As the latest survey from the Royal Institute of Chartered
Surveyors (RICS) reveals a surge in demand for UK property and the
fastest rise in house prices since their peak 7 years ago, we take
a look at what's happening in UK property.
RICS aren't alone in claiming that investors are clamouring
to return to the property market, this month's London
Residential Review produced by Frank Knight showed that
international investors are driving investment in prime residential
What's the attraction for international investors?
For overseas investors, the weak pound and low interest rates
have driven capital growth in house prices considerably. Taking
into account currency fluctuations, Knight Frank are predicting
double digit growth in capital for investors from Europe, USA,
Middle East and Asia. For sterling investors, the anticipated
growth is 26%. Somewhat better than the meagre rates being offered
on cash right now!
Is it just London?
RICS said that although London and the areas around it continued
to see the biggest price increases, every region saw prices rise.
July saw an acceleration in the housing market recovery that has
been running for some time.
"Significantly, this growth was seen in each and every part
of the UK as the recovery, initially focused in the south-east,
spread to regions across the country."
RICS particularly saw growth in the West Midlands and the
north-east, areas which have suffered more than most since the
It's not unusual for us to see our clients achieving double
digit income returns on residential property investments, one
recent client even expects to receive an income of 15 - 18% from
What about commercial property?
Colliers International also see sustained growth and returning
investor confidence in the commercial property market. In their
Real Estate Investor Forecast, Colliers predict steady income
returns as well as 0.5% rental growth and 3.4% capital value
growth. Again, international buyers are playing a major part in the
UK commercial property market and they are venturing beyond London
to the regions in search of yield.
Dougie Lawson, of Lawson & Partners, a property investment
and asset management consultancy practice says that "there are
many opportunities available for investors to diversify their
portfolio. It is possible to buy an "institutional grade"
investment property for less than £1m and with less than
£0.5m with debt".
Notably, we have recently acted for a number of investors,
together with Lawson & Partners who have purchased commercial
investments from Lateral Property Group, who are one of the
UK's most active developers of food stores, retail units and
Steven Redgrave, Managing Director of Lateral says that "we
have achieved notable success, completing 34 development projects
in the food store, retail and leisure sectors in the last four
years and we have a substantial forward pipeline".
Specifically, Lateral has completed and sold 16 convenience
stores in the UK with 8 more due to complete this year. The stores
are pre- let to Tesco, Sainsbury's or Morrisons, generally on
20 year leases with upwards only reviews, pegged to RPI. A current
example as illustrated is a Tesco Express which is under offer at
6.25% in Peterborough off an initial rent of £47,500.
So, how are we helping property investors?
We're on the ground here in Channel Islands and can help you
or your clients with the entire process of buying, selling and
refinancing UK property. We have a really strong network and can
also introduce you to key people, whether that be agents,
surveyors, or property tax accountants to make the entire process
absolutely seamless. As people who love property, we're always
happy to talk all things property with you.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The process for obtaining planning permission for development of property in the Cayman Islands has been updated as a result of the latest revision of the Development and Planning Law and accompanying regulations (July 2015).
In principle, when the parties agree to arbitrate, they shall be
bound by that agreement. It should therefore follow that when a
party initiates arbitration proceedings, the other party - the
respondent – will avail itself of the opportunity to present
its case and participate in the proceedings.
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