Tag Archives: real estate
Demand for retirement homes in UK slows
The uptake of retirement housing in the UK softened in the second quarter of this year as many downsizers paused plans ahead of the European Union referendum vote, according to the latest quarterly review. Overall new buyer registrations for retirement properties slipped by over 20% from the first quarter to 4,744, a 30% fall on the same period last year, as uncertainty before the referendum slowed the market. However, the data from retirement property specialist Retirement Homesearch, also shows that the number of property viewings at 2,974 and instructions at 513 remained steady on first quarter numbers, showing that registered buyers are still actively looking to downsize. ‘Uncertainty around the referendum may have caused many downsizers to sit on their hands until after 24 June, but the outcome could mean a further delay in decisions, as markets fluctuate and affect pensions, which will have a knock-on effect on Britons’ retirement plans,’ said Nick Freeth, managing director of Retirement Homesearch. ‘However, with six million older Britons now living in houses with two or more excess bedrooms, downsizing could help retirees free up capital, reduce the cost of running large properties and move to homes better suited to their needs,’ he added. A recent report on the state of the UK’s housing, published by the International Longevity Centre (ILC-UK) and supported by Retirement Homesearch parent company, FirstPort, shows that under occupancy amongst the older generation is now a widespread issue with six million people living in houses with two or more excess bedrooms. Since 2005 there has been a significant increase in the number of 65 to 74 year olds living alone to 300,000. ‘As experts in retirement housing, we know that having access to specialist advice is especially important in the post-Brexit landscape where it is essential to minimise uncertainty. By ensuring downsizers get the guidance they need, they can begin to look forward to a new home, as well as a new lifestyle,’ Freeth concluded. Continue reading
New home planning approvals up in London quarter on quarter
The number of planning application approvals for new homes in London increased by 46% in the second quarter of 2016 compared to the previous quarter, the latest data shows. Some 6,310 new homes were approved out of a possible 8,280 that could have been permitted across the quarter, a 76% approval rate, according to the London New Homes Monitor from estate agents Stirling Ackroyd. However, approvals and decisions fell year on year. The second quarter of last year saw 8,063 new homes, out of a possible 10,662, granted permission but this was down to 6,311 allowed in the second quarter of 2016. ‘London has had a tough time lately, as Brexit injected a dose of uncertainty into the property market. In spite of this, the number of new home approvals improved in the run up to the result,’ said Andrew Bridges, managing director of Stirling Ackroyd. ‘There may still be an impact to come but for now, this pick-up is a sign that London’s property market is resilient. It’s a new game of unknowns and London could emerge a winner,’ he added. The most approvals were in Westminster at 1,720 new homes with 99% of all new home applications received approved, the highest rate in Greater London while Newham recorded the lowest approval rate across London, rejecting 92% of potential new homes applications. ‘Westminster is soaring ahead in terms of approvals and applications, but these are unlikely to be affordable for the typical Londoner. Many in the capital are left feeling let down as affordability drives them further away from a home of their own,’ Bridges pointed out. Bridges believes more needs to be done with research by the firm suggesting that there is space for up to 570,000 new homes in London in the next 10 years and he added that a more efficient planning system would help. ‘Planning reforms are still on the government agenda for now and they need to stay there. Overall, more resources and time need to be committed to achieve the number of new homes London needs. Having a new home can transform lives and London has always been an aspirational city,’ he concluded. Continue reading
Italian commercial real estate investment going from strength to strength
Investment in Italy’s commercial real estate markets is going from strength to strength with the first half of 2016 seeing over €3.4 billion of sales, up 35% on the same period last year. The latest investment analysis report from international real estate advsor Savills says that favourable market conditions are fuelling supply in the Italian market through fund liquidations or equity fund investors who are taking advantage of the point in the market’s cycle to dispose of some of the most liquid assets in their portfolios. It says that it is significant that cross border investment into Italy accounted for more than half of the total investment volume in the first six months of 2016, and close to 65% of all deals. Savills has recorded that international funds are increasingly dominating the market, with 80% of foreign capital coming from Europe. ‘Our analysis suggests Italy is at an earlier stage in the cycle compared to Europe’s primary markets in France, Germany and the UK, therefore international investors are still identifying the potential for capital growth and better returns from core Italian product,’ said Eri Mitsosterigiou, director of research, Savills Europe.. ‘We believe that investment demand for the remainder of the year will continue to be driven by European investors, however we also envisage domestic investors to up their buying activity,’ Mitsosterigiou added. According to Savills, investment into the office sector in Italy this year accounted for circa 46% of all activity, over 40% ahead of the first half of 2015. The retail sector represented 26% of the total investment volume, also a yoy 40% hike. The report points out that the high streets of Milan, Rome and Florence are dominating the retail investment market and the first six months of this year saw around €505 million invested, an increase of circa 80% compared to the previous year. ‘Italy is a country with above average household disposable income and strong tourist flows in some of its biggest cities. The resilient characteristics of high street retail, with stable or rising rents, low vacancy and high demand is attracting investors,’ said Marco Montosi, head of Investment, Savills Italy. Savills also recorded that the first half of 2016 saw a notable increase in investment into alternative commercial real estate sectors including hospitality. Almost 22%, some €761 million, of the total volume can be attributed to investment into the alternatives sector, markedly within healthcare. Also of note is that the vast majority of the transactions so far in 2016 were on a single asset basis, whilst portfolio transactions accounted for 21% of the total, down from 35% in the first half of 2015. Looking at the next 12 months, Savills believes that the supply of commercial real estate is set to increase as funds will take advantage of the improving market conditions, particularly the ones that purchased in the low point of the cycle in 2011/2012. ‘Prime locations of major Italian cities… Continue reading
