Construction Levels rising in the UK

Economic recovery seems to be gaining momentun, albeit slowly, and we got good news regarding building levels according to May NHBC statistics.
House building levels across the UK rose during May 2010, in the period from March to May 2010, 32,352 new homes were registered across the UK. This was a 68 per cent increase on the same three month period in 2009 (19,286), indicating continued year-on-year solid improvement across the sector.

Registrations during May 2010 (10,870) were also 56 per cent higher than in May 2009 (6,953).

Commenting on the figures, Imtiaz Farookhi, chief executive of NHBC, said: "Despite the impact of the general election and the political uncertainty that surrounded it, NHBC's figures show that the number of homes being built in the UK is continuing to improve at a steady rate.

"Sustaining this level of improvement post-budget and into the summer building season however will be the next major challenge to face the industry", he added.

NHBC statistics for the three months to the end of May 2010 show that both private and public sector demonstrated significant improvements:

- Private sector registrations were up 89 per cent (at 20,877) when compared with the same period last year (11,062)

- Public sector registrations were 11,475 - 40 per cent higher than the same period a year ago (8,224).

TFL quits as tenant in the Shard, as it office space price skyrockets

The Shard will be soon the tallest skyscrapper in Western Europe, I can see the structure grow day by day in my whereabouts to see property in different London locations.

Transport for London will no longer become the first office tenant at the Shard at London Bridge as the developers look to position the building at the “top end” of the London market. Prices per sq ft are now reaching £60, as a comparison, prime space in Westminster can be found at £45 per sq ft, so the prices are astronomical.

The transport body was lined up to take nearly 200,000 sq ft at the landmark development, part of the £2bn London Bridge Quarter scheme. However, the partners on the scheme - Sellar Property Group and the State of Qatar (the Quataries again!) – have now acquired TfL’s pre-let agreement.

They will work closely with TfL to help it find alternative accommodation.

A spokesman for London Bridge Quarter said: “This agreement enables us to position the Shard at the very top end of the London office market. Together, the Shard and London Bridge Place will deliver more than 1m sq ft of Grade A offices located on one of London’s busiest transport hubs in a landmark building of the highest quality.”

The change of plan follows a number of high profile deals in the City of London to major occupiers, leaving a lack of supply and rising rents which the Shard’s developers believe it is well placed to capitalise on when it completes in May 2012.

The building comprises 586,000 sq ft of office space along with a hotel, apartments, and retail and leisure space.

It is part of the wider £2bn London Bridge Quarter scheme, designed by Renzo Piano, around London Bridge station, which also includes the 419,000 sq ft London Bridge Place office, a square, a redeveloped station concourse and a new bus station.

I can't wait to see it finsihed.

London Commercial Property is Recovering

Commercial property is back in fashion, a recent survey by Aberdeen Asset Management found that UK pension funds are actively looking to increase their commercial property exposure.

There is currently a shortage of prime office space in the city, and new buildings like the Heron Tower will probably be fully let before completion.

The recovery in commercial property values seen during the past nine months is slowing but analysts say that funds investing in the sector have become increasingly attractive for their income yields.

Commercial property values rose by just 0.8 per cent in April - half the growth rate achieved in March, according to the latest figures from the Investment Property Databank (IPD), the benchmark property index. This monthly growth rate was the lowest since values started rising again last August. Since then, capital values have rebounded 14 per cent following a two-year fall of 45 per cent.

The property sector remains far from healthy, but is looking like an increasingly attractive addition to a portfolio.

Fabric nightclub goes into Administration

Another victim of the recession? many say that Londoners have cut on spending doing less nights out, which easily cost over £100 per person once you add the cab fares.
Clubbing was the one indulgence that many were not ready to give away, but most clubbers, aged in their 20's and early 30's have been hit worse by the recession than other age groups.

A few weeks ago we spoke about Buddha Bar, another example of night venue going bust. Now the iconic Fabric that hosted those memorable DTPM nights that many of you remember very well, is also in danger.

This night club in Farringdon, is a leasehold premises and has 24-hour licence and a capacity of 1,510.

Apparently, just 24 hours after the Edward Symmons, the selling agents, were appointed, they already received a number of enquiries from potential purchasers (Colin White, one of the partners in the agency commented).

They anticipate continued interest in the sale of Fabric, particularly from other major club operators in London and the south east.

Will we be able to enjoy more Fabric nights in the future? I hope so...

Property Prices Fall in London for the first time this year in May

It looks like we are at the end of a price increase cycle. Over the last year we have seen the London market prices boosted by foreign investors and a shortage of properties, but after the elections an increasing number of properties are coming available for sale, and that, together with tight lending conditions is now pulling the brakes in the selling prices.

Rightmove.co.uk, the leading U.K. property portal, just published its May price index.

The average house price in the U.K. capital fell 0.4% from April to £420,203, U.K.’s biggest property website said in an e-mailed statement today. In the year, prices rose 5.7%. In England and Wales, they rose 0.7% in the month to £237,134

Read more: http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3163590&c=1#ixzz0pc8Aqqz7