With two and a half trading days to go before Christmas, this week, instead of looking ahead, we are peering over our shoulders to work out who fared the best and was left behind in the London market in 2008.
Overall, it has been a year of losses: the FTSE 100 is down a depressing 33.6 per cent, while the FTSE 250 has lost over 41 per cent of its value since January. Recession and the paucity of credit have played havoc with stocks across the sectors. But some have managed to weather the storm better than others.
The banks fared the worst as writedowns went from bad to worse to unsustainable and wholesale funding dried up, forcing some of the grandest of City grandees to seek help from the taxpayer or find solace in the arms of a better-funded foreigner.
Monday, December 22, 2008
Thursday, December 18, 2008
HBJ signs up Mishcons real estate partner
HBJ Gateley has been steadily expanding its London presence during the last year. In April, the firm recruited Simmons & Simmons partner Robert Bryan to head up its construction and engineering practice, while in May, HBJ completed a merger with shipping boutique Holmes Hardingham.
In August this year the firm bought in litigation partner Debbie Milne in Edinburgh from Biggart Baillie.
The firm has offices in Birmingham, Edinburgh, Glasgow, Leicester, London, Nottingham, London and Dubai, with a total of 99 partners and 370 fee earners.
In August this year the firm bought in litigation partner Debbie Milne in Edinburgh from Biggart Baillie.
The firm has offices in Birmingham, Edinburgh, Glasgow, Leicester, London, Nottingham, London and Dubai, with a total of 99 partners and 370 fee earners.
Sunday, December 14, 2008
Are country estates still selling?
Marsh Court, a 10-bedroom house in Stockbridge, Hampshire, which came onto the market in April 2007 for £13m, was relaunched this June for £10m and sold for £11m in September. Grade I-listed Chicheley Hall, in Buckingham-shire, which went on sale in July last year for £9m, had its asking price slashed to £7m in January and went for close to that in June.
Many more sellers are retiring from the fight altogether, including the owners of Furzehill Place, in Surrey, once home to the Victorian explorer Sir Henry Morton Stanley. They have taken the property – guide price £7m – off the market after eight months.
It is clear that the City-boy-fuelled boom years are over – but what does the next year hold? “There’s still a lot of money out there, and a lot of people still have an ambition to buy a chunk of England,” says Mark Lawson, a director of The Buying Solution, an upmarket agency. He warns, however, that until buyers regain the confidence to spend and sellers are willing to brave the market, 2009 will be very tough indeed.
Many more sellers are retiring from the fight altogether, including the owners of Furzehill Place, in Surrey, once home to the Victorian explorer Sir Henry Morton Stanley. They have taken the property – guide price £7m – off the market after eight months.
It is clear that the City-boy-fuelled boom years are over – but what does the next year hold? “There’s still a lot of money out there, and a lot of people still have an ambition to buy a chunk of England,” says Mark Lawson, a director of The Buying Solution, an upmarket agency. He warns, however, that until buyers regain the confidence to spend and sellers are willing to brave the market, 2009 will be very tough indeed.
Wednesday, December 10, 2008
London student real estate market needs more houses
London could become more of a target for investment property landlords after a study found there is not enough student accommodation in the UK capital.
According to consultancy firm Knight Frank, London needs at least another 100,000 student bedrooms, with many of those looking to study in the city not able to find university or private accommodation.
The firm also said the current financial slowdown presents an opportunity to expand the student property stock, seen as less risky than more traditional
According to consultancy firm Knight Frank, London needs at least another 100,000 student bedrooms, with many of those looking to study in the city not able to find university or private accommodation.
The firm also said the current financial slowdown presents an opportunity to expand the student property stock, seen as less risky than more traditional
Monday, December 8, 2008
Mortgage rate rip-off: banks stand accused
First-time buyers and people remortgaging recently-bought homes still face 'debilitating' rates of up to or even above 6% - despite the Bank of England slashing its borrowing rate to 2% yesterday.
The dramatic gap emerged as Gordon Brown warned banks they must cut the cost of mortgage borrowing or face being carpeted by him and the Chancellor.
'Remember, the last time and the interest rates came down 1.5%, we had to talk to the banks before things moved forward but things did move forward,' he told GMTV. 'And we will be talking to the banks again.'
But this afternoon Royal Bank of Scotland, which was bailed out with taxpayers' billions, defied the Prime Minister by refusing to pass on the Bank's one% cut in full. It reduced its standard variable rate by only three-quarters of a point, to 4.44%.
The dramatic gap emerged as Gordon Brown warned banks they must cut the cost of mortgage borrowing or face being carpeted by him and the Chancellor.
'Remember, the last time and the interest rates came down 1.5%, we had to talk to the banks before things moved forward but things did move forward,' he told GMTV. 'And we will be talking to the banks again.'
But this afternoon Royal Bank of Scotland, which was bailed out with taxpayers' billions, defied the Prime Minister by refusing to pass on the Bank's one% cut in full. It reduced its standard variable rate by only three-quarters of a point, to 4.44%.
Friday, December 5, 2008
London Luxury-Home Values Slide for Eighth Month in November
Nov. 29 (Bloomberg) -- Luxury-home values in central London, the world’s most expensive location for prime real estate after Monaco, fell for an eighth month in November as fewer sellers held out over prices.
The estimated average value of a house or apartment in the city’s nine most expensive neighborhoods fell 3.6 percent from October, according to an index compiled by Knight Frank LLP. It was the second-largest drop since the index started in 1976. Property values declined 14 percent from a year earlier, the broker said today. The index covers homes mostly valued at more than 1 million pounds ($1.54 million).
“The last few months have seen vendors gradually accepting that prices need to be cut if a sale is to be achieved,” said Liam Bailey, Knight Frank’s head of residential research. “Further price falls are to come.”
The estimated average value of a house or apartment in the city’s nine most expensive neighborhoods fell 3.6 percent from October, according to an index compiled by Knight Frank LLP. It was the second-largest drop since the index started in 1976. Property values declined 14 percent from a year earlier, the broker said today. The index covers homes mostly valued at more than 1 million pounds ($1.54 million).
“The last few months have seen vendors gradually accepting that prices need to be cut if a sale is to be achieved,” said Liam Bailey, Knight Frank’s head of residential research. “Further price falls are to come.”
Wednesday, December 3, 2008
Sibir plunges on planned property deal
The market value of London-listed Sibir Energy halved on Wednesday after the Russian oil group said it would buy more distressed real estate assets from its key owner for $340m in cash and debt.
Sibir had already outraged minority shareholders when it said in October it would buy some $157m worth of real estate from its key owner, Russian businessman Shalva Chigirinsky, in a clear departure from its core oil business.
Sibir had already outraged minority shareholders when it said in October it would buy some $157m worth of real estate from its key owner, Russian businessman Shalva Chigirinsky, in a clear departure from its core oil business.
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