Author: Tobi Mancuso

This has been a hectic week for Track Capital as August saw us hit our busiest sales month to date, helping investors source and purchase the ideal properties for their portfolios. We’ve had some fabulous incentives to offer on some of our most stunning developments too, and will continue working hard to find the best deals to offer our clients.

Also, we are now preparing to launch an exciting new project. More details coming soon…

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

Episode 34: Nick & Tobi Answer Your Frequently Asked Investor Questions – The latest episode of the Pure Property Podcast is out now. You can listen to it on Apple Podcasts and all other major platforms.

Remember, you can also listen to this week’s newsletter on the podcast as well.

We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.

Property news this week

• Construction Levels at Ten-Year High – The UK property market is still experiencing the effects of a changing commercial landscape that first came about at the onset of the pandemic, with sectors such as construction, retail and investment being particularly affected. Retail sales are showing strong signs of recovery as the economy gains momentum. Real estate in the industrial sector looks promising for investors as it continues to soar. The prospect for rental growth is attracting plenty of investment attention. In the fourth quarter of 2020, £4.6bn was invested in the industrial sector, and this healthy investment level is staying steady into 2021.
• Average Buy-to-Let Home Gained £15K in the Pandemic –  A research report from mortgage lender Shawbrook Bank into the effect the pandemic had on landlords has revealed that the typical rental home has increased in value by nearly 6% since March 2020. Some areas such as Scotland saw prices rise by nearly double the national average. The report also revealed that over half of landlords would have bought even without the stamp duty holiday. The data also shows that even though the average value of the rental sector has risen, the number of properties available to rent is still experiencing a shortfall.
• Far More Tenants Keep Pets than Admit it –  Online agency Intus Lettings has surveyed 500 of their registered landlords and come to the conclusion that many renters appear to keep pets regardless of whether or not they are contractually permitted to. Among the findings, a shocking number of bizarre items left by departing tenants have been reported by landlords, such as an uncaged tarantula, a donkey in the garden and even ducks in a bath. This report has spectacularly highlighted the importance of carrying out regular inspections and making sure contracts and deposit policies are crystal clear to make sure landlords have everything they need to protect their properties.
• Home Purchasing Highest Since 2007 –  Property purchase activity during the second quarter of 2021 hit its highest levels in nearly 15 years, according to the latest Household Finance Review by UK Finance. The review combined new loans issued to first-time buyers and movers and compared the total with previous years. It is suggested that strong activity was driven by the BTL market and first-time buyers who were encouraged to enter the market with the renewal of the Help to Buy equity scheme.
  The extended stamp duty holiday is also likely to be responsible for the heightened activity, along with continuances from delayed purchasing throughout the lockdowns.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.

This has been a huge week for the UK property market as capital growth hits record highs in cities such as Liverpool and Manchester. It seems that this market explosion is nowhere near finished either, making this the perfect time to invest in these promising areas, where exceptional value for money and below-market opportunities are still available.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

Episode 33: What are the 5 Most Common Investor Mistakes? – The latest episode of the Pure Property Podcast is out now. You can listen to it on Apple Podcasts and all other major platforms.

Remember, you can also listen to this week’s newsletter on the podcast as well.

We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.

Property news this week

• How UK Budget Affects Expats – The details of budget 2021 has been an area of unease for expats wondering what, if any, changes would be made to alter their earnings and financial processes. Offshore pensions for expats will remain untouched though, as there was no mention of QROPS or international SIPPS in Chancellor Rishi Sunak’s Budget 2021. Early pension access rules for savers aged 55 or older will also stay the same. Income tax will rise by £70 from April and undergo no further increases until 2026. Inheritance Tax nil-rate bands will also stay the same until April 2026. Capital Gains Tax, Savings and ISAs will all remain unchanged.
• August Release: Latest UK House Price Index Report for July 2021 – Track Capital addresses the recent UK house price index report covering July 21. Strong figures are seen across the board which indicate incredibly positive overall house price growth in the UK. According to Hometrack, the average UK house price growth is +6%. Liverpool sits at the top of the list, with outstanding growth of 9.4% reported. It is followed by Manchester at 7.7%. These fantastic growth percentages are driven by high demand and low supply for housing in many areas. Demand has increased by 21% year on year. Comparing this to the current housing stock available for sale (down 26% from 2020) it is easy to see why house prices throughout the UK are seeing such exponential rises.
• A Third of Landlords Doubt They Can Hit 2025 EPC Targets -The government’s plan to make an EPC rating ‘C’ a requirement for new tenancies by 2025 has not been well-received by landlords. A recent survey revealed that a third of landlords are unsure if they can meet the ambitious target. Many reasons were given, such as owning older properties which would cost more or even be impossible to improve to that extent. A lack of financing was also cited and concerns that a lack of return on investment would make the cost impractical. While landlords may opt to sell rather than meet new standards, the current market boom offers a great opportunity for them to simply reinvest in new developments which are already built to desirable EPC standards. This is a factor that we are seeing some of our investors consider when swaying towards our new-build and off-plan investment opportunities.
• Investor Demand for Properties Continues to Rise –  New analysis from Zoopla reveals a 21% increase in demand for properties from buy-to-let investors. It is anticipated that this strong demand for rental properties from investors will continue into the foreseeable future. Zoopla cites demand from investors, increased interest from first-time buyers and a lack of new developments to meet demand as the three pivotal reasons why the supply shortage in the sales market is currently so severe. With house prices soaring across the county, many investors are looking to areas of regeneration such as Liverpool and Manchester, which are home to new luxury developments at below-market prices, in order to make the most of the current capital growth surge.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.

This week has been a difficult one on the global stage, with news of civil and political unrest in many areas of the world. Perhaps then, it was the perfect timing for arguably one of the most relevant national awareness days of 2021: Never Give Up Day, 18th August.

Never Give Up Day is focused on cultivating a sense of inner determination, helping us to get through all of the difficult challenges that life throws our way. Celebrating the tenacity of the human spirit, this inspiring mindset can apply to every aspect of our lives.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

Episode 32: The Scottish Vs English Property Market – Featuring Chris from Portolio – The latest episode of the Pure Property Podcast is out now. You can listen to it on Apple Podcasts and all other major platforms.

I hope you are having a wonderful week. Here at Track Capital, we have been working very hard to help our investors reach their full market potential, bringing fresh new deals and incentives to the table and sourcing the highest-quality products below market value.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

• Record Investment Highs in UK Build-to-Rent Market  – UK property agent Knight Frank has reported an increase in BTR (Build-to-Rent)  investment by 79.8% for the first half of 2021 when compared with the same period last year.£2.35 billion has been invested in the BTR sector in H1 of this year alone, which is already fast approaching the £3.5bn of capital that was invested in total during 2020. Many cities have experienced huge regeneration in this sector, such as Newcastle, Leeds and Bristol. Both domestic and international investors are showing sustained interest in meeting the UK demand for more space which has emerged as a reaction to the pandemic.
• Estate Agents Trial New 5% Mortgage Product –  A new financial product is now being piloted by two prominent estate agents which will allow prospective buyers to purchase property using only a 5% deposit. Unlike previous ‘Help to Buy’ schemes, this product coined Proportunity will not be limited to first-time buyers or new home purchases. Its aim is to enable buyers to increase their market capacity by securing financing for up to six times their annual income. This new venture will come as a welcome opportunity for all those struggling to afford the ever-increasing UK property prices in the current market boom.
• Rental Prices Increase in Every Region – The Home Property website has revealed there has been a rental rise in every region across Britain, with record levels outside London, all caused by an overall lack of rental properties. Rents have increased by 3.7% on average but some areas have increased by nearly three times as much. Even the London market is now showing a reversal of the loss it undertook at the height of the pandemic, as people clambered for more space and less centrally-located homes.
• So-Called ‘Death’ of City Centre Greatly Exaggerated – CEO Bob Young at Fleet Mortgages has listened to tales of the mass city exit and emptying of city streets with a large pinch of salt. While some of this concept is undoubtedly rooted in truth, Bob points to data that paints a very different picture, where the current city centre rental yield is only 0.2% off its top performance of 2016. Despite some home-buyers and renters capitalising on new WFH structures and looking for more space outside the city, there will also be many who are happy to forego that space for the promise of bustling city life and more opportunities for work, play and study.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.

I hope you all have had a great week. Thursday marked our annual Cycle to Work Day, which has its origins nearly a decade ago encouraging workers in all areas to get pedalling and celebrate all things bicycle. With a host of benefits, from improving health and boosting wellbeing to better finances, cycling has it all. I’m sure many of us have been inspired by the Olympic games to get our own hearts racing!

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

• Colliers Calls for Council Tax Reform – Colliers has stated that the proposed reform this Autumn must include a revision of council tax if it is to be functional. Normally, business rates would add £26 billion net to the pot, which local authorities use to pay for essential local services. However, the business sector has seen huge losses due to the pandemic, worsened by the rates holiday relief cap in June. According to Colliers, the government must take a realistic approach to business rates bills and look elsewhere to cover their essential funding. They think council taxes are one thing to look at as they are calculated on the value of the property as of April 1st 1991, so haven’t been revalued for over 30 years meaning some of the richest areas in the country have the lowest council tax bills and some of the poorest areas have some of the highest. Whether this advice is heeded though, remains to be seen.
• Student Rents Soaring According to Bank Study – Data from the NatWest Student Student Living Index shows student rent has risen steeply by nearly 20% since last year, where it now sits at an average of £518pcm. While Leicester has seen the largest rental increase, London is currently the only area where student cost of living is higher than their income. Although student loans still make up the bulk of student income, savings and parental help are growing in their importance for the student budget.
• Commercial Property Showing Signs of Recovery 2021 – RICS’s most recent survey on the commercial property market suggests that over 50% of respondents believe that recovery is on the horizon. The office sector has remained stable and the industrial sector is seeing a steady rise in occupier and investor interest. However, as industrial rents are also set to rise, there may be a slowing down in this sector and an increase in rental market interest as their rental rates continue to drop.
• Taylor Wimpey Tops FTSE during UK Property Boom – After already experiencing what it has referred to as a “record first-half performance,” House Builder Taylor Wimpey has now climbed another 4.4% on the FTSE 100. With a reported revenue of £2.2billion at the beginning of July, Taylor Wimpey has increased its revenue three-fold since 2020. Despite this, shares are still trading lower than they were at the peak of 2020, reflecting the hesitancy of investors to put their trust in property development at a time of economic instability due to the pandemic.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.

This week has been a momentous one for all those invested in a greener future, with the most powerful wind turbine ever created switched on in Orkney, Scotland. This amazing project is set to generate enough energy to power 2000 homes for 15 years. Landlords are well-aware of the government’s plans to make housing more energy-efficient and will be happy to see its commitment to the environment extending to more than just boiler and insulation regulations!

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

• Controversial Pay-Per-View Company Seeking Investors – Founder of the controversial ViewRabbit company, which proposes to charge prospective buyers and tenants for viewing properties, has stated that they will soon be opening the doors to investment fundraising for their company. He hopes to attract UK-based investors but has not ruled out seeking international interest. Considering the huge shortfall in housing and subsequent high level of competition for viewings, the ethics of such a scheme, which will inevitably charge many people to view a house they will never be able to get, have to be fully scrutinised. I can’t see this taking off quickly. Would you be happy and willing to pay for a viewing?
• Could Allowing Pets Make Buy-to-Let More Successful? – Moneyfacts, a respected Buy-to-Let monitor, has suggested that landlords may be more successful in letting out and retaining tenants if they allow pets. They even suggest that extra costs such as pet-proofing properties and pet insurance may be mitigated by the benefits of letting to wider audiences and encouraging high-quality tenants to stay. However, allowing pets is not without its risks. Many landlords will know firsthand the impact even one unruly pet can have on a property and will remain unwilling to risk their time and energy fixing the damage
• Mortgage-Lending to Reach Highest Level in Over a Decade – An increase in gross mortgage lending has now been revised to  £285billion, according to the Intermediary Mortgage Lenders Association. This is a staggering £32billion more than last year and is the highest level of mortgage-lending since 2007. This is a testimony to the current strength of the UK property market. Buy-to-Let lending has also risen in the past 5 months, with 2021 predicted to be the best year for Buy-to-Let since 2016. With demand in all mortgage sectors expected to continue rising, this is a very hopeful signal of market recovery from the pandemic.
• Holiday Let Businesses Surge During Pandemic – Individuals who seek to capitalise on tax advantages for holiday lettings have resulted in a surge of holiday let businesses, which are up 83% from 2019. Those who let properties as furnished enjoy even more financial benefits. With the tax band difference between those buying in their own name and those buying through incorporated businesses being a stark 26% favouring businesses, it is unlikely that this trend of increasing holiday let businesses will cease any time soon.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.

Track Capital would like to wish all those celebrating a happy Eid Al Adha! This has been a wonderful week to celebrate with family, as temperatures continue to soar and skies are blue as far as the eye can see.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

So, here we are! At last, we have come to the end of the final week before our much-anticipated “Freedom Day” on Monday 19th July.

It is impossible to ignore the change in the atmosphere as we all look forward to seeing what life will be like on the flip side of this strange coin. It will be a new taste of freedom for many, and if we’re very lucky, could mark the beginning of the end of this unprecedented chapter in our world history.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

It has been a hot and heavy week, with all the humidity and sporadic Summer storms sweeping fitfully across much of the UK. Perhaps the weather is a reflection of the Euro 2020 games, which have certainly brought their own share of drama to the scene.

So as we anxiously await the next turn of sporting events, I’m left wondering… will Boris really cough up that extra Bank Holiday? Nonetheless, we are cheering England all the way…..it’s coming home!

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you having to click through.

• Lloyds Launches New Venture with Private Rental Debut –  Lloyds Banking Group has officially debuted the launch of its brand new residential property rental business, ‘Citra Living’. With plans to acquire more than 800 properties by the end of 2022, Lloyds insists that its objective is “not to ‘hoover up’ properties owner-occupiers would want to buy”. Instead, the banking group will be looking to acquire newly-built, good quality properties in the hopes of softening the blow that private landlords exiting the market has caused. Lloyds is not alone in taking this step. John Lewis also has plans to build at least 7000 new rental properties as it seeks new ways to expand its earning potential and recoup losses in the retail sector. It could be said that there would be less danger of risk in property investment for a big institutional investor, whose property portfolio would only ever account for a small fraction of their earnings. If that is the case, this minimisation of risk could well benefit prospective tenants, desperate for some stability after the damage caused by the recent pandemic. However, this very instability is likely to result in an avalanche of mortgage defaults as the entire economy struggles to recover. So, what could a cynical mind observe from that? Perhaps as more and more borrowers default, these big institutional investors could simply place repossessed homes directly into the rental market and start earning money from them even faster than they could have before. That being said, Lloyds has given £40bn in mortgages to first-time buyers in the past four years alone; a number to be reckoned with which surely shows a high degree of integrity towards its customers.
• Buy-to-Let Mortgage Rates Lower on Average than in 2019 – Nottingham Building Society recently revealed that 61% of landlords surveyed believed that property was a better investment on account of low interest rates for savings. Combine this with the current high demand for rental accommodation and many new investors could soon be seeking to enter the buy-to-let sector. It is certainly true that the average Buy-to-Let two-year fixed rate is lower than it was in July 2019, and that the Buy-to-Let product choice is also continuing to climb. In many ways, it seems that these changes are setting the perfect scene for investors who are interested in the UK property market. With 365 more deals available now than were recorded in July 2019, investors could now find themselves spoilt for choice when searching for the best BTL mortgage out there. Even though there are some private landlords who have decided to liquidate their assets in the wake of the pandemic, it is clear that there is still much to entice prospective landlords to increase their portfolios – or even get those first set of keys to a brand new rental property.
• How to Invest 200K in Property – £200,000 is a great amount to start off with when first entering the property market, and there are many different methods and strategies out there to help you maximise your capital and minimise risk. With this in mind, it is important to have a clear idea of your long and short-term goals, making sure the two align well with one another. This creates a clear path for you to follow when making investment choices. Two of the most lucrative property investment strategies are those of Property Development and Joint Ventures. Property Development / Refurbishment are both great options for building and diversifying your portfolio. Development generally focuses on building on a piece of land in order to raise its value. Refurbishment is comprised of purchasing a home and then making structural and cosmetic changes that increase the property’s value, often then re-selling the property for a higher sum in a move known as ‘flipping’. Joint Ventures, on the other hand, involve partnering up with one or more investors to purchase either a single property or a portfolio of homes together. This can be a great way of saving money, benefiting from another’s expertise and yielding significantly increased returns. When embarking on a Joint Venture, it is always worth clarifying the expectations of all parties to ensure that everyone understands fully what their contributions, responsibilities and profit margins are likely to be. Above all, ensure that all dealings are legally compliant and have a thought-out exit strategy to cope with unforeseen changes.
• Will UK Housing Boom Derail Post-Brexit Trade Deals? – Based on historic data, there could be reason to suspect that the incredible explosion of the UK housing market will inadvertently hamper the contribution of trade to economic growth. There may not seem to be a clear connection between the two, but 50 years of Reuters data consistently demonstrates that whenever market rises are used to boost the economy, other important areas such as Manufacturing take a noticeable dive. Part of this is because the housing market is so intrinsically linked to consumer confidence. When confidence is high, we see an overall increase in household expenditure and this naturally pushes the demand for imports. The result is a drag on the economy from net trade. Another important factor is the negative effect a property market boom has on the Manufacturing sector. Rising house prices will inevitably increase the profitability of the construction and real estate sectors. This attracts both labour and capital from higher-productivity industries such as manufacturing. Factories are often forced to increase wages simply to keep their best workers – and these increases are not backed by productivity gains, which makes them less competitive. All these factors point to an economical phenomenon known colloquially as “Dutch Disease,” whereby a booming sector diminishes resources from other sectors to the detriment of the overall economy. Policy-makers are longing for a rebalancing of the market to put an end to this alarming trend. However, with homeowners being so prominent on the voting front, it remains to be seen whether the government will shake off the old patterns and steer the country in a new direction, or if it is destined to repeat the mistakes of the past?
• Fire-Safe Cladding Funds: A Catalyst for Change in Construction – Just over five years ago, the tragedy of the Grenfell Tower fire rocked not only London but the entire UK. On that day, Seventy-two people perished in a fire caused initially by a faulty fridge-freezer, but – more importantly – became immeasurably more devastating due to the highly flammable cladding that cloaked the building’s exterior.
  The lessons learned from this heartbreaking event will be permanently felt and have lasting effects on policies for both the construction and property industries. The UK government has now funded an initiative that finally pushes property owners to invest in fire-safe cladding on high-rise buildings. This is a much-needed move, but not the only change that needs to take place. Preventing another similar disaster requires putting health and safety as a fundamental priority, with the construction industry taking much more responsibility for the type and origin of materials used for commercial buildings. Residential development companies also have a duty of care to ensure that strict health and safety standards are adhered to, with any sub-standard materials removed from the property with immediate effect. State-of-the-art software such as IconSystem by Elecosoft enables property owners and companies to have instant access to the construction materials used in their buildings. This innovation could prove life-saving by making information and thus accountability much more transparent. This will make adhering to best-practice construction methods a much simpler task going forward. However, all the government funding and software development combined will not be able to rescue this situation or prevent further tragedies. More, it is people’s mindsets that need to change, creating a social consciousness of safety needs – and the ultimate immeasurable value of human life.

That is all we have for you this week. If you have any comments or questions on this week’s news summary then please feel free to send us an email at [email protected]  – if not, see you next week.