Holiday homes back in fashion
Posted by The Oracle Group on 12th July 2019 -
INDUSTRY
Holiday homes back in fashion
The UK holiday home market is enjoying a boom, as property owners are again investing in a second home. While Cumbria, Cornwall and Dorset are the most profitable places to own a holiday let, according to the Staycation Index from Sykes Holiday Cottages, city locations such as Bath, Oxford and Cambridge are also in demand. "With holiday let yields outpacing residential buy-to-let growth, they're becoming an increasingly attractive option for investors," explains Sykes CEO Graham Donoghue. The number of new owner inquiries rose by 37% during 2018, while the average Sykes owner earned £20,000 from their holiday let, up from £18,000 the previous year.
Green space commands premium
Knight Frank analysed house sold prices throughout the country over the past six years and found that a property with a private garden is on average 15.8% more expensive than a similar, local home that does not. A balcony adds 6.22%, a terrace 9.21%, a roof terrace 7.29% and a view 6.35%. Meanwhile analysis by Hamptons International found that a garden square commands a national average premium of 10.3%, and research by Savills shows the closeness of a local park makes a difference in London prices. Savills research also found that properties in the UK's 15 national parks and 46 areas of outstanding natural beauty (AONB) command big premiums.
COMMERCIAL
Bank of England to tighten up on investment funds
The Bank of England is planning a crackdown on investment funds following the commercial property sell off after 2016's Brexit vote and the recent Woodford equity income fund scandal. Under plans being considered by the Bank, investment firms may be banned from allowing customers to pull out their money with a day’s notice if their underlying assets are difficult to sell. Sweeping changes to rules governing so-called open-ended funds will be looked at by the Bank along with the Financial Conduct Authority. Announcing the work alongside its latest Financial Stability Report, BoE governor Mark Carney warned that “financial stability risks are increasing” from giant funds.
Glasgow office space shortage ‘critical
The shortage of prime office space in Glasgow city centre has been branded "critical", with CBRE declaring the availability of Grade A offices had fallen to an all-time low as it released figures showing nearly 260,000 sq ft was taken up between January and June. CBRE noted that the second quarter had been characterised by a spate of major lettings, and only 12,297 sq ft of Grade A space was currently on the market. Alistair Urquhart at CBRE said: "The critical shortage of Grade A space remains a major issue and, as a result, we expect to see prime rents in the city centre rising."
RENTAL
Scottish landlords breach deposit protection law
More than 200 landlords from across Scotland have breached tenant deposit protection laws in the last 18 months. Legislation requires landlords to lodge the deposit with a government-approved scheme within 30 working days of the tenancy starting. But SafeDeposits Scotland, one of the schemes, analysed tribunal data and found that around £186,657 had been paid out to tenants for non-compliance since the end of 2017 - the equivalent of more than £900 per case.
FIRMS
Investors rebel against auditor at Telford Homes
Shareholders have staged a rebellion over the reappointment of PwC as auditors to Telford Homes with 44% voting against. ISS, the shareholder adviser, cited PwC’s work for technology services provider Redcentric, although said that no concerns had been raised with Telford's accounts. PwC partner Arif Ahmad, Telford's lead auditor, was fined £140,000 by the Financial Reporting Council after admitting several breaches of audit standards.
Landsec chief to step down next year
Property group Land Securities, whose interests include the Bluewater and Lakeside shopping centres, has said its CEO Robert Noel will retire next year. Annoucing the move, Mr Noel said: “With the business well positioned for the current market, a growing pipeline and a clear strategy for the future, it's the right time for me to move on." He will stay in his role until his successor is appointed and for an appropriate handover period.
LEGAL
MPs have called for the Government to reform property laws to end high ground rents and service charges for leaseholders. In a debate on leasehold reform, there was cross-party support for the Government to remove incentives for developers to build new leasehold properties. Labour MP Maria Eagle said "fleecehold" terms need to be scrapped, with Labour's Jonathan Reynolds saying the issue amounted to "legalised extortion". Mr Reynolds added: "There should a simple right-to-buy formula. Not bureaucratic, not with additional administration or legal costs, just something that can be used in every case in order to let people purchase their freehold.
PLANNING
MP says councils are avoiding care home developments
Damian Green MP, who chairs the all-party parliamentary group on longevity, has claimed that councils are increasingly reluctant to allow care homes and retirement homes to be built in their areas because of the accompanying social care costs that will be incurred. However, LGA spokesperson Ian Hudspeth said: “I haven’t come across any planning permissions not being put forward in this way but we’re very aware that the social care structure is at a crisis point”.
Cuadrilla to resume Lancashire fracking
Cuadrilla is to start drilling a second well near Blackpool as it looks to convince policymakers to relax safety rules surrounding fracking before its permission expires in November. The firm has already been forced to abandon its first well, but chief executive Francis Egan is hopeful of producing data which the Government and regulators will accept makes the case for raising tolerance levels for earth tremors.
CONSTRUCTION
Training boost for rural construction workers
A new project has been launched which could help address a shortfall in construction workers across rural Scotland. The Construction Industry Training Board (CITB) is putting £5.4m over three years into on-site training hubs, and expects to see 4,500 people gaining skills across 28 categories of construction job. Across the UK, similar schemes are under way to cover 18,000 new workers, funded through the CITB payroll levy.
ECONOMY
UK banking system resilient to no-deal Brexit
The Bank of England’s latest Financial Stability Report maintains that the UK banking system remains resilient to the financial impact of a worst-case disorderly Brexit. The Bank warned that the “perceived likelihood” of a no-deal Brexit had increased since Theresa May’s resignation, which would bring with it “material risks of economic disruption” and “significant” market volatility. However, the BoE also said Britain was more prepared for a disorderly Brexit than it was six months ago.
OTHER
Brighton residents ‘happiest in the UK’
Brighton has topped the list of the UK's happiest cities to live and work in. The data from a study by the independent job board CV-Library revealed 86.4 % of professionals living and working in the seaside city felt happy on a daily basis, followed by Swansea at 75%. The cities that recorded happiness percentages below the national average of 58.7 % included Cambridge (47.5%), Liverpool (47.1%) and Cardiff 44.8%. A separate survey by the Bank of Scotland has concluded that people living in the Highlands and Islands are much happier than those resident in big cities.
City lawyer battling former mother-in-law over beach house
International finance law specialist Melanie Panzone is in court against her former mother-in-law Anne Read over who owns a beachside apartment in Panama. She was married to her banker ex-husband Jonathan Read for 14 years, until their split in 2016, and they have already fought each other in the divorce courts over the division of their finances.
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