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April 09.2025
2 Minutes Read

OakNorth's £16.1m Loan: A Game Changer in UK's Student Accommodation Market

OakNorth logo representing PBSA loan in Elephant and Castle.

Funding the Future of Student Living in London

OakNorth's recent provision of a £16.1 million loan marks a significant investment in the future of student accommodation within London’s rapidly evolving landscape. The funding will back a joint venture between Valpre Capital and CKC Properties, aimed at transforming a prime site near Elephant and Castle into a modern 24-storey purpose-built student accommodation (PBSA) complex.

Transforming the Urban Landscape

Located just two minutes from the Elephant and Castle station, the development will include 206 studios and 38 spacious two-bedroom apartments, designed to appeal to the growing student population of over 400,000 in London. Each unit will come with panoramic views and a host of premium amenities, including a reception area, student lounge, gym, entertainment spaces, and extensive bicycle parking – aligning with the lifestyle preferences of today’s students.

Expertise Driving Investment Success

How Valpre Capital and CKC Properties plan to leverage their combined real estate experience speaks volumes about the project’s prospects. Valpre’s established reputation for delivering tailored investment solutions complements CKC’s successful track record in creating high-quality developments. As Mazen AbouChakra, managing partner of Valpre Capital, noted, their partnership with CKC is pivotal to enhancing their footprint in the UK’s PBSA market.

Market Dynamics and Future Predictions

With growing student numbers and a persistent demand for quality accommodation, the PBSA market presents a dynamic investment opportunity. Geoff Thomas, CEO of CKC Properties, emphasizes that their commitment to creating developments that cater to student needs while integrating with local communities will ensure long-term viability and satisfaction. As urban centers continue to evolve, understanding these market dynamics will be crucial for stakeholders.

Actionable Insights for Investors

Investors looking to engage in the UK property finance market should note the importance of flexibility, transparency, and expertise when choosing financing partners, as highlighted by the collaboration between OakNorth and the development teams. The emphasis on a student-focused model may also serve as a blueprint for future investments in this sector.

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01.22.2026

Prime Property Prices Drop: Navigating Potential Market Bottoms

Update Understanding the Current Prime Property Price Trend Amid fluctuating economic conditions and evolving market sentiment, prime property prices in central London have experienced a notable decline. As highlighted by LonRes, average sold prices fell by 6.0% annually in December, with values now 4.9% below those seen in the pre-pandemic period of 2017-2019. This downturn is underscored by a significant drop in property transactions, which were 18.6% lower than the previous year and 19.6% down compared to the December average from 2017-2019. Yet, despite these statistics, the emergence of new sales instructions—which saw an increase of 32.0% in December—provides a glimmer of hope. Alongside this, the supply of available homes has risen by 10.3% compared to last year, although it has decreased from a peak noted in September. This dichotomy indicates an evolving market landscape that may be nearing a pivotal moment. The Impact of Federal Economic Policies Nick Gregori from LonRes has cautioned against hastily declaring this downturn as the "bottom of the market." He points to the unpredictability fueled by various factors, including government taxation of high-value homes, a critical aspect affecting buyer behavior. Expectations surrounding the Bank of England's base rate cuts are also influencing buyer sentiment positively. Some lenders are adjusting their offerings, which may eventually stimulate the market. However, Gregori emphasizes that inflation levels remain a concern, potentially hindering the pace of recovery. The current economic struggles with GDP growth hovering just above zero further complicate the overall outlook. The Changing Landscape of Buyer Interest Despite the challenging conditions, buyer interest appears to be shifting. While LonRes reports a distinct decline in £5m+ transactions—down 39.5% from last December—there's a noticeable increase in new instructions in this high-value segment. The 2.9% growth in new listings suggests that sellers are starting to respond to better market conditions. This changing interest is further corroborated by a recent report from Savills, which noted that prime markets beyond central London are witnessing a slow down in property value declines post-Budget measures. While traditional neighborhoods in London experience significant value loss—down 24.5% from peak levels—more domestic areas show signs of resilience due to increased buyer intents following the Budget’s announcements. Predictions for Market Stability and Recovery Looking ahead, the trajectory of the prime property market will largely hinge on factors such as economic recovery, inflation control, and potential tax changes. The possibility of increased demand in non-central areas due to greater value propositions may attract both domestic and overseas buyers. The sentiment among property owners and investors is that while short-term volatility remains likely, the long-term perspective on the stability and value of properties in prime London is shifting. With ongoing discussions about taxation and the future of overseas investment in properties, stakeholders must remain adaptable and informed. Navigating Future Investments For property owners and investors, understanding the nuances of these market dynamics is crucial. As the market adjusts, prospective buyers may find favorable conditions to negotiate when purchasing prime properties. With many buyers adopting a wait-and-see approach, those willing to act sooner may successfully capitalize on lower prices that could later rebound. Investors should also pay close attention to upcoming fiscal policies and economic indicators that will influence market recovery. As evidenced by historical trends, adjusting strategies according to the prevailing economic environment, including staying informed about changes in borrowing costs and inventory levels, will be vital in making sound investment decisions. In conclusion, as the prime property market continues its period of fluctuation, engaged property owners and investors will surely benefit from proceeding with informed caution, whilst also seizing opportunities for growth and recovery ahead.

01.22.2026

UK Landlords Face 2030 Deadline to Meet EPC C Standards Amid New Regulations

Update Understanding the New EPC C DeadlineLandlords across the UK are facing a significant legislative shift as the government sets a new deadline for energy performance standards. By October 1, 2030, all privately rented homes will be required to reach an Energy Performance Certificate (EPC) rating of at least C, unless they qualify for a valid exemption. This decision, framed within the government's Warm Homes Plan, highlights a definitive commitment to improving energy efficiency across the nation's rental properties.The initial proposal, which mandated compliance by 2028 for new tenancies, has been effectively scrapped, acknowledging feedback from stakeholders who deemed the previous timelines unmanageable. This shift allows for a more coordinated approach to upgrading properties, aiming to avoid the rushed and potentially disruptive changes that landlords feared would ensue.Financial Impact on LandlordsWhile the government has introduced a £10,000 spending cap for necessary upgrades—down from the earlier proposed £15,000—landlords remain concerned about the financial burden of meeting these new standards. The cap will be lower for properties valued below £100,000, reflecting the intention to create a workable framework considering the diverse property market across the UK.Ben Beadle, the chief executive of the National Residential Landlords Association (NRLA), expressed a cautious optimism regarding these changes. While the support for improved energy efficiency is acknowledged, he pointed out that the financial parameters must align with the realities faced by landlords today, especially in ensuring that properties are not taken off the market due to unsustainable compliance costs.Broader Implications for Rental HousingThe implications of the EPC C requirement extend beyond individual landlords to the housing market at large. As proposed by the Department for Energy Security and Net Zero, the adjustment aims to ensure that renters benefit from safer, more efficient homes that can potentially yield reduced energy bills.However, experts warn that without adequate financial support mechanisms and a clear path to compliance, the risk is that landlords may withdraw properties from the rental market altogether. Timothy Douglas from Propertymark highlighted that achieving meaningful change involves not just setting ambitious standards but also delivering on solid financial backing and realistic timelines. The risk is palpable: fewer rental options could inflate costs, contradicting the government’s goals for economic growth and affordability.The Role of the Warm Homes PlanThe Warm Homes Plan, which intends to invest £15 billion into energy efficiency initiatives, is positioned as a lifeline for landlords struggling to meet these demands. Significant investments will also be funneled toward schemes like the Boiler Upgrade Scheme (BUS), which offers grants to help with clean heating installations. This approach can help alleviate some of the upfront costs associated with necessary upgrades.This emphasis on a 'fabric first' approach prioritizes foundational improvements, such as enhanced insulation and window upgrades, before tackling other aspects of energy efficiency. Future expectations involve introducing new EPC metrics that focus on cost, fabric performance, heating systems, and smart readiness, set to come into effect by October 2026.What’s Next for Landlords?As landlords adjust to this new landscape, they must stay informed about the evolving regulations and available support. This transition necessitates a proactive stance on upgrades, financial planning, and potentially engaging in partnerships or collaborations that can facilitate compliance. Industry groups, including the NRLA, continue to advocate for clarity and long-term funding serves to bolster landlord confidence as they navigate this complex new framework.Ultimately, meeting EPC C standards is not just about compliance; it’s an opportunity for landlords to enhance their properties, leading to lower operating costs and more favorable relationships with tenants concerned about energy efficiency. As we approach the October 2030 deadline, clear guidance, timely access to funds, and comprehensive support will be vital for landlords to transform challenges into sustainable opportunities.

01.21.2026

What the Declining £5m-Plus Home Sales Market Means for Property Investors

Update Understanding the Declining Market of £5m-Plus Homes in London According to Savills, the London property market for homes priced at £5 million or more has plunged to a five-year low, with only 412 transactions recorded in 2025—a significant decline of 11% compared to the previous year. The overall spending in this high-end segment amounted to £4.09 billion, reflecting an 18% decrease from 2024. This downturn is largely attributed to market apprehensions around taxation changes and shifts in financial policies, as outlined by Savills' director of research, Frances McDonald. Impact of Political and Financial Uncertainty on Property Sales The property landscape remains heavily influenced by a climate of economic and political uncertainty. The speculation surrounding potential changes in the non-dom regime and taxation policies has dampened buyer confidence. In a Savills survey, a staggering 41% of London buyers expressed hesitation regarding their purchase intentions over the next six months, primarily due to these uncertainties. Conversely, only 11% indicated increased purchasing commitment. Trends and Shifts in Buyer Behavior Despite this gloomy outlook, the market for homes priced between £5 million and £10 million demonstrated greater resilience, with only a 5% decrease in transactions. Meanwhile, the ultra-luxury sector, particularly for homes priced between £10 million and £15 million, saw a dramatic 31% drop in sales. Interestingly, the closing months of 2025 saw a 7% uptick in transactions, possibly due to post-budget clarity signaling a potential stabilization that is intriguing to both domestic and international investors. The Role of ‘Trophy Assets’ in Market Recovery As 2025 drew to a close, an increase in sales of premium properties, or ‘trophy assets,’ became apparent. These high-quality, sought-after properties are increasingly attractive to buyers looking to capitalize on perceived value as market prices stabilize. According to insights from Beauchamp Estates, the luxury property market remains hopeful, with expectations of improved liquidity thanks to renewed buyer interest in prestigious properties. This sentiment is underscored by strong demand for well-positioned homes in exclusive neighborhoods, such as Mayfair and Kensington, which highlighted their sustained market appeal. A Soft Landing for the Super-Prime Market? Interestingly, the introduction of a mansion tax, levied on properties over £2 million, appears to have sent mixed signals regarding the overall stability of the market. However, the absence of additional increases, such as wealth taxes or raised stamp duties, has motivated some buyers to reconsider entering early 2026 transactions. The quick exchange of a £10.95 million home shortly after the budget announcement may hint at a cautious yet positive outlook for the super-prime property sector. Bracing for Future Opportunities As the property market confronts uncertainties and evolving taxation policies, the focus on practical strategies for achieving successful sales becomes paramount. Savills emphasizes the need for pragmatic decision-making among sellers, as the market remains distinctly a buyer's landscape. With suggestions of growing interest in ‘turnkey’ luxury properties, both buyers and sellers may find opportunities in this evolving landscape. Moreover, understanding the specific local nuances of prime London neighborhoods may empower property owners and investors to navigate the changing tides effectively. Takeaway for Property Investors In summary, while the luxury property market faces evident challenges, particularly among the ultra-high-end sector, the resilience shown in lower-price tiers and the possible recovery of transaction activity provide a glimmer of hope. Moving forward, stakeholders must prioritize informed decision-making based on emerging trends and local insights to navigate potential investments effectively in 2026.

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