Taylor Scott International News
Last Updated: 23 September 2013Article by Jason Green and Paul Harben Collas Crill Jersey The latest survey from the Royal Institute of Chartered Surveyors has revealed a surge in demand for UK property and the fastest rise in house prices since their peak of seven years ago and a surge in demand for UK property. RICS are not alone in claiming that investors are clamouring to return to the property market. This month’s London Residential Review, produced by Frank Knight, also showed that international investors are driving investment in prime residential property. For overseas investors, the weak pound and low interest rates have driven capital growth in house prices considerably. Taking currency fluctuations into account, Knight Frank is predicting double-digit growth in capital for investors from Europe, USA, Middle East and Asia. For sterling investors, the anticipated growth is 26% – somewhat better than the meagre rates being offered on cash right now. RICS said that although London and the areas around it continued to see the biggest price increases, every region saw prices rise. July saw an acceleration in the housing market recovery that has been running for some time. The growth was seen across the UK. The recovery might have been initially focused in the south-east, but is spreading across the country. RICS particularly saw growth in the west Midlands and the North East, areas which have suffered more than most since the market crash. It is not unusual for us to see our clients achieving double digit income returns on residential property investments. One recent client even expects to receive an income of 15-18% from his buy-to-let. Colliers International also see sustained growth and returning investor confidence in the commercial property market. In its real estate investor forecast, Colliers predicts steady income returns as well as 0.5% rental growth and 3.4% capital value growth. Again, international buyers are playing a major part in the UK commercial property market and they are venturing beyond London to the regions in search of yield. Dougie Lawson, of Lawson and Partners, a property investment and asset management consultancy practice, said: ‘There are many opportunities available for investors to diversify their portfolio. It is possible to buy an “institutional grade” investment property for less than £1m. and with less than £0.5m. with debt.’ Notably, we have recently acted for a number of investors, together with Lawson & Partners, who have purchased commercial investments from Lateral Property Group, one of the UK’s most active developers of food stores, retail units and restaurants. Steven Redgrave, managing director of Lateral, said the company had achieved notable success, completing 34 development projects in the food store, retail and leisure sectors in the past four years, and with a ‘substantial’ forward pipeline. Specifically, Lateral has completed and sold 16 convenience stores in the UK, with eight more due to complete this year. The stores are pre-let to Tesco, Sainsbury’s or Morrisons, generally on 20-year leases with upwards-only reviews, pegged to RPI. A current example as illustrated is a Tesco Express, which is under offer at 6.25% in Peterborough off an initial rent of £47,500. We are helping property investors on the ground here in Channel Islands through the entire process of buying, selling and refinancing UK property. We have a really strong network and can introduce clients to key people including be agents, surveyors, or property tax accountants to make the entire process absolutely seamless. As people who love property, we are always happy to talk all things property. Taylor Scott International
Taylor Scott International, Taylor Scott
