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Not all bad news from commercial agents in London

"London, Europe’s most active commercial property market since the start of the global financial crisis, is losing some of its allure as high prices and prospects of a U.K. recession deter investors." -- Jan. 27 (Bloomberg)

There have been concerns over a recession which could cause the commercial property market in London to lose some of it's 'allure' according to a survey of 600+ investors, agents and money managers compiled by PricewaterhouseCoopers LLP.

Since the start of the austerity measures there has been a general belt tightening and this is going to have an adverse affect on London property according to RICS (Royal Institution of Chartered Surveyors). They also said that the property market could struggle for some time to come given latest fall in some of London’s property prices.

The importance of Commercial property in London cannot be under estimated. Commercial agents in London can offer quality office and retail space for a range of businesses. Commercial property undoubtedly adds more value to the United Kingdom economy than even the banking sector, according to recent research. It provides places for people to shop, play and work as well as playing a major role when it comes to funding retirement.  It has been said that the property sector is a vital part in the UK economy. London is an attractive city to many as they can find the right employees for their businesses due to the face it attracts people from all over the world.  Second only perhaps to New York, London’s vibrancy and diversity makes it one of the best cities in the world.

Due to the economic crisis however, commercial retailers are struggling.  A number of suggestions have been made to help them get through the tough times.

Commercial agents in London who let retailers their premises have been encouraged to let their tenants move to a monthly payment system instead of a quarterly one. This could help businesses to manage their finances more effectively, especially after Christmas.

Sarah Cordey, a BRC spokeswoman states that many landlords still work on a quarterly system to collect rent for business premises up front.  This can cause cash flow problems to many businesses and a monthly agreement can only help them, consequently the commercial agents in London as they are more likely to reliably get the rent on time. Direct bank payments offer a speedy solution to rental agreements so rent can be paid on the day it is due instead of before which again, could only help businesses that are feeling the pinch.

The value of commercial properties in London is huge, it has been estimated to be £516 billion, equating to twenty five percent of the Stock Exchange (London).  It employs more than eight hundred thousand workers and five hundred thousand at least are employed in development, repair and construction alone. It is essential therefore that this sector is supported not only on a wider scale by legislation but also that that there support by Commercial Agents London to help businesses stay afloat and continue to prosper.

Who knows the inside track on London's prime locations? The long-standing local commercial agents – of course. Everyone's got an opinion, so what's yours worth?

 

Where to Find Accommodation for the London 2012 Olympics

Well it's the great white elephant in the room, as UK landlords are looking to make a fast buck in a national housing shortage. But what's in it for the letting agent? Being impartial we can see it from both sides. On one hand the opportunist landlord is looking to fill a gap in the market for prime metro property at the height of the 2012 Olympiad. But on the other hand this is effectively a very short let, which requires the letting agent to do just as much effort to market the property as a 12 month shorthold tenancy. So where's their incentive? Hey, don't shoot the messenger, everyone's got an opinion, what's yours worth?

 

Housing benefit cuts doesn't help Londoners

The new high risk policy will affect more than 750,000 households at a cost of around £20bn a year to the taxpayer. The proposed £250-a-week housing benefit limit for a one-bedroom property has been put back to January 2012, but if you're a Londoner living in an expensive inner city area, your rent could easily be higher than that!

Supply of rental property in London will fall!

Consequently the percentage of privately rented properties available to housing benefit claimants in central London is expected to fall as a result.

Campaigners naturally fear the poorest will be driven out as a result. Social Security Advisory Committee warned"Housing benefit cuts are a high-risk policy that could price the poor out of private homes and hit jobs and local services".

£20bn Housing Benefit Cuts

  • £250 for a one bedroom property
  • £290 for a two bedroom property
  • £340 for a three bedroom property
  • £400 for a four bedroom property