The magazine for property professionals
May - July 2017
Derby - 17bn worth of investment on its way! Hot Topic
Will the upcoming election affect the Property Market?
All the latest property news, views and opinion
elcome to issue 8 of Property Focus. The flowers are blooming, the sun is shining and the days are getting longer – it must be spring already!
In this action-packed issue we look at the historic city of Derby, as well as rounding up all the latest news and opinions from the UK property market. Plus, for a chance to win £50 to spend at Amazon, simply answer the following question: According to Property Focus, what is the estimated population of Derby? Email your answer to email@example.com or tweet it to @citylandlord for a chance to win! One lucky winner will be chosen on 30th June – good luck!
Richard Williams – Editor firstname.lastname@example.org
In each issue we take a sneaky look at what’s been going on in rental properties across the UK Over 2m admit to having seen their neighbours naked! A new survey of 2,000 UK adults has revealed that we are a nation of curtain twitchers. The research by 247 Blinds dug deep into those who live closest to us to reveal that 2.5 million Brits have spotted a neighbour in the nude, while 3.5 million use social media to stalk people sharing the same street. Despite naming and shaming gossiping neighbours as the biggest pet peeve, research suggests that 1 in 10 of us loves a gossip about neighbours with others living close by. Perhaps in an act to 'keep up with the Joneses', millennials are considered the nosiest age group in the UK. They are also the age group most likely to
spy on neighbours, with 1 in 15 admitting to a sneaky peek. They’re most likely to shamelessly latch onto another neighbours’ Wi-Fi too. On a city level, London topped the list for nosey parkers. Those living in the big smoke admit to looking through their neighbours’ windows far more frequently than other cities in the country. More than a quarter of a million (328,000) Londoners have seen a neighbour naked, while 1 in 20 admitted to checking out their neighbours on social media. It doesn’t stop there, 22 million Brits leave their curtains and blinds open at night, leaving their neighbours free to spy at their leisure.
Millennials spend over a third of take home pay on rent Young tenants are spending a third of monthly take home pay on rent, with those in a three bed property spending 30% and those in a two bed spending 39% according to the latest Landbay Rental Index. Those attempting to live alone face spending over two thirds (69%) of monthly take home pay on rent. For tenants aged between 18-39 and living alone, 69% of a monthly post-tax income of £1,447 is spent on £1,012 of rent. In a shared house of two people, overall rent of £1,152 adds up to 39% of each tenant’s income, while those co-habiting in a threebed property would each spend 30% of their monthly take home pay on rent of £1,322. Rents have continued to rise over the last five years,
increasing by 9% across the UK since April 2012 and by 8% in London, with monthly payments remaining a huge burden on those struggling to save, despite the pace of rental growth beginning to slow since August 2015, from 2.66% to 0.82%. While rents have begun to fall in prime Central London, outer boroughs popular with millennials, such as Barking and Dagenham, Havering and Bexley have seen rents grow by 26%, 18.9% and 18.2%. Whether these millennial tenants are renting as a stepping stone on the way to home ownership, this generation are relying on a well-served buy-tolet market to ensure rental growth doesn’t become unbearable.
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RENTING BUYING Some
31.4% of properties on the market in the UK do not have access to a garden
Cleaning is the most common cause of disputes between landlords and tenants at
57%, followed by damage to the property (51%) and redecoration (32%) (Tenant Deposit Scheme)
The best annual buy to let rental yields for the second half of 2016 were found in
Northern England with a yield of
Home buyers with smaller
deposits are making up a greater share of the property market and now make up more than a
fifth of all
new mortgage approvals (BM Solutions) (e.surv)
70% of approximately 2 million landlords in England were unaware of the tax changes that came in to effect from
Home ownership has fallen to its lowest level for more than 30 years with only
people in the 25-34 age group owning their own home
(Tenant Referencing UK) (Nationwide)
HOT TOPIC After the recent announcement by Prime Minister Theresa May to hold a snap election in June, we look at whether the build-up and result will have a lasting effect on the UK property market.
"Thinking of putting your house on the market? For the third year running the summer selling market has been put 'on hold' by politics" Henry Pryor, property investor
"This initial look at both buyer and seller sentiment shows that the news of a snap election has failed to deter the majority of UK home sellers and buyers" Russell Quirk, eMoov
Will the general election affect the property market?
“Home buyers who are well on the way to making a purchase have traditionally not been put off by such surprise macro-events but those only thinking about it may decide to pause,” says Andrew McPhillips of The Yorkshire Building Society.
A recent poll of home sellers and buyers found that neither saw the plans as off putting when it came to their plans to move home. Some 65.7% of sellers said that they would be continuing, although 24.4% said the decision has left them undecided, and 18.4% said they would decide depending on the result.
Some experts believe that the prospect of a general election will create some uncertainty among buyers and investors, and that the sluggish period displayed in some regions could last longer as a result.
The British Property Federation also believes that the snap election could create “short-term uncertainty at a time when it’s critical to maintain business and investor confidence.” Disgruntled property Investor Henry Pryor also tweeted: ‘Thinking of putting your house on the market? For the third year running the summer selling market has been put ‘on hold’ by politics’. Not everyone takes the view that the effect will be a negative one though, with commercial real estate specialists Jones Lang Lasalle pointing out that it means that the next general election will no longer coincide with the end of the two-year negotiating period following the triggering of Article 50, so will therefore be positive for the market in the long-run. Ed Heaton, founder of property search agency Heaton & Partners, also believes the impact will be positive, telling The Negotiator recently: “I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement means that there has been no long build up with buyers and sellers wanting to hold off.” Alison Platt, chief executive of estate agency network Countrywide, also believes that the market is resilient enough to withstand more political uncertainty: “Analysis of sales transactions over the course of the last nine general elections indicates there will be a dip in activity pre-election, but post-election there will be a bounce-back in the number of sales in the market.”
Some experts argue that the snap nature of the election means that there isn’t the time for the usual period of uncertainty to build up and that the economy will generally be strengthened by the decision.
“This initial look at both buyer and seller sentiment shows that the news of a snap election has failed to deter the majority of UK home sellers and buyers. It is a bold move by Theresa May and one that will look to settle any underlying opposition within the UK government around Britain’s decision to leave the European Union,” said Russell Quirk, chief executive officer of eMoov – the company behind the survey. The general consensus among smaller estate agents is that whilst the election may cause short term delays with transactions, it shouldn’t upset the market too much. “We’re not hugely concerned about the impact this will have on north London’s housing market. At the end of the day, the run up to the election is pretty brief so any ‘wait and see’ sentiment amongst potential buyers and sellers will be short lived compared with a normal general election,” says Nigel Ellis, managing director at Prickett and Ellis. Jonathan Stephens, managing director of Surrenden Invest, told propertywire.com that unlike usual general elections, where contending parties draw up their manifestos and there is a degree of uncertainty as to the outcome, there is a general view that the current Government will win by a landslide, so the effect is likely to be minimal. “When it comes to the UK property market, it’ll be business as usual. There remains a chronic undersupply of housing and for whoever ends up in power as a result of this general election, building more homes and supporting the UK property sector will no doubt be at the top of their agenda.”
CITY SPOTLIGHT In each issue we shine our spotlight on a different part of the UK, focussing on what it has to offer everyone from property investors to casual day trippers.
Derby lies on the banks of the River Derwent in the south of Derbyshire. Traditionally a county town, it received city status in 1977. The area was originally settled by Romans who established the town of Dervento, and developed further as a market town by the Saxons and Vikings.
With the arrival of the railways in the 19th century, Derby became a centre of the British rail industry. The city has been served by railways since 1840 with the opening of the North Midland Railway to Leeds. In 1844, three local companies merged to form the Midland Railway who subsequently opened a direct route to London St Pancras station.
Derby grew rapidly during the industrial era and lays claim to being one of the birthplaces of the Industrial Revolution.
The city also has excellent motorway access to other areas of the country with the M1 passing about ten miles to the east of the city, giving Derby direct
links south to the London area and northwards to Sheffield and Leeds. An estimated 2.1m people are within a 45 minute commute of Derby, making it a popular destination for out-of-town workers.
DID YOU KNOW? In Jane Austen's novel 'Pride and Prejudice', Mr Darcy's huge estate Pemberley was set in Derbyshire.
Economy Car manufacturers Rolls-Royce plc and Toyota Motor Corporation are Derby’s two biggest employers. It is also home to Bombardier Transportation who manufacture railway stock and HeroTSC who provide telephone support on behalf of Sky. The planned Infinity Park Derby – a business park for aerospace, rail and automotive technology – will further enhance the city’s reputation as a leading city for technology and engineering. The Cathedral Quarter, the St Peters Quarter and
the Intu Derby shopping centre offer plenty of opportunities to shop. The Cathedral Quarter also includes a large range of shops, boutiques, coffee shops and restaurants and was the city’s first BID (Business Improvement District) - creating many jobs in the process.
Education The University of Derby is home to around 34,000 students and provides over 300 undergraduate study programmes, as well as short courses, foundation degrees and postgraduate degrees across a wide range of subjects. Its main campus is on Kedleston Road, with another campus located in Buxton, North Derbyshire. The University of Nottingham also opened a graduate entry medical school based at Royal Derby Hospital in 2003.
Why invest in Derby? The city’s population is expected to grow by 9.45% by 2028, and while 1,000 new city centre homes are
to be created over the next two years, demand for rental properties, especially family homes, is likely to only increase, in turn pushing up rents and yields. With 17 universities within one hour of the city, there is also a strong student demand for landlords to tap into, one which is expected to remain consistent moving forward. Derby has a history of displaying strong entrepreneurial spirit and is among the top ten cities in the UK for start-up businesses. Over £3bn has been invested in the infrastructure of Derby since 2005, with £17bn more in the pipeline over the next five years, including plans for a new university-backed science park. The science park will be located at the heart of Infinity Park Derby, a new business park being created on the outskirts of the city, and is expected to create hundreds of new jobs. John Forkin, managing director of Marketing Derby, says: "Although we have seen £3 billion recently invested in the city, there are still plenty of opportunities, small, medium and large, for the right investors. Together these add up to almost a further £17 billion, in different schemes and sectors. Our pitch will be based on the
confidence of existing investment successes." Nightingale Quarter Estates also submitted a planning application earlier this year for the redevelopment of the 18-acre site of the former Derbyshire Royal Infirmary. The proposed plans include 500 new homes, including apartments and family housing, on the edge of Derby city centre. Elsewhere in Derbyshire, Chesterfield Waterside is a £340 million, 16-hectare regeneration scheme, including a new canal basin, 30,000 square metres of business space, around 1,200 new homes, shops, bars, cafes and a hotel. With the £75million first phase of Basin Square coming soon, the development promises to be the ‘ultimate destination to live, work, play and invest.’
DID YOU KNOW? In 1991 the world's biggest ever bowl of popcorn was prepared at UCI cinema in Derby. It took staff three days to complete the record!
River Derwent, Derby
Derby – the facts and figures Get the lowdown on the city with our handy infographics
PROPERTY RENTS BY BEDROOMS (source: home.co.uk) 1 BEDROOM
AVERAGE RENTS BY PROPERTY TYPE (source: home.co.uk) ROOM
AVERAGE CAPITAL GAINS 7.43%
(source: derbypropertyblog.co.uk 2016)
AVERAGE YIELD 3.41%
(source: Kuflink Index)
AVERAGE ASKING PRICE (source: home.co.uk) £199,258
Twinned with Derby is twinned with the below cities: Osnabruck
Tourism • Derby is the UK's most central city, very easy to get around and a great base to explore nearby Peak District delights. • Derby has approximately 7.6 million visitors per annum • Tourism contributes £365 million to Derby’s economy every year
Population = 248,700 (2011 census)
Did Yo u Know?
One of the world’s mo s t famo us co mputer g ame charac ters Lara Croft was c reate d in D erby! Core Desig n base d in th e city create d the character in 1996 for her firs t appearan ce in the To mb Raid er game.
PLACES TO VISIT
Derby is a modern and vibrant city with plenty to offer day trippers. Below are our top picks:
St Mary’s Church, Derby Darley Lane, Derby DE1 3AX
Completed in October 1839, St Mary’s Church is a Roman Catholic Church and a Grade II listed building. The church was designed by architect W. N. Pugin and was his first expression of his Gothic Revival style. The entire cost of construction was just £1,400 which although small today was a significant amount back in 1839! www.stmarysparish.co.uk
Pickford’s House Museum 41 Friar Gate, Derby DE1 1DA
Pickford’s House is an elegant Georgian town house built by the prominent architect Joseph Pickford in 1770 for his own family. The Grade I listed building displays aspects of domestic life of a professional person from the 18th to 20th centuries. The 250 year old house highlights the contrast between the master and the servant and shows the grandeur of Georgian architecture. www.derbymuseums.org/locations/pickfords-house
Derby Museum and Art Gallery The Strand, Derby DE1 1BS
The museum was established in 1879 and holds both longstanding and temporary exhibits that are of local as well as international significance. The Art Gallery includes many paintings by Joseph Wright of Derby who was an English landscape and portrait painter. Further displays include archaeology, natural history, geology and military collections. www.derbymuseums.org/locations/museum-art-gallery CITY SPOTLIGHT
Derby Cathedral 18-19 Iron Gate, Derby DE1 3GP
Also known as the Cathedral of All Saints, Derby Cathedral was founded in the mid-10th century by King Edmund I. The 212 foot church tower is one of the tallest in England, with 189 steps to be climbed before you reach the top. The ‘working’ cathedral also has the oldest ring of ten bells in the world with many having been there since 1678! www.derbycathedral.org
The Silk Mill Silk Mill Lane, Derby DE1 3AF
Formerly known as Derby Industrial Museum, the Silk Mill is located in the centre of Derby and displays fascinating items from the city’s rich industrial history. The museum is currently undergoing significant development and is timed to be completed in 2019/20. www.derbymuseums.org/locations/silk-mill
Intu Derby West Mall, Derby DE1 2PL
Intu Derby is an indoor shopping centre containing up to 200 shops spread over three floors and includes many eateries and a cinema. It was originally known as The Eagle Centre then Westfield Derby before the centre was bought by Intu Properties in March 2014. Major retailers inside include All Saints, Ernest Jones, French Connection, Next, Debenhams and many more. intu.co.uk/derby
Pride Park Stadium Pride Park, Derby DE24 8XL
Pride Park Stadium is an all-seater football stadium which is the home ground of English Football League club Derby County. It was officially known as the iPro Stadium between 2013 and 2016 and is the 16th largest ground in England with a capacity of 33,597. Pride Park has hosted two international matches: England vs. Mexico in 2001 and Brazil vs. Ukraine in 2010. www.prideparkstadium.com DERBY
Famous Residents Derby has a rich heritage of famous figures, below are some of the city’s favourite sons and daughters.
Widely regarded as the founder of modern nursing , Florence Nightingale was born in Florence in 1820, but grew up in Derbyshire. Her most famous contribution came during the Crimean War when she lobbied the government to improve the horrendous conditions endured by the wounded. She became affectionately known as ‘the Lady with the Lamp’. Nightingale died peacefully in her sleep at her home in London in 1910.
Sir Henry Royce was an English engineer and car designer who, with Charles Rolls and Claude Johnson, founded the Rolls-Royce company known for their range of luxury cars. Royce lived by the motto "Whatever is rightly done, however humble, is noble." A statue of him proudly stands outside the company's HQ in Moor Lane, Derby.
Businessman Thomas Cook was born in the village of Melbourne, Derbyshire and is best known for founding the travel agency Thomas Cook and Son. In 1841 Cook began arranging rail travel for large groups. By the late 1950s the company were promoting 'foreign holidays' (particularly France, Italy, Switzerland and Spain). They sold "inclusive tours" using scheduled airlines but refused to compromise on quality and service. In 2001 Thomas Cook was acquired by the German company C&N Touristic AG and still remains one of the leading high street travel agents.
Ellen MacArthur Retired sailor Dame Ellen MacArthur was born in Whatstandwell in Derbyshire. In 2005 she broke the world record for the fastest solo circumnavigation of the globe, an achievement which gained her international recognition. She is also behind the Ellen MacArthur Cancer Trust - a charity that introduces young people to sailing to help them regain their confidence on their way to recovery from cancer, leukaemia and other serious illnesses.
Timothy Dalton Former James Bond actor Timothy Dalton grew up in Belper, Derbyshire. He decided to become an actor at the age of 16 after seeing a production of Macbeth and shortly after got a role in a production of the play at The Old Vic theatre in London. As well as portraying 007 in The Living Daylights and Licence to Kill, he also appeared in the film adaption of Jane Eyre.
Joan Waste was a blind woman burned to death in Derby in the 16th century for refusing to denounce her Protestant faith. When Queen Mary came to the throne in 1553, it was made illegal by Parliament to hold Protestant views. At least 284 people were condemned for heresy during Mary's reign with many executed. A blue plaque commemorating the site of Waste's execution was erected earlier this year in Lime Avenue by Derby Civic Society. CITY SPOTLIGHT
History Derby played a pivotal role in the Industrial Revolution with the movement starting in the city as early as 1717 when the first water-powered silk mill in Britain was built.
Richard Arkwright Sir Richard Arkwright, an English inventor and leading entrepreneur during the early Industrial Revolution, is credited with inventing the spinning frame – also known as the waterframe. Arkwright’s first cotton spinning mill used a roller spinning machine that ran on water power which effectively automated the cotton industry and helped make Britain the foremost producer of textiles in the world. People were no longer spinning thread and weaving cloth in their own cottages with the invention of the waterframe. The revolution gathered pace with entire families, including children as young as seven, working 13 hours a day and six days a week. The early 18th century saw Derby emerge as an engineering centre with manufacturers such as James Fox who exported machine tools to Russia. There was another industrial boom in the city when Rolls-Royce opened a car and aircraft factory in 1902. The company is now the second largest aero-engine manufacturer in the world. Arkwright’s achievement was to combine power, machinery, semi-skilled labour and the new raw material of cotton to create mass produced yarn. He is deemed as the ‘father of the modern industrial factory system’ which was first established in his Cromford Mill. Modern Day Derby remains at the forefront of industrial development in the present day with prominent aerospace, rail and automotive sectors. In addition to Rolls Royce, the city is also home to the Derby Litchurch Lane Works, which was the UK’s only train manufacturer for many years. Another major company headquartered in Derby is Toyota Manufacturing UK’s automobile area. Due to the boom in industry, the population of the city grew by approximately 234,000 between 1801 and 2011. DERBY
SALES & RENTAL INDEX Average Rent per Region
Overall UK average = £904 (+1.1%) North East = £522 (2.1%) North West = £675 (+1.7%) Yorkshire and Humber = £619 (+2.1%)
East Midlands = £602 (+1.6%) West Midlands = £663 (+1.4%) East Anglia = £902 (+1.1%) Wales = £616 (+3.1%) London = £1,546 (+1.2%) South East = £997 (-0.3%) South West = £798 (+0.9%) Homelet Rental Index: March 2017 (Year on year change)
Average House Price per Region Overall UK average = £217,502 (+5.8%) North East = £123,749 (+2.2%) North West = £152,618 (+6.7%) Yorkshire and Humber = £152,591 (+5.2%)
East Midlands = £176,784 (+7.5%) West Midlands = £180,516 (+7.0%) East Anglia = £281,665 (+10.3%) Wales = £145,293 (+1.8%) London = £474,704 (+3.7%) South East = £311,539 (+5.4%) South West = £241,583 (+7.2%) UK Land Registry: February 2017 (Year on year change)
"Although we have seen ÂŁ3 billion recently invested in the city, there are still plenty of opportunities, small, medium and large, for the right investors" John Forkin, managing director of Marketing Derby.
River Derwent at dusk
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Published on May 12, 2017
In this issue, the historic city of Derby goes under our microscope. We’ll also be rounding up all the latest news, views and stats from the...