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
Wednesday, December 10, 2008
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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