Tag Archives: middle-east
UK commercial property market could see short term weakening due to Brexit
The UK commercial property market is likely to see a weakening in demand due to the decision of the British people to leave the European Union. Foreign investors in particular are likely to cool while the terms for the country to leave are thrashed out as uncertainty about direction and timing affect decision making, according to experts. Even if it is effectively ‘business as usual’ for the UK in terms of trade and legislation until 2018 when the actual exit is likely to take place, such a major change will inevitably create uncertainty in the economy and real estate markets, according to Chris Ireland, chief executive officer of JLL UK. He explained that in the event of a well-managed exit these impacts will be largely confined to the UK. ‘In the short term we may see a weakening in occupier demand. The impact on rents may be limited by tight supply, but activity will be adversely hit while initial uncertainty about direction and timing continues,’ said Ireland. ‘Investor sentiment may also remain subdued in the short to medium term. For property markets, the initial correction may be most severe but should be followed by an upturn as opportunities re-emerge in UK core markets and benefits of weak sterling are recognised. Sentiment and relative pricing will be key,’ he pointed out. ‘Much will depend on the speed of negotiation, the wider political picture and whether a clear direction of travel and timetable for an EU exit is established early on,’ he added. According to an analysis by JLL occupier demand will weaken in line with economic growth and declining business sentiment. The impact on rents may be limited by tight supply, but activity will be adversely hit. It also suggests that investor sentiment will deteriorate further, subduing capital flows in the short to medium term and there is likely to be a negative capital value adjustment over the next two years, estimated at a fall of up to 10% with yields moving around 50bp. It points out that London sectors remain most vulnerable to correction given current keen pricing and their multinational occupier base but much will depend on the speed of negotiation, the wider political picture and whether a clear and favourable direction is established early on. According to Mark Clacy-Jones of international real estate firm Knight Frank the decision will cause volatility across all investment markets, and real estate will be no exception and he predicts that uncertainty over future economic conditions in the UK will cause some deals on hold to be shelved, and occupiers will reconsider the amount of space they need outside of the single market. ‘A fall in the value of sterling, combined with falling property values will be a buy sign for opportunistic overseas investors once the initial correction has occurred. This will cause a widening yield gap as real estate yields rise and bond rates fall from further Bank of England monetary loosening and will make property… Continue reading
Homes near grass court tennis clubs in the UK attract a price premium
With the most popular tennis tournament in the UK due to start in Wimbledon new research reveals that property in the area is the most expensive near a tennis venue in the world. Average property prices in Wimbledon Village currently stand at £1,591,939 compared to just £459,957 near the French Open ground of Roland Garros, according to the data compiled by online estate agents HouseSimple. This compared to £604,932 near Melbourne Park, the Australian Open venue and £466,193 close to the site of the US Open in Flushing Meadows. However, average property prices across the whole of the SW19 postcode are are a little more reasonable at £874,857. But those seeking a property next to some of the other tennis clubs with grass courts in the UK will also have to pay a lot more than surrounding areas with a premium of as much as 282%. For example, the average price of property near to the Holland Park Lawn Tennis Club is just over £4.34 million, some 281.5% more than the average of £1,138,333 for that postcode area. Slightly more affordable, are property prices near to the Halton Tennis Centre, close to Aylesbury, in Buckinghamshire. At an average of £642,917, they are 54.6% higher than the £415,783 for the postcode area. Similarly for homes next to the Hurlingham Club in south west London the average price is £2,694,130 compared to the average in the area of £1,110,978, a difference of 142.5%. But there is not much difference around the Queen’s Club, also in south west London, with just 0.2% price differential. Alex Gosling, the firm’s chief executive officer, pointed out that property prices close to the Wimbledon Championships pale in comparison to average prices next to the Holland Park Lawn Tennis Club. ‘Even if you combined the men’s and women’s winner’s cheques, they still wouldn’t cover the average price of a property in the area,’ he added. Continue reading
Land Registry consultation launched on single digital property register in UK
A consultation is underway in the UK on changes to local land registry frameworks with interested parties from the property industry urged to give their opinions. It is currently intended that the Local Land Charges Rules 2017 will come into force on 06 April 2017. However, the rules will only take effect in relation to local authorities in stages, as there will be an incremental roll-out, it has been confirmed. The Infrastructure Act 2015 provides for the transfer of responsibility for Local Land Charges from local authorities to the Land Registry. The plan is for the Land Registry to provide a single, digital Local Land Charges register. ‘In today’s world, it is crucial that public services are available online. Customers expect to be able to access government information without delay or complication, and for a reasonable fee,’ said Graham Farrant, chief land registrar. ‘With our track record for modernising land related systems and our continually evolving digitisation programme, Land Registry is well placed to deliver the single, digital register for Local Land Charges information,’ he explained. ‘A single digital register held by a single provider will reduce overheads and eliminate regional variations in the speed, format and costs of the local land charges service. It will make the local land charges system fit for purpose in a digital era,’ he added. He pointed out that the provisions in the Infrastructure Act 2015 set up the framework for Land Registry to modernise and digitise property searches. ‘We will centralise and digitise local land charge information from the 326 English local authorities that currently hold and supply it. The result will be a far more efficient and cheaper service,’ Farrant said. ‘We will set a standardised national fee and turnaround time in contrast to the existing local variations in service, where fees range between £3 and £96 for the same outcome. A single source for improved access to property information will support a more streamlined conveyancing process and improve the ease of registration,’ he added. ‘This activity will ultimately help people who are buying and selling their homes, and support the Government aim to make dealing with property quicker, cheaper and easier. We are well placed to help achieve that aim because Land Registry is already at the centre of the conveyancing process and is the largest single source of property information. A single provider of local land charge information, rather than the 326 separate providers, and a modern digital system, are what is required for this part of the conveyancing process to underpin the property market,’ he concluded. The consultation seeks views on the proposed draft Local Land Charges Rules 2017 which will provide the framework for how the electronic Local Land Charges Register Service will work. As a result of the changes, the proposed Local Land Charges Register Service to be provided by Land Registry will improve upon the current services by introducing a single digital local land charges register,… Continue reading
