offer long-term leases on a flat rate fee with no hidden bills or fees. âMembersâ or tenants can easily transfer the
UK | Research & Forecast Report
RESIDENTIAL DATA SHOT September 2017
MARKET COMMENTARY Flexibility and flexible working is becoming more and more prevalent
Medici Living has recently announced that it will be launching its
in both London and around the UK. Central London alone has 7.8
“Quarters” brand in London and Manchester in 2018. Medici Living
million sq ft of flexible work space. With this style of working and
started its Quarters co-living model in Berlin in 2012 and now has
workspace becoming a real “watchword” in the office sector, could
more than 1,000 rooms in Germany, the US and Netherlands. Medici
the same carry over into the housing and residential sectors? Is
can keep rents and other costs lower due to economies of scale and
flexible living and flexibility an answer to providing wholly-owned,
offer long-term leases on a flat rate fee with no hidden bills or fees.
well-managed, all-inclusive living spaces for young entrepreneurs and
“Members” or tenants can easily transfer their membership from one
professionals looking to live, interact with and get inspiration from
city to another making it easy for globetrotting members to live and
like-minded people?
work wherever they need to be.
There are already a few co-living models operating in London
WeWork has been taking a lot of office space in London and around
promising respite from house-sharing and bad landlords; as well
the UK and although they have yet to launch it here in the UK, they
as offering all-inclusive rents, social life and living with other young
do have a co-living model called WeLive. This model offers the all-
professionals. These co-living models are offering traditional short-
inclusive rents like the other models but more flexibility on the terms
term leases up to 12 months and the rents are all inclusive of bills,
of stay. Its website offers stays of one night, a day, week or year.
council tax, Wi-Fi etc. For example, The Collective, offers communal
Membership gives tenants access to social events and to other global
living in a high-rise tower (not centrally located) with gym, cinema,
members.
bar, restaurant and club located onsite. Prospective tenants have the option to rent a studio, en-suite or share kitchen facilities. Capital Living is more of a house sharing option with tenants living in a shared house with other like-minded professionals with rents inclusive of bills and council tax as well social events with other members in the same area.
O
As start-ups and young professionals are influencing change in our workplaces, so too may they change the way we live.
INDICATOR
LATEST DATA JUNE
Nationwide House Price Growth
1.1%
Halifax House Price Growth
-0.9%
JULY
0.2%
0.7%
Rightmove Asking Price Growth
-0.4%
0.1%
Bank of England Mortgage Approval Rate
65,318
68,689
Bank of England Base Rate
Bank of England Average Rate on Two Year Fix (75% LTV)
RICS Price Expectations Survey
RICS Sales-to-Stock Ratio
HMRC Property Transactions
0.25%
0.25%
AUGUST
TREND
COLLIERS INTERNATIONAL COMMENT
-0.1%
The Nationwide House Price Growth Index saw house prices dip marginally month-on-month by 0.1%. Financial constraints continue to put pressure on residential sales, with some regions (London and the South East) experiencing more pressure than others.
1.1%
House prices rose by 1.1% between July and August, following a 0.7% increase in July.
-0.9%
The Rightmove Asking Price Growth Index reported that UK asking prices fell by 0.9%. In September, the annual house price increased by 1.1%, which is the lowest annual house price increase since February 2012.
N/A
The number of mortgage approvals increased by 5%. Mortgage approvals have not been so high since the beginning of this year.
0.25%
The Bank of England base rate remained at 0.25% after the last Monetary Policy Committee meeting. The Bank of England has raised the possibility of an increase in interest rates as early as November to relieve the pressure from surging prices and sluggish wage growth.
1.42%
The Bank of England rate on a two year fixed mortgage (75% LTV) remained largely the same month-on-month between July and August. Participating lenders in the Credit Conditions Survey expected a slight reduction in availability of household finance to affect borrowers with high loan to value (LTV) ratios of more than 90%.
1.48%
1.41%
3%
0%
-2%
A sustained weakening in the number of new listings coming onto the market continues to dampen activity as average stock levels on estate agents’ books remain at record lows, limiting choice for potential home buyers.
39%
39%
40%
The sales-to-stock ratio remains broadly unchanged at 40%.
102,440
104,010
103,490
The HMRC reported that the number of residential transactions fell marginally month-on-month between July and August. This is in line with the usual slowdown in transactions in the late summer and pressures on household finances.
FOR MORE INFORMATION Ashley Osborne | Head of Residential +44 20 7344 6762 |
[email protected]
This report gives information based primarily on Colliers International data, which may be helpful in anticipating trends in the property sector. However, no warranty is given as to the accuracy of, and no liability for negligence is accepted in relation to, the forecasts, figures or conclusions contained in this report and they must not be relied on for investment or any other purposes. This report does not constitute and must not be treated as investment or valuation advice or an offer to buy or sell property. September 2017 © Colliers International is the licensed trading name of Colliers International Property Advisers UK LLP (a limited liability partnership registered in England and Wales with registered number OC385143) and its subsidiary companies, the full list of which can be found on www.colliers.com/ukdisclaimer. Our registered office is at 50 George Street, London W1U 7GA. 17385
2
Lisa Dean | Research and Forecasting +44 20 7487 1961 |
[email protected]
Colliers International | UK 50 George Street London W1U 7GA colliers.com/uk
