London Property Headlines (May 10th, 2019)

We highlight the latest London property News & Headlines, trends in the real estate market and property investment analysis.

A recent survey by estate agency comparison site, GetAgent reveals that for the price of one single flat in London’s most coveted boroughs (Kensington and Chelsea), one can buy as many as eight detached houses in other areas of the country.  “Getting a foot on the ladder is a momentous task for many and so it’s quite mind-boggling when you consider how many houses you can buy in other great parts of the UK for the price of just one flat in Kensington and Chelsea,” Colby Short, CEO GetAgent, states. A flat in Chelsea would cost a property buyer £1,161,580 compared to an average house price in the Western Isles which averages around £137,742. This is an astounding 8.4 houses for the price of one Chelsea flat. — REAL HOMES

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Courtesy Real Homes

US and India property buyers top interested parties in London’s property market. According to London real estate agent Chestertons, the US has been the most interested foreign country in London properties for the past three years. It recorded visits to Chestertons’ website up 85% between the period of January and March 2019 compared to the same time in 2018. India’s growing interest in the London property market has been attributed to the expanding middle class, a growing economy, and favourable currency exchange rates. Chestertons recorded web traffic from India up by 94% during the same period. Guy Gittins, managing director of Chestertons stated that “A common theme among both nationalities that we are dealing with is that they are taking a longer-term view about London and the UK. Brexit is generally regarded as a shorter-term blip which will not detract to any significant degree from London’s pedigree as a world city and a safe haven.” — PROPERTY INVESTOR TODAY

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London’s Skyline

Property lender Fitzrovia Finance launches GBP100 million institutional platform to private investors with annual returns of up to 5.5%. This means “every £100 loan is secured against £150 of bricks and mortar assets “as Mortgage Introducer states. Fitzrovia’s lending model is mainly focused on residential and commercial property developers. Since its launch, it has provided over £100m of loans. Investors can now access the platform with a £1,000 minimum investment in addition to their prior funding capability of between £1m- £15m. “We compete by offering better rates to better borrowers, in less time and with less hassle, armed with the insight and hands-on experience of our seasoned lending team. We then make these attractive, property-backed returns to our preferred borrowers available to investors with ease and convenience via our state-of-the-art platform.” Katia Pourgalis, COO of Fitzrovia Finance said. — WEALTH ADVISER

London ranked second worst locations in the UK to raise a family after Bristol. Revealed by MoneySuperMarket’s annual Family Living Index, 35 UK cities were surveyed based on six key factors that are; local school rankings, house prices, the likelihood of burglary, job opportunities, access to green space, and average salary. For the second year in a row, Bath has retained its title as UK’s best place to raise a family. Even though London has the highest average income and level of disposable income, it continues to rank near the bottom of the list due to the high average house prices (£478,749). “If you’re thinking of buying a home, it’s worth looking at the bigger picture and taking things such as local amenities, job opportunities and green spaces into consideration. If you have young children, take a look at the schools and the catchment area – many people will pick the area they live in based on this alone.” Tom Flack, editor-in-chief at MoneySuperMarket stated. — PROPERTY REPORTER

A new white paper by London based investment introducing firms, Hunter Jones reveals that individuals could have received almost three times as much by investing in property bonds, compared to buy-to-let properties. In cases where buy-to-let properties would have provided a return of 4.6% per annum, assuming 100% occupancy, the property bond delivered a return of 27.2% over two years, breaking down to about 13% per annum. This is a clear difference of over 8% per annum. “In comparing the return of investing in a buy-to-let property with a property bond, this comes as no real surprise. Aside from receiving a far greater return, investing into a property development fund through a property bond enables individual investors to benefit from the profitability associated with the property sector, without all the downsides of direct property ownership.” Reece Mennie, CEO of Hunter Jones stated. — LONDON LOVES PROPERTY

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.