Newsletter February 2010

Our statistics for the last quarter of 2009 are quite startling. For example, despite a fall in the number of properties on our books, we arranged 35% more sales than in the previous quarter and an unprecedented 300% more than in the same quarter of the previous year (which covered the Lehman Brothers collapse and the universal ‘sitting on hands’ response that followed).

From our own perspective at least – and a recent major comeback of the UK buyer notwithstanding – it has to be said that our independence from the Euro bailed us out. Back in February / March last year, only those who…

Characterised by turmoil, last year began with the ‘How bad might it get?’ recessionary fear that flooded the market with properties to rent, but ended with a shortage of stock. How did this happen, and what is the outlook for the months ahead?

The perfect storm

The first quarter of 2009 saw something of a ‘perfect storm’, as City redundancies, the recall of some ex-pats, the putting-up for rent of properties that wouldn’t sell and – the biggest factor of all – the postponement of corporate commitments, combined to raise the level of available stock to its highest for at least…

Eager cash buyers, ultra-cautious lenders and huge prime/ secondary differentials generate mixed messages about when to make your move

The long credit boom was one big seller’s market, at all levels. Even projects without planning permission were selling unconditionally and with little discount, such was the eagerness to buy in London. The difference today is not that we have been cast into an across-the-board buyer’s market, but that there is intense competition within some categories, and next to none in others.

Mopping up the back-log

Many developers entered the UK recession with…

For rather obvious reasons, we are positively fond of London’s bankers.

Our Mayor’s warning that 9,000 of them might leave the UK "in protest at the controversial and ill thought out tax raid on their bonuses" has thus prompted a little self-interested concern – and conversations with those we know as clients and business contacts. Most stress that, these days 'we could work anywhere'. So why are they in London now?

Much, it seems, is down to relationships. Day-to-day activity can be done from a laptop on the beach. But new ventures, deals and bargains depend upon contacts you can rely…

Finally, a welcome opportunity to heap a little praise on our Royal Borough. The new road system around South Kensington Underground Station, completed just before Christmas, is bringing real benefits. Traffic is moving more easily, previously unoccupied shops have been opening for business and the whole area feels a lot smarter.

This bodes well for the overall Exhibition Road project of which these works are merely a part. According to the Council, the project seeks to recognise that "the Exhibition Road area is one of the most important cultural destinations in the country with over 11.5…