RENTS CONTINUE TO FALL ON OVERSUPPLY AND JOBS FEARS

As in the sales market, there continue to be marked variations between the three sub-markets. In Midtown, rents fell by 10% in the first half of 2009, making a total reduction since the end of 2007 of 15%. In the City, rents fell by just 5% in the first half of 2009, with a total reduction of 13% since 2007 and the best performing of the three sub-markets. As in the sales market, Docklands exhibited the weakest trends, with rents falling by 10% in the first half of 2009, making an overall reduction of 25% since the end of 2007


One of the factors in Docklands has been the increase in the number of “distressed tenants”. Distressed tenants have been a feature here due to job losses at Canary Wharf and the subsequent need to apply for housing benefit which is against the terms of most AST agreements. It is notable, however, that this process has not
occurred in Midtown and the City, implying a higher level of job security or opportunities amongst residents in these markets.



The serviced sector of the rental market has experienced some contraction due to recessionary conditions and the reduced level of movement of senior staff by global occupiers. The serviced sector has strong links to corporate tenants which have reviewed and pruned their accommodation spend. Smaller serviced operators continue to seek out opportunities, however, where they can take a conventional lease on an entire building. In the first half of 2009, for example, the ten-unit Gazzano Building, 167-169 Farringdon Road, EC1, was let to a student university accommodation provider.


In spite of the downturn in rents over the past 18 months, traditional landed estates and property trusts have continued to take a longterm view of rental market prospects. In Exmouth Market, EC1, the Debenham Property Trust, which has extensive holdings along this pedestrianised street, is undertaking a programme of refurbishment of the upper parts for the rental market. This follows the gradual
improvement of the commercial element of the street over the past ten years and a recent re-branding exercise. Further west, the historic Bedford Estate in Bloomsbury continues to improve its residential rental portfolio through refurbishment activity, including office to residential conversions. The Estate is actively seeking to expand its rental portfolio through the current downturn.

Islington, N1 property guide and information

The central district of London Borough is Islington. This place is now an inner - city area in North London. Historically this place was mainly a rural area, which was centred on the houses and inns alongside of Upper Street. Islington comprises 2 important areas. The most well - known is about the area which is bounded by the “Liverpool Road” towards the west and the “Essex Road” towards the southeast. This region’s northernmost point is at Islington and Highbury station. The chief Upper Street, high street runs around north - south through this. In addition, the region around the Chapel Market, which was once been considered as a part of Pentonville, is also more usually believed to be a part of Islington (Angel these days).

Less famous but larger in the area than the entertainment and shopping district round “Upper Street” is the area surrounded by City Road, Shepherdess Walk, the Regent's Canal, Essex Road and New North Road. This part of borough includes houses of the “Arlington Conservation” Area and this is the place where Islington meets De Beauvoir and Hoxton Town in Hackney. The south part of the City Road is towards Finsbury district of “St Luke's”. The northern part Islington is in Islington, while the other southern half is in “Fins bury”.

In Islington you will find the best restaurant. These restaurants which are located in Islington are not listed particular order. All restaurant table bookings and reservations are processed and free through websites. In the seventeenth and eighteenth centuries, the availability of the water made this place for growing vegetables.

If you are searching for a rated café shop, Islington is the best place for you. This place was originally named by “Saxons Giseldone” in 1005, and then “Gislandune” in 1062. The name Islington means “Gīsla's hill” from an Old English personal name “Gīsla” and “dun” (hill, down). This name was then later changed to “Isledon”, which remained in use into the seventeenth century when the new form arose. During the medieval times, this place was a small manor hereabouts, all along with “Bernersbury”, “Neweton Berewe” (Hey-bury) and “Canonesbury”.

Islington Council

Property in Islington

Housing

100% of income required for property

According to an accessibility and affordability study conducted by the Royal Institution of Chartered Surveyors (RICS), First-time buyer couples on a low income now need to save 100 per cent of their joint earnings to enter the housing market.

The up-front buying cost of a typical home has substantially increased to £27,738 largely due to lenders increasing the loan-to-value (LTV) ratio on products.

David Stubbs, a senior economist at RICS points out that the credit crunch has deteriorated the access to the housing market with the decline of mortgage approvals.

In the second quarter of 2008, couple on lower quartile earnings spent 34.5 per cent of their aggregate household income on mortgage repayments, an improvement from 37.2 per cent in the first quarter.

However there has been an improvement in mortgage affordability due to falling prices and tighter lending conditions as well as relatively low interest rates.

Mr Stubbs further explained that while for those with large deposits this would mean reduced mortgage repayments, many would still struggle to meet their repayments with the rising food and fuel costs.

100% of income required for property

According to an accessibility and affordability study conducted by the Royal Institution of Chartered Surveyors (RICS), First-time buyer couples on a low income now need to save 100 per cent of their joint earnings to enter the housing market.

The up-front buying cost of a typical home has substantially increased to £27,738 largely due to lenders increasing the loan-to-value (LTV) ratio on products.

David Stubbs, a senior economist at RICS points out that the credit crunch has deteriorated the access to the housing market with the decline of mortgage approvals.

In the second quarter of 2008, couple on lower quartile earnings spent 34.5 per cent of their aggregate household income on mortgage repayments, an improvement from 37.2 per cent in the first quarter.

However there has been an improvement in mortgage affordability due to falling prices and tighter lending conditions as well as relatively low interest rates.

Mr Stubbs further explained that while for those with large deposits this would mean reduced mortgage repayments, many would still struggle to meet their repayments with the rising food and fuel costs.

First-time buyers unsure of mortgage jargon

According to new research conducted by Halifax the UK's leading mortgage lender to first-time buyers, Two thirds of first-time buyers cannot correctly identify the letters KFI, which stands for Key Facts Illustration, a document outlining the key features and conditions of a mortgage.
The study which looked into first time buyer affordability, illustrated a significant improvement in house price to earnings ratio, a key affordability measure.

Jaedon Green, head of mortgage development at Halifax acknowledged the difficulty faced by most first time buyers in understanding mortgage jargon and highlighted the importance of obtaining advice and expert knowledge.

Halifax offers first time home buyers a range of features designed to reduce the cost of purchase. These include a five-year fixed rate mortgage, £500 cash back, refund of the cost of Halifax valuation fee and/or no conveyance fees paid.

www-buyingyourfirsthome-co-uk , a dedicated website for first time buyers provide assistance such as

• Jargon buster - A to Z of the key words and phrases used in the home buying process
• Affordability calculator
• Interactive to do list to track progress
• Viewing and moving checklist in printable forms to use as a guide

London New Property

October saw the launch of another well-located scheme at 44 Hatton Garden, EC1, a fine Portland stone-faced building on the corner with St Cross Street, and an increasingly rare office-to-residential conversion in Hatton Garden. There are ten flats ranging from£425,000
for a 1st floor one bedroom flat to £995,000 for each of two duplex penthouses of three bedrooms on 5th-6th, reflecting prices of £740- £880 per sq ft. Themarketing strategy is aimed at owner-occupiers with a show flat completed early in the construction process and 50 potential
purchasers attended the launch with two sales achieved at close to the asking prices. The developer declined numerous lower offers.


Specification is a means of differentiating new schemes in a falling market, and at 44 Hatton Garden, Gaggenau kitchens, intelligent lighting and solid oak joinery are important in attracting prospective buyers. This pointwas proved by British Land plc atOne Osnaburgh St, NW1,
where 62 units were offered to the market in phases from June 2008 onwards. By November 2008, 48 of the 62 apartments had been sold or reserved, a 77% success rate, with the scheme not due to complete until well into 2009. One Osnaburgh Street is an 18 storey residential tower at the western end of British Land’s 2 million sq ft Regent’s Place office development, where the upper levels offer views across Regent’s Park. Johnson Naylor was responsible for the
apartment interiors, with high value design helping to sell the scheme, along with the more obvious attractions of location and height. In July very modest reductions in asking prices were made of £5,000 for one bedroom units and £10,000 for two bedroom units, but achieved prices ranged from £665-£1,050 per sq ft, with some of the three bed units exceeding £1 million.

Property market slumps by 40% in a year while fall in house prices in London is fastest in UK

It is noted that the number of properties sold has come down by 40% in a year. According to HM Revenue and Customs, in last May, only 100,000 homes and offices which had been put up for sale has found buyers.

With the declining market, property prices are seeing falling faster than at any time for more than 25 years. London property has seen its biggest monthly fall in house prices for three years.London hot property ares are barbican, clerkenwell and bloomsbury .

Properties that came on to the market this month were averagely lower than in May. The 1.4% fall, compared with a national average of 1.2% was the biggest monthly drop since 2005, when property prices fell 0.7% in one month.

Before the credit crunch struck in July last year, more than 160,000 homes were selling every month, ut the number has been falling nearly every month. The situation is likely to get even worse with buyers continuing to disappear. Those who want to buy, cannot find a lender which is prepared to give them a mortgage, or at a rate that they can afford.

'These numbers clearly highlight the very real pressure on the residential property market’ said Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors.

The Council of Mortgage Lenders expects the number of homes sold this year to be just 770,000, compared to more than one million last year. While a larger band of people are abandoning the market, some are buying because they see the current turmoil as a good time to get a bargain by negotiating a massive discount.

Howard Archer, chief UK Economist at the Consultancy Global Insight, expects property prices to fall by 12% this year and next year before 'flattening out' in 2010. The property website Rightmove, the number of properties which are on the market has also climbed above one million for the first time.
According to HMRC's figures, this will also prove a financial headache for the Government. Lord Oakeshott expects the lethal combination of falling prices and property transactions will cut Labour's stamp duty tax take by around £5 billion.

London Property Developer show cases outstanding Penthouses

London property developer, St. George PLC, announces at the award winning Battersea Reach Development in Wandsworth, SW18, the sales release of two prestigious properties, the exquisite penthouses located on the 12th floor of the Ensign House.

Each house is provided with three spacious bedrooms, with an expansive open plan living/dining areas, designed for maximum impact and style. According to Mark Griffiths, Managing Director of St George South London commented: “With 95% of apartments are now sold in Ensign House.

The Penthouse properties feature a generous terrace and private balconies that allow for al-fresco dining whilst enjoying the spectacular panorama. It also offers breathtaking views of the river and the world famous London skyline from Putney Bridge through to Chelsea Harbour, the City and beyond.

‘The London Furnishing Company’ has designed the elegantly furnished interiors, at the East facing Penthouse whilst the west facing penthouse is being sold without furnishings, making it ideal for those wishing to stamp their personal taste and style on their new home.

The Internal finishes have been appointed to blend contemporary style with function ie., by incorporating Villeroy and Boch sanitaryware, music system by Opus, 50” LCD
high definition flat screen television, the custom designed Italian kitchens, comfort cooling in the main reception areas and under floor heating in the bathrooms & kitchen including the latest appliances, ie., Siemens cappuccino/espresso machine and chilled wine cooler.

According to Mark Griffiths, they will be launching another two of the most prestigious riverside penthouses in London. These platinum properties add to the ongoing success of Battersea Reach, a development that has established itself as the premier destination on the Thames riverside.

Battersea Reach is located close to some of London’s most fashionable areas including Chelsea, Fulham and Battersea. The King’s Road and Sloane Street are a short journey across Wandsworth Bridge, and offer many designer boutiques whilst the nearby Old York Road and Battersea Village feature a wide selection of shops, bistros and restaurants.

Residents of Battersea Reach have access to numerous transport options with trains from nearby Wandsworth town railway station taking just 12 minutes to Waterloo, where there are underground, mainline and international connections to Europe via Eurostar. The A3 and M25 are also within close proximity for easy reach to London’s airport network.

A managed underground car park is located within the development and is available at an additional cost.

Classy and classic should avoid the crunch

The class divide is alive in London. If your home is flawlessly finished and impeccably located, you’ll still find the buyers lining up, whether you live in the leafy squares of Central London or deep in suburban commuter land.

Agents report that prices are between 10 per cent and 15 per cent lower than the highs reached last summer. But even with such reductions, predictions that prices will fall even farther mean that a single flaw is enough to scare off buyers, who are quickly made nervous by as little as a thoughtlessly planned extension or too much road noise. If it is not the best in its class, it’s not good enough.

At the top end, in the very best postcodes of Chelsea, Mayfair and Knightsbridge, demand remains unconstrained. Cash-rich international buyers still stalk the market, with £5 million or more to spend, looking for a London bolthole. They are also in the market for landmark, stucco-fronted homes for more than £10 million.

Ed Mead, of Douglas and Gordon, reports increased activity from Indians and Russians. But, he says: “Most of the activity is from countries in euroland. Between the strengthening of the currency, and the reduction in prices, the deals look very good to them. The staff in my office speak five languages and I rarely hear them in English.”

But agents say that the gloss is coming off even these homes, as the gloom that afflicted the national market has spread to Central London. Miles Shipside, of the property website Rightmove, says: “The super-rich have got the funds but they are canny buyers. If they think they can get something cheaper later, they’ll wait.”

Should international buyers close their cheque books, sellers will be left to brave the demands of the British buyer: the best home of its kind, for the sharpest price. Marc Goldberg, of Hamptons, says: “Nobody is willing now to pay over the odds for any property, and everyone wants a bargain.”

That is quickly translating into pressure on prices. Ed Mead advises: “Prices were reduced 10-15 per cent almost in unison. But now, anyone who wants an easy life and a sale must reduce prices another 10 per cent from what they think is a reasonable price. That adds up to a fall of 25 per cent.” The fast deterioration of the market has been blamed on the loss of bonus cash, which did so much to boost prices in the past two years. With job security under question and bonuses forecast to be slim, City buyers have gone on strike. David Salvi, of Salvi Hurford Carr, says: “You could draw a line between east and west. The west is relatively unaffected, whereas the farther east you go the worse it gets. Docklands has been badly hit.”

Chris Pendleton Interview - MS 3D MAP and Estate Agents

Chris Pendleton Interview

Property managers fete 40

More than 100 industry people attended an event marking 40 great years for the London Property Managers Association and the 20 presidents who made it all possible.

Run by dedicated volunteers, the non-profit group provides information and education to landlords across the province. Organized by Brenda Davidson, the evening was elegant and smooth at Windermere Manor.

In honour of its anniversary, the association unveiled a new logo representing its growth and bright future. Current president Richard Izawa (Transglobe) was joined by almost all of the past presidents for the celebration, including Paul Cappa (Cohen Highley), Kim Walker (Medallion Properties), Barry Parker (Sifton Properties), Brenda Trineer (Rogers Cable, formerly Tricar), Bill Amos (Bluestone Properties) and Mike Arnsby (Arnsby Property Management).

As part of an umbrella group within Ontario, the London Property Managers Association has been able to influence legislation related to the housing industry. Major issues tackled in the past few years were the proclamation of the Tenant Protection Act, the affordable housing crisis and a proposal by the City of London to license landlords.

INCREASE IN CENTRAL LONDON RESIDENTIAL LETTING TRANSACTIONS IN Q1 2008

As the residential sales market is London slows down in the light of the escalating credit crisis both in the UK and US, Hurford Salvi Carr, specialist estate agent for the City, Docklands and West End, release figures which show a strengthened lettings market in the first quarter compared to last year.

A 5% drop in sales during the first quarter of this year has been reflected in a similar percentage rise in Hurford Salvi Carr’s lettings division; with 5.5% increase in new lettings as compared to the first quarter of 2007.

Kari Trajer, Associate Director of Lettings at Hurford Salvi Carr believes this is a direct result of current sales market conditions and the global credit crunch which has tightened lending constraints and put many people off buying.

She comments: “The credit crisis has definitely hit confidence in the residential sales market. Problems at banks like Northern Rock and Bear Stearns has brought the credit problem to the forefront of many people minds. However this has had a knock on effect of strengthening the lettings market this year as people are now renting for longer, or choosing to rent, when historically they would have bought. A concrete example is the classic pied a terre. Last year, commuters, international business people and parents of students studying in central London were quick to purchase a London property with a strong capital gains projections and good buy-to-let potential. Now, however, a lot of those ”would be” buyers are simply choosing to rent.” More Information

Property market: More snakes than ladders

Telegraph > Property - Last Updated: 12:01am BST 17/04/2008

The City has not seen big price falls this year, according to Paul Driscoll of Hurford Salvi Carr, but anything marketed at last year's prices is not moving. A two-bedroom duplex on Saffron Hill, EC1, stuck at £650,000 but sold very quickly when reduced to £599,950.

"I think the market is still five per cent overvalued," said Driscoll.

Driscoll has seen three sharp falls of 10 per cent in property values over the last decade - after 9/11, the Iraq war, and Bank of England governor Mervyn King's 2004 speech about his concerns for the housing market. Each time, it restored affordability but the market soon reinflated.

"Whether that will happen again, I don't know," he said. "It is a matter of how far the uncertainty will continue. I haven't got a crystal ball.

Snapshots of a slowdown

# Prime Central London: Prices will fall 2-3 per cent this year (Liam Bailey of Knight Frank)

# The City: No fall yet, but anything marketed at last year's top prices isn't moving (Paul Driscoll of Hurford Salvi Carr)

# Streatham: Prices down 15 per cent on 2007 (James Brooks of Kinleigh Folkard & Hayward)

# Surrey Quays, Docklands: down 5 per cent in last quarter (John East of Kinleigh Folkard & Hayward)

# Kennington: Last month the Bear Stearns crisis "stopped business dead", but prices are now forecast to remain stable (KFH).

http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/04/17/lpsnakes117.xml

UK house prices fall by 1.7% in first quarter of 2008 - Nationwide

"The annual rate of house price growth slowed dramatically in every part of the UK in the first quarter of 2008, bringing the average rate in the UK down to less than a third of the rate at the end of 2007. The annual rate of house price growth in the first quarter of 2008 was 2.2%, down from 6.9% at the end of 2007. House prices slowed most sharply in Northern Ireland where the annual rate fell from 24.2% to -3.4%, but this still leaves average prices more than £15,000 higher than at the end of 2006." - Fionnuala Earley, Nationwide's Chief Economist.


UK fact file

* Average house price: £179,363
* Annual percentage change: 2.2%
* Quarterly change (seasonally adjusted): -1.7%
* Most expensive region: London
* Least expensive region: North
* Region with strongest annual price growth: Scotland
* Region with weakest annual price growth: Northern Ireland

Annual house price growth slows across all UK regions

* Scotland is most resilient market in UK in the first quarter of 2008
* London and the South Easterly regions continue to see fastest annual growth in England
* Northern Ireland and the North West see fall in annual house prices

Commenting further on the figures Fionnuala Earley, Nationwide's Chief Economist, said:

"The first quarter figures clearly show Scottish house prices as the most resilient in all of the UK. Although prices here edged down slightly from the previous quarter, Scotland has now overtaken London in the league table of annual house price inflation. Scottish house prices are 6.3% higher than one year ago, some four percentage points above the UK average of 2.2%. In the past we have alluded to the fact that mortgage affordability in Scotland is not as stretched as in other parts of the UK, and this is likely to be the main factor behind the relative resilience of Scottish house prices.

"After seeing blistering rates of growth through much of 2006-7, London property prices recorded their first quarter-on-quarter drop since the third quarter of 2005. This caused the annual rate of house price inflation to drop from 12.8% to 5.6%, the lowest since the second quarter of 2006. House price growth in London was always likely to slow from the double-digit rates of 2007, given that housing affordabilitywas becoming particularly stretched for local first-time buyers. However, the financial market events since August have probably added to the slowdown by reducing confidence among buyers working in the City of London.

"Despite this slowdown, London prices are still showing the highest rate of annual growth in England and Wales, a situation that has been in place since the first quarter of 2006. However, the gap between London and the second strongest English region, Outer Metropolitan, has narrowed to 2.0 percentage points in the first quarter, from 4.3 percentage points at the end of 2007.

"Annual house price inflation in the rest of England's regions ranged from a low of -0.2% in the North West to a high of 3.6% in the Outer Metropolitan region. The steepest decline in house price inflation was in the South West, where annual growth dropped from 6.4% at the end of 2007 to 0.3% in the current quarter. This leaves the South West with the lowest rate of annual house price inflation in southern England.

"Although annual house price inflation has fallen across all of the Northern regions, it has done so at a slower pace than in the South. As a result, the gap between house price inflation in the North and South has narrowed for the second consecutive quarter. The gap now stands at 3.1 percentage points, down from a peak of 6.7 percentage points in the third quarter of 2007. Nonetheless, a typical property in southern England still costs over £85,000 more than in northern England."

The countries of the UK

"Of all the UK's countries, Northern Ireland showed the clearest change in house price trends. The dramatic increase in house prices seen in the Province during 2006-7 has now come to an end. Prices in Northern Ireland are 3.4% lower than at this time last year. A correction is not surprising given the searing rates of growth seen in 2007 when prices in the first half of the year increased at an annual rate of over 50%. While prices have fallen in the first quarter in Northern Ireland, they are still more than 50% higher than two years ago.

"Looking at the other countries in the UK, the pattern of house price growth has followed a relatively moderate path by comparison. Scotland has outperformed England and Wales since 2003, and remains the strongest part of the UK in terms of house price growth. The annual pace of growth in Scotland has been slowing quarter by quarter for a year, but is still almost three times faster than in England, and more than six times faster than in Wales.

"Nevertheless, the price of a typical property in Scotland is still lower than in any of the other countries in the UK and is about 84% of the price of a typical UK property." Full report

Budget - key points for homeowners

* Shared equity housing schemes announced to aid key workers
* Shared ownership (less than 80% of the home) means zero stamp duty
* More building
* Long-term fixed rate mortgages encouraged... at this point, though, it's not clear how

Many were expecting a more realistic movement on stamp duty. More >>