the law of supply and demand, exceptionally low inventory combined with high demand continues to translate into strong price growth in these housing markets, where year on year price gains have been running in double digit territory since late last year,’ he pointed out. Actual,… Continue reading
