Accumulate Capital – Property Reporter: Covid-19 is changing commercial property

September 24, 2020

Property Reporter

September 24th 2020

Covid-19 is changing commercial property

Accumulate Capital recently surveyed over 500 senior business decision-makers to find out how the COVID-19 pandemic has affected UK businesses and their commercial property needs.

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Accumulate Capital – Cheyne Walk Update – September 2020

September 24, 2020

accumulate capital cheyne walk chelsea update september 2020

Accumulate Capital – Cheyne Walk Update – September 2020

A landmark luxury development on the waterfront of the Thames in Chelsea. The project will see the creation of 13 ultra-luxury apartments on this most famous of London streets. Currently, the 5 storey building is a split between smaller residential flats with a mix of commercial and retail space on the ground floor.

The latest update for September on our residential project on the affluent Cheyne Walk, Chelsea. Planning consultant and architect visits, updated floor plans, all in detail from Jamie Chapman. He highlights the huge level of interest we’ve had from fashion brands, artist studios, and doctors surgeries for the commercial space. Click below to watch the full video.

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UK housing market surges in busiest month in 10 years

September 23, 2020

uk housing market busiest month 10 years

UK housing market surges in busiest month in 10 years

According to data from Rightmove, August saw a “mini-boom” in the UK housing market as Brits turned to home-buying to fill the summer holiday void post-lockdown.

Rightmove’s latest house price index reveals the highest number of monthly sales in more than 10 years in August. The report reveals that that transaction volume was up by 20% on the previous high a decade ago, with a record total value of over £37bn.

There is usually a seasonal slowdown in UK housing market activity over summer, as buyers and sellers focus on summer holidays.

But given the current coronavirus restrictions, movers are placing more property on the market and have agreed more sales than in over a decade.

The latest figures also show the highest number of UK properties coming to the housing market in a month since March 2008.

House prices also usually fall in this period but there have been monthly price increases in 10 out of 12 regions, with a record high in new seller asking prices in seven of the regions.

London house prices dent UK housing market ‘mini-boom’

However, London dragged down the national average to a 0.2% decline due to its more typical 2% seasonal monthly fall.

Evidence of a “mini-boom” first emerged in July’s figures, which showed the average asking price of property coming to market was up 2.4% compared to March before lockdown measures were announced.

The government reopened the UK housing market on 13 May after lockdown and has since announced a stamp duty holiday to reignite the sector.

Rightmove housing market analyst Miles Shipside said: “Rather than just a release of existing pent-up demand due to the suspension of the housing market during lockdown, there’s an added layer of additional demand due to people’s changed housing priorities after the experience of lockdown. This is also keeping up the momentum of the unexpected mini-boom, which is now going longer and faster.”

Additionally, the figures show the increase in activity is not just a result of the stamp duty holiday. Instead, sales agreed are up across all sectors of the market. In the first-time buyer sector, they are up 29%, 38% in the second stepper sector, and 59% for larger homes.

Russell Quirk, property expert at MovingHomeAdvice.com, said: “This explosion of activity is not just a consequence of the fuel of stamp-duty-respite but a market that has proven time and again that it is robust even in the most challenging of circumstances.”

“You can apparently throw Brexit, political turmoil, a couple of general elections and a once in a century pandemic at it yet it still marches on. Like the proverbial cockroach, no matter what you do to kill it, it simply will not die.”

More stimulus to come?

Tomer Aboody, director of property lender MT Finance, said the summer shift in housebuyers’ attitudes is no surprise with popular holiday destinations subject to UK quarantine rules.

“The vast majority are staying in the UK and getting on with buying and selling,” he said.

“This buoyant surge in sales and properties coming to market underlines the shift in priorities in terms of buyers’ attitude to moving and their requirements.”

“Outside London, the housing market has been busy with workers looking for commuter belt homes which are cheaper than the capital but also bigger for working from home and with outside space for the children.”

Aboody said the stamp duty cut does not benefit London buyers nearly as much, with the new threshold set at £500,000.

Jeremy Leaf, north London estate agent and a former RICS residential chairman added that pent-up demand over lockdown is driving the UK housing market’s recovery.

“Despite some suggestions the momentum may fizzle out, there is not yet any sign of bad economic news raining on the parade,” he added.

“On the contrary, a more broad-based sustainable recovery may be underway with increased activity in most price ranges. If anything, the market is more likely to be restrained by lender delays in mortgage underwriting than a drop in buyer enthusiasm.”

Find out more about Accumulate Capital’s robust portfolio of opportunities, designed to withstand market uncertainty by contacting an adviser today.

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Accumulate Capital – The Architects’ Journal: Jack Carter’s £75m Santander call centre on hold amid Covid rethink

September 22, 2020

The Architects’ Journal

September 22nd 2020

Jack Carter’s £75m Santander call centre on hold amid Covid rethink

A poll of more than 500 senior business decision-makers published by developer Accumulate Capital this month found that nearly three-quarters believed the pandemic would result in more UK businesses downsizing to smaller office spaces in the coming 12 months.

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Accumulate Capital – Commercial Reporter: The future of property development finance

September 20, 2020

Commercial Reporter

September 20th 2020

The future of property development finance

Accumulate Capital recently commissioned a survey of over 500 senior decision-makers at UK businesses to measure how the Covid-19 pandemic has affected their preferences regarding commercial property.

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Accumulate Capital – Global Construction Review: Business is rethinking commercial property and construction should take note

September 18, 2020

Global Construction Review

September 18th 2020

Business is rethinking commercial property and construction should take note

We surveyed more than 500 senior UK business decision-makers to see how the pandemic has affected their commercial property needs, and it’s clear that businesses are no longer looking at offices in the same way.

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Accumulate In The Press News

Is Britain heading for hyperinflation or deflation?

September 18, 2020

Is Britain heading for hyperinflation or deflation

Is Britain heading for hyperinflation or deflation?

The burning question in financial markets is pretty much the same around the world: will the fallout from the economic crisis precipitated by COVID 19 lead to hyperinflation or to deflation?

In the UK, many fear that the country is going back to the 1970s – or to a strange world of which no living Briton has any recollection. A more pronounced fear is that it will be savers and investors who get ripped off by the taxman to pay the bills of the crisis, while borrowers get further buried into debt.

All the economic textbooks tell us to expect inflation to rise when you mix together an expansion in the money supply combined with a contraction in output. It is safe to say that we have those two ingredients at the moment and yet in August 2020, inflation fell sharply from 1% to 0.2%.

So what is going on?

Since the beginning of the crisis, the Bank of England has whisked another £300 billion out of the air – bringing total quantitative easing since the financial crisis of 2008 to nearly £750 billion.

Meanwhile, shops, restaurants, leisure parks have been closed, reducing the things we can spend money on, and causing savings to rise and personal bank balances to swell.

By the time the crisis is over, many businesses will have gone bust, yet extra money – effectively printed money — will be swilling through the system.

It seems so obvious that we will end up with inflation – and yet that was what many people were expecting last time around, after the 2008 crisis. Yet it never happened. Not only that; in 2015 inflation even turned negative for a time, although very briefly.

Credit, then, to the Bank of England’s Monetary Policy Committee, which steered the economy through the unknown territory of quantitative easing by doing, er, virtually nothing – and leaving interest rates unchanged for seven years.

If there’s no inflation, what is likely to happen?

The alternative scenario is deflation. People also feared that after the financial crisis and that didn’t happen either – except briefly in 2005 when the CPI fell to 0.1 percent for two months.

That wasn’t a huge problem, but serious and prolonged deflation certainly would be. Older readers will remember well the hazards of inflation when the real value of savings is eroded and workers start demanding three or four pay rises a year.

Deflation, though, brings arguably worse horrors. Imagine if, in spite of you keeping up your repayments, the real value of your mortgage started growing month on month? Eventually, you would be overwhelmed – as would anyone with debts they had been unable to pay off.

Given that the biggest borrower of all – HM Government – is up to its eyeballs in debt, deflation would soon bury public finances, too.

There is a good reason why economies can suffer chronic deflation but don’t tend to mirror the inflationary spirals that have taken down economies such as Mugabe’s Zimbabwe and Germany’s Weimar Republic. The dynamics are very different.   It is one thing to jack up your prices or demand higher wages to keep up with perceived inflation; but who is going to demand a pay cut to keep pace with deflation?

Public borrowing to guard against deflation

There is another guard against deflation. With vast national debts, it is hard to imagine Britain, the US or any other developed country allowing deflation to occur.    They simply can’t afford to allow it to happen. They will do everything they can to avoid it. If QE doesn’t do the trick, they will surely try something even more blatant: helicoptering money directly into our bank accounts would be nice. In the end, they will be far more relaxed about risking inflation than they will deflation.

After the 2008 financial crisis, we did experience inflation – asset price inflation. The excess liquidity was sucked into stock markets and property markets. As rising stock markets suggest – the US market is actually higher than it was in February, before the crisis – that is quite capable of happening again.

The common view among analysts is that we’ll end up with markets – like property – that are much stronger than the economy. It just goes to show that when all else fails, investors are more likely to gain capital protection from tangible assets, regardless of the length of term they remain invested.

Stocks are likely to remain attractive for investors with very deep pockets and a hearty risk appetite because although the FTSE is highly volatile, it offers the promise of big returns (and, of course, losses). For the majority of investors with an eye on the future, property will always be the best safe haven against volatility and uncertainty, mainly because of the market’s much slower pace and consistently strong fundamentals.

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Accumulate Capital – Reinsurance News: Remote working to have lasting consequences for re/insurers: GlobalData

September 17, 2020

Reinsurance News

September 17th 2020

Remote working to have lasting consequences for re/insurers: GlobalData

According to research by Accumulate Capital, 73% of business leaders anticipate that UK businesses will downsize their offices in 2021, reducing the size of the commercial real estate market and subsequently the commercial property insurance market.

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Accumulate In The Press News

Accumulate Capital – Property Notify: COVID-19 is changing commercial property priorities

September 17, 2020

Property Notify

September 17th 2020

COVID-19 is changing commercial property priorities

To identify what these needs are, and to provide some concrete examples of the necessary changes construction and commercial property financiers need to adopt, Accumulate Capital recently commissioned a survey of over 500 senior decision-makers within UK companies.

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Accumulate In The Press News

Accumulate Capital – Asia Insurance Review: Insurers need to adapt due to remote working

September 16, 2020

Asia Insurance Review

September 16th 2020

Insurers need to adapt due to remote working

According to research by Accumulate Capital, 73% of business leaders anticipate that UK businesses will downsize their offices in 2021, reducing the size of the commercial real estate market and subsequently the commercial property insurance market.

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Accumulate In The Press News

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