Bellway has completed building work on the new apartments at its Abingworth Fields development in Thakeham.

The Abingworth Apartments building comprises nine two-bedroom properties, all of which have already sold.

As the aerial photograph shows, construction is also progressing well on the houses within the 75-home development, off Abingworth Crescent, with 36 properties now built.

Buyers are already settling in, with the first residents having moved into their new homes in May.

Daniel Williamson, Sales Director for Bellway South London, said: “Our apartments at Abingworth Fields represent the perfect first step onto the property ladder for people looking to move on from renting, as well as being ideal for those looking to downsize.

“They enjoy an attractive location within the development, with a peaceful outlook across a large area of green open space.

“There’s plenty of space inside too. The Woodpecker apartment style, for example, has an open-plan kitchen/living/dining room and two double bedrooms, one with an en suite shower room.”

There is still a choice of two, three, four and five-bedroom houses for sale at Abingworth Fields, with prices starting from £375,000.

For more information, visit https://www.bellway.co.uk/new-homes/south-london/abingworth-fields or call 01798 500082.

GRE Finance, a specialist lender to the UK real estate market, has hired two associate directors from Octopus Real Estate and Hilltop Credit Partners to capitalise on the surge of opportunities in the real estate finance market.

Clare Grimes has joined as an associate director from leading UK specialist real estate investor, Octopus Real Estate, where she specialised in the origination and execution of primarily commercial real estate debt transactions. Clare has gained extensive knowledge and experience through working with a range of clients, including funds, to deliver financing on a variety of assets across the UK. Clare is chair of the Association of Real Estate Funds’ Future Generation Committee, is a member of AREF’s management committee, is a chartered surveyor, and holds a master’s degree in Real Estate, Investment and Finance from Henley Business School.

Archie Dickinson, who also joins as an associate director, has more than 10 years of experience in real estate finance. Specialising in origination, underwriting and execution, past roles have seen him structuring and executing both senior and mezzanine development loans, working alongside high street lenders, challenger banks, institutional funds and HNWIs. Archie began his career at Proseed Capital, a mezzanine development finance lender before moving to specialist development finance provider, Hilltop Credit Partners. During his career Archie has underwritten and completed on over £750m of real estate finance.

Founded in 2020 by Michael Mirelman and Daniel Benton, GRE Finance is a specialist lender to the UK real estate market and currently holds a loan book of £110 million against residential and commercial property. Remaining active through the economic turbulence of 2023, it agreed several loans over the course of the year, including a £6 million acquisition loan against a student building in Portsmouth, a £4 million loan to MACC Care, a Midlands-based care home developer to acquire two sites with planning for new care homes, a £6 million loan to the UK’s leading retirement developer, Lifestory Group and a £17 million loan for a development finish and exit facility secured against residential development of 89 homes in Surrey.

Daniel Benton, director at GRE Finance, said: “The opportunities in the UK’s real estate debt markets today are vast, and the appointments of Clare and Archie to kick-off this year put us in prime position to seize what could be a once in a decade opportunity. We remained active through 2023, focusing on strategic asset management in the first half of the year before identifying market opportunities in the latter half and agreeing more than £30m in real estate financing. Our opportunistic and value-add approach, depth of expertise in property development and management as well as financing, and willingness to take on projects involving planning risk means that we are very well placed to support a range of transactions taking place in the market.”

Clare Grimes, associate director at GRE Finance, said: “Because of GRE Finance’s unique approach to real estate debt, taking on risk profiles that other lenders don’t have the expertise to support, it’s one of the most interesting firms out there. Given the economic climate we’re in, this is one of the most exciting times to join such an agile team. I’m really looking forward to leading origination efforts and working with Daniel, Michael, Archie and the rest of the team to navigate the choppy waters to drive real and attractive returns for all parties.”

Property & Construction sector Spring Budget predictions from Menzies LLP,
one of UK’s leading accountancy and strategic advisory firms

Chancellor Jeremy Hunt will set out the Government budget to Parliament on Wednesday, 6 March. With the General Elections drawing close, it’s expected that the upcoming changes will focus more on individuals, rather than to businesses and corporates, to sway voters in the Conservative party’s favour.

Given the pressing needs of businesses, prioritising tax cuts should be crucial. But it’s also important that the Government take a balanced approach, given the limited scope for further cuts particularly in light of mounting government debt.

Rebecca Wilkinson, Tax Director and Property & Construction sector Specialist at Menzies LLP, has outlined her top wishlist items and predictions for the announcement next month.

Menzies’ predictions and wishlist for the Property & Construction sector

As we have seen in the news recently, the number of insolvencies in the construction sector is increasing significantly and the housebuilding sub-sector is the worst hit. This is due to the weak demand for new homes, which is caused by higher interest rates and the general cost of living crisis. The Help to Buy scheme ended in 2023 and I would like to see the scheme either extended or re-imagined with a view to providing stimulus in the housing market.

Home improvement projects are also stalling. A possible way of increasing demand could be to offer incentives to home-owners and landlords who spend money on improving the energy efficiency of residential properties, or offering enhanced cap al allowances to businesses that spend money on green technologies.

In the residential rental sector, there is an increase in the number of private landlords suffering rent arrears as lower income tenants struggle to pay rents. Many landlords are also paying higher interest charges and the combined result is an increasing number of landlords in arrears on their mortgages, forcing many to sell up. A decreasing stock of private rental housing could be disastrous for low-income families as there is also a lack of available social housing. I would like to see the Government reconsider the punitive tax rules which restrict the amount of tax relief that individual landlords can claim on their interest costs.

Overall, it will be helpful to see if there is a strategy in place to stimulate the property market.  We would also like to see another Stamp Duty holiday, or the stamp duty surcharge scrapped. We also know the Capital Gain Tax (CGT) allowance is due to be reduced from £6,000 to £3,000 in April 2024 so this could be delayed or scrapped.

For more information about Menzies LLP, visit www.menzies.co.uk.

Investec research reveals that the average price reduction on £1m+ homes in the Home Counties was 10% in H2 2023 vs 8.6% for a sample of equivalent properties in London.

Data was gathered from tens of thousands of properties between 1 June and 1 December 2023.

• Berkshire saw the smallest average reduction in price (8.5%) whilst also being the slowest market, with £1 million+ homes taking 111 days on average to sell. Prime properties sold fastest in East Sussex (just 74 days).
• West Sussex saw the largest average price reductions by both absolute value (£187,805) and percentage (12.6%).
• Surrey had most new listings of homes over £1m, almost double that of Hertfordshire, which had the second most listings.
• Crucially, the availability of prime property, time taken to sell and average price and reduction varies significantly between the counties Investec explored – meaning that buyers who want to capitalise on opportunities should get to know their target market.

13 February 2024: Prime residential property in the Home Counties has seen significant price reductions of 10% on average since June 2023, as the impact of interest rate increases begins to be felt, according to new research from Investec, the leading private bank.

The figures – based on data from tens of thousands of UK addresses – also cover several postcodes in prime central London and show that discounts on high-end property have been less significant across these areas of the capital (8.6%).

Anecdotally, Investec is seeing high levels of interest in prime property in the Home Counties – particularly in locations within commuting distance of London. The recent price discounts could therefore create opportunities for potential buyers.  

West Sussex saw the largest average price reduction both by value (£187,805) and as a percentage (12.6%) over the period, followed by Essex (11.2%) and Kent (10.6%). London generally proved more resilient, with an average reduction of 8.6% and reductions as small as 4.8% in postcodes such as NW3. However, there was variation in the capital too, where sellers in W2 and W8 postcodes reduced prices by an average of 12% and 11.5% respectively.

Across the Home Counties, prices in Berkshire were the most robust, with an average reduction of 8.5%. However, it was also the slowest market, with £1 million+ properties taking 111 days on average to sell, followed by West Sussex (100 days) and Kent (99 days). Prime properties sold the fastest in East Sussex where the process took 74 days on average.

Unsurprisingly, London properties over £1 million had the highest average sales price at £1.85 million, followed by Buckinghamshire (£1.65 million) and Oxfordshire (£1.62 million). The lowest average was East Sussex with £1.34 million.

Oxfordshire had the smallest amount of new supply, with just 719 new listings of properties over £1 million in the period. At the other end of the spectrum, Surrey has the best new supply – with 2,928 new listings (more than double the Hertfordshire, the next best supplied market with 1,670 listings). This reflects the large amount of prime property in Surrey.

Carlos Mendes, Private Banker at Investec, said:

“The Home Counties are often referred to as a collective, but our research shows that there is a significant variation in the availability and price of prime property in these areas. The gradual return to office-based working has brought the commute time firmly back into focus, so we’ve seen greater client demand for the established commuter towns on the outskirts of London. Proximity to top-performing schools also remains a key priority, as does access to good local restaurants and amenities. In the current interest rate environment, it is perhaps unsurprising to see the larger price reductions occurring further afield, in locations such as West Sussex, where second homes are more prevalent. 

“Every property purchase is unique, and every person’s financial situation is unique. It’s therefore important that high-net-worth individuals work with lenders who understand their ideal home and location so they can access a mortgage that meets their needs, in a timeframe that allows them to seize opportunities.“

The findings from Investec’s private banking team covered residential properties for sale from 1 June to 1 December 2023 across the Home Counties of Berkshire, Buckinghamshire, East Sussex, Essex, Hertfordshire, Kent, Surrey and West Sussex and Oxfordshire, and eight prime central London postcodes (NW3, SW6, W8, SW3, W2, W11, SW11, NW8). 

Investec’s Property Index 2024 can be found here: Investec Property Index 2024.

Investec offers a range of private bank accounts for clients earning at least £300,000 a year and with a minimum net worth of £3 million. Teams are structured by profession – enabling them to understand the complex earning profiles that HNWIs often have. Clients are looked after by a dedicated private banker who can provide tailored banking, borrowing, savings solutions or foreign exchange. 

New research from up-front information platform, Home Sale Pack, reveals that more than 80% of UK estate agents think that the provision of up-front information at the very start of the homebuying process will improve the buying and selling experience, but only 30% have already made efforts to provide such information for the homes they list. 

Since June 2022, Part A of Trading Standards reform has stated that estate agents must provide material information such as price, leasehold terms, and council tax information for their property listings.

In November of last year, Trading Standards published Parts B and C of their material information guidance which state agents should also include in their marketing materials insights such as the building materials used, information about utilities and parking, and any details around issues such as flood risk or restrictive covenants. This guidance is designed to provide prospective buyers with the information they require to make an informed purchase decision at the start of their journey rather than having to go out and find it for themselves later down the road, thus speeding up the buying and selling process.

To gain proper insight into agent sentiment regarding the provision of up-front information, Home Sale Pack has surveyed over 500 UK agents with the results showing overwhelming industry support for the proposition. 

The survey reveals that 73% of agents think the new Trading Standards guidance (B and C) is a good idea and a positive move for the agency sector.

Furthermore, 83% believe more broadly that supplying up-front information to homebuyers at the very start of the transaction journey will improve the buying and selling process. 

As for the specific benefits, 79% of agents believe up-front information will speed up the buying and selling process, while 83% say it will reduce the number of transactions that fall-through.

When asked what parts of the buying-selling process are worst impacted by the current lack of up-front information, half of agents (48%) said the conveyancing stage during which the absence of up-front information results in significant delays. 

A quarter of agents (23%) responded to say that it’s the negotiation and offer stage of the journey that is most negatively impacted by a lack of information provision. 

Despite this clear support for up-front information packs, agents accept that there are obstacles which need to be overcome if it is to become a mainstay of the industry. 

33% say that the biggest barrier is how time consuming it currently is to gather all of the necessary information, while 27% say the fact that up-front information is not a legal requirement is hampering universal adoption. 

16% blame a lack of proactivity from buyers and sellers; 12% say they don’t have the manpower required to gather the information; and another 12% say the biggest barrier is the fact that the necessary information is stored in too many disparate locations. 

As such, there is widespread belief among agents that legislation should be introduced to make the provision of up-front information a legal requirement, something that is supported by 66% of respondents.  

Meanwhile, a quarter (25%) believe that information provision can be best improved and, therefore, more widely adopted with the help of a third-party technology provider making it fast and easy to collate the required information. 

While it’s clear that the vast majority of agents support all moves towards including comprehensive information in their marketing materials, actual industry uptake remains lacklustre. 

When asked if they or their business has already made operational changes in line with the new Trading Standards guidance in order to better obtain and provide upfront information for the homes they list, just 32% said ‘yes’, while 68% said ‘no’.

Ruth Beeton, Co-Founder of Home Sale Pack, says:

“Some things in life and business are just common sense, and the widespread support for up-front information packs shows that this is one of those things. It helps buyers, sellers, agents, and conveyancers in one fell swoop. 

Despite the lack of meaningful industry backlash against either the recent evolution of Trading Standards guidance or the broader subject of improved and more timely information provision, we’re yet to see sufficient uptake to allow for meaningful change. 

While some form of legislation might indeed strongarm agents into adopting the practice, we don’t believe the industry has time to wait for the sluggish government machine to catch up. Therefore, we hope that platforms like Home Sale Pack will make the process of collecting and presenting material information so easy that it will provide the impetus required to drive widespread industry change, improving the state of the UK housing market forever and for good.”

Survey results

Full survey results can be viewed online, here.

Teaching staff at Leeds College of Building are elated after receiving eleven articulated trailers of equipment donated by Legal & General. The materials and tools will be used to train the next generation of construction professionals enrolled across the College’s North Street and South Bank Campuses. 

The donation includes 60 pallets of fire, moisture, and general-purpose grade plasterboards, bathroom suites, consumer units, switches and sockets, timber flooring, internal doors, plinths and skirting, paint, workshop vacuums cleaners, strip lights, mini skips, toolboxes, timber chop saws, portable power tools, a pallet of spirit levels, plumbing consumables, and more. Richard Longley, Managing Director in Legal & General Capital’s housing division:

“When an opportunity arose to further develop tradespeople of the future, we were delighted to be able to offer our support to Leeds College of Building and contribute to the next generation of UK home builders. A lot of our own team came through the College’s doors to learn their trades, so it’s wonderful to give something back.”  The Legal & General donation will be split across multiple departments and used to benefit most of the Construction Crafts trainees at the College. This includes students and apprentices studying plastering, carpentry and joinery, painting and decorating, wall and floor tiling, multi-skills, brickwork, plumbing, welding, and electrical specialisms. 
Wayne Chappelow, Head of Construction Crafts at Leeds College of Building, said:
“We have worked with Legal & General for many years to establish qualifications that met their needs and placed several apprentices with them.This donation is the latest development in our partnership, and we are absolutely overwhelmed by the generosity!

“My thanks go to Legal & General for this incredible donation of materials, tools, and equipment. It will help to ensure Leeds College of Building students receive the best possible training for successful employment as they go into the workplace. 

“We rely on essential material donations like these to continue our training and are so grateful to the exceptional businesses that work with us regularly. This work is vital to build the construction workforce of the future and boost the number of skilled professionals needed to fill critical skills gaps across trades.” A significant part of the donation includes brand new tools and equipment designed for “tape and fill” – a key skill in the dry lining industry and an area where Legal & General found a significant shortage of talent. Other equipment includes general and battery-operated hand tools, PPE and RPE such as air-fed face masks, and specialist Teflon-coated setting-out tables for welded, brazed, and soldered components to be used in the fabrication and welding department. 
Legal & General’s donations are the latest in a series of substantial material donations to the College, including roofing supplies donated by SR Timber, Glidevale Protect, CUPA Pizarras, BMI UK& Ireland, Rinus Roofing Supplied Ltd, Hunslet Roofing Supplies Ltd, Wienerberger UK, Velux, Midland Lead Ltd, Hambleside Danelaw, Monument Tools Ltd, Permavent Ltd, and more.

Find out more about Construction Craft courses at the next Leeds College of Building open event on Thursday 22 February (5 – 7 pm, North Street Campus). Register for your free place at www.lcb.ac.uk/events. 

The latest market insight from quick sale specialists, Open Property Group, reveals that while there have been early signs of a house price resurgence so far in 2024, house prices on roads that have pancake-themed names have seen significant price drops over the past year, but one particular pancake road name has managed to buck the trend.

To mark the arrival of everyone’s favourite Tuesday of the year, Pancake Day, which this year falls on 20th February, Open Property Group has analysed sold price data for homes sold* on roads with pancake-related names to see which command the highest house price, and how they have changed over the past year. 

The research shows that the most valuable pancake-related road name is fittingly ‘Pancake’. Homes on roads whose names contain the word pancake achieved an average sold price of £721,111 in 2023 – by far the highest of all the pancake-related road names analysed by Open Property Group. 

While this is the most expensive Pancake Day road name, the value of homes on streets with ‘Pancake’ in the name have seen a significant drop over the past year, down from £972,500 in 2022. This marks an annual drop of -25.8%, or -£251,389. 

In fact, due to the past year’s slower housing market conditions in which factors such as the high cost of borrowing led to a drop in buyer demand, all but one pancake-related road name has seen sold prices plummet. 

This means that, despite ‘Pancake’s’ steep decline, it’s not the biggest pancake-themed price drop of the past year. That dubious honour goes instead to roads that contain the word ‘Milk’ which saw their average sold price fall by -37.6% between 2022 and 2023, culminating in an average of £295,000.

Road names containing ‘Lent’ have seen prices fall by -16.9%, while ‘Sugar’ (-14%) and ‘Lemon’ (-13.2%) have also seen significant drops. 

The only pancake-related road names to see prices increase on the year are those containing the word ‘Butter’, which have bucked the trend by increasing by 2.9% to reach an average of £265,000.

CEO of Open Property Group, Jason Harris-Cohen, commented:

“Pancakes might not be as staple a part of our diet as elsewhere around the world, but homes across the nation will be flipping them in honour of Pancake Day this Tuesday. 

Unfortunately our annual love for pancakes hasn’t been enough to sustain the high house prices associated with homes on roads containing the word itself. The market has been battered with uncertainty over the last year causing house prices to cool and this is no different when it comes to pancake-related properties.

The good news is that with property values having adjusted, pancake obsessed homebuyers could secure a flipping good deal. But you need to move swiftly because we’re already seeing signs of a market rebound and fully expect prices to keep rising into the Spring and Summer.”

Data table and sources

*Data sourced from The Land Registry Price Paid data set, PPD cat A, excluding properties listed by type as ‘other’. Data relates to homes sold across England and Wales in 2023 vs 2022.

Data tables and full sources can be viewed online, here.

London landlords have started the new year by dropping their rents according to estate agency Chestertons, whose data suggests that there are 41% more rental properties currently available in London than there were in January 2023.

With more properties on the market, tenants are enjoying more choice and are under less pressure to make a decision quickly. Data from Rightmove supports this, showing that the average length of time a property is listed on the platform before being let or placed under offer increased from 33 to 39 days. Growing numbers of landlords – 76% more than last year – have reacted to this shift in the market by choosing to reduce their asking rents to attract tenants.

Chestertons’ Head of Lettings, Adam Jennings, says: “We have seen a significant increase in landlords bringing their property to market as they have been attracted by the substantial rent increases over the last 18 months or so. This influx of properties has led to more choice for tenants and as a result, many landlords have decided to lower their rent expectations.

“We foresee the number of available rental properties to continue to grow in 2024, which will cause rent levels to adjust further. This does create more beneficial market conditions for tenants, however, London still has  one of the most competitive lettings markets out there and we advise tenants to start their search as early as possible”, Jennings adds.

In January alone, Chestertons registered a 7% increase in viewings compared to the same month last year.

The latest research by specialist property lending experts, Octane Capital, estimates that the nation’s first-time buyers could see the annual cost of their mortgage climb by £398 per year in 2024, with landlords also seeing a £367 year on year jump. 

Octane Capital analysed the current cost of repaying a mortgage for both landlords and first-time buyers and how this cost could change should mortgage rates fail to fall and house prices climb as forecast.

The general expectation is that house prices will increase by 3% over the course of 2024. This would see the average first-time buyer house price increase from £236,326, to £243,416, while the average landlord would see the average cost of investing climb to £293,499 from £284,950. 

Today, the average first-time buyer requires a mortgage of £200,877 having placed a 15% deposit of £35,449. With the average rate currently sitting at 4.4%, this equates to a full monthly repayment of £1,105. 

Should mortgage rates fail to reduce and house price rise as predicted, this would see the same first-time buyer looking to purchase a year from now paying a full monthly repayment of £1,051 per month. 

While a £33 monthly increase may not sound much, it amounts to an additional £398 per year. 

Similarly, the average landlord would also see the cost of their monthly repayments increase should they opt to wait until this time next year before purchasing. 

Currently, the average buy-to-let mortgage requires a full monthly payment of £1,020 or an interest only payment of £545 at the average rate of 3.06%. 

Should house prices increase by 3% as predicted, this would see the average cost of a buy-to-let mortgage increase by £367 per year if making a full monthly repayment, or £196 per year if making an interest only repayment. 

CEO of Octane Capital, Jonathan Samuels, commented:

“Market confidence is growing and buyers have been encouraged by both a freeze on interest rates and a reduction in mortgage rates. This has led to a surge in activity as they look to capitalise on the lower cost of borrowing before it’s too late. 

Those considering a purchase this year would be wise to follow suit. In recent weeks we’ve seen signs that swap rates are starting to creep up, which indicates that mortgage rates are likely to do the same. 

When you also consider that house prices are expected to rise by 3% this year, the decision to sit tight could be a costly one.

As our research shows, waiting until the end of the year could result in your monthly mortgage repayment increasing by hundreds of pounds a year.”

Data tables and sources

• Average house price data sourced from Gov – UK House Price Index
• Prediction for 3% house price growth in 2024 sourced from the Guardian
• Current mortgage rates for first-time buyers and buy-to-let mortgages sourced from Money Facts

Data tables and sources can be viewed online, here.

Full-service law firm responds to huge demand for dedicated, new-build Padel clubs with a specialist, multi-discipline team advising clients throughout the UK

Full-service law firm JMW Solicitors has launched a specialist Padel team dedicated to serving up legal expertise to the many entrepreneurs in the market for building their own Padel courts and/or opening their own Padel clubs.

JMW’s legal experts in the fields of Real Estate, Intellectual Property, Corporate, Commercial, and Employment have joined together to create what the firm believes is a unique offering, and already the team is working on 37 separate projects throughout the UK.

A very particular demand arising from the ever-increasing Padel industry is the need for expert Real Estate guidance. Paul Burton, partner within the JMW Real Estate Commercial team, explained: “There are multiple issues around the growth of the sport, not least of which is the demand: there is a supply issue, whereby in the UK there are circa 300-400 operational courts, but a need for circa 6000 courts to meet that current demand – which shows every sign of growing exponentially.”

The Padel Real Estate team at JMW has vast experience with dealing with landowners including sports clubs, local authorities, farmers and commercial investors on the other side, bringing together the team’s significant development, occupier, leisure and infrastructure expertise to offer bespoke and flexible solutions to suit a wide variety of situations.

“We know exactly how to flush out the issues at day one and can offer a unique viability product to check that sites are viable prior to too much initial expenditure,” Paul added. “We are able to act fast and we understand this highly competitive market and the race to open in all locations.

“We’re streamlining the legal documentation and process whereby clients can take advantage of what is effectively a one-stop-shop for their needs, working closely with our Construction and Planning teams within our Real Estate offering, and bringing in experts in our other departments, such as our Commercial colleagues who document bespoke profit share arrangements for additional elements of Padel clubs such as food and beverage and pro shops.

“Ultimately, we are the full-service law firm at the forefront of this new leisure area, driving and helping form market standards, bearing in mind that even when deals start completing data won’t be available at the Land Registry for at least six months.”

JMW spotted the Padel opportunity last year when its Managing Partner and Padel obsessive Marc Yaffe was invited by a business colleague to play Padel at his home; following a court-side conversation he realised that the desire to develop the sport was widespread, but was not matched by the necessary legal know-how when it came to negotiating on potential sites, protecting IP and drawing up the commercial agreements necessary to monetise such business ventures.

Marc Yaffe added: “The key element of our offering isn’t just the legal expertise to be found at our firm, but our determination and desire to work together across multiple specialisms with the aim of delivering a fast, effective and specialised service to those in the fast-growing Padel sector.”