London it seems retains its pulling power for some of the most important names in technology, and that’s good news for the future.

Apple has announced it will become the biggest office tenant in the redeveloped Battersea Power Station. Google has unveiled plans for a new billion pound ten storey headquarters in King’s Cross, while Facebook will take on yet another 500 employees at their dazzling Fitzrovia HQ.

London’s always thrived on its diversity. It’s one of the things that’s made it such an attractive place to live and work. The fact that these tech giants have chosen to invest in the capital for their future (rather than, say, the Thames corridor) is a major endorsement for the continuing value  of the city. These after all are arguably now the most influential businesses in the world, and they have put their faith in the future of London.

http://www.standard.co.uk/lifestyle/london-life/how-google-and-facebooks-new-offices-are-redefining-the-tech-workplace-a3401676.html

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2016 has not been a great year in many ways and if you’re in the London property market you may well be glad to see the back of it. We have had the punitive extra stamp duty on second or investment properties, the removal of interest rate tax relief for private landlords, and more generally the shockwaves sent through the market by the landmark Brexit vote. I can’t think of another year when there’s been so much change and upheaval.

As we go into the New Year it’s a natural time to take stock, and for property investors and landlords it’s an important opportunity to plan strategy to keep you ahead of the main impact of these changes.

We can help. We’ve brought together some of our most trusted industry experts and advisers, on finance, tax and property law. Alongside our own expertise, the team can help guide you as you make future plans for your portfolio, with encompassing current market conditions, tax and mortgage availability.

The portfolio review service is completely free. Just email us your contact details to portfolioreview@madleyproperty.com and we’ll take things from there. Make it your first resolution for 2017!

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The coming year brings uncertainties and some unwelcome changes in the tax regime as well as a tightening of restrictions on buy to let lending. We’ve covered these changes in some detail in previous newsletters, and so as we begin the year it seems appropriate to review some of the options in front of private landlords.

Remortgage

Landlords face a phased removal of tax relief on mortgage interest. At the same time there are some good rates on offer for new mortgages, making it possible to offset some of the raised cost of borrowing associated with the tax increase. It’s true that you’ll need to meet the new more stringent criteria for the ratio of rental income to outgoings, but if you do there are some great deals out there.

Become a limited company

Limited companies can still claim tax relief on the interest for residential buy-to-let assets, and corporation tax looks set to be reduced, so it may well be worth setting up a limited company to hold your investments. There are other costs involved so it won’t be the right choice for everyone, but it’s an option worth seeking professional advice about.

Reduce debt

The tax change on interest relief means that this might be a good time to review the borrowings incurring that interest. If, like many longer term landlords, you’ve accumulated a property portfolio over many years it makes sense to look at any tired or under-performing units with a view to selling them off, releasing some equity and paying down your borrowings. We’re helping a number of clients review their portfolios right now, so talk to us: reducing your exposure while keeping your most valuable assets could be a truly smart move.

Refurbish

London looks set to become a tenant’s market, with a large number of new developments reaching completion this year, intensifying competition. The specifications and mint condition of these properties will highlight any shortcomings in existing older buildings, and the comparison may be a dealbreaker for some tenants. You can offset this risk by planning intelligent refurbishment for when a property next becomes vacant. The immediate cost may be unwelcome, but such an investment could generate an immediate return in the form of higher rental income, sustainable over an extended period.

Reduce management costs

The changed tax and regulatory regime will reduce returns, so it makes sense to try to reduce your costs at the same time.  We think agents have a part to play, and so we’ve developed new fee structures to reflect these changed conditions and reduce the burden on landlords. Talk to us now for a free no-obligation portfolio review: we’ll show you how you could save thousands over the next few years. Contact us on 0207 378 0644 or email us at info@madleyproperty.com.

We’re always on hand, so if you have any questions about any of these options, or if you just want to discuss your portfolio and potential values more generally, contact us on 0207 378 0644.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post 2017: What options for landlords? appeared first on Madley Property.

Canada Water and Surrey Quays

These long-neglected areas of south east London are the object of one of the largest regeneration projects in the history of the capital: spearheaded by Southwark Council and British Land, the investment of more than £2 billion aims to transform a swathe of land between Canada Water and Surrey Quays.

The regeneration includes new commercial and residential areas, as well as public space, a new town centre and improved shopping centre. There are some good residential developments already in place, such as Barratt’s Maple Quays next to Canada Water station. The Seller Group’s landmark redevelopment of the Decathlon site has also been incorporated in Southwark Council’s master plan for the area.

Transport links have been transformed by the extension of the Jubilee Line and revitalisation of London Overground trains. You’ll find lots of information including full details of the council master plan, and we strongly recommend that investors take a look.

New Cross

Once a Victorian village on the outskirts of London, great transport links have made New Cross effectively a central location with the benefit of a historically good quality housing stock.

Two practically neighbouring train stations between them offer access to London Bridge in just six minutes and Overground services to key locations such as Canada Water, Shoreditch and Hoxton. There’s a good mix of constantly-improving bars, cafés and restaurants, and a vibrant student life around Goldsmiths College, whose famous alumni range from Damon Albarn through  Damian Hirst to Mary Quant.

The Victorian housing stock, which includes the Telegraph Hill conservation area, is a major asset. All the key drivers are in place for this area’s rise to continue and more and more investors are now taking notice.

Old Kent Road

Well known as the cheapest location on the monopoly board, the fortunes of this historic area are beginning to turn for the better. During his tenure as mayor Boris Johnson designated the Old Kent Road corridor as an “opportunity area” with “significant potential for residential-led development”. Southwark Council has since been moving through consultation to a master plan, while many private developers have already moved in with projects now completing or close to completion.

The neighbouring areas of Bermondsey and Elephant and Castle are already enjoying new prosperity. The future looks bright, and the valuations on the Monopoly board are looking ever more out of date.

Call our investment team

Madley Property is Central London estate agency and property services company. Our investment team has a long and successful track record in the central London market: contact us to see how we can assist with your long term investment plans. Contact us on 0207 378 0644.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post Where should your money go? London’s next investment hotspots appeared first on Madley Property.

It’s a last laugh for the owners of the Shard. When the iconic tower was completed just four years ago many dismissed it as London’s tallest white elephant, claiming its premium aspirations would be frustrated by the unfashionable location. Now it’s been announced that the Shard has achieved effectively 100 per cent occupancy, as it stands as the focal point of the hugely successful London Bridge Quarter regeneration.

It’s a success we’ve watched at first hand, from our offices in the now uber-fashionable Bermondsey Street (we’ve been here for the last eight years).

The factors behind this success are not hard to fathom. As the business heart of London has spread eastwards, driven partly by spiralling property prices in the  traditionally well-heeled western districts of the capital, the area along the south bank of the river offered City workers a home within walking distance (or a short tube ride) from the office. A large number of old industrial buildings lent themselves  readily to conversion into loft or warehouse-style living spaces, while the diverse cultures of the area, from Borough through Borough Market so Shad Thames and Bermondsey Street, have made this one of the most attractive places to live in London.

Early investors have seen significant capital growth, while the ripple effect of gentrification in neighbouring Bermondsey and Old Kent Road is becoming visible in values there. It’s not just the owners of the Shard who have a smile on their face these days.

Read the full article here.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

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By Lloyd Withey

Lloyd Withey is Senior Negotiator at Madley Property

The post Eastern promise appeared first on Madley Property.

These might be uncertain times as the Brexit negotiations get underway, but it seems London retains its attractiveness as an investment hotspot.

London was recently ranked as the number one choice for investors in the CBRE’s 2017 EMEA investor intentions survey (that’s EMEA as in Europe, the Middle East and Africa).

To the question of which individual city was the most attractive for investment London took the top spot, with 17 per cent or respondents making it their first choice. Remarkably the UK capital holds on to this position for the sixth consecutive year, underlining its attractiveness as a consistent performer.

The UK as a whole came in second to Germany, scoring 20 per cent of preferences compared to 22 per cent for Germany. Interestingly this marked an improved performance for the UK, with high liquidity and transparency given as the reasons behind the preference of investors for both countries.

Notably too the preference for UK residential investment showed a big increase in 2016, and that preference solidified in 2017 at 13.4 per cent.

Real money sits behind these figures, since the research was carried out among investors with a total of $475 billion to place in real estate assets in 2017. London’s strong performance can only give confidence in the long term prospects for the property market here, whatever may happen politically.

The full report is available from the CBRE’s website.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post London stays at no 1 for investment appeared first on Madley Property.

Canadian developer Oxford Properties has announced plans to strengthen its portfolio of investments in the Build to Rent (BTR) residential sector, with a focus on London.

In an interview with Property Week Oxford’s executive vice president and senior managing director for Europe Paul Brundage explained

“Residential represents the smallest asset class globally for Oxford, and that doesn’t feel right. I’d like to see that increase globally to a meaningful amount, greater than 10 per cent. It will represent a significant part of our London business for the next phase of evolution.”

The company’s move follows a trend of major international organisations investing in BTR. Brundage emphasised the opportunity in the UK, reflecting the potent combination of market forces and political will.

“The macro thesis for residential is very strong. At the moment, we’ve got government policy lining up with market demand lining up with investors that want to do it. There is a significant need for housing in the UK and there is a lack of existing stock. We are going to build it and become long-term owners of the asset class.”

With plans to invest over £1 billion here, Oxford is determined to address this opportunity. According to Brundage “the residential sector is the largest investable asset class in the world and is something we had not spent any time trying to do in the UK.”

Coming on top of the CBRE investor confidence survey (see above), Oxford Properties’ plans underline the robustness of the London residential market, and in particular both the medium and long term prospects for tenant demand.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post London BTR sector thrives with new entrants appeared first on Madley Property.

We’ve been talking for a while about the Old Kent Road as an investment hotspot (see January’s newsletter), following the London mayor’s designation of the area as an opportunity for high density residential development. With news of a major joint venture by two of the best-known names in London property investment it seems the promise is coming closer to realisation.

Aviva Investors and Galliard Homes have got together for a residential scheme on the site of the Cantium business park, SE1, currently occupied by B&Q, Halfords, and Pets at Home. Once finalised and approved the plans could accommodate more than 500 homes and be worth hundreds of millions of pounds (Aviva bought the site in 2010 for £30.1 million).

Critical to the prospects for the whole area is the proposed extension of the Bakerloo line beyond its current terminus at Elephant and Castle. TfL will close its latest consultation on the route in April, and wants to bring forward completion to 2028/29.

Mount Anvil has also announced joint venture plans with Sainsbury’s for its New Cross site, compromising some 1400 residential units. On the adjacent Asda site Berkeley Homes are seeking planning permission for a further residential development of 886 homes.

For more information, or indeed a chat about ways you could take advantage of the redevelopment in this area, please contact our investment team on 020 7378 0644 or email us at info@madleyproeprty.com

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post New moves signal change on the Old Kent Road appeared first on Madley Property.

First the good news. At a build to rent (BTR) conference a couple of weeks ago I was encouraged to hear that London is more than holding its own in the developing build to rent sector. Yes, Manchester, Birmingham and Leeds may be making headway and getting a lot of positive press, but over half of the 70,000 BTR units in the pipeline are in London.

That’s good news because it’s a vote of confidence in continuing rental demand for London residential property. Indeed, conversations with many large scale investors suggested they expected the BTR sector to grow further as demand from residential developers tails off and reduces the competition for prime sites.

But there’s the bad news for private landlords, because BTR almost certainly means increased competition from people who are very serious about what they do.

The numbers alone should give pause for thought. According to the British Property Federation, there are 38,000 BTR units in London, with 10,000 already complete, 6000 under construction and 24,000 in the planning pipeline. Investors, from pension funds to the large BTR developers, apparently see the London rental market as a huge, secure and lucrative opportunity, and are ready to deploy billions to secure a foothold.

But we’re not just talking about increased volume of competition. Even a casual look at what’s being built suggests intensified competition around quality and features.

These BTR developments show new and deep thinking, not just about current demand, but future expectations, expectations which current private developments have generally not considered and which they would struggle to satisfy, even with retrofitting.

We’re seeing communal areas, designed around how people really like to live, ensuring they get fully used.

We’re seeing design for lifestyle, not just from the apartment but from the whole development, with pet friendly floors, bike and running clubs and most importantly, ultra high speed Internet!

We’re talking about ultra high speeds for new tenants from day one, with service standards on these fully networked developments beyond anything enjoyed by mere mortals right now in the UK. Since high speed Internet is seen as vitally important by 80 per cent of tenants, this is a huge selling point.

Throw in stylish kitchens and bathrooms, designer furnishing and on-site maintenance (with staff often attending to issues within the hour, let alone the day) and you have a compelling proposition. This new breed of landlord sees the tenant as a customer, who needs to be pleased, and they are actively looking for service-focused staff many of whom have come from the hospitality sector.

It remains to be seen how more traditional private landlords will seek to stay competitive. It’s true that if demand remains high enough to absorb the influx of new wholly rented developments then little might change in the short term. However, if the rise in demand is more moderate and prospective tenants find themselves with a choice between a shiny stylish, well-connected building, and something less so, the outcome is predictable. Private landlords themselves face a choice between upping their game or accepting a big enough discount to offset the pain of that slow broadband!

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

The post Private landlords: why worry about build to rent? appeared first on Madley Property.

Are you considering selling your London property inside the next 24 months, or would you just like to find out more about what it’s currently worth to consider your options?

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Only in March there was troubling news for the Nine Elms regeneration when a landmark plan for the redevelopment of the old flower market looked like it might be faltering.

It’s a big vote of confidence in the area then that the 10 acre Nine Elms Square site has been acquired from Vinci St Mowden by Wanda. The cash deal is expected to complete later this summer with contracts exchanged on June 21^st.

Wanda Commercial Property Hong Kong is a subsidiary of the Chinese property giant Dalin Wanda. It’s paid £470m for the key site in the heart of Nine Elms, which will feature three towers (the tallest with 54 floors) and according to the master plan by Skidmore Owings and Merrill will deliver 1800 homes.

There have been questions in recent months about the possible oversupply of luxury apartments in Nine Elms. Certainly as with any regeneration project there will be ups and downs along the way, but the confirmation of this critical project suggests the long term future of the area looks bright.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

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For obvious reasons the Queen’s Speech setting the coming parliamentary agenda skirted most controversial issues, but it also offered no relief for private landlords hoping for a more measured approach to the thorny issue of tenant fees.

The speech sent further shockwaves through the residential property sector. Not only did it confirm plans for a complete ban on the set up fees charged to tenants by letting agents, but also proposed to limit the deposit required in advance to a single month’s rent, and all holding deposits fully-refundable, effectively ensuring that no real commitment is required from a potential tenant until the lease is signed.

These proposed measures substantially ignore industry views, or the potential costs and losses to private landlords. But perhaps this should come as no surprise, since the government has apparently decided to make life as unattractive and uncomfortable as possible for private landlords. Not only has it been making an investment in property far less tax-efficient; it’s also increasing the financial risks to landlords associated with bad faith or bad behaviour by tenants.

There are three serious problematic areas for private landlords.

First, the new legislation will outlaw any fees to be paid by the tenant, other than the deposit and the rent. Industry research suggests the business of referencing and administering tenant agreement takes an average of eight hours (in our experience it can be quite a lot longer, especially for first time UK tenants). These are real costs, and agents are either going to have to offer a cut-down service (increasing risk) or pass the costs to landlords themselves. The probable consequence is that these costs will then be loaded into rents, so all that will be accomplished is a reduction in transparency.

Secondly, if pre-contract deposits are made fully refundable (as the legislation proposes) tenants will be empowered to make “frivolous” offers with impunity. I’m thinking particularly of where tenants might be interested in several properties from different agents and seek to hedge their bets by initiating the contract process for each one. They’d then be able to pull out of the process for the unwanted properties leaving the agent or landlord with costs they cannot recoup.

Finally, limiting the total deposit to a single month’s rent could be problematic if a tenancy does not go well, and there’s either damage or payment arrears (or both). With only a single month’s rent on deposit tenants who have damaged the property might feel tempted to withhold the last month’s rent, leaving the landlord with nothing to cover the cost of repairs.

Rest assured as the proposed changes near implementation we’ll be working through all options to help keep landlords’ costs down and their position as secure as possible. We’ll keep you updated with progress but if you have any concerns about the effects of the legislation please call me and I’ll be happy to discuss the implications for your portfolio.

By Jaimie Beers

Jaimie Beers is Managing Director of Madley Property.

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The summer is in full swing and the longer days are meaning tenants are out in force to carry out viewings. Applicants are especially keen to view the brand new developments we have to offer, for example, Neroli House in Goodman’s Fields, where we have managed to gain special permission for pre-completion viewings, and the stunning Atlas Building in Old Street.

With a greater choice of rental properties on the market at the moment, it is increasingly important that a property is able to stand out in terms of furnishings and the marketing. Stylish modern furniture will not only help convince applicants to take a property when on the viewing, but it will also enable “Instagram friendly” images to be produced to capture the attention of today’s modern tenant.

As we touched upon last month, we have taken delivery of a high tech state of the art camera that allows us to quickly produce high-quality images, floor plans, walkthroughs and videos for our sole agency properties. This is allowing us to promote our sole agency client’s properties on multiple high traffic avenues, such as Instagram, Youtube, and Facebook, not to mention adding value to the already well-developed portals; Rightmove and Zoopla. With the demands on peoples time ever-increasing, this month alone we have already produced multiple deals via walkthrough and video viewings only!

Matt Brooke, Area Manager, Madley Property

The post Lettings Update – August 2019 appeared first on Madley Property.

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Stock levels beginning to reduce?

Over the last month, we have helped several developers sell the last remaining “stock” units across three of their developments. In what is becoming a common theme, the last remaining units went rather quickly, and buyers were able to agree on prices that will look like great value in the not too distant future. However, when looking at our new development pipeline, it’s apparent that these types of situations are getting fewer and farther between, with many developers already having slowed future delivery timelines and paused some sites altogether. I think this could already be the tipping point in supply levels of new stock.

Predictions of a rental increase is a well-needed fillip for investors

In August Capital Economics predicted a cumulative rise of 10% in London rents across the next three years. This will be welcome news to investors who have been burdened with extra costs due to the tenant fee ban, increased tax and legislation. An increase in returns combined with a recovery in the market overall post Brexit (whenever that may be) could be just the encouragement overseas investors need to take advantage of the current combined benefits of a weak pound and depressed capital values.

In addition, those who are looking to invest from overseas may also look to include some form of recovery in the value of sterling alongside a landscape of increasing rents and returned economic growth.

– Jaimie Beers, Managing Director, Madley Property

The post Sales Update – September 2019 appeared first on Madley Property.

Lettings Market Holds Firm!

August has continued to be strong and applicants are feeling the pressure a fast-paced London lettings market can bring. Properties are being let quickly, and good rents are being achieved. We have already let high specification Canary Wharf apartments for the end of October, achieving good increases on the landlord’s current rent. This has been driven by our lettings team’s high intensity, skill and use of our incredible marketing equipment and latest technology, which as mentioned last month, allows us to quickly produce high-quality images, floor plans, walkthroughs and videos for our sole agency properties.

As we move into September and the days draw in, we expect the good Lettings market to continue and we have fantastic demand for all the areas we cover, especially Canary Wharf, Canada Water, London Bridge and The City. If you have a property in central London and would like to understand how much rent your property can achieve in the current market please contact me via email at:

matt@madleyproperty.com

– Matt Brooke, Area Manager, Madley Property

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