Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Chester Growth Partnership: Young Professionals Drinks

297 views

Published on

Full presentation from Thomas Renn of Manchester Science Partnerships; Guy Butler of Glenbrook and Chester Growth Partnership; Karen Campbell-Williams of Grant Thornton; Charlie Kannreuther, director and Andrew Thorpe, associate director at Savills Chester office.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Chester Growth Partnership: Young Professionals Drinks

  1. 1. Manchester Young Property Professionals 29 November 2016
  2. 2. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Chester Residential Market Charlie Kannreuther Director Chester Office
  3. 3. © 2016 Grant Thornton UK LLP. All rights reserved | Draft General • Chester is an exciting and vibrant city with a thriving housing market. • It has comfortably out performed rural areas of West Cheshire and North Wales in recent years - Prices 10-15% higher than the 2007 peak. • Chester is home to a number of excellent schools, and the increase in out of school activities means many parents would rather live in the city. • Increase in premium quality city centre development.
  4. 4. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - Traditional Wide variety. Prime – Within city walls and overlooking R Dee. It includes Georgian Terraces on cobbled streets in the city centre:
  5. 5. © 2016 Grant Thornton UK LLP. All rights reserved | Draft 19th century / Edwardian detached villas in Curzon Park and Westminster Avenue: Housing Stock - Traditional
  6. 6. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - Traditional 20th century housing in the inner suburbs - Queens Park ,Upton and Newton: Also Victorian terraces in many areas.
  7. 7. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - New Apartment development 21st century and mainly pre-2008. Initially in secondary, central locations but latterly in riverside and other prime locations: HQ set the tone for premium apartments. First phase overlooking the racecourse - £500 per sq ft in 2006. Post banking crisis - the last remaining units £200 per sq ft in 2013.
  8. 8. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - New Stalling of new build projects during recession. 2014 Heritage Court scheme on Lower Bridge Street. 32 office to residential. Sales rates of up to £400 per sq ft.
  9. 9. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - New 2016 headline scheme - Dee Hills Park, part new build, part office conversion. Off plan at £430-£600 per sq ft. Luxury new houses on the river - £400 per sq ft.
  10. 10. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Housing Stock - New Further exciting schemes in the pipeline for 2017. Including 62 apartments at Shot Tower. 13 apartments at The Warehouse in the Restaurant Quarter. 10 apartments on Cuppin Street near the city centre.
  11. 11. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Demand - Downsizers Demand for city centre living greater amongst downsizers than the cosmopolitan young. Lock up and leave. Walking distance of shops etc. Must have – 2 bed+, parking. Strong preference – Outside space, lift access
  12. 12. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Demand - Families Schools an important draw. In particular independent schools such as King’s and Queen’s. Increasing trend of families moving from London and the South East - quality of life. Must have – 4 bed, garden. Preferred – walking distance of chosen schools.
  13. 13. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Demand – (Young) Professionals Attracted by the growing cafe/restaurant culture, the ease of access to the countryside, and the transport network. Job creation on Business Park etc.
  14. 14. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Pricing £150k – 1-2 bed flat £300k – 3 bed semi inner suburbs / premium 2 bed flat with parking £500k – 4 bed semi inner suburbs or 3/4 bed terraced within the walls £750k – 4 bed semi in central location with parking and outside space £1m – Detached 5 bed townhouse in prime suburbs £1.5m – Superior house or apartment in prime riverside location £2m – Nothing...yet.
  15. 15. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Outlook Chester set to remain the location of choice in the region for those wanting urban living. Heritage Court and Dee Hills Park has reignited developers interest and downsizer demand should be Brexit proof. Performance of key independent schools will remain driver of demand in prime suburbs. Further gentrification in areas like Hoole (“Notting Hoole”) likely. 25% 5 year price growth (marginally outperforming rural areas).
  16. 16. © [YEAR] [Copyright text] | [Classification]
  17. 17. Cheshire Residential Market Update Andrew Thorpe Associate Director Wilmslow Office
  18. 18. Variations across the region Mainstream: mainstream property refers to the bulk of the UK housing market. Prime: typically it comprises properties in the top 5% of the market by house price. • Wide variations in the performance of local markets • Mainstream market average values +4.2% • Prime markets values +1.5% • Mainstream values still 5.3% below 2007 peak on average
  19. 19. Prime Urban Locations Vs Rural • Prime urban locations such as Wilmslow and Chester city centre are leading the recovery • Values 10-15% above 2007 peak in some locations • Aspirational upsizers competing with affluent downsizers • Highest demand: period properties, high quality new-build and those within walking distance of amenities • London buyers moving North
  20. 20. Rural Markets • Rural locations have seen little recovery over the past couple of years • Values over 10% below their 2007 peak in some locations across the region • Land is not commanding the premium it once did • Some buyers are now recognising the value for money
  21. 21. Stamp Duty • Those buying a property below £937,500 are now paying less stamp duty • 98% of buyers now paying less • Extra 3% Stamp Duty for buyers who own more than one property • Impacting the Buy-To-Let and Let-To-Buy market • Refund can be claimed within 3 years
  22. 22. Tax relief changes for landlords • Changes phased in between April 2017 – 2020
  23. 23. SDLT and VAT Katie Bailey and Amy Howse
  24. 24. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Background – Cheshire Central Business Quarter • £100m Central Business Quarter project • 500,000 sq/ft of new office space, retail and residential accommodation • Private sector led development with funding and investment from the Council and its partners • Three key developments within the Quarter, each brought forward by separate developers • Jointly co-ordinated through Chester Growth Partnership and the Council 25
  25. 25. © 2016 Grant Thornton UK LLP. All rights reserved | Draft One City Place • Muse Developments has completed the first of phase of commercial accommodation • One City Place is a six story office building • Further six phases of development planned (including 240 residential units on site) 26
  26. 26. © 2016 Grant Thornton UK LLP. All rights reserved | Draft 27 Stamp Duty Land Tax (SDLT)
  27. 27. © 2016 Grant Thornton UK LLP. All rights reserved | Draft The SDLT issues 28 Residential Chargeable consideration Rate of SDLT < £125,000 0% £125,001 to £250,000 2% £250,001 to £925,000 5% £925,001 to £1,500,000 10% The remainder 12% Non-residential or mixed use Chargeable consideration Rate of SDLT < £150,000 0% £150,001 to £250,000 2% The remainder 5%
  28. 28. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Considerations and reliefs • Deeming a residential purchase to be non-residential • Introduction of the 3% supplement • Availability of any reliefs – as a multi-phase development, consider Multiple Dwellings Relief • Linked transactions • Structure of the acquisition 29
  29. 29. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Common mistakes / pitfalls • Failure to file return within 30 days of 'effective date' • Failure to identify and claim reliefs (even retrospectively) • Failure to identify linked transactions 30
  30. 30. © 2016 Grant Thornton UK LLP. All rights reserved | Draft© 2016 Grant Thornton UK LLP. All rights reserved | Draft 31 Value Added Tax (VAT)
  31. 31. © 2016 Grant Thornton UK LLP. All rights reserved | Draft The VAT issues • Multiple transactions • Option to tax • Capital Goods Scheme (CGS) • Partial exemption (shared ownership and market rents) 32
  32. 32. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Considerations and reliefs • Option to tax does not apply to dwellings • Potential cashflow implications and contingencies • Reliefs - zero-rated first grants (dwellings, use for a RRP/RCP) • Reliefs - design and build arrangements 33
  33. 33. © 2016 Grant Thornton UK LLP. All rights reserved | Draft Common mistakes / pitfalls • Failure to notify the seller and/or HMRC of an option to tax • Failure to obtain the relevant certificates (or evidence) for relief 34
  34. 34. © 2016 Grant Thornton UK LLP. All rights reserved | Draft
  35. 35. © [YEAR] [Copyright text] | [Classification] 51 Thank You

×