Category: Interiors

One of the UK’s wealthiest homeowners has just seen an eye-watering £13m fallen off the value of their property, all within a year! With Brexit uncertainty and recent tax changes shows vast fall in the value of homes – property rich list, no more.

According to Zoopla’s new research, Kensington Palace Gardens in west London tops the list of the most expensive streets in Britain, with an average property value of £35.7m – although that is £2.5m less than this time last year when the figure was £38.3m. In 2015 a typical property on the street was worth £42.6m – which reflects a near-£7m decline in just over two years.

However, the ultra-wealthy owners of homes in the Boltons, two miles south, have had a much tougher time… Zoopla stated the average value of a property on the street in South Kensington had plummeted from £33.3m this time last year to just under £20m now.

Other roads in the area, such as Manresa Road in Chelsea, had smaller falls, and a few increased in value over the year.

Other surveys have also reported sharp falls in some of the capital’s most expensive boroughs. Last month the property site Rightmove said the average asking price of a newly marketed home in Kensington and Chelsea fell by £308,000 between August and September.

Rightmove described the slump in the high-end central London market as a “readjustment”, and quoted an estate agent saying that, since the introduction of the 3% surcharge on stamp duty paid by investors, along with the uncertainty over how Brexit would pan out, “investors have been standing on the sidelines.”

Zoopla stated there were now 14,417 streets in Britain where the average property value is £1m or more – up from 12,418 in 2016. Of those, 5,899 are in Greater London. The Yorkshire and the Humber region has 77 £1m streets, north-east England has 45 and Wales has 11.

In line with this trend, 19 of the 20 towns with the highest number of £1m-plus streets are in southern England. Guildford in Surrey takes the top spot with 204, with Reading in Berkshire in second place with 187.

It’s estimated that 10,000 finance jobs will move out of the country, according to the new Reuters survey.

The survey predicted that job losses are more likely to happen in the long-term, as companies might not make big changes instantly as they wait for the decision of the Brexit discussions.

“If it’s going to happen it won’t be in one big bang”, said a senior executive at one of Europe’s largest banks, which took part in the survey. He also added, “there will be a slow drain of jobs from London over a number of years.”

In total, around 1.1 million people work in the financial sector in the UK, which suggests that initial job losses after Brexit will be at the lower end of previous estimates which have estimated 30,000 to 75,000.

Despite uncertainty over Brexit, London has held onto the top spot as the world’s leading financial centre. In a ranking that surveys industry professionals, extending its lead over both New York and Singapore, despite ongoing uncertainty about the consequences of Brexit. However, political uncertainty from Brexit and the US election has had an “enormous impact” on the state of affairs, as London gain the title ‘Worlds’ Top Financial City’.

London has held onto the top spot as the world’s leading financial centre. In a ranking that surveys industry professionals, extending its lead over both New York and Singapore, despite ongoing uncertainty about the consequences of Brexit. However, political uncertainty from Brexit and the US election has had an “enormous impact” on the state of affairs, as London gain the title ‘World’s Top Financial City’.

Global Head Of Investment Banking, based in London quoted; “The British Crown Dependencies are seen as a safe haven from the turmoil in UK and EU.”

London has been a leading international financial centre since the 19th century. For much of this time, it has been a major centre of lending and investment around the world, and during the late 20th century played an important role in the development of new financial products such as the Eurobond market in the 1960s and derivatives in the 1990s.

Today 2017 London has exploded the financial market and retained the crown as the world’s top financial centre. With the UK’s prime minister is set to trigger Article 50 on Wednesday, and start Brexit talks, much is still yet to be determined on Britain’s future relationship with the EU.

Mark Yeandle, associate director of the Z/Yen Group and the author of the GFCI, said: “We live in uncertain times and financial professionals hate uncertainty. Brexit has caused uncertainty in Europe and the election of Donald Trump has caused uncertainty globally.”

It now feels everyone wants to get in with London’s top title… According to a New York based, Venture Capitalist said, “We now have an office in LA, but we are also going into Europe now – London is the place to be for FinTech regardless of what they say about Brexit.”

An Investment Banker, based in Tokyo, added, “If you are a global bank you have to be in all of the top five centres.”

Thanks to television series such as, ‘Property Ladder’, ‘Grand Designs’ and ‘Homes Under the Hammer’, it seems like being a property developer is an easy way to make a quick buck or two. However, this isn’t really the case, as there’s a lot more involved than just buying, quickly renovating then selling it at a higher price.

There are in fact a few key skills that a good property developer needs to identify with, in order to boost his or hers portfolio:

Buy To Sell Vs. Buy To Let – Remember there are two options when operating as a property developer, whether you rent the property out to tenants or build, renovate then sell.

The Buy To Sell option can provide you with large returns on your investment in a short-term, but keep in mind your profits can just be easily wiped due to unexpected problems with the renovation or a dip in the housing market. Ideally, you’d need a contingency fund, just in case. Buy To Let often allows you to generate a regular monthly income on your long-term investment – also mortgages for Buy To Let are accessible, providing that you can put a 25% deposit down.

Buying a property at the right time, sussing out the marketplace to find a bargain, whilst understanding its demands and the area trends are pretty much key to success as a property developer.

Remember Location, Location, Location (not the TV show) – Sometimes it’s more profitable to look for properties outside an unknown or perhaps an “up-and-coming” area… Hoping to take advantage of the future regenerated areas and the chances of stadiums, landmarks and BIG businesses being constructed; areas such as Highbury, Shoreditch, Wembley, and Tottenham.

Maximise Your Profit Margins – All smart property developers have a 30% contingency plan (if things go arise), also they tend to aim to work towards a 30% profit margin. The importance of financial control is key, as additional costs can wrack up when development starts.

Bear in mind that it’s not only the property cost that you’re paying, as insurance, builders, materials, stamp duty, solicitor fees and tax (if this falls into the higher tax bracket, it will be as high as 40%. Buy To Sell incur capital gains tax of 18% – 28%, so make sure you comprehend your margins and what you can afford.

Essential Fittings & Kerb Appeal – Keep your costs down, by spending the right amount on fittings, decor, and appliances. Tailor the costs to the asking price and your demographic. Thus meaning no en-suites if your property is for student private accommodation. Be logical in your thought process.

Choosing The Right Property For You – Beginners tend to focus upon what a property can be sold for and its profit, but the true art of property developing is finding something at the right price to you. So, buy property at good value for your money as this allows you to be on track to earn a profit of 30%. Look at options such as purchasing at an auction and or probate – often properties are discounted to 20% off.

Trying to find a new home is stressful in itself, as well as being complicated and time-consuming, however finding property in London is a completely different kettle of fish.

Bridging Loan estate agent, Tim Mcgee said, “It’s notorious that London’s one of the most expensive places to live in the world…[the majority of] first-time buyers find themselves priced out of the market, and having to look for a cheaper alternative [such as renting or moving away from London boroughs.] So, if you’re one of the fortunate ones with a big budget in our glorious capital then here are a few tips you may want to keep in mind:

We’ve already mentioned property prices, but it really is a big contender on our list, especially in the most sought after the cosmopolitan city that is London. They’re countless things to do and see in the capital, so no wonder it comes with a hefty price tag to live there. The list of positives about living in London is endless, but consider whether you’re really getting value for your money. A London estate agent once stated, “A small bedsit in a central location can cost as much as a three-bed semi in the suburbs, so think about how good your standard of living would be, well before committing to the idea.”

Always consider the fees to pay out – this isn’t as such specific to finding property in London, as you’ll always have to pay fees if you’re buying property through an agent, wherever you’re in the UK.

Haggle. No, really it’s okay to bargain (reasonably). So let’s say you’ve found your perfect home/ property, but you can’t really afford the price-tag that comes with it. There’s absolutely no harm in bartering the price down – a lower offer is even expected from the seller, plus you can find some real bargains when shopping around; this applies to renting as well! If you don’t ask, you won’t get!

We all know that London is continuously growing and evolving. Regeneration projects have taken over the capital, meaning that some of the areas that savvy property hunters may have once not wanted to touch with an extended bargepole are fastly becoming a very desirable to inhabit. So don’t rule out areas like Elephant and Castle, Stratford and Kilburn, as these areas and others alike are on the up! Keep your mind fresh and your eyes peeled.

Living in the capital may seem an astronomical expense and ask of you, but consider cutting down on other costs – do the maths. According to the Financial Times, “The average person commuting from Buckinghamshire into London, will pay almost £550 a month in rail fares, so it could even out nicely if you’re not spending so much time and money on transport.”

Doing your own extensive research before making any massive property investment is essential, before making any such commitment. The property market in London still continues to soar, but it is slightly dropping in recent years. So it is a good time to start thinking about moving to one of the best cities in the world. Plus there’s no harm in looking…