News

Are Battersea Power Station, Crossrail, Brexit perceived outcomes now wagging the tail of the rental costs in the Battersea/Nine Elms area?!!

The original plans for nearly 4,000 residential homes, mostly luxury apartments, at the redeveloping Battersea Power Station site seem to be partly giving way for possibly anything up to one million square feet of additional office space.

The Brexit effect is perhaps one reason the developers are rethinking the next of the seven phases with an easing generally in the UK in the demand for high end private properties. In addition, Apple are planning to move it’s UK Headquarters with 1,400 staff into some 500,000 sq.ft. of office space over six floors in the redeveloped Battersea Power Station building. This will probably encourage other companies also to look for offices in the new 42 acre complex, or as some are now calling it – the new London village!

In addition to the above changing circumstances, the slowing of the ‘off plan’ sales of residential apartments since the rush for the first phase has obviously created a rethink by the BPS developers in the demand for residential apartments v commercial offices.

The whole of the broader Battersea area, particularly in terms of the availability and cost of renting properties, is bound to be affected by the local rapidly changing property and transport situations let alone Brexit!

Into this mix you add the potentially growing demand for local accommodation by office and infrastructure workers which already is begging the question: will the result be surplus or shortfall in suitable rental properties in the area?!

Whether it is Brexit, Battersea Power Station, Crossrail or the general uncertain UK economy, it is obvious that many questions and challenges are raised when considering renting a property to suit your particular requirements in the South Bank area of Battersea/Nine Elms.

This is where Penhurst Properties Limited, www.penhurst.co.uk , tel: 0207 978 0100 with their deep knowledge and experience of the property world and the Battersea area in particular, can guide you to available rental apartments to suit your circumstances.

 

Can local Londoners afford to live in properties in the developing Battersea area and will it begin to look like Manhattan?

The good news is there are some 20,000 new homes being built in the broader Nine Elms area in Battersea.

The bad news for the average traditional London resident looking to live in this desirable area, is that most of these new properties will be luxury apartments mostly over £500k and a large number being over £1m to buy!
 
With some £15bn of investment pouring into the Nine Elms area, it is clear that the target market is aimed at wealthy foreigners and to some extent at the big salary city types requiring to live near the travel convenience offered by the new Crossrail link.
 
There is a further possible inflationary effect on the price of the new Nine Elms luxury apartments. This is the latest 40% profit being made by investors of apartments in the Battersea Power Station development, selling their interest before they have been built. This so called 'flipping' could catch on in Nine Elms thus pushing prices even higher!
 
In relation to things going higher it seems most of the super luxury apartments at Nine Elms will be in groups of high-rise towers and in this respect you hear the words "Mini Manhattan" being mentioned! Across London there are proposals for over 200 very high-rise buildings, with some already being constructed. In addition there is concern that the famous landmark of the Battersea Power Station, especially the four 'protected' chimneys will disappear behind the new 'Manhattan like Sky Scrapers'…..an argument for the architects and preservationists still to have!!
 
All of these changing scenes, apart from the visual impact, in the Battersea area will preclude the average earning 'would be' London resident from buying. Alternatively they face the rental market of these luxury apartments also rising accordingly!

However the remaining good news is that there are still a number of very nice affordable rental properties available in the Battersea area. These are within the price bracket of a normally remunerated Londoner not yet having been effected by the inflationary price of the advancing march of the luxury apartments.

For more information on such available rental properties in the Battersea area please contact Penhurst Properties Limited, www.penhurst.co.uk , tel: 0207 978 0100 who for over 27 years have a reputation for offering quality rental properties and would be pleased to assist.

 

Will the possible Crossrail extension make Battersea ‘The Gateway To The South’?

Battersea Power Station’s owner has made a bid for a serious Crossrail station to be built between Battersea Park and the rapidly developing Power Station site.

With Crossrail’s amazing new link due to be completed towards the end of 2018, a major station in Battersea, instead of just the agreed Northern Line extension as part of the main Crossrail, might perhaps happen! This could open the doors and give access to even greater business, social and residential opportunities to what is becoming one of the most exciting developing areas of London……
 
……Or instead as Rob Tincknell, CEO of Battersea Power Station Development Company, would like to see, with just a normal Tube station link, the area, particularly the wider development becoming something of a ‘village’. A broad community covering all ages and backgrounds that happily mix and will often socialise together, rather than a great metropolis served by a huge station with endless faceless passing strangers!
 
It does however seem the simpler Northern Line extention as part of the Charing Cross tube branch line is the favoured option. This would probably suit the ‘village’ feel favoured by Mr Tincknell and many existing and future interested parties, provided of course business progress and the development of suitable residential homes is not stifled!
 
Clearly the quality of life for residents is improving and business opportunities growing as the attraction of Battersea Power Station development, the American Embassy and Crossrail is encouraging developers to build or improve existing properties. Add to this a more attractive all round infrastructure is beginning to emerge with more facilities for the public generally with the help of local authorities. This is interesting entrepreneurs who always look for opportunities, restaurant owners, new shops keepers and entertainment leaders, all of whom are keeping a close eye on this changing part of London and not excluding some foreign investment interest as well!
 
Whatever the outcome, it does seem to live in the Battersea area, whether by buying, or more likely renting for the younger community, things are getting noticeably better. There is an undoubted growing demand for residential properties which signifies a healthy future as people from all walks of life are attracted to what will become one of the nicest parts of South London in which to live, with the key factor - a first class travel system!

Should further information on rental properties available in the Battersea area be required please contact Penhurst Properties Limited, www.penhurst.co.uk , tel: 0207 978 0100 who for over 27 years have a reputation for offering quality rental properties and would be pleased to assist.

 

Can’t buy, won’t buy!!

‘High house prices, deposit requirements, too much hassle to buy = increasing demand for rental properties; 26.8% of gross income levels in London spent on rent!’ (Savills February 2014)

Rental levels are rising with the increasing demand and finding the right value for money rental property becomes even more important. Now is the right time to give careful thought before plunging into renting a property, especially for the uninitiated.
 
The right steps on the route to happy renting…

It is very easy to rush and omit to take certain sensible basic precautions with the enthusiasm to move into a home to give you residential independence.

This so often applies to young couples as they break away from the family home to launch out on their own. However the same seems to be occurring for the not so young who, for the wish to free up capital or other financial reasons, are selling their freehold to move into, for some of them, the unknown world of renting…..!

So what are these steps….?

  • Area research:   Having chosen one or two possible areas, find time to visit, walk the area, try and speak to local residents. Check the infrastructure in terms of shops, station, schools if you have children, medical and leisure facilities and see what the ‘net’ has to say about where you are thinking of living. Compare levels of traffic noise and above all do not forget to look out and avoid potential areas of flooding!

  • Speak to local professionals: e.g. Estate Agents; established Letting Agents, Property Management Agents, and even the local council, asking questions about future developments, the varying rental prices of different roads.

  • Check potential landlords credentials: Are they professional and well known Landlords with a good reputation or is it a new buy to let situation where experience and required safety precautions have yet to be established.  The vital certificates covering gas and electrical safety installations should immediately be available with established Landlords.

  • View properties : Visit potential properties and spend enough time to establish that you would be comfortable with surroundings, noise levels, kitchen and bathroom facilities as well as heating arrangements and overall cleanliness.
  • Price levels : Rental levels can be negotiated especially if you are willing to pay by Direct Debit and landlords are quicker to attend to any problems where rentals are paid regularly and not in arrears. Clarify the level of deposit and the requirements for its return at the end of your tenancy.

  • Before moving in : Check the inventory re furniture, equipment, lighting, heating, carpets etc and their state of working order and cleanliness. Establish effectiveness of locks, keys, fire/CO2 alarms, fire escape. Check your legal rights as a tenant, available on the net.

  • Communication : Ensure you have the landlord’s emergency telephone number and similarly ensure he has your mobile number. Report problems immediately including if you have a rental payment issue.

You may find from your research, that Battersea and the broader area is where you would like to live.

In this case and with these steps firmly in mind a lot of the worry or questions can be alleviated by calling Penhurst Properties Ltd. www.penhurst.co.uk tel:0207 978 0100 who for over 27 years have established an enviable reputation in offering quality properties and answers to the above issues.

 

Battersea Property Values 'Power' Ahead!! - July 2013

‘Residential demand continues the unprecedented and seemingly unstoppable rise in Battersea’s property values, particularly now with the added attraction of the future transformation of the Art Deco 1933 Grade 11 listed….’
……Battersea Power Station.

Whether you take the views of John D Wood, Knight Frank, Savills or any other top London Estate Agents, the same conclusion is brought forth and now confirmed by ‘The London School of Economics’ latest research into the Battersea property market values, (see graph).

But in spite of some uncertain growth levels in the UK property market generally, JDW’s ‘Battersea Property Graph’ shows that, there has been nearly 25% growth in Battersea’s property market in the last year and KF even predicting 140% growth by 2016!

Buying or Renting in London, Battersea is already where people of all ages and walks of life seem to want to live and as Randy Bachman or President Reagan once said…… “You ain’t seen nothing yet”…..

 - with the stunning developments at the BPS of the new American Embassy, River Side 6 acre park, 3,500 homes, offices, shops, restaurants and theatres in surrounding areas, all beginning in October with first phase completion due 2017, Battersea and surrounding areas will become even more desirable to residents and those with commercial interests as well.

For further information or assistance in finding just the right property to rent in this part of London , contact: Penhurst Properties Ltd : www.penhurst.co.uk     tel: 0207 978 0100.

 

To buy or to rent? - April 2013

To buy or to rent?  That is the property question so many of the younger people ask, unlike previous generations, particularly the English who mostly seemed schooled to eventually achieve ownership of their own ‘castle’.  But the world has changed and so have the dynamics…….

So much has swung against the would be owner :-

  • The price of properties
  • The cost of stamp duty, surveyors, estate agents, solicitors
  • The cost of upkeep, repairs, insurance
  • The difficulties of obtaining a mortgage
  • To the mobility of the young faced with the problems of quickly selling
  • The once seemingly impossible scenario of house prices no longer rising and possibly falling – now occurring!

On the other hand for reasons of stability and security of tenure owning, particularly for the older settled resident can be the way to go.  This especially if the family home is the ideal asset that can have sentimental and real value to be passed down the line or sold for income purposes on retirement.

The population growth in the UK with limited affordable homes available for purchase, along with changes in the ethnic and internationally mobile is bringing the change.  Now, these changes, particularly with the young who wish to set up homes and whose acceptability of rented properties is more usual than in the past, are a large part of what is leading to the change.

To have spare funds to enjoy the many attractions of holidays, cars, eating out and the latest fashionable must have ‘techno pads’ is seemingly becoming more important to this changing population than being tied down with the cost and restrictions of home ownership.

It is against this background that the professional Landlord, such as Penhurst Properties Limited with 25 years of experience behind them, can give direction of where to find ideal apartments for rent in the much sort after areas around Battersea.

 

 


Battersea a Mecca for residents with an even brighter future! - Feb 2013

Even before the recent announcements of some remarkable major residential developments, Battersea has been recognised more and more as the up and coming area of South London. Consider the following…

A Park overlooking the Thames where, thanks to the National Lottery, some £11million has recently been spent restoring this 200 acre open space into such a beautiful place to spend leisure time. There is a small Zoo, children's adventure playground, tennis courts and a boating lake.

Latchmere Leisure Centre for all ages with an excellent swimming pool.

Battersea Arts Centre with a Fringe theatre.

Popular schools both state and increasing number of private Prep.

But for vibrancy you have to add Clapham Junction area with its multi connection train station, Northcote Road with its restaurants and shopping facilities and the sheer attraction of the proximity of the Thames with Chelsea just across the river.

However behind the busy thoroughfares there are quiet streets with charming flats for rent, some of which are available at not unreasonable prices as seen on www.penhurst.co.uk web site.

The future agreed developments will make Battersea even more desirable as the infrastructure is broadened to support some major residential properties i.e.:-

  • A new USA Embassy at Nine Elms with surrounding green areas being built ready for relocation of staff in 2016/17.
  • An £8 billion redevelopment of Battersea Power station due to offer some 800 flats with fabulous Thames views and of the surrounding area, also to become a mini town centre on its own.
  • Boris Johnson’s approval of the redevelopment of the Peabody Estate on St John’s Hill providing 527 new homes over the next 10 years

There are few, if any, areas of London that can offer all you find in Battersea with the bonus of an exciting future that is just around the corner!

 

 


Property News and over view - August 2012

The Olympics has already given the property market a rental boost section and is reflecting excellent investment returns both in income and capital growth. Trying to find short or medium term rentals around the Olympic zone is beginning to get difficult.

The Olympic legacy of vastly improved infrastructure and transport links is revaluing properties in the East of London with foreign investors finding reasons to visit The Capital and taking the opportunity to invest in property.

Other key factors

  • Increased hotel prices (Olympic effect) pushing up short term property rentals.
  • Shortage of reasonable quality rentals, partly exacerbated by previous and would be owners not finding mortgages, thus moving to the better rental properties and increasing rental levels in this sector.
  • Landlords with liquidity, hunting down suitable buy-to-let properties.
  • Mortgage difficulties generally driving down house prices particularly the less easily rented out properties.
  • Family rental properties 'bucking the price fall trend' as demand for such properties gains momentum.
  • Euro zone troubles now causing the growth in prime central London property values to slow down, but interest in the rental market is very lively at present in west of London quality properties.
  • Growing control over immigration affecting the availability of cheap capable workforce in the building industry, leaving opportunities for northern teams to travel South for employment as landlords continually improve and extend existing properties.

     

 


Reasons for renting in present day property market.

The days where many would have said it is better to buy than rent have long since passed particularly from a financial point of view in the present uncertain economic times. Depending on your circumstances, but for many young people the difficulties of obtaining a mortgage, let alone raising sufficient funds for the necessary deposit, is a big stumbling block.

An interesting statistic perhaps gives credence to this changing scenario is, that 1million more people now rent compared with 6 years ago, which is understandable as the average deposit needed for first time buyers is now £31,700! A further statistic not always appreciated, but generally with mortgages some 80% of your monthly costs goes in interest in the first 5 years leaving you still to repay the capital!

Without a doubt for young people, so often wishing to develop independence or start a home with their partners sooner rather than later, the lack of hassle, setting up and furnishing costs avoided by renting, is very attractive option. This becomes even more so if their circumstances, not just financial, but perhaps needing flexibility time wise or even location wise, all of which is so easily found by renting.

From an investment angle buying had always seemed the best road to take, but the uncertain economic times we now live in and the volatile value of properties has made this once 'dead cert' investment something of a gamble. By renting there is no gamble and a quick exit is assured should the need arise.

Therefore in the knowledge that it is certainly cheaper to rent than buy in London, with the upfront costs and uncertain long term investment value, there is much to support the reason for younger people to rent until perhaps later in life. It is quite clear first time buyers are much older these days than 10 years ago and the younger generation clearly wish to enjoy flexibility, having some spare cash and still have the comforts of a home; all perfectly possible when renting!