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Luxury London Home Prices Seen Rising 21.5% in Next Five Years

  • Savills says values to fall 2 percent this year on tax charges
  • Home prices in other prime areas to increase 2% this year

Luxury-home values in London’s central neighborhoods will climb 21.5 percent over five years as global economic growth and the increasing fortunes of wealthy buyers boosts demand.

There will be a dip in values of 2 percent this year in the capital’s best locations, where average prices start at about 5 million pounds ($7.75 million), because of higher taxes, according to a report by London broker Savills Plc. In other prime areas, which are less affected by new stamp duty charges, prices are expected to rise by 2 percent this year and by 18.2 percent through 2020.

Sales of luxury homes have slowed since Chancellor of the Exchequer George Osborne increased the sales tax in December. The levy escalates to 12 percent on every pound a buyer spends above 1.5 million pounds, with the purchaser of a 5 million-pound home paying 513,750 pounds in duty, almost 164,000 pounds more than before.

“The stamp duty reform of December 2014 was a defining moment for the top end of the prime London market, particularly as it was looking fairly fully priced having grown significantly to outperform the rest of the market over a 10-year period,” Lucian Cook, head of U.K. residential research for Savills, said in the report.

The tax changes took the market by surprise and leave little room for price increases while the market adjusts to the new regulatory environment, according to Cook.

Source: Bloomberg

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Ready to rise

London, 9th October 2015.

Despite uncertainty in the global stock market, little to no impact has been felt to-date in the property market which remains steady. This is very specific to the City local market having caused sellers expectations to remain high in the second hand market and applicant numbers are climbing. Buyers however, looking for second hand stock remain cautious, and offers are low. We expect this to continue with many buyers and sellers now holding off for the New Year.

The Bank of England’s base rate remains at 0.5%, albeit likely to rise in the next 12 months. Additionally, mortgage lenders’ rates remain competitive and we expect them to adjust their rates to be even more attractive as the end of year targets loom.

Borrowing has already increased considerably year on year, however, transaction levels within the re-sale market in Canary Wharf and the City have levelled off suggesting that many of these new mortgages are in the form of re-mortgages. looking to lock in before any rate rise.

Newly launched developments have seen record sales levels over the past month, as purchasers look to secure property within the new schemes along Marsh Wall.

Marsh Wall has seen the release of two Landmark towers marketed by JLL. South Quay Plaza by Berkeley Homes is a 68 Storey tower set on the water’s edge of Canary Wharf’s South Dock and The Madison which is a 53 Storey Tower with a striking Moiré façade.

Marsh Wall falls just outside of Canary Wharf’s financial district. With the expansion of the estate and demand for quality apartments set to soar in the coming years, location and quality are fast becoming the most important commodities within E14 residential sector.

Properties within walking distance to Canary Wharf have always attracted a premium with professionals so the new towers set on Marsh Wall have become the epicentre for the discerning investor and home owner alike. The ability to walk to the Jubilee or DLR offers a practical solution to someone working further afield, whilst the desirability of having fantastic shopping, bars and restaurants on your doorstep is an obvious attraction.

Source: JLL
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Chinese submit 67-floor Canary Wharf resi tower

The redevelopment of Hertsmere House at West India Quay will deliver 869 flats within a 240.5m tall building, designed by architect HOK around a clover shaped footprint to maximise views for each flat.

When built it is expected to hold the record as the tallest block of flats in Europe.

The basement runs to a depth of just 11.7m as the site sits above Crossrail running tunnels, although all piling will be outside the Crossrail exclusion zone. Affordable housing will be included in the western wing of the building.

Around half the building facade is to be fitted with vision glass and the remainder will be fitted with highly-insulated metal panel backed glass curtain wall known as “shadow boxes” to give the building the appearance of being fully glazed from the exterior while reducing solar gain.

Hertsmere House Canary Wharf

The demolition and construction phase will employ over 900 construction workers during a 55 month programme.

Planning permission was previously granted for a 242m 63-storey commercial tower on the site but these plans were superseded by the new residential scheme.

The Shanghai-based developer is also developing the high-rise Ram Brewery scheme in Wandsworth, London where Kier is carrying out phase one works.

Client team

Hertsmere House Canary Wharf Chinese

  • Architect: HOK
  • Landscape Architecture: Gillespies
  • Engineers: WSP | Parsons Brinckerhoff
  • Project management: AECOM
  • Planning consultant: Bilfinger GVA

 

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16-year build plan for £2bn HS2 Euston Station

Fresh plans to rebuild Euston station for HS2 and unlock a major above ground regeneration site will be submitted to Parliament next week.

Eleven new platforms for HS2 will be built at the station in two stages as part of a phased approach that means less disruption for passengers.

The new blueprint includes more space for homes, offices, shops and restaurants, and staging construction work over 16 years from 2017 instead of nine to ease disruption.

The extra costs would be within the overall HS2 budget of £42bn.

The plans, which will now be considered by Parliament, also offer the flexibility to transform the station into a thriving transport and community hub.

Underpinning support structures as part of the plans will allow a range of uses above the station, allowing for wider redevelopment and regeneration of the area.

As well as the 11 high speed platforms provided by the new plan, 11 platforms will remain in the current station to serve the existing network. There will be new public spaces for shops, restaurants and cafes.

Euston Station HS2 Eiston Station HS2 Euston Station plan

Two-stage plan

  • Construction of six new high speed platforms and concourse to the west of the station to support the opening of HS2 Phase One (between London and the Midlands) high speed services in 2026
  • Construction of five further high speed platforms and concourse to support the opening of Phase Two (between London and Leeds/Manchester) high speed services in 2033

The plan allows for potential redevelopment of the remaining existing station platforms and concourses, subject to future funding and approvals.

A staged approach to building the high speed terminus means existing services can continue to operate.

London Underground facilities at Euston will also be significantly enhanced with passengers benefitting from greater space and connections to services including a new ticket hall and direct subway to Euston Square station. Access to taxis, buses and cycles will also be greatly improved.

Simon Kirby, HS2 chief executive, said: “These firm proposals will allow Euston to fulfil its potential.

“Just a stone’s throw away, we have seen how the stations at King’s Cross and St. Pancras have transformed the surrounding areas into vibrant and thriving locations.

“We must replicate and build on that commercial and architectural success. Now is the time for Euston to catch up with its neighbours to meet the requirements of the 21st century and beyond.”

The plans are proposed for inclusion in the High Speed Rail (London-West Midlands) Bill by means of an Additional Provision, which is due, subject to the approval of Parliament, to be deposited on Thursday 17 September.

Transport Secretary Patrick McLoughlin said: “HS2 offers a once in a lifetime opportunity to revolutionise not just Euston station but a whole area at the heart of London. The new station will be the catalyst for wider redevelopment and so it is right that we are ambitious in our plans to dramatically improve the design, capacity and technology used.”

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Suspended swimming pool plan for London towers

Plans for a suspended swimming pool have been unveiled for Embassy Gardens at Nine Elms on London’s South Bank.

The ‘Sky Pool’ will link two residential buildings at the 10th floor and allow residents to swim from one building to the other.

The pool is entirely transparent and structure free, 25m long, 5m wide and 3m deep with a water depth of 1.2m.

Designed by Arup Associates, with specialist input from Eckersley O’Callaghan and aquarium designers Reynolds, the pool will have glass that is 20cm thick.

image003

Sean Mulryan, Chairman and CEO of developer Ballymore Group has been the driving force behind the pool.

Ballymore and partners Eco World are developing the second phase as Eco World Ballymore.

The buildings that the pool link are part of the second phase of the development which will be released to market in September, soon after the first residents have started to move in following the completion of phase one.

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Barratt London to start twisting tower

Barratt London is preparing to start construction of a 28-storey twisting tower on one of the last remaining Thames riverfront sites in Wandsworth.

Enabling and piling works will get underway this month after the developer gained full planning for the 135 apartment scheme at Lombard Wharf, adjacent to the Grade II listed Cremone Bridge.

Barratt London has allocated 20% of the apartments for on-site ‘affordable’ housing and is committing £1.6m to improve local infrastructure.

Barratt London Lombard Wharf

Designed by local architects Patel Taylor, wraparound balconies, rotated at an angle of two degrees, appear as a series of ‘rotating discs’. This optical twist is achieved by the diagonal lines of tapered solid balustrades jutting against the horizontal lines of the balconies.

Homes will achieve Code for Sustainable Homes Level 4 and a BREEAM Excellent Rating.

The ground level features a double-height glazed residential lobby and a riverfront retail unit. The mezzanine level contains a second floor to the retail unit, a gym for residents, staff facilities and management welfare facilities. Bays for 30 cars and 182 bicycle spaces are provided at basement level.

Alastair Baird, regional managing director of Barratt London, said: “Lombard Wharf is one of the last remaining plots on the Thames and we are looking forward to regenerating this brownfield site, which has been vacant since 2012 and currently restricts pedestrian access along the river.”

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Canary Wharf green light for 57-storey tower

Canary Wharf Group has got the thumbs up for a striking residential tower at the estate’s new phase, formerly known as Wood Wharf.

Tower Hamlets Council granted detailed planning for the 57-storey building accommodating 468 flats ranging from studios to large three bedroom family units.

The cylindrical skyscraper will be built at a prominent waterfront location on the edge of South Dock, directly to the east of the existing Canary Wharf estate.

Designed by architects Herzog & de Meuron the building will be the lead project in the wider development of a 4.9m sq ft mixed use, waterside community providing over 3,200 new homes, nearly 2m sq ft of offices and a further 335,000 sq ft of shops, restaurants, school and landscaped parks and walkways.

Wood-Wharf-Herzog-De-Meuron

Sir George Iacobescu, chairman of Canary Wharf Group, said: “This decision is a major step in the progression of the new phase, a development that will broaden and extend the Canary Wharf estate, adding to its vibrancy and continually expanding cultural, community and commercial offer.”

The permission comes just days after the launch of Canary Wharf Group’s first ever homes, at 10 Park Drive, adjacent to the Herzog & de Meuron tower.

A Stanton Williams designed building, 10 Park Drive is a mid-rise 13 storey building adjoining a 42 storey tower, together containing 74 studios, 115 one-bedroom apartments, 141 two-bedroom apartments and 15 three-bedroom apartments.

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Laing O’Rourke wins UK’s tallest resi tower

Laing O’Rourke has won a £135m contract to deliver the shell and core for Berkeley Homes’ residential skyscraper next to Canary Wharf in London Docklands.

The scheme will involve the demolition of a 1980s block on the South Quay Plaza site on the Isle of Dogs to build a 68-storey and 36-storey building.

A preconstruction services agreement is due to complete in April 2016 with work officially getting underway in October 2016.

The firm was up against Brookfield Multiplex for the job, which had previously worked for Berkeley Group on its St George tower on London’s south bank.

The job confirms Laing O’Rourke’s place in the London high-rise sector after building the Cheesegrater building and its Expanded arm’s  £40m concrete package with Berkeley Group on the 250 City Road tower, where the house builder is also main contractor.

The slender main tower at South Quay Plaza will rise to 220m with a floor plate of two intersected squares, to maximise views across London for each of the luxury flats.

South Quay Plaza Berkeley

This will be built in phase one with the smaller twin building pushed into a second construction phase.

In total, 888 homes are planned in all, including 188 affordable properties.

The shell and core works will complete by July 2020 with the building handed over to residents in four phases during 2020/2021.

Work on phase two will start in April 2018.

In total, the buildings will require around 65,000 cu m of concrete and 60,000 sq m of cladding.

The structural and M&E engineer on the job is WSP.

SouthQuayPlaza

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Indian billionaire buys Great Scotland Yard hotel

Developer Lulu Group International has bought 1- 5 Great Scotland Yard from Galliard Homes for £110m.

The Abu Dhabi based firm is led by Yusuffali Kader who is one of India’s richest men, with a personal worth of £1.8bn.

Lulu Group will now oversee the completion of plans to spend £50m turning the original Scotland Yard Police Station into a 92,000 sq ft 5-star hotel within the refurbished Edwardian building.

Steigenberger Hotel Group has been selected as the hotel operating company to create The Great Scotland Yard hotel.

An adjoining Grade 2 Listed Victorian townhouse will be incorporated into the hotel and used to create an entertaining suite.

The completed hotel will be seven storeys high with two basement levels and will retain the grand Edwardian Imperial red brick and stone facade.

The hotel is scheduled to open in Q1 2017 and will provide employment for up to 250 full time staff.

Construction on site by McAleer & Rushe is now 30% complete with the interior fit out scheduled to start in March 2016.

Puneet Chhatwal, Chief Executive Officer of the Steigenberger Hotel Group said: “This iconic 5-star hotel will mark the entry of the Steigenberger brand into the vibrant and world-renowned London hotel market.

“Our vision is to create an outstanding 5-star hotel drawing on our reputation for quality and service combined with the outstanding central location, grand architecture and fascinating history of Great Scotland Yard.”

Don O’Sullivan, Managing Director of Galliard Homes said: “Galliard Homes is delighted to have reached an agreement with Lulu Group International to create a bespoke 5-star hotel in the heart of London’s Whitehall.

“Steigenberger Hotels & Resorts were chosen as the operator because of their reputation for perfect hospitality, quality and outstanding customer service.  The Great Scotland Yard Hotel will be a brand synonymous with exceptional service and refined luxury and quality.”

Between 1829 and 1890 Nr1 Great Scotland Yard formed part of the headquarters of the newly founded Metropolitan Police force.

It was here that the famous Plaistow Marshes (1864) and Jack the Ripper (1888) crimes were investigated and Scotland Yard was made famous by novelists including Charles Dickens and Sir Arthur Conan Doyle.

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McLaren walks away from £130m London job

McLaren Construction has walked away from a £130m mixed-use scheme near Finsbury Park station in North London.

Demolition work started in March after McLaren was named as preferred bidder on the City North job by joint venture clients United House and landowners the Business Design Centre.

The clients have now gone back out to the market to re-tender the scheme after detailed contractual discussions broke down with McLaren.

Robert Jenkins, Project Director for City North said: “Following discussions between the developers, City North Finsbury Park Ltd and preferred bidder, McLaren Construction; the two parties have been unable to agree all contract matters and have mutually agreed to part on the project.

“We are absolutely committed to the delivery of a development of the highest quality that will transform Finsbury Park and bring new focus and energy to the area, and hope to make an announcement in the near future about the delivery and completion of the scheme.”

The City North scheme will see construction of of 308 one – four bedroom private apartments in two 21 storey buildings.

Works will also include 47 affordable homes and 10,776 sqm of retail, office, restaurant and leisure space.

One rival contractor said: “No-one is really sure what happened here.

“McLaren were all sorted then things seemed to have fallen apart and the job is back on the market again.”

McLaren declined to comment

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