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Investing, London, Market Updates

London’s Lizzie Line Opens- Why this is important for Property Investors

Posted on May 30, 2022

The ‘Elizabeth line,’ or ‘Lizzie line,’ as it has already been dubbed, is Europe’s largest building project and London’s largest infrastructure project in 20 years.

The new route will revitalize London transit, making commuting easier and will continue to provide an opportunity for property investors.

40 stations will provide direct links to formerly unconnected routes, reducing travel times and greatly alleviating congestion. The 100-kilometer project will connect London’s Docklands, City, and West End to Heathrow Airport, Berkshire, and Essex, and will include ten new stations.

Even though some regions have already seen tremendous growth because of the Elizabeth Line’s announcement, astute investors can still uncover value near the now better-connected stations. Although investors typically have the foresight to invest in future projects, owner occupier buyers and tenants have a more short-term perspective and need to see such projects up and running before committing to buy or rent, which is likely to drive growth in sales and rental prices in these areas in the coming years.

Hanwell in the London Borough of Ealing, which Alford Hughes has identified as being primed to benefit, will see the largest reduction in journey times along the new line, with services from Hanwell Station to Heathrow Airport taking 11 minutes, down from 40 minutes currently, and commuting to Bond Street taking 17 minutes, down from 45 minutes.

Investing, London, Market Updates

London Properties Owned by Qatari Individuals Increased by Almost 50% Between 2018 and 2021

Posted on April 11, 2022

Qataris have always been drawn to the UK property market, both as investment opportunities and second residences, and is one of the top 20 countries in terms of individual property ownership in the United Kingdom.

According to an analysis by Alford Hughes Qatar, the number of properties owned by Qatari individuals in London climbed by nearly 50% between 2018 and 2021.

Qatari buyers primarily choose to invest in Prime Central London’s golden postcodes- Westminster being the most popular region, accounting for 21.5% of all London properties held by Qatari buyers. Westminster City Council, which stretches from the Thames in the south to Regent’s Park in the north, encompasses some of London’s most desirable neighbourhoods, including Mayfair, Marylebone, St James’s, Bayswater, Whitehall, and sections of Belgravia and Knightsbridge.

The borough of Wandsworth is the second most popular place, with 12.4%. The multi-billion-pound makeover of Nine Elms, which includes the rebuilding of the Battersea Power Station, the new US Embassy, and two new tube stations, has sparked enormous interest in the area.

In the recent years, it has become part of a broader trend among Qatari purchasers to expand their search outside typical central locales in search of places with both growth potential and easy access to important central London destinations. Between 2018 and 2021, the borough of Hammersmith and Fulham witnessed the biggest increase in Qatar ownership, with a 76.5 percent increase. Parts of Earls Court, Fulham, and Shepherd’s Bush have also been popular among Qatari purchasers lately, thanks to this trend and large-scale regeneration across West London.

The analysis, which represents the number of homes owned by Qatari individuals, does not take into consideration purchases made by companies. Purchasing properties through a limited company has become more popular in recent years, particularly among Qatari investors who see various advantages to doing so.

“Over the next 12 months, we expect purchase rates to rise as travel restrictions ease and Qatari purchasers see a buying opportunity.” Our local investor network is taking advantage of a central London market that appears to be undervalued compared to historical values and has shown growth in the last two quarters.” – Ryan Dougan, Lead Consultant – Investment Advisory, Alford Hughes Qatar.

London

London Trophy-Home Sales Doubled in 2021

Posted on January 11, 2022

The number of trophy homes that changed hands across central London last year nearly doubled from 2020, amid a boom in wealth and extremely favourable mortgages.

There were 32 sales of homes priced over £15 million (US$20.3 million) in the city during 2021, an 88% jump from the 17 that traded in 2020

Those 32 sales had a collective value of £773 million, leaving the average deal worth more than £24 million.

In particular, buyers were seeking mansions and townhouses spanning more than 10,000 square feet and with gardens, or penthouses with private terraces with a footprint of more than 6,000 square feet.

A selection of the top deals in 2021:

The OWO – £11,000 per square foot
One Hyde Park, Knightsbridge £111m
Corinthia Hotel Private Residences asking £39.5m
Hill Street, Mayfair – asking £35m
Eaton Square, Belgravia – asking £23m
Investing, London, New Development

How new homes of over 200 sqm will become a prized asset in Central London

Posted on October 20, 2021

Earlier this year London’s new Westminster City Plan was put in place as part of the borough’s planning blueprint until 2040.

Included in the plan is a maximum housing size of 200 square metres for future homes in residential developments.

As on one of the capital’s largest boroughs, stretching from the Thames in the South to Regent’s Park in the North, Westminster City Council contains some of London’s most sought after locations. Areas including Mayfair, Marylebone, St James’s, Bayswater, Whitehall as well as parts of Belgravia and Knightsbridge will be effected by the new ruling.

New rules give large units rarity value

Newly built, larger homes already built or in construction within Westminster will likely become even more of a prized asset as future supply is restricted.

At the same time, the desirability of larger homes has been further enhanced following the impact of the global pandemic: spacious, light-filled properties with home office rooms and views over open green spaces are now greatly in demand.

This is likely to create a two-tier market where the price of homes in excess of 200 square metres are likely to be higher than those sub-200 square metres. This would suggest a potential higher capital value gain for those who purchase these homes now while there is still new supply in the marketplace.

In the short term, it is good news for developments that feature larger units, including those featured below:

The OWO, Whitehall
Park Modern, Hyde Park
Chelsea Barracks, Belgravia
The Peninsula Residences, Belgravia
The Bryanston, Hyde Park
60 Curzon, Mayfair
Investing, London, Market Updates

Demand returns to the prime London rental market

Posted on September 22, 2021

Over the last six weeks, a tenant’s market has become a landlord’s market in prime London as supply has fallen and demand has hit record highs.

Supply has been curtailed as would-be landlords have sold to capitalise on surging demand in the sales market and as staycation rules have been relaxed a number of investors have returned their properties to the short-term rental market.

In addition, the return of overseas students and the re-opening of offices has driven the demand side of the equation.

These factors have contributed to upward pressure on prices, with average rents in prime central London rising by 1.2% in the three months to August, the biggest such increase since July 2018. In prime outer London, the quarterly gain of 0.9% was the largest since June 2018.

As shown in the below chart, of the properties rented, the areas around London’s two main financial districts (the City and Canary Wharf) showed the greater activity with 28% of listings rented in August in comparison to 22.5% for Greater London, a figure that was at 13% at the start of the year for both groups. This divergence shows the clear trend that the re-opening of offices has been driving lettings activity.

Office re-opening drives lettings activity

London, New York, Paris, Singapore

Global Prime Housing Forecast

Posted on July 26, 2021

Sydney leads in 2021 with the city expected to see growth of 10%.

Next year, Sydney is also expected to outperform and will share the top spot with London, both cities are expected to see an increase of 7% in 2022.

Miami is predicted to have the second-highest increase this year at 6%, with a further 4% in 2022.

New York should see prices rise by 4% this year, which would be its strongest performance since 2015, followed by a further 3% rise in 2022

What is driving the increase in values?

Government measures have helped protect economies, and cities are now on the rebound.

In addition, the pandemic has inspired many buyers to relocate or expand their holdings. Households accrued a total of over US$5 trillion globally in savings during lockdown, enabling some homeowners to undertake home improvements. Others have opted to relocate, upsize, downsize, or buy a second home/investment property.

The lack of supply in several key cities has been exacerbated as construction rates slowed due to lockdowns and social distancing, putting upward pressure on prices

What lies ahead?

The outlook for prime residential markets will be closely tied to the ease with which cross-border transactions can start to normalise, and whilst virtual viewings and improved technology have assisted in this area, the reality is the resumption of commercial air travel will be key.

Global prime forecast by city

Source: Knight Frank Research
London

QIB – London real estate sector on recovery path

Posted on July 1, 2021

London’s Real Estate Sector Coping with COVID-19

Qatar Islamic Bank-UK has said since the emergence of the Pandemic, the London prime residential markets are exhibiting signs of successfully being able to cope with most of the COVID-related disruptions, supported by the stamp duty holiday in place since summer 2020.

According to data consultancy LonRes, the number of Prime Central London (PCL) transactions that took place in March 2021 is considered the highest since 2016.

The number of properties sold in the first five months of 2021

This sharp improvement in market sentiment can be partly attributed to the success of the UK’s vaccine program and the first signs of travel reopening. This optimism, though, is susceptible to any changes that might occur in the pandemic course.

In fact, the resilience of the Prime Central London and Prime Outer London (POL) markets is not just the result of the relative success of the fight against Covid, it is now clear that the markets did, indeed, enter Q2 with the benefit of a protective buffer of unsatisfied demand, as many had predicted it would. This buffer is expected to persist, if the latest reports from  real estate agents  describing  clients’ eagerness to purchase, once international travel restrictions are relaxed, prove to be reliable.

Property Types & Locations in Demand

Overall, early lockdown enthusiasm for large family homes with  good access to open areas such as parks, beaches  and countryside, remains in demand. The market is also witnessing demand in East London as the prospect of return-to-work improves. There is an increased demand specifically in locations close to employment hubs in the capital city, like Docklands and Midtown, and specific SE/S Outer London locations, such as Clerkenwell, Shoreditch, and Victoria Park.

These locations also have the advantage of shorter average home-to-office commute times providing a better alternative for those who are keen on avoiding lengthy exposures in public places during any future potential virus breakouts or pandemics.

Investing, London, Market Updates

What’s next for the UK’s prime property market?

Posted on May 20, 2021

Eight factors shaping the top end of the UK’s property market


The UK’s prime real estate markets are set to continue to increase for the rest of this year at least, according to Savills research. Country houses and regional locations are likely to continue to be in high demand as lockdown lessons stay fresh in buyers’ minds, while London and city markets are due for a resurgence as hospitality re-opens and international buyers enter the market as travel resumes.


  1. We anticipate the lifestyle drivers that have influenced the prime markets since they reopened a year ago will continue to do so through the remainder of 2021.
  2. Lifestyle drivers will result in continued price growth across the prime markets beyond London, especially in the country house and coastal markets where there is the greatest imbalance in supply and demand.
  3. The continued relaxation of social distancing measures and the rollout of the vaccination programme in the UK will underpin a return to price growth in the prime London markets during the second half of 2021.
  4. Markets that have traditionally been dominated by those living and working in the capital’s financial and business districts, such as Canary Wharf, will begin to see demand increase more as workers start to return to the office.
  5. As international travel gradually resumes, we expect to see a more pronounced recovery in prime central London prices from 2022 onwards, in a market that looks good value in both a historical and international context.
  6. In more domestic markets, an increased requirement for space will continue to underpin demand in 2022, though we expect to see some rebalancing between London and the country as changes in buyer preferences, sparked by the pandemic, become less of a driver.
  7. Longer-term price growth across all markets will be underpinned by a low interest rate environment, though this will be tempered by the prospect of higher taxes as the government seeks to restore public finances.
  8. As has occurred in the past, a general election will slow the market in 2024. That could interrupt the pace of recovery in central London, which is most exposed to the risk of higher taxation in the event of a change in government.


Prime Residential Forecasts

202120222023202420255 Year
Prime Central London3%7%4%2%4%21.6%
Outer Prime London2%5%3%2%2%14.8%
All Prime London2.5%6%3.5%2%3%18.1%
Suburbs5%3.5%3%2%3%17.6%
Inner Commute5%3.5%3%2.5%3%18.2%
Outer Commute5%3.5%3%2.5%3.5%18.7%
Source: Savills Research

Prime Rental Forecasts

202120222023202420255 Year
Prime London3%7%4%2%4%21.6%
Prime Commuter Zone2%5%3%2%2%14.8%
Source: Savills Research
London

Prime Central London Sales of £5m+ hit a seven-year high

Posted on May 12, 2021

142 property sales above £5 million were recorded in Prime Central London in the first four months of this year, with a combined value of £1.42 billion.

The top-end of London’s property market continues to recover, with more £5m+ sales recorded in the first four months of 2021 than in any year since 2014.

There were 43 sales above £5 million during April 2021, according to Savills; the highest April figure since 2014. This brings the total for the first four months of the year to 142; that’s also the highest figure since 2014 (when 159 deals were recorded), and comes in a third higher than in the same period in 2020, and 65% up on 2019.

The total spent on these deals has also increased, reaching £1.42 billion in the first four months of the year; 32% more than in 2020, and 63% more than in 2019.  That puts the average deal price at just over £10 million.

Number of sales over £5 million in London

All sales over £5m in London, total value (£bn)

£5m – £10m£10m+Total
Jan-Apr 2019£0.40bn£0.47bn£0.87bn
Jan-Apr 2020£0.53bn£0.55bn£1.08bn
Jan-Apr 2021£0.71bn£0.71bn£1.42bn

Source: Savills

London

Q1 2021 Prime London Property Index

Posted on May 3, 2021

The London prime property market was as busy as it’s ever been over lockdown, but prices are still finding their feet.

+27.3%

Rise in number of properties sold compared with Q1 2020, just as the first lockdown hit.

18 Days

Properties are selling 18 days more quickly than this time last year.

-4.7%

Fall in prices compared with same period last year.

Source: Coutts & Co, LonRes, April 2021

  • With properties spending less time on the market compared to a year ago, sellers appeared to prioritise a quick sale rather than hold out for a higher price this quarter.
  • Overseas buyers, an important source of demand for central London homes, have faced travel restrictions with fewer able to make the trip over to purchase or view prime property, which may also have impacted prices.
  • Activity in the London prime property market continued to rise in Q1, despite the conditions of lockdown.
  • The impending stamp duty holiday deadline on 31 March spurred on purchasers looking to take advantage of the savings. The deadline was extended in March, but by then many buyers were ready to complete.
  • While the number of overseas buyers has been low due to travel restrictions, the arrival of a 2% stamp duty surcharge on overseas buyers at the end of March acted as an incentive for them to transact, too.
  • New instructions were slow at the start of the quarter as many sellers assumed they’d left it too late to benefit from the influx of buyers hoping to meet the stamp duty holiday deadline and others were put off by lockdown. In March, the stamp duty extension and positive news on the easing of lockdown restrictions resulted in a surge in new instructions, making up for the slow months.

Prime Property Market Trends For 2021

Low Interest Rates Will Support Demand

The prospects for economic growth in 2021 have led to higher inflation expectations and rising bond yields (that is, falling prices). However, there’s no sign of any change in the Bank of England base rate in the UK. We continue to expect a very favourable low base rate regime for the next two to three years, which will continue to support demand for residential property.

Buyers And Sellers Emerge From Lockdown

As restrictions ease through the year, the previous ways of transacting are likely to re-establish themselves. We expect that this will see an increase in new listings as seller reluctance over viewings recedes. The real estate sector has done well to mitigate the barriers put up during lockdown, and some of these innovations – such as remote viewings – could stick, particularly for overseas buyers.

Return Of Overseas Buyers

We expect increased interest from overseas buyers as travel restrictions ease through 2021. Overseas interest in commercial property is already evident, reflecting an undervalued currency and attractive yields. Commercial estate agent Colliers reports that £3 billion was invested in UK commercial property in March, with overseas investors accounting for half of the assets. We expect trends in residential to follow commercial through 2021.  


Prime London Area Focus – Q1 2021 Performance

Use the map and postcode selector below to see how each area performed last quarter.

Read full report from Coutts