Boris Johnson NOT Running For Tory Leadership!

Breaking NEWS!!!
 

Convoys Wharf - Deptford, Upcoming Development by Hutchinson Whampoa

This is an exciting upcoming Thames river-facing project, by Hutchinson Whampoa (和記黃埔有限公司) (Hong Kong). In my previous blog post, I updated that the planning process had taken too long and the site had been left derelict for 14 years. The Mayor of London has intervened to push the project ahead.

Location - Where is this place?
London borough of Lewisham, just south-west of the Isle of Dogs.  Let's take a look at the maps.

The big red square in the middle of this map is Canary Wharf, which is growing and doing very well.  The small green square across the River Thames marked with 'CW' is the 40 acre site for Convoys Wharf.  The distance from Convoys Wharf to Canary Wharf is about 2 km, as the bird flies.

A closer look at the Convoys Wharf site.  A very historical site.  All this history may have contributed to the very strong opposition against developing high-rise luxury towers in this area.  The high rise towers would have wonderful views of Canary Wharf.

Transport Links 
Not great at the moment.

Deptford railway station should be within walking distance of the development.  However, this is the suburban rail, and not the Tube.

My guess is that there will be river buses or river boats that operate right from the Convoy Docks, to bring residents directly into Canary Wharf.  Such services already exist, they just need to create a new stop at the Convoys Wharf area.  This pdf shows existing river bus operations.

Not much more to write about at this moment.  It will still take a while before the project is launched. Right now, we don't know what the pricing will be like.

Happy Investing!

Important Disclaimer - . The views contained in this blog and blog post are entirely mine. We cannot be made responsible for any investment decisions you may, or may not, take. Nothing in this blog can be construed as professional investment advice, as we are NOT professional investors and we are ill qualified to give you any advice.  Read the blog at YOUR own risk

Supply Issues in the UK - Built to Rent Scheme - A Singaporean Perspective

UK has a Built to Rent Scheme.  It is worth understanding what this scheme is all about.

Private Rented Sector

The UK Government wants to encourage a wider range of investors to build houses for private rent. Privated rented housing is a growing part of the housing market.  It comprises almost 16.5% of all households, or nearly 3.8 million homes in England.  This sector offers a flexible form of tenure and meets a wide range of housing needs.  It contributes to greater labour mobility and is increasingly the choice for young people. 

Built to Rent Scheme
In short, UK Government gives some funding to developers to build residential units for this purpose. In the latest announcement, the Housing Minister Kris Hopkins announced on 4th April that nearly 500 homes for private rent across 4 sites in London and Chelmsford would be built.

Quoting from the Minister,
" With millions hoping to live in and around London, there is real demand for good quality homes available to rent on flexible terms."

Mayor of London Boris Johnson said,
"With London's population soaring, and to help address a 30-year failure to build enough homes, we have set the most ambitious house-building targets in City Hall history.  The private rented sector has a huge part to play in this.  More well-designed, good quality homes to rent will help rebalance the capital's rental market, improve services for tenants and stimulate new development and economic growth as well as providing the new homes that hardworking Londoners so desperately need."

A Singaporean Perspective 
Wow.  To echo Boris Johnson, the word that comes to my mind is desperation.  Putting planning permission issues aside, the building sector is extremely cash-strapped and so the UK Government needs to come up with schemes to push developers to build these homes.

Next, they just managed to get 485 homes and the Housing Minister and Mayor of London has to make grand statements.

Yesterday, Commonwealth Tower in Singapore just launched - almost 900 new homes, and that is just one project.

Learning points
1.  Millions want to live and work in London, however, they can't afford the rents.
2.  Supply is really tight in London and planning permission is one cause.
3.  Another cause of tight supply is tight credit.

Further questions to explore 
Boris Johnson pointed out the 30 year failure to build enough homes.  If he is right, then why and how did such a failure come about?  Note that it wasn't as if the statisticians or the Government or the private sector realised the imbalances only recently.  In fact, they had known all along this was the case.  Very interesting to ponder over this question.

Happy Investing!