The latest research from Warwick Estates, has created a guide to buying a leasehold home in 2022, explaining exactly what a leasehold is while analysing the pros and cons of leasehold ownership. What is a leasehold? A leasehold contract means the purchaser owns everything that sits within the four walls
Kier has just been awarded by Stanhope, Mitsui Fudosan and AIMCo the contract for the construction of 142 new affordable homes for Peabody in two new buildings called Macfarlane Place at Television Centre, London, W12. Construction of Macfarlane Place will commence in March 2022, with delivery expected in early 2024.
Workman, the UK’s largest independent commercial property management and building consultancy firm, has been appointed by General Projects as property manager for Heal’s Building, Tottenham Court Road, London. General Projects recently acquired the 187,000 sq ft Grade II listed, a mixed-use asset in a joint venture with global investment firm
Work has begun to transform a vacant brownfield site into a landmark, 30 home timber frame housing development – providing much needed affordable properties in Leeds. The scheme will deliver a total of 14 one bedroomed apartments, ten two bedroomed houses and six three bedroomed homes – two of which
All homes are now sold at Bellway’s Shepherds Walk development in the Oxfordshire village of North Leigh, as building work draws to a close. The final homes are being constructed at the site, with work due for completion early this year. Bellway is delivering 116 new homes at Shepherds Walk,
Construction work is progressing well at a development in Edenbridge, where over three quarters of the new homes for sale are now reserved. Bellway Kent is building 319 homes at Oakley Park, off St Johns Way, where 159 of the 199 private homes have been purchased – and where new
Construction will soon begin on a new Retirement Village development on Roman Road on the outskirts of Hereford. The site in Holmer will provide 80 one and two-bedroom apartments for affordable rent and is being brought to the city by Vistry Partnerships and Platform Housing Group. Platform, who run a similar development at Harling Court in
A team of Tenancy Gurus at Housing 21 have helped residents save a combined total of over £700k during 2021 as part of the organisation’s Helping Hands initiative. The savings have been made through giving advice across a range of services, including how to access the correct pension and housing
Platform Housing Group has completed the acquisition of its largest land-led deal to date following the exchange of contracts for a site in Gloucestershire. The development will deliver around 270 new homes and is the seventh phase of the overall Perybrook development that has an outline consent for 1,500 homes.
What’s happening with the prime London rental market? Rob Pratt, Director of Lettings at central London estate agency Bective’s Notting Hill Branch, has shared his thoughts on the current prime rental landscape and what we can expect to see going forward. Rob Pratt – Lettings Director, Bective Notting Hill –
The latest research from Warwick Estates, has created a guide to buying a leasehold home in 2022, explaining exactly what a leasehold is while analysing the pros and cons of leasehold ownership. What is a leasehold? A leasehold contract means the purchaser owns everything that sits within the four walls of the home, but does not own the land surrounding the home, the ground below it nor the sky above it. When buying a flat, for example, it’s almost guaranteed that the purchase will be a leasehold agreement because a building owner or landlord continues to own the other flats in the block. Furthermore, a leasehold, unlike a freehold, is not permanent, there is a limited timeline of ownership, otherwise known as the term of the lease. This lease is often hundreds of years long, but once it expires, ownership of the lease transfers back to the freeholder. For context, in 2021, leasehold purchases accounted for just 18.9% of all property transactions in England & Wales, with freeholds making up the remaining 81.1%. What are the advantages of a leasehold? With absolute ownership out of the question, why would anyone want a buy leasehold instead of a freehold? First, a leasehold property is often cheaper than a freehold because of the lack of outright ownership it provides. and the leaseholder is often not responsible for paying for the general upkeep of communal areas in the buildings such as corridors and stairways. But leaseholds are rarely purchased for their advantages over freehold, more because leaseholds are essential when buying a flat in a tall building of flats and have, as such, become increasingly popular as we see urban areas developing vertically rather than horizontally. What are the disadvantages of buying a leasehold property? The truth is that leaseholds are often a necessity rather than a choice and there are significant downsides of leasehold ownership. First, a lease is only held for a limited amount of time – ownership will, one day, expire. Second, a leaseholder is often expected to pay significant fees to the freeholder/landlord in order to contribute to the upkeep of communal space, for example, and for essential repairs to the building. A leasehold also tends to limit the amount of changes the owner can make to their home and permission is often required from the freeholder. If not, a leasehold can be stripped. This lack of freedom can also extend to things like pet ownership, or running a business from home, or sub-letting to third-party. Finally, when a leasehold starts running out, it can be very difficult to find a buyer for the property so the opportunity to benefit from capital gain is small. And, since the Grenfell Tower tragedy in 2007, the external cladding scandal has added a further level of complexity for flat owners to break free of their leasehold contracts. What happens at the end of a leasehold property? It is often the case that the end of a leasehold is not something any owner needs to worry about. Often, a leasehold will be for 999 years in order to make it a more attractive agreement for buyers. Many vendors will suggest that a 999-year leasehold is ‘as good as a freehold’, but such sentiment tends to ignore all of the potential downsides listed above. If, however, the lease does expire, the ownership of the property reverts back to the freeholder and it is theirs to do what they want with. But, one can ask for an extension to the leasehold. In fact, once a person has owned a leasehold home for two years, they will often have the right to extend the lease by 90 years.
Kier has just been awarded by Stanhope, Mitsui Fudosan and AIMCo the contract for the construction of 142 new affordable homes for Peabody in two new buildings called Macfarlane Place at Television Centre, London, W12. Construction of Macfarlane Place will commence in March 2022, with delivery expected in early 2024. The buildings form part of the wider Television Centre development which will eventually have c 950 homes in total. Stanhope is the development manager for Television Centre and Cantillon was the demolition contractor for the multi-storey car park. Designed by Maccreanor Lavington Architects, the new buildings will replace the now demolished former BBC multi-storey car park on Wood Lane, W12, opposite Westfield. The new buildings will provide 71 London Affordable Rent, 34 London Living Rent and 37 homes for Shared Ownership. The buildings will provide 68 x 1 bed, 67 x 2 bed and 7 x 3 bed apartments, with new public realm and retail space retained by the JV fronting Wood Lane. Peabody will be responsible for managing the homes when completed. The JV is working closely with Transport for London, who own the adjacent arches below the elevated Hammersmith & City line, to help improve the wider area for the local community. “Construction of 142 affordable homes, and the ongoing construction of a new office building at 1 Wood Crescent, Television Centre, shows the healthy state of the property market in White City. We are looking forward to working with Kier and delivering much needed affordable homes for residents in Hammersmith & Fulham alongside Peabody who share our confidence and long-term commitment for the area,” commented Jonathan Trout, Property & Commercial Director at Stanhope. Stanhope, Mitsui and AIMCo are the developers of the 14 acre site at Television Centre, including 500,000 sq ft of offices, 950 new homes, Soho House, three state of the art BBC studios, the HQs of BBC Worldwide and Publicis Media. 432 homes have been completed in phase 1, the vast majority of which are now sold. Phase 2 comprises 500 homes, including 142 affordable.
Workman, the UK’s largest independent commercial property management and building consultancy firm, has been appointed by General Projects as property manager for Heal’s Building, Tottenham Court Road, London. General Projects recently acquired the 187,000 sq ft Grade II listed, a mixed-use asset in a joint venture with global investment firm KKR from Columbia Threadneedle Investments. Home to the flagship store of the legendary design furniture retailer for 200 years, the site consists of nine interconnected buildings housing a mixture of retail, office and residential tenants. General Projects plan to reimagine the site into a hub for creative, media and technology businesses while sensitively maintaining the Heal’s legacy. Site Close to Tottenham Court Road Underground The building sits on the eastern site of Tottenham Court Road opposite Goodge Street Underground station and is a 5-minute walk from the new Tottenham Court Road Underground and Elizabeth Line station that will give direct access to Heathrow to the West and Canary Wharf to the East. David Soar, Partner at Workman, commented: “Being appointed by General Projects on another exciting project to reinvent such an iconic building, is testament to the skills of our team to support General Project’s vision for delivering workplaces of the future while working with the current occupiers.”
Work has begun to transform a vacant brownfield site into a landmark, 30 home timber frame housing development – providing much needed affordable properties in Leeds. The scheme will deliver a total of 14 one bedroomed apartments, ten two bedroomed houses and six three bedroomed homes – two of which will be located on a satellite site, replacing two old properties that were previously demolished. The homes to be built at Leeds Meynell, in Holbeck, will be 100% affordable and constructed in less than nine months, with the first residents expected to move in by early summer 2022. They will be built using an innovative timber frame construction process, that involves constructing elements of the properties offsite – in a factory-controlled setting – before transporting them to site for assembly. The method uses the same materials, standards and codes as conventionally built homes but the controlled plant conditions ensure the process is completed more quickly than a traditional build. They will be constructed using a ‘Fabric first’ approach – which involves maximising performance of the materials and components that make up the very fabric of a building. This will help to achieve a key objective of the project, which is to ensure energy efficiency, lower fuel bills and tackle the fuel poverty problems that some Leeds City Council tenants face. The eco-friendly scheme will also support the council’s commitment to reduce the city’s direct carbon emissions to net-zero by 2030 and make Leeds a greener, fairer and healthier city. The project is being delivered through Leeds City Council’s Housing Growth Programme (CHGP), which aims to build around 1500 new, high-quality social housing units over the next five years. Once completed, the new homes will be managed by the council and will become part of its affordable housing stock, Mick Holling, Managing Director with United Living New Homes North, said: “Leeds is a thriving and growing city which needs new, good quality housing to meet demand. We look forward to playing a central role in regenerating this area of Leeds and creating much-needed new homes for local people. “The timber frame sector is transforming the way new homes are built. It offers a comprehensive, energy-efficient and low carbon solution for social housing that is high-quality, affordable and easily accessible and adaptable”. Councillor Helen Hayden, Leeds City Council’s Executive Member for Infrastructure and Climate, said: “One of Leeds’ biggest priorities is to provide enough housing to meet the needs of a growing population. This is why we have developed our programme to build 1,500 new affordable homes over the next 5 years; all of which need to be high quality and accessible. Not only will this scheme positively contribute towards this ambition, it will also help us achieve our climate targets by providing people with energy efficient, low carbon homes. “I look forward to following the progress of this scheme and welcoming our first residents later this year.” As the principal contractor for the development, United Living will partner with Leeds City Council and William Saunders Architects.
All homes are now sold at Bellway’s Shepherds Walk development in the Oxfordshire village of North Leigh, as building work draws to a close. The final homes are being constructed at the site, with work due for completion early this year. Bellway is delivering 116 new homes at Shepherds Walk, off New Yatt Road, with half of these (58 homes) allocated as affordable housing. “Shepherds Walk has been an incredibly successful development, and we have now sold all private homes before construction work has been completed,” said Elaine Brown, Head of Sales for Bellway South Midlands. “This allows us to focus on completing the remaining work at the site and delivering a legacy of more than 100 much-needed new homes for residents of North Leigh, including a selection of affordable homes that will greatly benefit the local community. All affordable homes at Shepherds Walk have already been completed and handed over, while the final few private homeowners will be moving into their new property at the development very soon.” The house development is located in a village setting on the edge of the Oxfordshire Cotswolds and is a mix of two, three, four and five-bedroom homes that have appealed to a wide range of buyers. “Selling all private homes at Shepherds Walk reflects the high demand for new homes in the area and we are now looking forward to welcoming the final homeowners to the development in the coming weeks and months. The last steps for Bellway will be to wrap up the building work on the final homes at Shepherds Walk, which we hope will be completed in early 2022, as well as finishing the remaining roads before moving all operational vehicles off the site,” concluded Elaine. Bellway Homes is a FTSE 250 Index listed residential housebuilder based in Newcastle upon Tyne, employing almost 3,000 staff across 22 Divisions across England, Scotland and Wales.
Construction work is progressing well at a development in Edenbridge, where over three quarters of the new homes for sale are now reserved. Bellway Kent is building 319 homes at Oakley Park, off St Johns Way, where 159 of the 199 private homes have been purchased – and where new residents have already moved into 130 of those properties. The housebuilder is also providing 120 affordable homes at the Edenbridge development, available for local people – 41 for shared ownership and 79 for affordable rent – which are now all built and handed over. A selection of one and two-bedroom apartments and two, three, four and five-bedroom houses are being constructed at the development with work set to conclude at the end of 2022. “Having now been on site at Oakley Park since 2018, the whole team have been working flat out to continue to meet the demand that we have seen from buyers who are eager to move to a growing community here in Edenbridge,” said Mark Harrop, Sales Director for Bellway Kent. “We have witnessed interest from a diverse range of buyers who have been impressed with the selection of homes available. It has been important to offer something for everyone, with first-time buyers, upsizers and growing families looking to snap up their dream home. “Oakley Park is in a very good location due to its proximity to Edenbridge rail station, where commuters can travel to London Bridge station in less than an hour. The development also benefits from a wide of local amenities on the doorstep, whilst retaining its rural feel as it is situated on the north-west edge of the town. We expect Oakley Park to continue to sell quickly, so we would advise all prospective buyers to contact the sales team and arrange to visit the development.” A selection of properties is currently available, with prices starting from £374,995 for a two-bedroom mid-terrace Romney house type.
Construction will soon begin on a new Retirement Village development on Roman Road on the outskirts of Hereford. The site in Holmer will provide 80 one and two-bedroom apartments for affordable rent and is being brought to the city by Vistry Partnerships and Platform Housing Group. Platform, who run a similar development at Harling Court in Ledbury, will also provide onsite care and support services plus various communal facilities for the residents. Darren Beale, Regional Managing Director at Vistry Partnerships West Midlands said, “We have extensive experience designing and constructing extra care schemes and we’re very pleased to be working in partnership again with Platform Housing. As one of the country’s leading regeneration specialists we recognise the need to support our partners to build homes across all tenures, particularly homes and care services for older people.” Steve Eaves, Director of Regeneration at Platform Housing said, “This is a fantastic partnership that will provide much needed older persons housing in a very popular and strategically important area for our partners at Herefordshire Council. We are also very much looking forward to working with Vistry again. They have a great track record of successfully delivering large schemes with Platform.“ Cllr Ange Tyler, Cabinet member for Housing, regulatory services, and community safety, said: “Providing affordable housing is a key issue for Local Authorities across Britain, and Herefordshire is no different. One of our key priorities is to deliver safe, comfortable and affordable housing, particularly for vulnerable people. We are therefore delighted to be working in partnership with Vistry Partnerships and Platform Housing Group on this project, and look forward to the new Retirement Village taking shape.” Some £19m is being spent on the project which is anticipated to begin in the spring.
A team of Tenancy Gurus at Housing 21 have helped residents save a combined total of over £700k during 2021 as part of the organisation’s Helping Hands initiative. The savings have been made through giving advice across a range of services, including how to access the correct pension and housing benefit, to savings in broadband and helping with warm home discount claims. The ‘Helping Hands’ initiative involves colleagues working across the organisation to have open conversations with residents about money and how to help prevent arrears. As part of this, Housing 21 has recruited network of 45 ‘Tenancy Gurus’ and embedded them across the organisation in Retirement Living and Extra Care. The gurus all have a passion for tenancy sustainment and financial wellbeing, support colleagues, and can run sustainment-based activities for residents. Spearheaded by the Tenancy Gurus, a series of Make a Difference Days, or ‘MAD Days’ held throughout the year have proven successful in saving residents a combined total of over £700k and supported residents in having frank and honest conversations about financial wellbeing. Activities on ‘MAD Days’ include running a benefits awareness session, partnership working to resolve issues or helping residents with a benefits application. Nikki Dipper, Business Improvement Officer at Housing 21, said: “The gurus have received additional training and coaching around how to talk about money in a positive way and have those difficult conversations, as well as on benefits and budgeting specifically for older people. “Some amazing amounts of money in backdated claims have been passed on to residents. One colleague helped a resident apply for a private pension which will provide them with a total of £36,000 but it’s also the seemingly small things too, like supporting with setting up internet for a resident, which meant that £80 for a call out charge from their provider has been saved.” In 2021 colleagues have secured benefits residents were missing out on, applied to the National Lottery for funding for garden furniture, as well as making numerous agreements to help get people out of arrears and reduce anxiety around money. Simon, a resident at Denis Wilson Court in Cambridge said: “The services provided to me by the Tenancy Gurus here have been exemplary and courteous at all times. “They are on hand to answer and help with queries from any residents and the responses are always positive and swift. I often think they have large spoonfuls of patience stirred into their cups of tea. Truly a five star team and they add something special to the experience of living here.” Samantha Oliver is a Scheme Manager at Denis Wilson Court and a Tenancy Guru. Samantha commented: “Since starting the Tenancy Guru project I have helped many residents at my own scheme and neighbouring schemes, to ensure they are all getting what they are entitled to. “The role involves everything from arranging volunteers, to helping people access grants to improve their financial situation and benefits they didn’t believe they were entitled to – and helping my colleagues do the same at their schemes. “At a time when so many are struggling, being a Tenancy Guru means I really make a difference to people’s lives and give me job satisfaction.” For more information about Housing 21, visit www.housing21.org.uk.
Platform Housing Group has completed the acquisition of its largest land-led deal to date following the exchange of contracts for a site in Gloucestershire. The development will deliver around 270 new homes and is the seventh phase of the overall Perybrook development that has an outline consent for 1,500 homes. The proposed scheme will feature a range of tenures for customers including rent, affordable home ownership and outright sale. Platform’s Executive Director of Growth and Development Gerraint Oakley said, “This is our first significant land acquisition of this size and highlights our ambition to develop a sustainable land pipeline as we work towards our target of providing 2,000 homes a year.” “Providing affordable homes in this way gives our customers even greater piece of mind about the product we’ll deliver. I’d like to thank all our partners that have worked so hard to get us to this point and I look forward to continuing those relationships when we start on site.” The group worked alongside agents Carter Jonas and Bruton Knowles who acted for the sellers, as well as key consultant team Shakespeare Martineau, plus Clarkebond, Pad Design, Fellows Construction Consultants, Ridge & Partners LLP and Utilities Connection Management Ltd. Michael Baggett, Regional Head of Land said, “This is an extremely exciting time for the Group, we are looking forward to progressing the planning for this site and providing much needed new homes to the area. In addition to our project team, I would also like to thank the Housing Strategy and Enabling Team at Tewkesbury Borough Council and Bryn Howells in particular, for the advice and support given on this site to date. We are actively seeking further land opportunities of similar size and nature in Gloucestershire and across Central England, with or without planning permission.” The group are anticipating a reserve matters submission in early 2022 with an estimated start on site later in the same year.
What’s happening with the prime London rental market? Rob Pratt, Director of Lettings at central London estate agency Bective’s Notting Hill Branch, has shared his thoughts on the current prime rental landscape and what we can expect to see going forward. Rob Pratt – Lettings Director, Bective Notting Hill – has worked in Prime Central Lettings for over 10 years and has intricate knowledge of the market in W11, W2 and W14. He is passionate about building long-lasting relationships and prides himself on offering the best possible customer service, whilst delivering excellent results for clients. Pandemic Impact What we saw last year across much of the prime market was like-for-like activity when compared to 2019. Whilst we did endure six weeks of lockdown restrictions, a handful of essential moves were able to take place and the rest of 2020 performed relatively well considering the disruption, making up for the lower volume of transactions during the six weeks of lockdown. It’s fair to say that actually, the pandemic impact on the prime rental market in 2020 was fairly muted both in terms of the number of rental applicants and the level of stock reaching the market. However, particular price brackets that normally perform very well, underperformed; house sharers were bailing on the market with jobs being furloughed, meaning the two-bed circa £450 per week apartments suffered. Studio flats fell out of fashion with not many people interested in being locked down in small spaces. The best performers were the houses, scarcely coming onto the market and being snapped up pretty quickly when they did. The first half of 2021 was a little more sluggish with the balance between supply and demand weighting slightly more towards oversupply. While domestic applicant numbers were reasonable, travel restrictions continued to prove problematic for foreign renters. Nevertheless, this did improve on a monthly basis throughout the year. The pandemic was always going to interfere with market activity and the immediate impact was predictably a drop in applicant levels. By late summer last year the lettings market had improved but still wasn’t operating at pre-pandemic levels. Even in spring this year the market had been challenging to navigate creating a mixed picture with pricing. Who is pushing the market forward? Over the last quarter (Sept-Dec 21), the market has undoubtedly returned to pre-pandemic levels. There has been a dramatic increase in enquiry levels from those relocating from abroad which has had a positive impact on pricing. Of course, the latest development of the Omicron variant is expected to dampen this in the short term, though in spite of this we’re now seeing supply squeezed to the point of stock scarcity. So much so that there is little to offer those already committing to the market. It’s a certainty that international movers will continue to be the deciding factor behind the rental market health in prime London and the virus has only reaffirmed that they are essential for the performance of the market. Throughout autumn 21, we saw an influx of American families looking to secure rental homes ahead of the school year. There was a limited level of high-end housing available and many of these families were securing properties after only just seeing it on a video. That’s not to say they are the only ones influencing the market. Domestic movers from outside of London have made a return, there’s a returning degree of student demand and there has also been activity from those already in the area looking to upsize or downsize. What’s more, heavy flooding throughout autumn has left the Notting Hill and Kensington areas suffering heavily, particularly the lower ground flats. This has resulted in an even higher number of applicants as insurance companies scrambled to secure temporary homes for them. Biggest challenges facing the market? We definitely don’t want another pandemic and we are hoping/anticipating that this latest variant doesn’t cause the nation to move backwards rather than forwards. However, as we all know unforeseen events can upset the stability of the rental market at any point and Covid will no doubt be a lingering consideration for some time to come. The more immediate issues facing the market are inadequate stock levels. Looking ahead, we have to wonder what the solution is if more tenants are choosing long term renting as a lifestyle whilst buy-to-let stock is dwindling. Is buy-to-let now out of fashion because yields are lower and long term landlords have felt the government have failed to support them? With the introduction of the tenant fee ban, changes to stamp duty and tax thresholds for buy-to-let purchases, is the appetite for buy-to-let no longer there? Build-to-Rent is becoming more popular and it may fill the gaps but space for such developments is limited within the prime market. Rental Hotspots in 2022 There have been huge infrastructure investments made across London with Nine Elms being the largest regeneration zone in Central London at 227 hectares. Fulham’s Imperial Wharf is the last section to be redeveloped within the South Fulham Riverside Regeneration Area which spans over 40 hectares and more than £4bn is being invested into the regeneration of Elephant & Castle creating and reinstating over 5,000 homes in the area. Modern-day tenants are looking for more than just an apartment, with new build homes offering on-site amenities, resident’s facilities and even close proximity to workplaces. Apple’s new campus at Battersea Power station will become home to 1,400 corporate employees in its half a million sqft. office space, making it inevitable that a vast number of these workers will settle in the Nine Elms area. The Tech industry in London is flourishing in other areas too, Hackney and Shoreditch are going to continue being major beneficiaries of this in my opinion. The Tech industry is only set to grow over the coming years with the likes of Meta’s digital world, which is likely to lead more tenants flocking to the areas that surround their workplaces, either relocating from abroad, outside of London
