IGas set to execute waterflood project at Welton field

first_imgThe project is aimed at converting a suspended production well (WC01) to a water injector to increase field recovery by 340Mbbls Image: Waterflood project increases field recovery and production rate. Photo: Courtesy of skeeze from Pixabay. UK independent oil & gas firm IGas has that is readying to execute a further waterflood project at its existing producing field at Welton in the East Midlands, UK.IGas’ technical team has identified an additional opportunity in the south of the Welton Field in the Tupton & Deep Hard Rock Reservoirs, after the success of previous Welton waterflood projects.IGas chief executive Stephen Bowler said: “We continue to mature projects across the portfolio as we seek to maximise returns on our existing operations and infrastructure, and in this case are pleased to be moving forward with another low-risk opportunity with an estimated mid-case IRR of over 100%.“This is part of the wider Welton Full Field Development and as well as increasing production, will aid in de-risking further injection projects into other areas of the field and provide critical infrastructure to assist with water disposal andsupport future rationalisation work across Welton sites.”Waterflood project aimed at increasing field recoveryThe company said that the project is aimed at converting a suspended production well (WC01) to a water injector to increase field recovery by 340Mbbls (2C resource) with a peak incremental production rate of up to 120bopd.In June 2019, IGas announced the receipt of the final planning approvals and execution phase for a waterflood project, at its Scampton producing field in the East Midlands.The company intends to continue its projects in the core conventional business, which includes additional gas monetisation and water injection.The project involved the conversion of an existing well to a water injector to increase oil sweep and field estimated recovery through secondary recovery in the western portion of the Scampton North field.Bowler added: “We have a number of attractive projects across the portfolio which continue to mature as we seek to maximise returns on our existing operations and infrastructure, and in this case are pleased to be moving forward with a low-risk opportunity with an estimated IRR of over 40%.“Alongside these production uplift opportunities, we also continue to work up additional appraisal and exploration opportunities to access new fields in our conventional portfolio. Projects, particularly on existing sites, offer good returns at these oil prices with reduced risk and minimal incremental operating costs and we look forward to announcing future projects in due course.”last_img read more

Coro Energy provides Tambak-2 operational update

first_imgAs previously reported, the Tambak-2 well is designed as an appraisal of the southern area of the Mako gas field and spudded on 4 October 2019 Image: The Tambak-2 well has been drilled to a total depth of 503m. Photo: Courtesy of Kristina Kasputienė from Pixabay. Coro Energy plc, the Southeast Asian focused upstream oil and gas company, is pleased to provide an operational update in relation to the drilling campaign in the Duyung Production Sharing Contract (“PSC”) in the West Natuna basin, offshore Indonesia, in which Coro holds a 15% interest.The Tambak-2 well has been drilled to a total depth of 503 metres true vertical depth sub-sea (“TVDSS”) and the coring programme, wireline logging and pressure surveys completed, confirming the well as a successfull appraisal of the Mako gas field. Operations are now focussed on an extensive Drill Stem Test (“DST”) of the main Mako reservoir.James Menzies, Coro Energy CEO commented: “Coro’s first well in Indonesia has delivered a great result, this significant step out from the Mako South-1 proves reservoir continuity over a very large areal extent. We believe the quality of the reservoir found will convert significant volume from the 3C to the 2C resource estimates for the field and add material value to the asset. Focus now switches to the next step in the campaign, we look forward to the results of the well testing programme and thereafter further appraisal and exploration drilling will follow which we see as further significant value catalysts.”As previously reported, the Tambak-2 well is designed as an appraisal of the southern area of the Mako gas field and spudded on 4 October 2019. An independent review by Gaffney Cline & Associates had previously ascribed gross 2C resources of 276 Bcf (48.78 MMboe) of recoverable dry gas in the Mako field with gross 3C resources of 392 Bcf (69.3 MMboe) representing additional field upside.Given the large step out from the Mako South-1 well, Coro management estimate that a successful appraisal could move 100 Bcf from the 3C category to the 2C category, representing very significant value addition.The next step in the drilling campaign is an extensive DST programme, which will take place over the coming days. Further announcements will be made, as appropriate. Coro remains fully funded for its share of costs associated with the drilling campaign. Source: Company Press Releaselast_img read more

DNV GL wins framework agreement with DNO for Norwegian Continental Shelf operations

first_img Image: DNV GL wins framework agreement with DNO for Norwegian Continental Shelf operations. Photo: courtesy of DNV GL. DNV GL has been awarded a framework agreement by DNO ASA to provide a broad portfolio of engineering and management support and verification services to support the operator, as it expands operations and developments in the Norwegian Continental Shelf (NCS). DNV GL will support DNO in enhancing safety, maintaining compliance and reducing its environmental footprint as it seeks to achieve its ambitions in the region.The term of the contract is three years, with an option for further extensions of up to four additional years.DNO, founded in 1971, operates and supports more than 20 licences and works in partnership on many more in the NCS, UK and Middle East and recently announced increased investment in the North Sea region.The agreement will be managed from DNV GL’s office in Stavanger, Norway and supported with a global network of 2,000 technical experts, with global services ranging from verification, environmental to due diligence studies.“DNO has a vision to become a leading independent exploration and production company as it pursues a significant growth strategy in the North Sea. DNV GL with our capabilities, expertise and approach is looking forward to working with DNO to keep production efficient, operations safe and reduce environmental impact” said Geir Egil Eie, Head of Department, Subsea and Asset Risk Management, DNV GL – Oil & Gas.Several projects are already underway, including environmental work, a materials study and Hydrogen induced stress cracking (HISC) assessments. More are expected in 2020.“There is no doubt the North Sea is a challenging region for new and established operators. Through close collaboration and understanding of DNO’s aims, we are committed to providing the highest quality support across all aspects of risk management and HSE. The integrated nature of this arrangement means we can be proactive and flexible to meet DNO’s needs, with ongoing dialogue across all disciplines to add value wherever possible,” added Arve Johan Kalleklev, Regional manager, Norway, DNV GL – Oil & Gas. Source: Company Press Release DNV GL will support DNO in enhancing safety, maintaining compliance and reducing its environmental footprintlast_img read more

Samsung Heavy Industries and Bloom Energy advance plans for clean power ships

first_img Samsung Heavy Industries partners with Bloom Energy. (Credit: Business Wire) Bloom Energy and Samsung Heavy Industries (SHI), a part of Samsung Group, have signed a joint development agreement (JDA) to design and develop fuel cell-powered ships. The two companies will work together to realize their vision of clean power for ships and a more sustainable marine shipping industry.“By signing this joint development agreement, SHI has a plan to develop eco-friendly ships that will lead the future of the industry,” said Mr. Haeki Jang, vice president of shipbuilding & drilling sales engineering at SHI. “Our goal is to replace all existing main engines and generator engines with these highly efficient solid oxide fuel cells to align with the International Maritime Organization’s 2030 and 2050 environmental targets.”SHI is actively participating in all of the relevant activities during the joint development, from early studies to project completion, in order to build highly efficient fuel cell-powered ships. In alignment, Bloom Energy has created a dedicated, cross-functional team of engineers to adapt Bloom Energy’s Servers to the unique requirements of the marine environment.SHI and Bloom Energy are actively working towards the next milestone in this development with a target to present the design to potential customers in 2022. Following commercialization, the two companies anticipate that the market for Bloom Energy Servers on SHI ships could grow to 300 megawatts annually.This joint development work aligns with the International Maritime Organization’s mandate to meet emissions reduction targets by 2050. Because the fuel cells create electricity through an electrochemical reaction, without combusting the fuel, these ships would be able to improve air quality with a reduction of particulate emissions, including NOx and SOx, by more than 99 percent, and shrink carbon emissions.“The marine shipping industry has the ability to make a substantial impact on emissions and air quality at ports and across our planet,” said KR Sridhar, founder, chairman and CEO of Bloom Energy. “We see a collaboration with one of the world’s largest shipbuilders, SHI, as a moment to make measurable strides in reducing emissions and extending our mission for clean, reliable energy to the seas.”The joint development agreement between SHI and Bloom Energy follows an Approval in Principle for fuel cell-powered Aframax crude oil tankers from DNV GL, the internationally accredited marine shipping registrar and classification society, announced in September 2019. The next class of ship to be submitted for design approval is the LNG carrier. Source: Company Press Release The joint development agreement between SHI and Bloom Energy follows an Approval in Principle for fuel cell-powered Aframax crude oil tankers from DNV GLlast_img read more

The Budget 2016

first_imgHome » News » Regulation & Law » The Budget 2016 The Budget 20169th April 20160604 Views The Chancellor, George Osborne has now spent seven hours and 44 minutes of his life delivering Budgets. You have to admit, his quick-fire, punchy delivery is pretty good, even if the content is ot 100 per cent helpful.He said, “We choose the longterm, to put future generations first,” which means that you have to pay more now. He said, “We are on course for a budget surplus,” which also means that you have to pay more. And he said, “We choose long-term stability in a challenging world,” which means the same.The private rented sectorThe bad news is that despite deputations and pleas from the property industry, the Stamp Duty surcharge of three per cent, on buy-to-let property and second homes, scheduled to come into force on 1st April, will go ahead.In some quarters, the fact that he has broadened its scope to apply to larger investors as well as private landlords, is a delight, for those with larger portfolios it’s a nightmare. The surcharge will also affect the emerging Build to Rent sector. So in creating a more level playing field across investors, he’s hitting the PRS as a whole, even harder.Punitive taxation in the PRS: SDLT hikes, mortgage interest relief lost and now CGT. It’s an outright assault!David Cox, Managing Director, ARLA, said, “This is the third Budget which directly attacks landlords. The sector has been punitively taxed, with stamp duty on buy-to-let properties, mortgage interest relief and now capital gains tax changes. It’s an outright assault on the sector!“In November, when Mr Osborne announced the SDLT surcharge, we described this as a catastrophic move. The news that larger investors will also have to pay the tax is even worse. Professional landlords play a vital role in providing rental stock to the market. Our members forecast that the supply of buy-to-let properties will now dwindle and supply will fall even faster.”The money raised will, says Mr Osborne, go to funding community building projects. So, more money for new builds, less reason for investing in the PRS.Capital Gains Tax is to be cut from 28 per cent to 20 per cent, but, critically, this cut does not appear to be applicable to residential investment property gains. Only the ‘main home’ remains exempt.Business taxesSome good news: Corporation Tax is to be reduced from 20 per cent to 17 per cent, but don’t cheer just yet – that’s ‘by April 2020’ not now. From April 2017, small businesses that occupy property with a rateable value of £12,000 or less will not pay any business rates. Currently, this 100 per cent relief is available if you’re a business that occupies a property (e.g. a shop or office) with a value of £6,000 or less.There will now be a tapered rate of relief on properties worth up to £15,000. This means that 600,000 businesses will pay no rates.Small firms and commercial premises stamp duty has a new tax regime from midnight tonight, higher rates at the top, lower rates for cheaper properties and a zero rate for properties below £150,000. This, said George, grandly, is “a big tax cut for small firms.”Also good, but not stunning, news for businesses, Fuel Duty is frozen for the sixth year in a row, saving £270 a year for the ‘small business man’. Helping out with all those staff jollies as well, Mr Osborne has frozen the duty on beer, cider and spirits.Personal notesThere’s rcomfort for people owning homes in flood hit areas – there are to be further increases in flood defence spending, with a £700m boost, paid for by increased Insurance Premium Tax – which goes up by 0.5 per cent.Much was said about pensions and young people who don’t have them, so there’s to be more tax relief, more information on pensions and a lifetime ISA for younger folk, to help them save for their old age.From April 2017, there will be two new tax-free £1,000 allowances – one for selling goods or providing services, and one for income from property you own. People who make up to £1,000 from occasional jobs – such as sharing power tools, providing a lift share or selling goods they have made – will no longer need to pay tax on that income. In the same way, the first £1,000 of income from property – such as renting a driveway or loft storage – will be tax free.And on a comforting closing note, The Chancellor said, “We took action to avoid being powerless in the face of global storms. But the storm clouds are gathering again…”mortgage interest relief punitive taxation PRS private rented sector budget Budget 2016 business taxes buy-to-let sdlt 2016-04-09The Negotiator Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 Lawyer leading RICS governance probe asks members to help with evidence30th April 2021What’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.last_img read more

Number of firms going bust jumps by 16%

first_imgDespite a noteworthy increase in house prices last year, the number of estate agents going out of business has shot up, according to a major accountancy firm, Moore Stephens.Residential property prices in the UK rose by 6.7 per cent in 2015, according to the ONS, led by gains in England, at 7.3 per cent, but this was not enough to prevent 185 agents going bust last year, up from 160 in 2014, as local agencies were squeezed out by larger brands and ’no frills’ rivals, such as online players like Housesimple and PurpleBricks.The volume of agencies closing bucks the UK trend of decreasing numbers of insolvencies, with the national rate of business insolvencies across all sectors declining by 9 per cent over the same period from 16,558 to 15,027.Moore Stephens believes that the fixed-fee business model of many online agencies is putting increased pressure on margins for high street agents.At the same time, Moore Stephens says that local firms are losing business to larger chains that tend to have bigger sales and marketing budgets and can break into new local markets by offering greater incentives, such as a zero-commission deal.Mike Finch, Restructuring & Insolvency Partner at Moore Stephens, commented, “The rising number of ‘no frills’ estate agents at one end of the market and modern, highly branded estate agents is posing a threat to smaller traditional firms in a crowded field.“Small high street agencies, with their expensive shop space and cost of employees cannot match the ultra-low commissions of online estate agents.“Those smaller firms do not have the budgets needed to compete with the big chains on marketing spend, investments in database technology, mailshots and newspaper advertising that larger estate agents can afford.“If a small high street agent cuts costs in order to match the commissions of online agencies, they then put themselves at risk of losing businesses to those big agencies that can outspend with more expensively fitted out offices and customer care.”high street agencies agencies closing business insolbencies estate agents going out of business firms going bust March 11, 2016The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Agencies & People » Number of firms going bust jumps by 16% previous nextAgencies & PeopleNumber of firms going bust jumps by 16%The number of UK agents going out of business has soared, new report claims.The Negotiator11th March 20160660 Viewslast_img read more

20% of property sector companies struggling, says insolvency firm

first_imgHome » News » 20% of property sector companies struggling, says insolvency firm previous next20% of property sector companies struggling, says insolvency firmBrexit, Stamp Duty changes and sales slump taking their tollNigel Lewis19th December 201601,435 Views One in five or 25,669 property sector companies are in financial distress according to research by insolvency specialists Begbies Traynor.The company says 6.6% more property companies are in financial distress than the same time last year and that it believes a third of those facing problems now will not be trading in three years’ time.Begbies Traynor includes residential landlords, sales and letting agents and property management companies in its monitoring, which is is based on a ‘red flag alert’ system that tracks when companies face county court judgements or pay bills late.The company says sales and letting agents have been hit the hardest. The number experiencing financial distress increased by 11% this year and that 25% of agents are currently facing financial problems of one kind or another.Begbie Traynor  also says London agents are experiencing more financial problems than those outside the capital.Partner Julie Palmer (pictured) told The Daily Telegraph that the property industry has not only had to deal with the effects of the EU Referendum but also what she called “crippling public policy changes, which have rocked the sector to its foundations”.But the company’s research also reveals that the worst may be over for the property sector. Begbies Taylor says that although year-on-year financial distress has increased, it has eased for many companies since the EU Referendum vote.insvolvency property sector begbies traynor estate agents December 19, 2016Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img read more

Conveyancing portal launches free ‘chain creator’ for estate agents

first_imgHome » News » Conveyancing portal launches free ‘chain creator’ for estate agents previous nextProducts & ServicesConveyancing portal launches free ‘chain creator’ for estate agentsFree2Convey says service will make process more joined up.Sheila Manchester24th January 20170737 Views Free2Convey, a conveyancing portal which provides estate agents, clients and conveyancers with free, real time access to chain status information, has launched a new Estate Agent Chain Creator.The new facility has been developed specifically for estate agents, with special functionality which enables agents to create their own chains safely and securely in Free2Convey, entirely free of charge.Matt Lancaster, one of the founding partners of Free2Convey, said, “Once the agent has added the chain information into Free2Convey, they send an invitation directly from the portal to the conveyancers in the chain, which asks them to join and update chain information too, so that everyone involved has real time access to chain status updates and that there’s a two-way flow of information.”Land Registry search includedProviding immediate address validation, Estate Agent Chain Creator incorporates Land Registry’s title number search facility free of charge, where each property has a validated unique reference, helping to avoid errors and ambiguity.The release of Estate Agent Chain Creator follows the recent launch of Docs4Home, which allows real time collaboration on relevant documents by all parties involved in a conveyance within a secure environment.Matt added, “Docs4Home can be used in conjunction with Free2Convey and enables, for example, the upload of the Replies to Requisitions on Title which contain the seller’s conveyancer’s client account details. This would avoid the risk of redirection of completion monies by fraudsters intercepting bank details sent by email, which is something that’s on the increase.”For more information visit www.free2convey.co.ukMatt Lancaster chain creator conveyancing chain conveyancing portal docs4home free2convey January 24, 2017Sheila ManchesterWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img read more

Interest rate rise – will it turn the dials in the housing market?

first_imgThe decision by the Bank of England’s Monetary Policy Committee (MPC) to introduce an interest rate rise of 0.25% a percent to 0.5% in order to keep inflation in check was applauded in most business circles as a prudent first move to ‘sensible’ interest rates after nearly eight years of rock bottom rates.The move is intended to dampen down the economy mildly and rein-in inflation, which currently stands at 3% and is expected to peak higher than that before the MPC’s measures kick in. Bank of England Mark Carney said the inflation increases were due largely to the weakening of Sterling following the Brexit vote.“The decision to leave the European Union is having a noticeable impact on the economic outlook,” he said. “We need to support the economy during this adjustment process.”But what does the property industry think of an interest rate rise? Russell Quirk of eMoov, who was first out of the blocks into the news studios yesterday, said the rise would only add £16 a month the average mortgage holder and would be “water off a duck’s back for those with a fixed rate security blanket”.But what did the rest of the industry think. Here are their reactions.Knight Frank – James Roberts, Chief Economist“An increase in the base rate is often viewed with trepidation by the property industry, but this long-expected move is unlikely to have a negative impact.“I expect the Bank of England will follow the same strategy as the US Fed, and gently apply the brakes while giving lots of advance warning, in order to balance the competing pressures of normalising rates while not derailing growth.“Consequently, I see a gradual rise ahead, partly to stockpile some future rate cuts should the MPC need to combat another downturn at a later date.“Also, the Bank of England is showing some younger homeowners that rates do rise, given how long it has been since the country saw an increase – the last UK rate hike in 2007 came a few days after the first iPhones went on sale.”Jackson-Stops – Nick Leeming, Chairman“Today’s moderate interest rate rise is unlikely to disturb the housing market.“Good things don’t usually last forever and the end of this golden period of great mortgage deals won’t be a surprise to the majority of prospective and current homeowners.“The market remained fairly stable throughout the General Election and the EU referendum so it would be surprising to see activity levels or house prices fall as a result of such a modest change to interest rates.“Traditionally, higher interest rates mean higher mortgage rates so we may see those already on the fence about moving house take a ‘remain and renovate’ approach instead.“However, this hesitance will not be down to interest rates alone. Over the last year punitive stamp duty levels have been a real drag on the property market and will continue to be unless Philip Hammond announces stamp duty reform across all transfer values in the upcoming Budget.“The combination of stamp duty, high moving costs, economic uncertainty and potential further interest rates rises, will represent a major barrier to home ownership.“If the rumoured first-time buyer stamp duty holiday does come into play it will be a significant boon for this demographic.”Chestertons – Guy Gittins, Head of Sales“Today’s very small increase in the Bank of England base rate is actually good news for the housing market. The knock-on effect will most likely be that Sterling value will increase, potentially demonstrating that we are in a stronger position today than we have been in recent times and giving added confidence to overseas buyers currently looking at opportunities in within the UK.“The housing market has already demonstrated resilience in the face of the snap general election and EU vote, so this is unlikely to have a significant effect. Whilst it does mean that monthly mortgage payments will rise marginally for those on variable rate mortgages, the degree of impact on individual households depends on the size of the mortgage.“For the vast majority, although inconvenient, the small rise will be manageable, equating to approximately £30-£60 more per month on a £300,000 mortgage.  It will also benefit those with savings who will likely start to see higher returns.“[Most] mortgage lenders have already withdrawn lower rate products and relaunched new mortgage deals ahead of this increase, with the remaining lenders set to reprice following this announcement.”Glentree Estates – Trevor Abrahamsohn, Managing Director“There is still uncertainty in the air with Brexit and this will probably be the case until a deal is done, in all probability by October 2018, when the true picture of our trading arrangements with the EU, will become clearer.“I am sure that lenders in the Residential Property market will probably ‘crank’ the mortgage rates up by a ¼%, but I don’t think it will be appreciably more than this for the moment. The point being, that the trend for property owners who borrow is, technically, going the wrong way, although I think it will be a very flat curve and therefore, not too much to worry about.“There is still uncertainty in the air with Brexit and this will probably be the case until a deal is done, in all probability by October 2018, when the true picture of our trading arrangements with the EU, will become clearer.“I am sure that lenders in the Residential Property market will probably ‘crank’ the mortgage rates up by a ¼%, but I don’t think it will be appreciably more than this for the moment.“The point being, that the trend for property owners who borrow is, technically, going the wrong way, although I think it will be a very flat curve and therefore, not too much to worry about.”Haart – Paul Smith, CEO“This rise was predicted and as such we don’t believe it will impact the housing market at all. When you consider interest rates have historically been several percentage points higher, this very small increment should not affect anyone who has borrowed sensibly.“With more stringent borrowing criteria in place we do not see very small increases in interest rates as being a significant impediment to the market. But this rise does show that rates could nudge up in future.“A far bigger threat to the stability and health of the housing market is the punitive levels of stamp duty which the Chancellor should address as a top priority in his budget later this month.”Sandfords – Andrew Ellinas, Director (London)“A 0.25% rise is not going to have a significant impact on the economy as a whole, but it will further depress a falling property market, particularly in prime central London.“Currently, the market is flat.  As an example, there are two blocks of apartments near our Regent’s Park office that are historically very sought-after and if a property came available we would be swamped with buyers and a sale would be made very quickly.“In one of those blocks, in the same month in 2016 there were three apartments on the market and they all sold. This year, there are ten apartments currently available but there are no buyers for them.  In the other block, a very similar situation, there was one property on the market in 2016 and in 2017 there are ten that are not selling.“There are two main reasons for this. The first is that they are overpriced. Vendors still believe that values are what they were two years ago.“I called the top of the market just over a couple of years ago and it has been drifting down ever since, with a bit more yet to go.“With so many tax changes (increased stamp duty, an extra tax for buy-to-let investors and foreign investors’ tax) and Brexit looming, there is too much uncertainty and buyers, particularly overseas investors, have been put off making big financial commitments.“The government is being urged to abolish stamp duty ahead of the budget. Undoubtedly, this would be the best thing to happen to the property market. London is the driving force for every market and scrapping this tax would provide buyers with an incentive to start moving again.”Kay & Co – Martin Bikhit, Managing Director (London)“We expected that after 10 years of bank rates falling that at some point they will rise again so the announcement from the Bank of England is not a surprise.I am sure that for first time buyers and those trying to get a foot on the ladder that this change will have a marginal impact on them, however I don’t expect to see any impact this will have on the London property market.“As rates continue to rise, we may see some effect but this will be a gradual change over a long time period. It is expected that rates will rise to 2% by 2021.”Andrews – David Westgate, Group Chief Executive“The Bank of England’s announcement today should come as no surprise.  This has been mooted for a while now and, in my opinion, is actually long overdue.“In the aftermath of the financial crisis, it made sense that rates should be kept low in order to drive activity in the market.  That was, however, 10 years ago and the time is now right to start readdressing rates.  Given that this is a relatively small increase in the base rate, its impact to most borrowers should be nominal and, assuming they have planned appropriately, relatively easy to adapt to.“What the industry needs to ensure, however, is that it works to stem any knock to confidence amongst consumers that this announcement brings.  Simply hearing news of a rate increase will lead some people to reconsider their financial and property decisions and whilst this is understandable in some respects, these decisions should only ever be made based on personal circumstances and with at least a medium, if not long, term view.“When taken in this context, today’s rate increase should not have any impact on the property market.”     guy gittins Martin Bikhit Jackson-stops Paul SMith haart interest rate rise Knight Frank – James Roberts Mark Carney Nick Leeming MPC Andrew Ellinas Band of England bank interest rate Chestertons Trevor Abrahamsohn November 3, 2017Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Interest rate rise – will it turn the dials in the housing market? previous nextInterest rate rise – will it turn the dials in the housing market?The Negotiator canvasses the industry’s leaders for its likely effect on the market and the wider industry.NIgel Lewis3rd November 201702,517 Viewslast_img read more

Mega mansion ban will just push demand elsewhere, claims leading estate agency

first_imgThe City of Westminster’s recently-announced ban on super-size mansions and apartment knock-throughs will force buyers to look elsewhere in prime London to build ‘mega-homes’, it has been claimed.The comments come from leading prime estate agency Sotheby’s International following last week’s announcement by the London borough that homes over 150 square metres would no longer be given planning permission.“Russian and Middle Eastern buyers favour these super-size homes more than any other clients and whilst we expect them to continue to purchase in this part of London due to the postcode premium it offers, we may very well find these buyers also looking to new London boroughs where they can still create their dream home,” claims Will Tremlett, Sales Associate at Sotheby’s International (left).Westminster says it has set the new limits on property sizes because mega-homes “under-optimise development of Westminster’s scarce land resource”, it says.“It will still enable generously-sized homes to be developed to meet [demand] from the prime market, but balances that against the other more strategic housing need of the city.”Council madnessSotheby’s is not the only agent to point out the contradictions in Westminster’s new housing policy. Trevor Abrahamsohn, MD of Glentree, says the measure risks being another nail in the coffin on the prime central London market.“Residents who want to build a supersize mansion for their families should be given permission,” he says. “We should be grateful for the fact that this country offers the liberty and freedom to do so. And what better time is there for this sentiment than in the post-Brexit era?“Hikes in Stamp Duty and non-dom changes have suffocated the residential property market, lowering Stamp Duty receipts for the Treasury and deterring wealth-creators from the UK.  A tragedy in itself, this latest council madness heaps injury upon the original insult.”  Glentree City of Westminster sothebys international Trevor Abrahamsohn Will Tremlett November 19, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Home » News » Housing Market » Mega mansion ban will just push demand elsewhere, claims leading estate agency previous nextHousing MarketMega mansion ban will just push demand elsewhere, claims leading estate agencyThe City of Westminster’s proposed ban on new homes over 150 sq m will have unintended consequences for central London’s housing market, says Sotheby’s International.Nigel Lewis19th November 201801,602 Viewslast_img read more