The Brief Archives - Issue 02

The Brief.

Property Investment News that matters.

The Brief.

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EDITION TWO

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The 1st edition of The Brief was well received, but we’ll be constantly working to improve it. Over coming weeks we’ll be including some of the features you’ve been requesting – after all, it’s about increasing interaction with our Members.

To this end I’d like to draw your attention to IPIN’s 1st “on the ground” seminars in the UK - a chance for us to meet you in person and answer any and all questions you may have about IPIN. See the final page in this week’s The Brief for further information…

Contents02 cONTENTs

Welcome from our International Sales Manager

03 home sweet home International demand grows for properties in the Home Counties

04 not so grim up north! Landlords achieve highest UK rental yields…

06 watch the birdy… Lord Prescott sparks @grantshapps Twitter debate

07 aLL rise… Private rents rise again, says LSL

09 strictLy business Hong Kong and London are world’s most expensive office markets

11 house styLe New fashion and residential quarter dubbed ‘Marylefair’

13 ipin one2one Meet the IPIN Member Relations, Sales Progression and Portfolio Advisor teams

Mike O’Riordan�International Sales Manager

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In�tern�ation�al deman�d grows for properties in� the Home coun�tiesThere is growin�g eviden�ce to suggest that the n�umber of foreign� n�ation�als lookin�g to buy property in� the Home coun�ties is growin�g.

Although London’s residential property market continues to attract the lion’s share of foreign buyers, demand is now spreading out to other parts of the country - most notably the Home Countries.

“We have received an increasing amount of interest from overseas buyers, indicating that the London trend is spreading to the Home Counties. We have recently had purchases from couples and families in Dubai and China,” said John Inglis, sales and marketing director at development firm Explore Living.

But what started as a trickle in demand is fast turning into a “flood of foreign buyers,” according to Rupert Wyatt, Partner at Surrey-based estate agents Barton Wyatt.

Wyatt reports that Surrey has proved particularly popular with wealthy international buyers from host of countries, including Ukraine, Russia, South Africa, Monaco and Geneva.

He added: “Wentworth in Surrey in particular appears to be hugely popular with affluent overseas buyers attracted by the prestige of living on the Wentworth Estate. They are drawn to our area because of the reputation Wentworth has for privacy, yet the club allows a great deal of social entertainment – really the best of both worlds.”

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It’s grim up north!

not so>

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Lan�dlords achieve highest UK ren�tal yields…Lan�dlords gen�erally wan�t to achieve the best ren�tal return�s possible when� in�vestin�g in� property, but where exactly in� the UK are the highest yields available?

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The highest rental yields in rental yields in

the UK are currently

achievable in Yorkshire and

Humberside.

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According to research from the specialist buy-to-let mortgage lender, Paragon Mortgages, the highest rental yields in the UK are currently achievable in Yorkshire and Humberside, where properties produced an average rental return of 6.8% during the second quarter of this year.

The survey of more than 500 landlords found that Wales, at an average return of 6.7%, is yielding buy-to-let investors the second highest return, followed by the South West at an average yield of 6.2%.

Although London is generally the most desirable place to invest in property, yields are restricted because of high property prices, fuelled by strong demand from owner occupiers and property investors.

Overall, the average yield achieved by all landlords stoodat 6.2% in the second quarter, with professional landlords – those who own 20+ homes – achieving a higher than average yield of 7%.

“The second quarter has remained largely static in terms of the rental yield that the majority of landlords are achieving. However, to achieve an average yield of between 5-7% is extremely healthy and shows that portfolios are performing well, said John Heron, managing director of Paragon Mortgages.

“The demand for private rented property has continued to dominate headlines over the past quarter as we see the housing market squeezed further,” he added.

Region� Average YieldYorkshire & Humberside 6.8%Wales 6.7%South West 6.2%South East (exc London) 6.2%London (outer) 6.2%North East 6.1%West Midlands 6.0%London (Central) 5.8%East of England 5.7%East Midlands 4.5%

Yields are restricted because of high property prices

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Watch the birdy!Lord Prescott sparks @gran�tshapps Twitter debate

But a recent claim by a political website that the MP is using an autobot, raising the possibility that he has been artificially inflating his popularity on the social networking site, saw him trending on Twitter last week, with a little help from Lord Prescott, the former deputy Labour leader.

Lord Prescott sparked a discussion on the micro-blogging site when he asked: “Has anyone else been followed & unfollowed by @grantshapps? #shappsfollowedme”, after blog Political Scrapbook noticed unusual activity in Shapps’ Twitter account which indicated the use of bots to boost follower numbers.

The minister’s office declined to comment on whether Mr Shapps was using software application to follow random accounts in the hope that they would follow him back, but the MP actually intervened, by replying to some members of the site, including Prescott, even going as far as retweeting a few of the more skeptical tweets in good humour.

With close to 55,000 followers, housin�g min�ister Gran�t shapps can� claim to be on�e of the most popular members of parliamen�t on� Twitter…

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Private ren�ts rise again�, says LsLAll rise…

Rents in England and Wales rose for the third consecutive month in June, according to the latest

Buy-to-Let Index from LSL Property Services plc.Its monthly index reveals that average rents increased by 0.9% to £718 per calendar month (pcm). Consequently, rents are now just short of the record

high of £720pcm recorded in October 2011.

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The index also shows that a result of the monthly rise, the pace of annual rental inflation also increased, climbing to 2.4% from 2.3% in May.

On a monthly basis, rents rose in all regions of England and Wales, apart from the South West, where they fell by an average of 0.3%.

Wales saw the largest rise, with rents increasing by 2%, followed by the North West and West Midlands where rents rose by 1.7%.

Meanwhile, rents in London, which remains the region with the fastest annual rental growth, increased by 0.9% month-on-month to £1,047pcm - a new high for the second month in succession. Tenants in the capital were paying an average of £41 extra per month in June compared to the same month last year.

David Brown, commercial director of LSL Property Services, says: “The sheer weight of tenant demand continues to push up rents across the country.

“Lending criteria remains tight and the number of mortgages given to first-time buyers – especially those without substantial deposits – is still a long way from the level seen before the credit crunch. With higher rents and the growing cost of living eroding how much tenants can save towards the large deposits required to buy, it’s no surprise to see the private rented sector swelling by 262,000 households a year.”

The sheer weight of ten�an�t deman�d con�tin�ues to push up ren�ts across the coun�try

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Strictly businessHon�g Kon�g an�d Lon�don� are world’s most expen�sive office markets

six of the world’s ten� most expen�sive office markets are located in� Asia-Pacific, led by

Hon�g Kon�g, accordin�g to the latest report from cBRE.

The property adviser says that Asia-Pacific holds increasing sway in the global commercial real estate market, illustrated by the fact that Hong Kong’s central business district (CBD) has been named the world’s most expensive office market.

A total of 19 of the top 50 most expensive markets are in Asia-Pacific, 19 are in Europe the Middle East and Africa (EMEA) and 12 in the Americas, led by Hong Kong’s CBD at an overall annual occupancy costs of US$248.83 per sq ft, followed by London’s West End with  US$220.15 sq ft and Tokyo in third, followed by Beijing’s Jianguomen (CBD) and Moscow.

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1. Hong Kong (Central), Hong Kong – $248.83

2. London Central (West End), United Kingdom – $220.15

3 Tokyo Japan – $186.49

4. Beijing (Jianguomen - CBD), China – $180.76

5. Moscow Russian Federation – $171.53

6. Beijing (Finance Street), China – 166.89

7. Hong Kong7. Hong Kong (West Kowloon) – $158.72

8. Sao Paulo Brazil – $144.75

9. New Delhi (Connaught Place - CBD), India – $140.21

10 London Central (City), United Kingdom – $131.51

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“The most expensive office locales are increasingly located in dynamic markets across the emerging economies as office occupiers diversify their global footprints in these markets to take advantage of rising incomes and the availability of labor,” said Raymond Torto, CBRE’s global chief economist.

‘The most expensive office occupier markets also have a diversified economic base, limited, available institutional quality space, strong currencies and are increasingly located in urban centres,’ he added.

The report also reveals that occupancy costs increased by an average 3.6% worldwide led by Asia-Pacific at 7.8%, Americas at 5%, and EMEA at 0.4%. Occupancy costs increased in 80 markets, decreased in 24, with no change in 29.

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The launch of Verge Mayfair on Oxford Street by Oakmayne Bespoke, a boutique residential scheme of 10 luxury apartments and two penthouses, with a fashion inspired specification and look, underlines the emergence ‘Marylefair’: a new fashion and residential quarter in the heart of London’s West End.

Knight Frank, sales agent for Verge Mayfair, reveal that over the last two years, north Mayfair and south Marylebone have merged into a new fashion and residential quarter that director Simon Barry at Knight Frank has dubbed “Marylefair”.

Knight Frank highlight that the restaurants, cafes and shops of St Christopher’s Place have helped to fuse Mayfair and Marylebone together, with new residential schemes raising the residential profile of the area.

Simon Barry of Knight Frank comments: “Five years ago, north Mayfair and south Marylebone was dominated by retail outlets, hotels and offices resulting in an undersupply of new homes in the locality. However, over the last two years there has been a significant rise in new niche residential schemes in the district. This is helped to raise residential values in the area from £1,200sqft, to over £2,000sqft currently.”

New fashion and residential

quarter dubbed ‘Marylefair’

House Style

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New fashion and residential

quarter dubbed “Marylefair”

A stunning and exceptionalplace in which to live

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Barry continues: “As London’s West End is becoming more residential it is attracting continental European and Asian buyers who are seeking either a London pied-a-terre or rental-investment opportunity. The benefit of having Selfridges, Bond Street and South Molton Street on the doorstep is a big magnet for these overseas buyers who like luxury brand names.”

Knight Frank highlight that “Marylefair” has recently benefited from a range of new residential schemes, including Picton Place, Bolsover Street, St James Street, Albermarle Street, which have raised investor appetite for residential projects in the locality.

Verge Mayfair is the latest residential scheme to be launched in “Marylefair”.

Ready for occupation, Verge Mayfair provides 10 apartments, ranging from chic studio-lofts to two bedroom pads, and two penthouses, each with private rooftop terraces. The 12 homes range from 549ft2 to 1,873ft2 in size, with prices starting from £950,000.

Over the last two years there has been a significant rise in new niche residential schemes

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