Market Update. UK house prices expected to rise by 50,000 by Lettings Update. Sales Update

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1 fraser.uk.com Market Update UK house prices expected to rise by 50,000 by 2021 Economists have predicted that average property prices are expected to see a rise of over 50,000 within the next five years. While the rate of house price growth is expected to slow over the next two years as Brexit negotiations take place, by the end of this year, prices are still expected to be around 9,000 higher than they were in This year, property prices are expected to grow at a rate of 4.4 per cent, marking the slowest rate since However, at Fraser & Co, we have had an extremely successful year so far; having sold over 230 units across several different developments in London and beyond - selling around 151 million worth of property. After this year, prices are forecast to rise by around 5 per cent a year, until 2019 when they are projected to grow by 5.7 per cent a year. By 2020 and 2021, house prices are expected to grow at an average annual rate of 6 per cent. With 40 per cent of local councils not knowing how to meet housing demands over the next 10 years, findings suggest a shortage of suitable housing stock will ensure prices keep rising. Last month, data from the Office for National Statistics revealed that house prices increased by 6.2 per cent in the year to January. The average cost of a home in the UK was 218,000 in January, which is 13,000 higher than in January HOT PROPERTIES KEW BRIDGE COURT 875 PER WEEK P4 P5 WESTGATE HOUSE FROM 241,500 Sales Update LONDON S WALKIE TALKIE BUILDING SOLD FOR A RECORD-BREAKING PRICE P1 Lettings Update LONDON MAYOR GETS TOUGH ON DEVELOPERS REDUCING NUMBER OF AFFORDABLE HOMES P3 PHOENIX FROM 449,950 P7 LOCAL PRESENCE, GLOBAL REPUTATION Paddington l Baker Street l City l Kew Bridge & Brentford Hong Kong l Dubai

2 London s Walkie Talkie building sold for record-breaking 1.3 billion This record-breaking deal demonstrates the enormous investor appetite in London, and in the City s reputation as the global place to do business London s landmark Walkie Talkie building has broken records with its 1.3bn sale to a Hong Kong firm, best known for its production of oyster sauce. The deal easily surpasses the previous record price for a single building in the UK. The Qatar Investment Authority previously paid 1.17bn to acquire the HSBC tower in Canary Wharf in December The controversial skyscraper, officially called 20 Fenchurch Street, is being bought by the property arm of Lee Kum Kee Health Products Group (LKK), a conglomerate that makes condiments and healthcare products, as well as developing property. LKK is a 129-year-old family business that specialises in oyster sauce, shrimp paste, and Chinese herbal medicine, and is controlled by 88-year-old billionaire Lee Man Tat. The price tag is the highest ever paid for a single UK building and the deal is expected to be completed by the end of August. The Walkie Talkie is the latest trophy London building to be bought by investors from China, South Korea, Singapore and Hong Kong, who, despite Brexit, are taking advantage of the low value of the pound to snap up property bargains in the capital. Chinese investors have spent 3.5bn on property in the City and the West End so far this year. Crossrail Update The 14.8 billion Crossrail project has been under construction for the past 8 years, and is expected to open in December The first of the new trains is now running out of Liverpool Street to Shenfield. In December 2018, the Elizabeth line will open between Paddington and Abbey Wood, Liverpool Street to Shenfield, Paddington Main Line to Heathrow Terminal 4. When fully completed the high-frequency train service will connect towns in Berkshire and Bucks to Essex and southeast London, via the centre of the capital. The new service is expected to take an average of 20 minutes off the average journey time TfL has promised that there will be a train every two and a half minutes at peak time at central London stations.

3 For Sale A selection of our current properties available to buy Paddington WESTCLIFFE APARTMENTS, W2 1,395,000 MERCHANT SQUARE, W2 1,525,000 BALMORAL, W2 595,000 PADDINGTON EXCHANGE, W2 870,000 1,135 SQ FT of internal space Juliette Balcony with Basin views Open plan living area Views over Paddington Basin 441 SQ FT of internal space Located on the 9th floor Private terrace Modern kitchen City SUGAR HOUSE, E1 849,999 Grade II listed building High ceilings thoughout EAGLE POINT, EC1V 955,000 2 bedroom, 2 bathroom 8th floor Gym, spa & screening room Baker Street KENSINGTON APARTMENTS, E1 825,000 6th floor with private balcony Communal roof garden EAGLE POINT, EC1V 945,000 2 bedrooms, 2 bathroom 13th floor 908 SQ FT of internal space BAKER STREET, W1U 1,350,000 Video entry system 754 SQ FT of internal space CHILTERN COURT, NW1 2,950,000 3 bedrooms, 2 bathrooms 1,700 SQ FT of internal space Finished to a very high standard DORSET HOUSE, NW1 670,000 Finished to a high standard 24 hour concierge Kew Bridge & Brentford BERKELEY COURT, NW1 2,850,000 3 bedroom, 3 bathroom Private balcony Moments from Regent s park LAVAL HOUSE, TW8 374,995 Communal Gym Private terrace DASHWOOD HOUSE, W5 934,000 2 bedrooms, 1 bathroom 2 private balconies 24 hour concierge & parking LEYTHE ROAD, W3 699,000 Private garden Near new crossrail line MOUNTFORD MANSIONS, SW11 1,099, SQ Ft of internal space

4 London Mayor gets tough on developers reducing number of affordable homes The Mayor of London has demonstrated that developers will be required to fulfil their commitments to affordable housing, after rejecting plans that would have lowered the proportion of these type of properties on a major site in the city. Sadiq Khan has taken a tough stance and refused to accept a lowering of the affordable housing quota on a new development on the site of the former New Scotland Yard building. The shortage of affordable homes is at the heart of the housing crisis in our city. This new scheme put forward for the former New Scotland Yard site is simply unacceptable. It fails to provide the maximum amount of affordable housing that could be delivered on this landmark site, he said. The site in Westminster was sold by the previous Mayor who then allowed planning permission to be granted for a development offering only 10 affordable homes, just 4% of all units. BL Developments then sought to increase the total number of homes by 27, from 268 to 295, with no increase in the number of affordable units or payment in lieu, meaning the level of affordable housing fell further still to only 3%. Shortly after becoming Mayor, Khan instructed City Hall planners to recruit a team of viability experts to scrutinise the level of affordable housing in all planning applications referred to him, the first time City Hall has had this in house expertise. Khan has also strongly criticised Wandsworth Council for allowing the developers of Battersea Power Station to slash the amount of affordable housing by 405 from 636 to 386 or only 9% of the 4,239 homes across the scheme. The Mayor had no formal power to intervene under current planning regulations, but wrote to the Council to object to the decision in the strongest terms. Recent research conducted for the upcoming London Housing strategy says that the housing shortage is severely affecting Londoners. It reveals that since 2010 average private rents in London have risen more than five times as fast as average earnings. It also shows that in 2016, the gap in house prices between London and the rest of the country reached the widest ever recorded and more than a quarter of Londoners now live in poverty after taking housing costs into account. The Mayor wants the Government to give London greater control over its own resources so that more can be done, including investing more in new homes and infrastructure, bringing forward more land for more homes more quickly and freeing up councils and housing associations to build more. since 2010 average private rents in London have risen more than five times as fast as average earnings

5 To Let A selection of our current properties available to let Paddington 4 MERCHANT SQUARE, W2 950 PW PENINSULA APARTMENTS, W2 630 PW WESTCLIFFE APARTMENTS, W2 495 PW PENINSULA APARTMENTS, W2 695 PW 3 bedrooms, 2 bathrooms High specification throughout 881 SQ FT internal space 1st floor 2 balconies Newly refurbished 570 SQ FT internal space 827 SQ FT internal space High specification throughout City THE HERON, EC2Y 625 PW PEGASO BUILDING, N1 690 PW MERANTI HOUSE, E1 580 PW HANOVER HOUSE, SE1 950 PW 1 7th floor with lift Private gym & roof garden 3 bedrooms, 1 bathroom 2nd floor Private balcony 4th floor 569 SQ FT internal space 773 SQ FT internal space On site health club Baker Street WATERDALE MANOR, NW1 475 PW 24 hour concierge Private balcony TRITON BUILDING, NW1 800 PW 12th floor Private balcony MARATHON HOUSE, NW1 700 PW Over 655 SQ FT internal space 24 hour concierge & residents gym Kew Bridge & Brentford LANDMARK COURT, NW1 375 PW Private balcony Fully furnished WALLIS HOUSE, TW8 254 PW LONDON SQUARE, SW PW MEWS HOUSE, W4 875 PW OYSTER WHARF, SW PW Studio apartment Concierge & gym Beautifully finished 24 hour concierge 5th floor 3 bedrooms, 3 bathrooms Arranged over 2 floors Private garden Communal gardens Private terrace overlooking the river

6 Fraser & Co proudly presents to the market Westgate House Prices starting from 225,000 At Fraser & Co, 2017 got off to a flying start with the launch of several new London residential schemes in Hong Kong, Dubai & London on behalf of developers including Fairview New Homes, Galliard Homes, Thornsett, and many others. Collectively, sales have been strong and we have sold over 400 units locally and internationally worth in the region of 151,000,000 million. We have several property exhibitions coming up in Hong Kong & the UK before the end of October As a company, we have found that having a knowledgeable local sales team based in Hong Kong, coupled with frequent property exhibitions, is an extremely effective way to reach international investors across the Far East. Westgate House Westgate House is a collection of studio, 1 and 2 bedroom apartments, and is West London s new landmark for luxury living. It is located a little over 5 minutes walk from Central Line connections and has a journey time of just 20 minutes into the heart of the West End. Complete with superb amenities, including a 24 hour concierge services, resident gym including steam room and sauna, communal terrace lounge with adjoining screening room, and highly refined specification throughout, Westgate House will offer luxury in an incredibly convenient location. Westgate House occupies a strategic location offering residents virtually immediate access to Central Line services into the heart of the Capital, together with fast, direct road connections routing East into Central London and west to London Heathrow, the UK s motorway network and the South West itself. To register your interest, please call or +44 (0) newhomes@fraser.uk.com

7 New Homes A selection of our brand new properties available to buy NOW LAUNCHING NOW LAUNCHING ORCHARD WHARF LEAMOUTH ROAD, LONDON, E14 PRICES FROM 399,000 Orchard Wharf is a glamorous collection of 1, 2 & 3 bedroom apartments located in the capital s most prolific new growth area. This 23-storey development oozes elegance and sophistication, boasting breath-taking views across London s ever-changing skyline. Each apartment will be highly specified and finished, and equipped for contemporary London living. The development will feature spectacular landscaped outdoor areas, and a contemporary pavilion, for maximum enjoyment of this riverside setting. Estimated completion Date: Q1/Q THE ORDNANCE BUILDING DOCK STREET, LONDON, E1 PRICES FROM 495,000 Fraser & Co is pleased to exclusively launch The Ordnance Building- a stunning collection of Manhattan, 1, 2, and 3 bedroom apartments situated in Central London. The Ordnance Building resides at the very heart of London and offers 89 stunningly interior designed apartments, set across three buildings. Offering a full lifestyle package and stunning vistas across London s ever-changing skyline, this development is a how London living should be. Estimated Completion Date: Q NOW LAUNCHING NOW LAUNCHING LEVEN WHARF LEVEN ROAD, LONDON, E14 PRICES FROM 349,950 Settled on a 0.5 hectare* waterfront site is the new development of Leven Wharf. Combining excellent standards of design and construction, Leven Wharf offers a great investment opportunity. There is also the added benefit of basement parking for 25 cars (Subject to availability and separate negotiation), a children s play area and access to a number of riverside walks and cycle paths. Estimated Completion Date: Q2/Q DISCOVERY TOWER HALLSVILLE QUATER, LONDON, E16 PRICES FROM 440,000 Well-connected and always vibrant, at the heart of this dynamic new neighbourhood sits Discovery Tower. Located just minutes from canning town station and consisting of 160 one, two and three bed apartments, this 17-storey residential tower offers some of the most enviable views across London. Estimated Completion Date: Q4 2017

8 Exclusive preview of Phoenix Fraser & Co are taking this development to exhibition on the 14th & 15th October 2017 for Fairview New Homes. Prices Starting from 449,950 Phoenix is an exciting collection of new 1, 2 & 3 bedroom apartments starting from 449,950 by Fairview New Homes. Phoenix will be finished to the highest quality throughout. This development is conveniently located just over a mile from Canary Wharf in the heart of London s thriving East End. Phoenix is within walking distance to Langdon Park DLR and Mile End Underground Station for easy access to Central London and beyond. Today, with the importance of Canary Wharf and the booming Docklands economy, Limehouse stands on the brink of a prosperous future. This development is the ideal investment opportunity, being located next to Canary Wharf and numerous different transport links including the new Crossrail. New workshops and studios, together with high quality residential development, are bringing new life and excitement to the neighbourhood. Fraser & Co will be selling the Phoenix scheme in Dubai on the 19th Sept 2017, then at our City Office in London on the 5th Oct 2017 and finally in Hong Kong for the 14th & 15th Oct Don t miss your opportunity to get your hands on these amazing apartments. Contact us now for more information or to book an appoinment.

9 Spotlight On Fraser & Co Fraser & Co has grown in size, by opening a brand new office in Old Street and moving to a larger office on Paddington basin 2017 so far... January: Fraser & Co moved to a brandnew office in Paddington Basin. We also launched Union Park Phase 1 overseas in Hong Kong as well as featuring in several articles in City A.M., Whathouse, Metro, Property Week & more February: On the 11th & 12th we launched Austen House overseas for Fairview, where we achieved 38 sales. March: For Mountain Capital we took the scheme Union Place overseas to exhibition. We also featured in several different property magazines. April: In the month of April, we released two large developments. The first being The Ordnance Building and the second being Orchard Wharf for Galliard Homes. May: Back in May 2017 Fraser & Co was awarded Best Overseas Property Agency UK in the Best of the Best Awards 2017 hosted by Squarefoot.com.hk. This was a privilege to receive as it shows how far our international reach is. June: Director Gavin Cohen negotiated a deal for a development called Wellington Quarter (82 unit scheme) for c million July: Further to the deal above, We also negotiated a deal in Birmingham for c million. We also held the UK launch for The Ordnance Building in our new City office. August: With August being a slow month for property due to school holidays we have successfully negotiated numerous deals for Westgate House, which is due to launch next month along with several other schemes. September: This month we are preparing to take Westgate House overseas for Galliard Homes. We have already sold 36 units in the lead up to the main event in Hong Kong on the 16th & 17th. We are also hosting a VIP night in Dubai on the 19th. October On the 14th & 15th October we are launching Phoenix for Fairview New Homes which is located in Limehouse. Stay tuned to our social media pages to find out what we have coming up in the lead up to Christmas. Centrepoint Centrepoint is the UK s leading charity for homeless young people. Together with their partners they support 9,200 young people every year. They help year olds into safe places to live, give them a health assessment and plan support for their individual mental and physical health needs. They start them on a path to more independence and a job. Any donations to this charity will be greatly appreciated. Please visit our website where you will find the link. - On the 16th September, several of Fraser & Co s staff members will be taking part in a Mud Run. - 16th November marks the yearly sleep out hosted by CentrePoint. This event is always hugely supported by Fraser & Co.

10 On the 16th September Fraser & Co will be taking part in a Nuclear Race for Centrepoint Centerpoint has always been a charity close to Fraser & Co s heart and we try and get involved in as many events as we can each year to support this cause. Centrepoint is the UK s leading charity for homeless young people. Together with their partners they support 9,200 young people every year. They help year olds into safe places to live, give them a health assessment and plan support for their individual mental and physical health needs. They start them on a path to greater independence, and a job. Any donations to this charity will be greatly appreciated. Please visit our website, where you will find the link. On 16th September several members of Fraser & Co s staff will be taking part in the Nuclear Blast. This event takes the form of a 5km loaded, multi-lap course over mixed, muddy terrain suitable for all levels of fitness. They have 2 hours to complete as many 5km laps of this course as they are able. Stay tuned to our social media accounts for video footage of the event.

11 Fraser & Co will once again brave the streets on the 16th November On Thursday 16 November Fraser & Co will join Centrepoint for the third consecutive year, for Sleep Out London on Greenwich Peninsula. Sleep Out doesn t aim to replicate what it s like to be homeless, but does give an insight into the challenges faced by homeless young people; the damp, the biting cold and the struggle to carry on the next day with minimal sleep. The cause is serious, but Sleep Out is lots of fun too. Centrepoint will provide a range of entertainment throughout the evening, as well as a hot dinner in the evening and breakfast the next morning. Swap your bed for a sleeping bag and help give homeless young people a future.

12 Contact To find out more about the latest market updates from Fraser & Co, please contact: Member of: Paddington Office Unit 12, West End Quay 1 South Wharf Road London W2 1JB Tel: +44 (0) paddington@fraser.uk.com Baker Street Office 189 Baker Street London NW1 6UY Tel: +44 (0) bakerstreet@fraser.uk.com City Office 161 City Road London EC1V 1NR Tel: +44 (0) city@fraser.uk.com Kew Bridge & Brentford Office 571 Chiswick High Road London W4 3AY Tel: +44 (0) kewbridge@fraser.uk.com Hong Kong Office Unit 704 Jubilee Centre 18 Fenwick Street Wanchai Tel: info@fraser.hk.com Dubai Office Level 14, Boulevard Plaza Tower 1 Sheik Mohammed Bin Rashid Boulevard Dubai United Arab Emirates Tel: dubai@fraser.ae Land and Investments Unit 12, West End Quay 1 South Wharf Road London W2 1JB Tel: +44 (0) investments@fraser.uk.com New Homes Unit 12, West End Quay 1 South Wharf Road London W2 1JB Tel: +44 (0) newhomes@fraser.uk.com Property Management Unit 12, West End Quay 1 South Wharf Road London W2 1JB Tel: +44 (0) management@fraser.uk.com LOCAL PRESENCE, GLOBAL REPUTATION Paddington l Baker Street l City l Kew Bridge & Brentford Hong Kong l Dubai fraser.uk.com