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£1m new-build homes drive up Edinburgh house prices

Edinburgh has had a major boost in £1 million new builds and boasts the most seven-figure properties in Scotland, despite a fall in the number of millionaire homes across Scotland last year.

The average selling price of properties in some of Scotland’s most popular areas increased 35 per cent over the past five years, with Portobello the biggest climber in Edinburgh at 28.6 per cent.

Property agency Rettie & Co said Edinburgh is at the heart of the £1m new build market with a combination of conversion and refurbishment schemes in the New Town, complementing high value new builds across the city.

The sale of all penthouses and flats at a new development in Morningside has pushed Woodcroft up to be the second most expensive street in the city. And Rettie said the joint venture between Queensberry Properties and Telereal Trillium demonstrates the importance of the million pound market in Edinburgh and the Lothians.

The Scottish £1m plus market fell overall in 2017, with 159 such sales, a drop of 4 per cent on the 2016 total. But the capital bucked the trend, with Edinburgh and its hinterland accounting for around three-quarters of the country’s 2017 £1m-plus sales last year.

Dr John Boyle, director of research and strategy at Rettie & Co, said: “There have been some significant shifts in the £1m-plus market in Scotland in recent times.

£1m new-build homes drive up Edinburgh house prices A new development helped make Woodcroft one of Edinburgh’s most expensive streets.

Edinburgh has had a major boost in £1 million new builds and boasts the most seven-figure properties in Scotland, despite a fall in the number of millionaire homes across Scotland last year.

The average selling price of properties in some of Scotland’s most popular areas increased 35 per cent over the past five years, with Portobello the biggest climber in Edinburgh at 28.6 per cent.

Property agency Rettie & Co said Edinburgh is at the heart of the £1m new build market with a combination of conversion and refurbishment schemes in the New Town, complementing high value new builds across the city.

The sale of all penthouses and flats at a new development in Morningside has pushed Woodcroft up to be the second most expensive street in the city.

And Rettie said the joint venture between Queensberry Properties and Telereal Trillium demonstrates the importance of the million pound market in Edinburgh and the Lothians.

The Scottish £1m plus market fell overall in 2017, with 159 such sales, a drop of 4 per cent on the 2016 total. But the capital bucked the trend, with Edinburgh and its hinterland accounting for around three-quarters of the country’s 2017 £1m-plus sales last year.

Dr John Boyle, director of research and strategy at Rettie & Co, said: “There have been some significant shifts in the £1m-plus market in Scotland in recent times.

“There has been a concentration of such sales in Edinburgh and surrounding areas and new build sales are 
playing a much bigger role in this market, partly due to the lack of available stock elsewhere.

“The performance of this market is important in a Scottish context, even though it only accounts for 0.2 per cent of all Scottish house sales, it contributes around 7 per cent of Land and Buildings Transaction Tax revenues.”

As well as an increase at the upper end, the burgeoning market in Edinburgh’s Dalry, Gorgie and Slateford has seen a huge hike in prices of one-bedroom flats, up 28.5 per cent in a year to £144,052.

And showing speed really is of the essence for buyers keen for a slice of the Edinburgh property pie, the average time to sell in these areas has slashed from 92 days in 2013 to just 14 days.

ESPC’s business analyst Maria Botha-Lopez says: “Property prices in some areas of Edinburgh have risen fast over the last five years, and over the last couple of years in particular, the market has been in favour of the seller.

“Over the last three months, the percentage of properties sold within 14 days rose by 13.3 per cent year-on-year to 35.4 per cent, and 29.4 per cent of sales set a closing date, indicating that sellers are attracting a number of competing offers from buyers.”

Earlier this week, the Royal Institution of Chartered Surveyors (Rics) said the number of homes on estate agents’ books has dwindled to a new low.

Average property stock levels per branch on agents’ books fell to a new record low of just under 42, as new buyer inquiries, new instructions from sellers and newly-agreed sales continued to drift lower in February, its report said.

New buyer inquiries fell for the eleventh month in a row while sales trends have remained similar over the past six months.

Source: Scotsman

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New £25m ‘build to rent’ scheme proposed for Belfast

PLANS have been revealed for a new £25 million ‘build to rent’ apartment building in the east bank area of Belfast city centre.

The proposal, being brought forward by a joint venture between the local property developer, Vinder Capital, and Oisin Quinn of London-based developer Aldgate Developments, is the second of its kind in Belfast, following the planned 19 storey development on Academy Street in the city.

The ‘build to rent’ model sees apartments purpose-built for rental only, with ownership retained by the building owner. A management company then provides additional services such as 24/7 security, communal space and cafes for long-term tenancies. Aimed at the ‘millennial’ generation, who choose to rent or can’t yet afford to buy, it has already become a successful model in other UK cities such as London and Manchester.

The proposed Belfast development, to be known as ‘The Residence at Quay Gate’ will be located on a current surface level car park at Scrabo Street in an area south of the Lagan Bridge. The proposed building, designed by Belfast based LIKE Architects, will provide over 150 one and two bedroom apartments in the city centre set overlooking the river Lagan and the Titanic Quarter.

Gavin McEvoy from the joint venture behind the scheme believes the proposal offers potential residents a unique living experience in the city.

“Build to rent is an exciting opportunity to introduce premium services and a customer focus to apartment living which is not typically found in build for sale apartments in the Belfast market. The Residence at Quay Gate will include a dedicated relaxation area, a state of the art gymnasium, work spaces and meeting rooms and will include an integrated IT system,” he said.

“Having assessed the model in other major cities in the UK with our high class design and delivery team, we believe there is an exciting opportunity to use our knowledge of the local property market to apply the model in a Belfast context. Build to Rent is an exciting progression from the major investment that has been made in Belfast in the student accommodation sector that fills a growing need for city centre living in Belfast. Our plans will deliver a cleverly-designed, premium scheme which will deliver well managed homes and create new, sustainable communities in an area of the city centre close to the river with easy access to transport links.”

The developers will undertake a 12 week pre-application community consultation before submitting their plans to Belfast City Council. A public exhibition will be held on February 7 at the Odyssey Pavillion.

Earlier this month Lacuna/Watkin Jones, the joint venture behind multiple student accommodation schemes in the city centre, submitted a planning application for 105 one and two bed apartments on Academy Street in the Cathedral Quarter. The build to rent development includes an active ground floor with communal space for tenants, management facilities and proposed space for a café or retail use.

Source: Irish News

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Worst case no-deal Brexit could see 43,000 fewer UK construction jobs, report says

A no-deal Brexit could see up to 43,000 fewer construction jobs in the UK, according to an economic forecast commissioned by the mayor of London.

The research undertaken by analysts Cambridge Econmetrics has produced a damning report on the adverse effects a hard Brexit could have on the UK economy and various sectors. Sadiq Khan claims the study shows that a no-deal outcome could cost the country half a million jobs and £50bn in lost investment by 2030.

The findings also looked at London alone where increased housing numbers are desperately needed. Experts believe there could be 5,000 fewer jobs and a drop in output of up to £1.2bn by 2030 in the construction sector should the UK decide to walk away from a deal and leave both the EU customs union and single market.

Mayor of London, Sadiq Khan, said: “If the government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment. The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards.”

The analysis looks at the potential impact five different Brexit scenarios could have on nine key sectors of the economy. It shows that every Brexit outcome analysed would be bad for the British economy, but that the harder the Brexit, the more severe the consequences. The worst of the five scenarios postulates a departure in March 2019 with no deal or transition arrangements and researches have estimated this would lead to 482,000 fewer jobs across the entire UK and a loss of £46.8bn in investment by 2030.

“If the government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment.”
Sadiq Khan, mayor of London.

James Murray, deputy mayor for housing and residential development, said: “This report lays bare the huge risks we would face as a result of Government’s failure to secure a Brexit deal that works for London and the rest of the UK. The fact the Mayor has had do the prime minister’s job in publishing the full impact of Brexit is truly damning. It shows the scale of the blow that a no-deal hard Brexit could have on our homebuilding efforts. London needs 13,000 additional construction workers to build the homes the capital needs – we simply cannot afford to lose skilled European labour.”

The research was commissioned after the Brexit secretary David Davis told MPs in December the government had failed to produce any economic forecasts on the likely impacts Brexit could have. Answering questions from the Brexit select committee, Davis also said no economic impact study had been undertaken before the cabinet decision to leave the customs union.

The Labour mayor was also a strong supporter of the remain campaign and has since argued for the UK to stay in the EU’s single market and customs union. Davis’s admissions in December have said to ignite a drive to produce some research-based evidence of future impacts. While the report’s authors have stressed the figures are reliant on a range of factors, it is the first time analysis like this had been undertaken to delve into the wider impacts of a no-deal Brexit.

Analysis by Melanie Leech, chief executive of the British Property Federation

Not knowing if we’ll have enough skilled workers to resource the construction industry over the coming years is deeply concerning.

We urge government to provide clarity on the status of EU workers as soon as possible – we are already seeing this uncertainty undermine regeneration up and down the country.

Government must get migration policy right if we wish to build much-needed homes and the physical environments capable of driving innovation, which underpin a successful post-Brexit UK.

Source: Infrastructure Intelligence