Real estate development in UK Great Britain.We have recently received a lot of inquiries regarding the UK residential market. Putting aside valuation and rental income for a moment, there are many technical considerations involved when dealing in the UK residential market. On a high level, the HK and UK residential market can be quite similar, such as residential unit layout, headroom, room size, window provision, bathroom design, and apartment provision. Nevertheless, there are many material differences between the two markets that demand caution. For example, the concept of “area” can be confusing from the various ways it is presented, the concept of “Air Rights” similar to that in New York City, the prevalence of historical external facades that are maintained at the owner’s expense, or lifts that may not reach your floor. One interesting thing is that the elevator may not reach your preferred floor. Also , remember the judge leading the Grenfell Tower Inquiry has ruled that the cladding installed on the tower did not comply with building regulations, finding that the polyethylene-cored panels were the “primary cause” of the rapid spread of flames. It can end your building apartment life immediately
One popular way to get into the market is via pre-sale. While pre-sale activities are increasingly common, there is little to no regulation that governs these activities. Some apartments on the market for sale may not even have “planning permission”. Hence, project delivery risks are often underestimated. Meanwhile, some projects are developed in special districts, such as “Business Regeneration Zone”, which may not be well understood by most potential buyers. Moreover, agency activities involving sales of UK property in Hong Kong may not be regulated under the HK legislative framework. Overseas buyers and investors should tread carefully and with guidance from experts.