The latest London property headlines, trends in the real estate market and property investment analysis.
The average asking price of a home in Greater London has been slashed by £16,157 (2.5% decline) to £621,589 over the last 12 months to May while values in the North and the Midlands rise, according to the Latest house price index by Rightmove. The property market in Wales registered the most significant growth as the asking price for homes grew 4% with regions defying Brexit. The North and Midlands property market outperformed the South as the registered a growth average home asking price of 2.3% and 3% respectively. Rightmove analyst Miles Shipside stated that the majority of Britons had defied Brexit as property buyers prioritized their own housing needs more than the country’s political chaos. — HOMES&PROPERTY
The Square Mile in London leads in new office developments. Accountancy firm Deloitte in their latest research, reports 12% higher office space construction between October 2018 and March 2019 than in the previous six months. “The uptick in construction activity in the run-up to the originally scheduled EU departure date of March 2019 is remarkable, given the magnitude of political and economic uncertainty,” Deloitte’s analysts stated. The later added, “It demonstrates that developers have not delayed their construction plans and have confidence in the London leasing market over the long term.” London also accounted for the greatest amount of space across new construction spaces during in six months at 1.2 million square feet. — FINANCIAL NEWS
London based Shojin Property Partners, offers property investors a new type of opportunity through the use of security real estate tokens by smartlands. Real estate tokenization is the process of representing an ownership interest in real estate with a token (For a detailed explanation read this Hackernoon article) Smartland’s maiden Security Token Offering (STO) comprises of tokenized investments in student accommodation in Nottingham. The private offering started with a minimum investment of 25,000 GBP while the public securities sale launched earlier this month with a minimum threshold of 500 GBP. This project’s benefits to investors include; An average annual dividend yield of approximately 5.74% in addition to an annual return of 15.72% including capital growth. — SECURITIES
The £8 billion White City Opportunity Area is one of west London’s biggest regeneration projects offering attractive opportunities to property investors. The development is a collaboration between the local government and private investors. Over the next five years, it aims to create 6,000 new homes, 2.2 million square feet of office space and 20,000 jobs. Some residential developments are almost ready for occupancy such as the White City Living by St James which is slated to welcome its first residents later this year. This is a mixed-use development across eight acres of parks, gardens with shops, cafes, restaurants, and more than 1,800 homes. Opening from late 2019, White City Living will include a choice of suites, one, two, three or four-bedroom apartments and penthouses. Phase one comprises of 412 apartments across three buildings, all of which have private balconies. — SOUTH CHINA MORNING POST
Buy-to-Let properties in London recorded the highest returns as U.K. landlords who sold their properties in 2018 made an average of £79,770 (US$103,692), according to the Hamptons International Monthly Lettings Index. “Over the 9.6 years that the average landlord has owned their buy-to-let, house price growth has driven their gains, with prices having risen around 30% over the period,” according to Aneisha Beveridge, head of research at Hamptons International. According to the report, Landlords selling in the London neighborhoods of Kensington and Chelsea saw the largest gains, seeing a pre-tax profit of just over an average £1 million. The report also highlights four local authorities in England and Wales where landlords were more likely to sell their buy-to-let for less than they paid for in 2018. These are South Tyneside, Sunderland, Darlington, and Middlesbrough. — MANSION GLOBAL
Written and curated by David Kuria. He is the uber-curious type. A travel and real estate enthusiast. In simplicity, he covers global real estate news from nearly every angle in addition to market movements in finance, the world economy, and other business trends. Follow him on Twitter.