Property lending in UK is fantastic
February 23, 2009
Lending conditions in the UK commercial property lending conditions are fantastic and have never been this good. King Sturge/Property Week Index clearly shows that the banks can lend almost 1.7 times as compared to the property value, which indicates that the loan-to-value ratio for the borrowers and lenders is sustainable.
The index has registered an all time high from September 08 to December 08 last quarter. The figures increased from 93% to 173% almost three times of what was seen in June 2007 (59%).
Dominic Reilly the partner and compiler of the index at King Sturge stated that debt finances continue to remain scarce but investment purchasers who have complete access to finance understand that the returns on the equity are moving towards the positive side slowly and steadily. He further stated that the lenders condition has also taken an upturn.
Dominic Reilly clearly stated in a presentation to his clients this morning that the conditions of the property lenders were indeed fantastic. However, the UK property is too facing hard times due to the economic slow down. Last June De Montfort University put an amount of £207.9bn money that was lent to UK commercial property.
De Montfort stated that a little less than £23bn will be refinanced this year and £21.5bn for the coming two years.
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New property development projects suffering due to property rate laws
February 21, 2009
Empty property rates (EPR) are taking a huge toll on new business creations and desperately needed job opportunities, according to Bitzspace, a firm which helps in small business growth. The company which provides managed work space revealed that it has cut off plans for a new development which was supposed to be in the North-East. The development was said to be able to provide 70,000 sq ft of office space which in turn would have created a number of job opportunities.
The firm already has about 30 units in locations like Durham City, Bishop Auckland, Shildon and other places. The managing director of Bitzspace, Gareth Evans, said that the tax which was estimated to cost businesses around the region about 40 million pounds has had terrible consequences. He also said that due to EPR the overheads in the North-East have increased by more than 100 percent because industrial properties that were empty were previously exempted from tax.
The consequences of this development have resulted in the company having much less cash to invest in new refurbishments and schemes. The shelving of the 70,000 sq ft project has eliminated numerous job opportunities and housing for small businesses. The trend can be seen in many places all around the country and due to EPR and reluctance to invest in new commercial property, the quality of accommodation is sure to suffer.
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Investment group anticipates recovery for the UK property
February 19, 2009
UK property investors have predicted a great deal of improvement in the property market when the economy begins to stabilise. Consultants from the API, Aberdeen Property Investors have viewed the overall economy of Britain and the impacts it is likely to have on the property investments.
The firm has warned about the recession that the rent market will undergo in 2009. However, the firm has also added that any type of recovery would spell good news for the property owners as and when it begins. The company also stated that the recent drop in sterling would help in luring foreign buyers, which will eventually aid the UK economy.
The API has also stated that once the market improves or stabilises, the recovery of property market is inevitable. In fact the mid 1970s and the early 1990s have seen quite a down fall and it was only in their recovery phase they witnessed double digit returns. The company further elaborated that after 1980, 2009 can be the worst economic slide that UK will have to witness.
Lombard Street Research stated last week that UK market will take another twelve months for bottoming out however many others have stated contrasting comments like further falling of prices and longer time for recovery.
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UK property investors predict recovery in the housing market
February 17, 2009
According to latest reports, UK property investors have predicted that once the property market stabilises it will witness a sharp rise and improvement. Consultants from the API, Aberdeen Property Investors have looked at the overall economy of Britain and the impact it is likely to have on the property investment.
The firm has further warned that the recession will witness low rent yields in the current year. However, it has also claimed that any sort of recovery, whenever it starts would be good for the property owners and the property market.
The company has also stated that due to the recent drop in sterling several foreign investors have started taking interest in the UK property market. Such movements will also be helpful for the property market stated the company. API further claimed that strong recovery of market after market correction is not unusual.
However, the company has also stated that the current year could end up being the worst one in terms of economic crisis and downfall of property market since the 1980s. Lombard Street has researched that the market would require about twelve months for bottoming out. However, other reports have suggested that it may take longer than a year.
Popularity: 4%
Bradford Property Forum chief calls for quick implementation
February 16, 2009
Bradford’s top property developer, Andrew Mason, expects city leaders to walk their talk of economic summit held last week.
Andrew Mason, who recently took over as new chairman of the Bradford Property Forum, has a word of praise for the council for organising summit which brought together more than 100 business and community leaders together to draw an action plan to combat recession.
Mason was overwhelmed with the level of commitment shown by leaders at the path breaking summit, but wanted quick actions to demonstrate that Bradford meant business.
Mason, who is Managing Director of Newmason Properties, based in Shipley, stated that time for committees and discussions was over and it was now time for do. He remarked that summit was excellent, but it was equally crucial to follow it up with tangible actions within weeks.
He suggested that committee should identify a scheme which should be quickest, economical, biggest or easiest to begin with, to show leaders’ firm resolve.
Mason added that these steps would confirm good intentions expressed by business and community leaders at the summit.
He welcomed report published by the British Property Federation and the All Party Urban Development Group which recommends that new development planning contracts should prioritise local employment and training.
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