Home Improvement

Forward-selling to UK purchasers disappeared from the london property market over the past two years due to falling values and lack of mortgage products for off-plan buyers. With the market widely perceived to have bottomed out in terms of pricing, off-plan sales are again being pursued as a marketing strategy for larger blocks. In the second half of 2009 Hurford Salvi Carr was appointed by Telford new homes to co-ordinate international marketing on three schemes at The Saunders Apartments, E3, part of the Merchant’s Quarter development, a new development at Cable Street/The Highway, E1, and Avant-Garde, Bethnal Green Road, E1.

Avant-Garde will be a particularly striking development. This very large site on the south side of Bethnal Green Road was cleared in 2009, is close to the Broadgate office complex and overlooks the East London line which is set to open in 2010. In March 2008, Telford secured permission for 257 apartments in a 25 storey tower, along with 103 social housing units (including 94 social rented and 9 shared ownership units) as well as 37,000 sq ft gross of mixed commercial space. In Docklands, the Pan Peninsula scheme was completed in 2009.

In four other major schemes that were under construction at the end of 2009, The Landmark, Canary Quarter, Lantern’s Court and Baltimore Wharf there were a further 2,700 units underway. With some presold units returning to the market and new launches taking place, sales prices are likely to be under pressure here throughout 2010. On the other hand, completed units in Pan Peninsula and The Landmark have proved popular with tenants.Wide range of new homes in london available here.

The extreme slowdown in new housing starts in 2009, which is likely to continue into 2010, could be of benefit to schemes which are being forward-marketed for completion from 2011 onwards. In Midtown, City and Docklands there were only 317 private housing starts in 2009 according to EGi’s London Residential property Research database (defined by post codes E1, E14, EC1-4, WC1-2). Of the 27 schemes which started in 2009, only three exceeded 14 units, indicating the preponderance of niche schemes with more modest funding requirements. The level of private housing starts is just 10% of the level seen in 2007 when 3,150 units commenced in the same area in 67 schemes and 14% of the level in 2008 when 2,230 units started in 47 schemes.

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