The housing market has got the extended holiday many were hoping for and the clock is now effectively ticking for new buyers who haven’t yet started the process of purchasing a home to take advantage of a reduced Stamp Duty charge.

 

Stamp Duty Extended Holiday

 According to Rightmove data it has taken an average of 54 days to sell a home since the holiday was introduced in July, down from an average of 70 days in the 12 months prior.

Assuming the average time to sell a home remains at the current level, aspiring buyers have until 7th May to begin a purchase to take advantage of the holiday extension.

Overall the Stamp Duty holiday has provided a much-needed confidence boost to the housing market following its full closure in March last year. However, its previous cliff edge ending on 31st March always risked seeing sales fall through increasing anxiety for aspiring purchasers. The extension will provide welcome relief to those purchasers and open the door to additional buyers. There now needs to be clear signposting introduced to ensure the cliff edge is not just pushed further down the road.

Nick Whitten - Head of UK Living Research

2% overseas Stamp Duty surplus

This tax represents a big shift in UK Government policy away from an open trade policy – until now there has never been a consideration of an investors origin if they are looking to buy an investment home.

This tax will undoubtedly create some market resistance for an initial period until it becomes accepted. It should be noted that many other competing cities already provide higher levels of overseas taxation so the UK’s major cities should remain competitive on the international stage.

 

First Time Buyer Mortgages

95% mortgages have been all but non-existent for some time now so the Government’s mortgage guarantee scheme is hugely welcome news for aspiring home owners who have long faced mounting affordability issues.

 

Capital Gains Tax changes

The UK has obviously seen a significant increase in its debts as a result of supporting the country through the COVID pandemic. Those who can pay more tax, should pay more – that is only right and it fits with the levelling up agenda.

Nearly half of the UK’s privately rented homes are in suburban locations owned by small scale buy-to-let landlords. There could now be an increase in demand for this kind of housing stock from first time buyers looking to take advantage of the new mortgage guarantee scheme. The proposed changes to Capital Gains Tax could prompt of flurry of sales from landlords looking to exit before the changes take place. However, if there isn’t sufficient lead in time before the CGT changes take effect, it could reduce the volume of rental stock coming to market. CGT is ultimately a discretionary tax, and if homes become bloated with that tax, many landlords will opt to sit on their asset and wait.

 

Wholesale Review of Residential Taxes

Looking ahead, the Government has announced a Tax Day on 23 March and this could include the commencement of a widespread review of residential property taxes.

Reviewing how residential properties are taxed in the UK is long, long overdue.

Council Tax is based on residential values from 1991, which frankly are a very poor reflection of the current market. Meanwhile, Stamp Duty is a hugely inefficient tax which is ultimately a potential hindrance to the future economic prosperity of the UK. It makes no sense for people to find themselves ‘locked-in’ to their current home because of the tax burden of moving. People need to be able to migrate towards opportunities as easily as possible in the 4th Industrial Age and as part of the levelling up agenda.

Government also needs to acknowledge that we have an ageing population and SDLT is a hugely punitive tax for those looking to descend the housing ladder and right-size in later life. Without enabling more people to downsize, we face many people continuing to live inappropriate homes for their needs which in turn forces Government to have to increase expenditure on health and social care.

However, any significant changes in the tax system must be carried out with care, following a detailed consultation and with a sufficient lead-in time. Any replacement residential tax should carry a similar starting burden for individuals. The variance should then occur over time to allow householders to adjust their finances accordingly.

 

Overall Budget Conclusion

There are many welcome announcements within this Budget. However, solutions to the housing challenge must also focus on providing homes to suit a greater variety of end user needs. Society has changed and we must move away from the concept of blanket home ownership. We need measures to support an increase in purpose-built rental homes which will professionalise the private rented market, providing long-term, secure housing, and raising the profile of renting as an aspirational lifestyle choice.

And we need attractive, specialist later life housing which will help free up family homes and make more efficient use of existing stock.  With people living longer, the UK’s ageing population is typically under occupying family homes, but appropriate alternatives will encourage right-sizing.

Measures to address the housing market should be targeted at increasing all forms of supply, not just increasing demand for Private Sale housing only. 

 

For more information, please contact:
Christine Wong (REN06667
M: +6012 908 6318
E: wong.christine@ap.jll.com

Nick Whitten - Head of UK Living Research
12 Mar 2021

Despite the challenges posed by Covid-19, new housing schemes, developments and initiatives in the UK continue unabated.

The beauty of a city like London is that it has such a wide variety of vibrant districts spread across its vast metropolis. Most of these are steeped in rich heritage, dating back to Victorian times and beyond.

One of the lesser-known areas in central London, is called the Silk District and sits in the east of the city. Back in the 17th century, the Hugenots were forced to flee France and brought their silk-weaving skills to this part of London. Before that you couldn’t buy silk in England.

While most Londoners will know the area as Whitechapel, the Silk District is being revitalised thanks to some new regeneration projects. This historic part of the city currently ranks in The Telegraph's Top 20 Places to Invest in London.

 

Whitechapel vision

The Mayor of London’s “Whitechapel Vision” is a £300m investment to improve the local area, creating a new shopping destination, public squares and first-class educational opportunities.

The regeneration plan aims to create 5,000 new local jobs, a new street market, seven public squares, a research campus, parks and a medical research centre.

 

Christine Wong, Head of International Residential, JLL Malaysia said:

“With unrivalled transport link and located closely to central London with the most attractive price point, JLL present to you one of the best investment opportunity available now.”

 

Up-and-coming neighbourhood

The area is a magnet for city execs, technology workers and creative types with the ultra-cool Shoreditch enclave close by.

A major part of the regeneration includes the opening of the high-speed Crossrail train network in 2021. When this opens, residents can reach Central London in 10 minutes or less. This improved connectivity is likely to spur healthy rises in property values in locations that have Crossrail access.

“There is currently huge appetite to invest in Whitechapel,” Peter Gibney, director at JLL, commented.

This area was first identified by JLL’s Crossrail tool as offering the highest price growth potential compared with other Crossrail stations.

Together with the emerging creative commercial hub and unparalleled convenience of location for both work and leisure, Whitechapel looks set for demand for residential investment opportunities to continue to outstrip supply.”

 

 

“Neighbouring high-performing areas like Old Street and Spitalfields have seen staggering returns over the last five years, which demonstrates the best is yet to come.

The Bouchon (the last phase of The Silk District) offers a great opportunity for savvy buyers and investors, and it’s the last chance to buy in this up-and-coming development.”

Even without Crossrail, the Silk District and wider Whitechapel is on the edge of London’s city centre located in the Zone 1 transport network.

In fact, the Silk District is excellently located in between two of London’s largest financial districts, the City of London and Canary Wharf.

 

Strong growth

This part of London is predicted to grow strongly by 2024. The average price growth of the Silk District development is expected to be more than twice that of other new builds in the same postcode.

While London’s financial districts are very close, so too are a number of world-renowned universities including Queen Mary University, UCL, London Metropolitan University and King's College, which are all within 15 minutes.

The Silk District’s close proximity to these financial and educational centres guarantees a steady influx of people looking to rent or buy properties. And with a low price per square foot compared to neighbouring boroughs, the Silk District is ranked top by JLL for future price growth potential.

 

New developments

The Silk District development is designed by Stockwell Architects and features a 24-hour concierge, secured underground parking, a cinema room, a private gym, rooftop gardens and a large commercial space.

 

 

We have already successfully launched three phases of the development and now the fourth phase is ready to launch. For investors, a two-bedroom rental property in the Silk District could command a premium rental price and capital appreciation over the next few years.

Ongoing area regeneration and Crossrail’s arrival is the catalyst for a 25% projected price growth by 2024.

Launching now – The Bouchon @ The Silk District, London E1.

It is the tallest building in the development, rising to 25 floors, offering stunning views of Canary Wharf and the City.

“The Bouchon offers would-be buyers the last chance to buy within our development, The Silk District, which is scheduled for completion in spring 2024,” Jon Hall, sales director at Mount Anvil.

Could Whitechapel’s Silk District be the investment opportunity you are waiting for?

Book a one on one appointment today or contact:
Christine Wong (REN06667)
M: +6012 908 6318
E: wong.christine@ap.jll.com

Register: https://internationalresidential.jll.com.my/event-calendar/18/oct/2020/silk-district-phase-4

 

Download our brochures for more information:

The Silk District, The Bouchon
Download Brochure

The Silk District, The Bouchon
Download Factsheet

Whitechapel Investment Guide
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15 Oct 2020

The Portman Estate is investing more than £250m into fashionable Marylebone to create a new residential hotspot in the heart of London W1

 

London is consistently one of the most popular global cities for overseas property investment, and a prestigious Central London postcode is the gold standard for wealthy buyers and professionals who want the best of the city on their doorstep.

Extensive regeneration continues to offer new opportunities to live and invest in London's most fashionable districts, among them Marylebone.

A stone's throw from Oxford Street and Mayfair, surrounded by Royal Parks and a popular boutique shopping and dining destination in its own right, Marylebone in the Borough of Westminster is one of the most central and best-connected areas of London.

The residential sales and lettings markets in Marylebone have remained robust over the past few years, and JLL expects growth to accelerate as the ongoing regeneration and forthcoming high-speed Crossrail services at nearby Paddington station draw more investment to the area.

 

Marylebone's transformation is centered on The Portman Estate, a mixed-use neighborhood covering 110 acres of prime Central London real estate that dates back to 1532.

Working with some of London's most esteemed property developers, the Estate is investing more than £250m into Marylebone and surrounding areas over the next decade to improve living standards even further, bring more new and refurbished properties onto the market and ensure their long-term growth prospects.

 

Village in the city

Despite its central location, Marylebone has held on to its village charm, particularly among the Georgian architecture and independent retail streets of The Portman Estate. The wider Marylebone area is famous for its specialist stores and home to several Michelin-starred restaurants, making it a popular destination for discerning Londoners looking for a more authentic alternative to the global brands of nearby Oxford Street and Regent Street.

Part of London's artistic West End, Marylebone also has cultural experiences to entertain and inspire locals all year round, from the eclectic art exhibitions at The Wallace Collection to music recitals at the legendary Wigmore Hall.

Nature lovers and families have two sprawling Royal Parks in walking distance – 350-acre Hyde Park and Regent's Park with its iconic zoo – and many of London's highest-rated schools, colleges and universities are just minutes away on the Underground, including King's College London, University College London, Imperial College London and the London School of Economics.

 

 

At the center of London's transport network, Marylebone is exceptionally well connected to all parts of London and further afield by local Tube stations such as Marble Arch and Edgware and nearby Paddington station, offering high-speed connections to financial district Canary Wharf in just 17 minutes and London Heathrow Airport in 34 minutes on the Crossrail Elizabeth Line.

With the opening of Crossrail now delayed until the first half of 2022, investors in London property can still look forward to the anticipated rise in demand and house values once services begin.

 

Meticulous living spaces

Located in the west of The Portman Estate, TwentyFive is the new flagship residential development of the area that's already welcoming overseas investment.

Developed by Native Land, TwentyFive offers 23 meticulous studios, one, two and three-bedroom lateral apartments and two lateral penthouses across eight floors.

The mixed-use building also includes over 44,500 square feet of office space at OneThreeSix and four retail units, setting a new standard for high-end living and working locations in London.

 

 

Designed by architects Stiff + Trevillion, the eye-catching development makes the most of its stunning location with dual aspect views in most units and Juliet balconies for all.

The spacious contemporary interiors by MSMR Architects use natural oak and stone, light color palettes and reflective surfaces to set a calm and airy atmosphere to help city dwellers unwind.

 

 

Residents can also access a private gym, a pool and spa at the neighboring Marriot Hotel, concierge services, secure underground car parking and other amenities, alongside the perks of a central London W1 location.

 

For further information, please contact JLL:

Christine Wong (REN06667)
M: +6012 908 6318
E: wong.christine@ap.jll.com

 

Twenty Five - Launching in Malaysia on 3rd – 4th October

Register now

22 Sep 2020