Is London commercial property on the rise?
Figures today from Great Portland Estates seem to indicate that property values in London may have turned a corner. The company reported a 15.5% increase in net asset value per share and two new acquisitions which would seem to indicate a renewed appetite for London commercial property. So is this the turning point we have been waiting for?
While there's no doubt that commercial property in London is more in demand today than it was six months ago it is also worth remembering that London is effectively a mini economy within the UK economy. That's not to say that London does not direct the UK economy, both higher and lower, but very often changes in the London mini economy may take some time to be replicated across the UK as a whole.
Great Portland Estates also suggested that some of the increase in London commercial property prices can be linked to demand for a smaller base of quality properties which has squeezed prices high. However, it is good that we seem to be moving away from distressed asset sales in London and other areas of the UK and finally there appears to be some light at the end of the tunnel.
Share this..
Related stories
What does the Dubai property collapse mean for the UK?
As we covered yesterday, the announcement that the main property developer in Dubai, and state-owned parent company, has asked for debt repayments to be suspended is a major blow for the sector. Even though the Dubai property sector has fallen substantially over the last 18 months, many were still surprised that the main developer Nakheel appears to be in so much trouble. In effect the company...
Read MoreThose considering equity release should 'move fast'
Those homeowners considering triggering equity release on their property may be wise to move fast, considering the house price drops foreseen by experts.Alex Edmans, a personal finance adviser from Saga, has reminded Brits that with house prices falling, the amount of money available to be borrowed through equity release will go down.Mr Edmans went on to warn that customers must ensure that their...
Read MoreCo-op releases first-time buyer research
First-time buyers plan to save an average of £20,000 before purchasing their home, the Co-operative Bank has revealed.New research, undertaken by the bank in collaboration with Places for People, also showed that the typical buyer is planning to wait two years before getting on the property ladder, the Press Association reports.The group were found to be conservative on matters of property, with...
Read MoreMixed Signs In The Property Market
After months of complete mayhem in the financial markets it seems that some kind of liquidity may be returning to the sector. HBoS has announced that they found investors to take up their recent £500 million mortgage bond issue â€" something which would have been unheard of only a couple of weeks ago. The bond issue is linked to residential mortgages and many experts are seeing this...
Read MoreBe careful of that last minute chase to save stamp duty costs
The end of the year sees the UK governments stand duty reduction come to an end with properties valued between £125,000 and £175,000 attracting a 1% stamp duty charge from 1 January 2010. Currently the UK government has exempted property purchases within this specific range in an attempt to try and inject some confidence and interest into the UK housing market.
While there is no d...