Welcome to the Market Update Q2 2016, giving you an up-to-date view of the office, investment & development market. Included in this issue: market supply, current rents, notable office buildings new to the market and the affordable housing dilemma.
Q2 MARKET SUMMARY
As the Referendum drew closer there was a notable rise in caution during May and June on UK commercial property yields and values as well as land and residential values. Following the ‘Leave’ vote, and despite a ‘Remain’ vote from the central London Boroughs, capital value growth is unlikely as vendors and buyers try to fully understand the economic consequences.
Not all parts of London will be affected in the same way and with less reliance on the financial sector the west of West End market should be less affected than the City of London and Docklands… DOWNLOAD TO READ IN FULL
CLOCKWORK BUILDING, RAVENSCOURT PARK IS LAUNCHED
On the day of the Referendum the Clockwork Building was launched to 85 commercial agents from across London who were invited to a temporary bar set up on the penthouse floor and to a lunch cooked by the chef, Tom Hunt. This prominent building in Beavor Lane, Ravenscourt Park has a rich heritage. It was designed by renowned architect Richard Seifert on the site which was… DOWNLOAD TO READ IN FULL
AFFORDABLE HOUSING DILEMMA
Why is affordable housing on new schemes rarely 50% of the private housing, despite this being stipulated as the target in London development plans?
Unfortunately when politicians discuss affordable housing and stipulate that they want 50% on a particular site, they ignore a key complexity in terms of planning; can the site accommodate 50% in viability terms?
The National Planning Policy Framework of 2013 in Paragraph 173 states that:
“Pursuing sustainable development requires careful attention to viability and costs in plan-making and decision-taking. Plans should be deliverable. Therefore, the sites and the scale of development identified in the plan should not be subject to such a scale of obligations and policy burdens that their ability to be developed viably is threatened… DOWNLOAD TO READ IN FULL