This apartment was tenanted for two years and when put back on the market it went under offer immediately. There was a two day turnaround between the tenancies and while it had been rented for £2,430 per week it has now let for £3,200 per week.

The current property news from
Lucy Morton,
Managing Partner, W A Ellis

Buy to let property is now worth more than commercial property.

According to recent research for the Association of Residential Lettings Agents (ARLA), despite the current downturn in the value of residential property, investors in the rental market have reaped the rewards and it predicts a rise in rents by between 10% and 15% in 2008 and 2009.

The results showed that the combined worth of all privately rented property in the UK is £500 billion - higher than the total value of all the commercial offices, shops, factories, warehouses, hotels and leisure facilities in the country.

Contrary to the commonly held belief that the buy to let market has swallowed potential first time buyer properties, this research shows that the buy to let investors have actually been supporting the housing market over the years, by providing more rental accommodation for young first time buyers so that they have not had to face a repetition of the negative equity dilemmas of the early 1990s.

ARLA actually initiated and launched the buy to let product in the first place to mitigate the bad social consequences of the boom and bust of the 1990s housing market.It wanted to help young owner-occupiers get onto the ladder and the result as been very successful. The report further suggests that not only is buy to let proving valuable, it is providing an important service to those wanting their own property but who are not in a position to buy.

In the lettings department at W A Ellis, we have been busy again this month and most Tenants - particularly with families - appear to be renewing rather than vacating. There has not been the family exodus that I was fearing at the end of the summer school term. The one bedroom market has been busier than usual and there continues to be more property coming onto the market - some of which are properties which were on the sales market and have been withdrawn in favour of being let.

In the last month we have seen the Bank of England keep the Base Rate on hold at 5%, inflation rise to 3.8% (almost twice the Bank's target rate of 2%) and new mortgage approvals fall to the lowest levels since records began.

However, maybe it is not all bad news. Swap Rates have dropped significantly and the Interbank rate has also fallen slightly which has resulted in lenders repricing their mortgage rates downwards for what seems the first time in the last six months. Indeed Halifax (the nation's largest lender) has re-priced downwards three times in the last two weeks. Much needed moves and a welcome change from the relentless upward trend we have had to become used to of late

Another piece of news bucking the recent trend is the National Housing Federation report predicting that house prices will rise by 25% in the next five years due to the lack of supply in new housing stock that we have in the UK.

New builds are estimated at around 100,000 this year, when the Government target is over twice that in order to meet demand.

The Government has asked Sir James Crosby (ex Chief Executive of the Halifax) to look into possible solutions to the funding crisis. He is considering the pros and cons of the Government offering a form of guarantee for mortgage backed securities to improve liquidity. Mortgage backed securities accounted for almost two thirds of the funding in the last couple of years yet this market dried up abruptly last August. We will have to wait until September or October for his full report so no quick fixes are to be expected, indeed some say he may recommend no action is taken at all

For borrowers looking to borrow less than sixty percent of their property's value and with a good credit history the sun is starting to shine again.

James Wakefield, Springtide Capital.

www.springtidecapital.com
info@springtidecapital.com

Top End Houses Moving Due to Middle Eastern Market

The summer months traditionally see a flood of Middle-Eastern buyers into the London property sales market, particularly in Knightsbridge as they take advantage of the cooler weather in the UK and the school holidays. This year is no different which is a relief for us as it is helping to keep the top end of the market moving, when other areas are understandably slower due to current market conditions. Indeed we have just agreed a sale this week on a major Knightsbridge house to an Arab buyer.

We have several uber prime properties on our books which would be perfect for the Middle Eastern market, complete with multiple bedroom suites, stunning specifications, internal lifts and the all important proximity to Harrods.

These include Ovington Square and Catherine Place.

Smirnoff Black screening at Bluebird

During the summer, the courtyard outside the Bluebird is being turned into an al fresco cinema.

Each Wednesday evening a classic film will be shown and staff will be dressed up in 50s style. The programme includes;

Wednesday 6th August
Some Like It Hot starring Marilyn Monroe and Tony Curtis

Wednesday 13th August
My Fair Lady starring Audrey Hepburn and Rex Harrison

Wednesday 20th August
The 39 Steps starring Robert Donat and Madeleine Carroll

Wednesday 27th August
North by Northwest starring Cary Grant and Eva Saint Marie

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The Prom season is here

The world’s greatest music festival is here with 76 concerts at the Royal Albert Hall and 8 weekly chamber music recitals at Cadogan Hall. This year’s themes include Vaughan Williams, Messian and the organ however as usual, there is something for everyone.

Undoubtedly one of the highlights is going to be The Berlin Philharmoniker conducted by Sir Simon Rattle for Prom 64 and Prom 65, 2nd and 3rd September respectively.

The story of Tristan and Isolde inspires Prom 64 and the concert opens with the powerful pairing from either end of Wagner's great opera of love and death - its opening notes fused with the concluding 'love-death' of its heroine.

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Sir Simon Rattle and his Berlin orchestra open their second Prom of the season with a work central to the ensemble's repertoire: Brahms's Symphony No. 3, the mellowest of his four symphonies, inspired by a visit to the Rhine in 1883.

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