The slowdown in the U.K. capital’s housing market is starting to hit the bottom line for homebuilders.Pretax profit at Crest Nicholson Holdings Plc fell in the second quarter and the company said it will exit central London over the next 18 months amid a “challenged” market for homes valued at more than 1 million pounds ($1.3 million). Pricing is flat across the group and construction costs are rising, affecting margins, Chief Executive Officer Patrick Bergin said in a statement on Tuesday.London’s housing market is in flux, with prices falling even as the government’s interest-free loan program boosts demand for homes below 600,000 pounds. Home values in the U.K. capital fell 2.5 percent in April from a year earlier, the only region where prices fell, Acadata said.The number of unsold homes under construction in London rose 19 percent last year, to the highest since Molior London started compiling the data in 2009. Almost half of the properties are priced … [Read more...] about Homebuilder Pulls Out of ‘Challenged’ Central London Market
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London Stansted airport, best known as Europe’s biggest discount hub, joined the major leagues with a first flight by Mideast giant Emirates and said it aims to add 30 more long-haul routes within five years.A catchment area that includes Cambridge, England -- the focus for Britain’s technology and pharmaceutical sectors -- as well as London’s City and Canary Wharf financial districts, should help the airport deliver on those ambitions, Ken O’Toole, the airport’s chief executive officer, said in an interview Friday.The arrival of the Emirates Boeing Co. 777-300ER jetliner from Dubai, which was greeted with a ceremonial “water salute” from Stansted’s fire trucks, should kick off a new phase of growth for the terminal 35 miles (55 kilometers) north of London, according to O’Toole.While the airport does have seven other long-haul routes, those are all trans-Atlantic and flown by low-cost carriers or tour operators. Service by the … [Read more...] about London Stansted Targets 30 Long-Haul Routes
Sales of London homes under construction rose as developers lowered asking prices for the first time since 2010.About 6,900 of the properties were sold in the first quarter, the most in three years, with about 30 percent snapped up by institutional investors betting on rental properties, according to a report by Molior London seen by Bloomberg News.Londoners are increasingly choosing to rent after years of surging values made it harder to buy a home. Invesco Ltd., LendLease Group, Greystar Real Estate Partners LLC and the Canada Pension Plan Investment Board are among investors buying or building rental properties in the city to capitalize on the demand.“Without the build-to-rent sector, it is likely that weeds would still be growing on a number of the sites concerned,” analysts at Molior said in the report. “Perhaps in the easier times, when most of these projects were conceived, a better margin was envisaged. But at this point in time, the priority is presumably to … [Read more...] about London New-Home Sales Rise After First Price Cuts Since 2010
Will you cross a bridge if you don't know what's on the other side? Unlikely.That's the dilemma investors face as they look forward to the London-Shanghai Connect stock trading link that's scheduled to start by year-end. The program's timing was announced this week by People's Bank of China Governor Yi Gang, who also said authorities will quadruple daily trading limits on the mainland's existing share trading pipes with Hong Kong. 1 Two words explain why a London Connect is problematic: home bias.Once you allow investors on both sides to trade in each other's markets, the question becomes: Has your average Londoner heard of Kweichow Moutai Co., the distiller of baijiu that's now more valuable than McDonald's Corp.; or how famous among Shanghai retail investors is BP Plc, one of the largest stocks on the FTSE 100 Index?The biggest of the FTSE components, HSBC Holdings Plc, is a big name in China. But mainland investors seeking a stake in the largest foreign bank in the … [Read more...] about London’s Shanghai Dream Is a Bridge to Nowhere
By March 27, 2018, 7:18 AM EDT London has flourished as a financial center for decades in part because global banks, from offices around the bustling City of London district, could sell their services freely around the European Union. With the clock ticking on Britain’s exit from the 28-nation trading bloc — the complicated international divorce known as Brexit — the city’s status as a banking hub is under threat. If U.K. firms lose easy access to Europe’s $19 trillion economy, which seems likely under the terms laid out by Prime Minister Theresa May, Britain becomes a far less attractive place to do business.1. How big a loss is this for London?London could lose 10,000 jobs in banking and 20,000 roles in the larger field of financial services, according to Bruegel, a Brussels-based think tank. Other estimates range wildly from as many as 232,000 jobs to as few as 4,000, so view them with some skepticism. Executives at banks including Morgan … [Read more...] about Will Brexit Trigger an Exodus of Banks From London?