Average asking price for UK home drops by ￡5,000, boom in mixed-use properties, prime UK office and shopping centre values rise
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Vacancy rates plunging at prime London office towers — mirroring NYC’s ‘flight to quality’
Availability in new London office buildings offering top-tier tenant amenities and strong sustainability standards has dropped significantly, with vacancy rates at just 0.3% in the West End and 0.5% in the City of London, according to Knight Frank.
They noted that hedge funds, private equity firms, merchant banks, and asset and wealth managers have been steadily increasing their presence in the capital, despite wider economic, political, and financial challenges.
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Prime UK office and shopping centre values rise for first time in 2 years
The value of prime UK offices and shopping centres has risen for the first time in two years, marking a positive shift for the struggling commercial property sector.
Land Securities reported a 0.9% increase in the value of its nearly ￡10 billion portfolio in the six months to the end of September, its first growth since 2022, driven by stronger valuations for retail properties and high-quality London office spaces.
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Panellists see boom of semi-commercial and mixed-use properties
At the Finance Professional Show in London, the commercial mortgages panel agreed that semi-commercial and mixed-use properties are currently a key area of growth in the lending market.
Investors are being encouraged to move away from Buy-to-Let and explore semi-commercial opportunities, as the market remains as competitive as it has ever been this year.
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Leasehold reforms set out amid concerns over delays
The government has announced that the leasehold system in England and Wales will be reformed by the end of the current Parliament, addressing delays that have been criticised by campaigners.
Currently, millions of leaseholders own the right to occupy their property for a set period and pay annual ground rent alongside service charges to freeholders.
Housing Minister Matthew Pennycook has confirmed that commonhold, a system where individuals own their property outright without a lease, will become the standard model before the next election.
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Average asking price for UK home drops by ￡5,000 in November
The average asking price for a UK home has fallen by over ￡5,000 this month, following concerns sparked by the autumn budget and the usual slowdown in the lead-up to Christmas.
New sellers listed properties at an average price of ￡366,592 in November, down by ￡5,366 or 1.4%, a sharper decline than the usual 0.8% drop recorded at this time of year, according to Rightmove.
Despite the fall, market experts remain optimistic, noting that activity is higher than it was a year ago, supported by improved sentiment following interest rate cuts.
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