Category: Weekly News

CategoriesWeekly News

Weekly Property News Round Up – 29.11.21

By Tobi Mancuso,

It has been an exciting week here at Track Capital as we launched our latest product, guaranteed to save investors thousands and fulfil many landlord dreams of increasing and diversifying their portfolios without breaking the bank.

The Help to Invest Scheme is a game-changing opportunity to invest in a high-quality development with just a 5% deposit – with a projected ROI of 277% and the ability to permanently keep 100% of your rental income. Contact us to find out more!

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 37 – To Self-Manage or Not to Self-Manage – That is the Question??? – 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

  • ARLA Propertymark Calls for More Support for Landlords – In the past few years, an avalanche of new regulations restricting the earning potential of the private rental sector has resulted in Propertymark calling strongly for more support for landlords. It is becoming increasingly more difficult for many landlords to keep up with the constant governmental demands, which risk not only driving landlords out of the sector and thus reducing available housing, but also putting financial pressure on tenants who will be forced to pay the ultimate price for continually increased costs for landlords. Propertymark would like to see the government give positive reinforcement to a necessary sector that provides housing to the growing number of people who cannot afford to own their own homes.

 

  • New Carbon Monoxide Laws for Private Rented Sector – In yet another move to improve the condition of housing in the private rented sector, Housing Minister Eddie Hughes MP announced this week that Carbon Monoxide alarms must now be fitted in all rented accommodation.
    This means that it will now be illegal for housing providers to fail to install smoke alarms in social and private housing and that it is mandatory for carbon monoxide alarms to be fitted in social and private rented properties containing fixed appliances like gas boilers or fires. The new regulation stipulates that Carbon Monoxide alarms must be installed whenever new appliances such as gas boilers or fires are fitted into any home. Landlords and housing providers in social and private rented sectors will also be obligated to repair or replace faulty smoke and Carbon Monoxide alarms as soon as they are informed of a malfunction.

 

  • Investors Swapping to Property from Cryptocurrency Gains – A recent survey led by Sequire has revealed a notable proportion of UK investors who benefited from profits gained in cryptocurrency are now removing their funds in order to put their profits into the buy-to-let sector. Although a reported 85% of crypto investors have confirmed that they ‘hodi’ coins and stay invested in cryptocurrency, 15% remove profits earned in order to transfer it to the perceived ‘more stable’ real estate. Currently, property comes in just behind stocks and shares for the title of most popular crypto investment asset. This year has seen popular coins such as Bitcoin and Dogecoin achieve record gains.

 

  • Pros and Cons to Off-Plan Real Estate in Dubai – Off-plan purchasing is a very popular and money-saving technique in Dubai real estate. Although there is always a chance that a slumping market will result in properties losing value as they complete, it is far more common for an off-plan property to cost less during the build than it does to buy the finished product. This frequently results in immediate capital appreciation upon completion. Dubai is well-known for its calibre of high-quality developers, with many focusing their efforts on the most popular areas. The high demand for renting there often results in a quick return on initial capital for investors, where ROI can reach a very healthy 12-15% per year. The Dubai property market is set up for investors, with a fast turnover of deals, responsive developers and bespoke payment plans available. Significant government backing for real estate in Dubai affords buyers a great deal of protection and confidence. Incentives for completing developments and progressive regulations assure a continually high finish in off-plan properties.

     

    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.

CategoriesWeekly News

Weekly Property News Round-Up – 19.11.21

By Tobi Mancuso,

This week at Track Capital, we have been discussing an exciting new investment product soon to become available with us. We anticipate that it will be a game-changer for many investors who so far have not built up enough funds to put down a deposit.

If you are interested in finding a way to invest for less and maximise returns, reply to this email for more information.

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 37: To Self-Manage or Not Self-Manage – That is the Question??? – 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
  • Commercial Property Market Enters Recovery – It has been a difficult time for the Commercial property sector, between lockdowns forcing shop closures and the continuance of many office employees working from home. Thankfully, it has now reached a point of stabilisation, if not full recovery. Once again collecting 100% of office rents, British Land is now finally back in profit, reporting the largest amount of workplace leasing in ten years. However, this recovery has been very uneven, with some shops and offices closing their doors permanently while others are not just stabilising but flourishing as the effects of the pandemic continue to wane. 
  • Government Learns How to Stimulate BTL Market – Paragon Bank’s analysis of industry data has revealed the efficacy of the government-backed stamp duty holiday for encouraging growth in the buy to let sector. When comparing the number of properties purchased during the holiday with those purchased at regular rates, results showed an increase of purchases by 52% in London alone. Other regions were not far behind this percentage, proving the overall value in tax relief schemes like the Stamp Duty holiday for future occasions where the government aims to give any sector a boost. 
  • UK Rents Predicted to Rise 4.5% in 2022 – Zoopla has released the latest UK Rental Market report, with results showcasing the increase in demand especially in and around city centres as ‘normal life’ begins to resume. The data indicates that average UK rents increased by 4.6% year-on-year by the end of September, putting them at the highest rate in nearly 15 years. Continued widening of the supply and demand gap is predicted to further this trend into 2022, with rents anticipated to grow again by 4.5% next year. This has far-reaching implications for all parties involved, with renters experiencing increased difficulty in finding affordable housing.
  • Dubai Property Market Rebounds with Record Sales – Until recently, an imbalance in supply and demand in the Dubai property sector fuelled by pandemic-related factors led to a steep drop in property prices across the region. However, in a move that has shocked developers, the Dubai market has experienced a dramatic and sustained recovery. House prices are now rising at a rate not seen since February 2015, with a 77% increase in transactions in August year-on-year. This huge boost to the sector has resulted in Emaar Properties reporting record sales to the tune of $7.2 billion from Jan-Sept this year. in Dubai’s property market has helped its biggest property developer to report its highest-ever sales.

 

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.

 

CategoriesWeekly News

Weekly Property News Round-Up – 12.11.21

By Tobi Mancuso,

I hope you have had a fantastic week. We have been keeping our eye on the property market statistics as they continue to explode up and down the country.

It’s important to know that there are incredible deals to be found in any market, no matter how hot. Remember that exploring options outside of your comfort zone with the help of a trusted expert in the sector can yield you some surprising results.

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 37: To Self-Manage or Not Self-Manage – That is the Question??? – 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
  • International Investors Boosting Dubai Property Market – Developers at Cityscape Global have confirmed that International investors played a crucial part in boosting Dubai’s property market this year. Their running consensus is that Dubai’s swift and decisive handling of the Covid-19 pandemic, with no draconian-style lockdown and firmer implementation of precautionary measures, has made more people than ever consider Dubai as a good place to live, work and raise a family. CEO of Azizi Developments remarked that cities that thrived during Covid times will now benefit from strong foreign investment interest. Indeed, statistics show that most sales are coming from overseas. Cityscape Global is the UAE’s biggest real estate exhibition, where developments such as Sobha Realty’s newly-launched Waves Grande are proving particularly attractive to overseas investors.
  • Landlords Prepared for New Energy Rules – Specialist Savings and Lending bank Shawbrook has commented that landlords are already reacting to the energy efficiency rules set to come into play in 2025. Once implemented, properties with an EPC rating of D or lower will be deemed unfit for tenants. Data reveals that 17% of landlords have already taken steps to improve their property’s energy efficiency rating, with 22% of portfolio landlords also having done so. A more energy-efficient home is an attractive feature for prospective tenants, with a significant number being happy to pay more for this, especially as it may save them money on their energy bills. The downside of this, besides the initial cost of improving properties, is that older properties may prove difficult or even impossible to bring up to code. This could result in some properties being essentially ‘unrentable’ and ‘unsellable’.
  • Councils Accused of Failing to Take Action on Rogue Landlords – The National Residential Landlords Association has issued a warning to English councils over their failure to take action against rogue landlords as data shows that over the past 3 years, two-thirds of English councils have prosecuted zero landlords for offences related to standards in, or the management of private rented housing. The NRLA has told councils that a failure to take action against the criminal minority destroys the sector’s reputation and risks weakening any further reform within the sector. Of those councils who responded, it was revealed that only 937 successful prosecutions of criminal landlords had taken place over the past three years, as the government estimated in 2015 that there may have been some 10,500 rogue landlords in operation. 
  • UK House Prices Soar over Falling Supply – A lack of housing supply has caused UK house prices to skyrocket in October 2021, according to a RICS UK residential market survey. In the survey, 70% of respondents observed a marked increase in property prices, with this unsettling trend predicted to continue for at least the next three months, and very possibly into 2022. Even though there had been a 10% increase in the number of new enquiries, estate agents still have a low average of 37 properties on their books at any one time. The report also revealed that 20% of contributors reported a fall in the number of new properties being listed for sale. It is becoming apparent that any monetary relief provided by the Stamp Duty holiday is being quickly eaten up by these inflated house prices.

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.

 

CategoriesWeekly News

Weekly Property News Round-Up – 05.11.21

By Tobi Mancuso,

This week we are pleased to announce that the popular UK real estate news channel PropertyWire has welcomed Track Capital’s own Founder and Director, Nick Hyland, to give his thoughts on the best UK cities for Buy-to-Let as post-pandemic recovery begins to unfold and the market continues to be red-hot for investors and home-buyers alike.

The article gives a full overview of the current BTL market prospects for major UK cities and is a great resource if you are wondering where best to invest for Buy-to-Let properties.

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 35: Dubai and Track Capital Sneak Peek – 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
  • UK House Prices Hit Another Staggering Record High – The latest Halifax House Price Index data reveals that October saw the average UK property price hit a record high of £270,027 which is a month-on-month increase of over £2,500 per property. This now puts the annual inflation rate at 8.1% across the UK – the highest level seen since June. The stamp duty holiday and a “race for space” have been cited as some of the key factors in property prices rising. Since April 2020, the average property value has increased by 13.2% – That’s an increase of over £31K per property. It is anticipated that the Bank of England will inevitably raise rates, perhaps as soon as next month, with further rises expected in 2022. The housing demand is predicted to cool as borrowing costs increase slightly, but the inability to successfully raise a deposit will still be the biggest limiting factor to many.

  • Student Lettings Sector Booms as In-Person Attendance Resumes – The Deposit Protection Service has revealed that 25% more student deposits were registered between 01/08 – 26/10, suggesting that more students resumed university lessons in-person this year when compared with 2020. This is undoubtedly connected with the effects of the pandemic and the resulting restrictions on public services. For deposit registrations across England and Wales, August 2021 was the busiest month ever recorded. It was also the sixth month in a row for deposit registrations in student areas to be higher than those of their corresponding months in 2020.

  • UK Construction Activity Continues to Accelerate – Data from the IHS Markit/ CIPS UK Construction Activity Index shows that in October, house building outperformed commercial work as the best performing category in the sector. After September hit Construction’s lowest point in eight months, October’s data comes as a relief to those operating in the sector and suggests a ‘robust and accelerated rise in output volumes.’ Q1 2021 saw the construction industry face problems of severe shortages of staff and materials. Although there have been improvements, issues stemming from driver shortages and shipping congestion have not been fully resolved. Despite this, the short term forecast for construction growth remains positive with further growth expected moving into 2022.

  • Dubai Records AED 1.1 Billion-Worth of Realty Transactions –  The Dubai Land Department has reported that on the 3rd of October, Dubai’s real estate market recorded a total of 343 sales transactions collectively worth AED862.73 million. Mortgage deals of AED168.87 million were also recorded, with 13 gift transactions totalling AED72.7 million.
    The sales consisted of 314 villas and apartments worth AED645.92 million, with 29 land plot sales totalling AED 216.81 million. Mortgage transactions covered 52 villas & apartments worth AED123.74 million and 10 land plots that were valued at AED45.14 million. In total, realty transactions of Wednesday reached AED1.1 bn.

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.

 

CategoriesWeekly News

Weekly Property News Round Up – 10.16.21

By Tobi Mancuso,

We had some incredible feedback from last week’s post where we asked subscribers to contact us with their questions on property investment.

We found that many of the questions received were around Purpose Built Student Accommodation. This is a lesser-known investment option that comes with some significant perks, including no stamp duty to pay and higher than average guaranteed yields.

If you are interested in learning more about PBSA’s, you may find this article helpful. And, as always, feel free to contact us with any questions.

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 35: Dubai and Track Capital Sneak Peek – 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
  • Investors Very Keen on Dubai Real Estate – Real estate deals in Dubai have reached record heights according to the chief commercial director and co-founder of Footprint Real Estate. With a recent shift in buyer focus toward a better quality of living, combined with Dubai’s attractive flexible regulations on foreign ownership, more investors have their eye on Dubai than ever before. The economic prospects in Dubai remain strong and bolster its position as a worldwide business epicentre. The anticipation for Expo 2020 is high as the event is expected to gather investors and potential real estate owners together in an exciting hub of lucrative property-based activity.
  • Manchester Economy Gets £2m-Per-Week Boost from New Development – 520 new homes are set to be delivered with New Victoria, an up-and-coming Manchester development designed to regenerate a crucial section of the city centre. The development will employ some 550 people throughout construction and is intended to contain more than 450m2 of new landscaped public space for people to enjoy, which is the first green space in the area since the 1920s. This award-winning development is worth £130 million and is expected to generate a revenue of £2 million per week for Manchester City.
  • UK’s Global Investment Summit Approaches – Later this month, the Prime Minister will welcome global business leaders to the UK’s Global Investment Summit. World-renowned guest speakers at the Summit will discuss the leading role the UK has had in the area of life sciences, which will no doubt include the success of the Covid-19 vaccine roll-out. Promoting a greener agenda, honoured guest speakers will address opportunities for countrywide eco-friendly investment. Sponsoring this event is Accenture, a global innovator in state-of-the-art technology for businesses, partnering with the UK Government to help highlight the many exciting opportunities in the UK.
  • Government Showing Support for Home Ownership – Newly-appointed Secretary of State Michael Gove has reiterated the 2019 vow to place homeownership as one of their fundamental values as this week the government has pledged nearly £58m to councils for the investment in new homes on brownfield land. The goal of this is to help more people become homeowners and give much-needed regeneration to local areas. One key aspect of the plan is to reinvigorate run-down and neglected sites, turning them into active communities where people can live and work. Another excellent part of this initiative is to protect the countryside and open greenery while securing a further 5600 new homes in the area.

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.

CategoriesWeekly News

Weekly Property News Round Up – 09.10.21

By Tobi Mancuso,

I hope you’ve had a happy and productive start to the final quarter of 2021. We at Track Capital would like to pose a question to you today:

When it comes to property investment, what have you always wondered about?

Perhaps you’ve always wondered about why some properties are cash-only, or what the smallest amount you could potentially use to invest is? Maybe you’re not sure whether you could invest overseas or want to know more about how due diligence is performed on off-plan developments.

Whatever your question, we would love to have a chat with you to fill in the gaps and share our knowledge. Contact us here or simply reply to this email and we’ll be in touch with you shortly.

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

  • Rental Demand in Cities Rises by 9.9% – Estate Agent Barrows and Forrester have revealed that rental demand has increased by 9.9%. This comes from the data analysis of 23 prominent UK cities. This news is sure to be an especially welcome relief for inner-city landlords who struggled to find renters during the pandemic. The increase in rent demand is a good sign that the country is once again starting to stabilise. Some of the biggest rental demand increases have been seen in Cardiff, Bristol, Manchester and Birmingham
  • Dubai Real Estate Now Hits Dh 1billion Mark – Dubai has just hit its best September in eight years for property transactions, with 5,762 worth Dh16.2 billion recorded. 44% of these were for off-plan properties, which are gaining significant interest from investors. This exceptional growth can be attributed to a wide pool of international investors in the Dubai market. The UAE’s excellent handling of the pandemic has resulted in steady market growth since the end of 2020, with the upcoming Expo 2020 anticipated to drive further interest as it attracts millions of investors worldwide.
  • The Secret Billionaire UK Property Owners – Details have emerged from a BBC investigation and have been made public in the Pandora Papers leak that owners of over 1.5K UK properties have purchased these using offshore firms in an effort to shroud their identities. Collectively, these properties are worth an estimated £4bn and the beneficiaries range from high-profile foreign officials to individuals accused of corruption. Although ministers are now calling for a crackdown on cases such as these, where the risk of tax evasion and money laundering is highly probable, they are not the first of Conservative governments to promise legislation strict and open enough to make this a reality.
    • Biggest UK House Price Jump Since 2007 –  After the lifting of the first lockdown, the UK housing market experienced a dramatic rise as WFH buyers searched for larger properties, a move propelled by the SDLT holiday which ended only last month. As a result of this, by September 2021, UK house prices had grown by the most in nearly 15 years and according to Halifax, this trend is not expected to slow down 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.

CategoriesWeekly News

Weekly Property News Round Up – 02.10.21

By Tobi Mancuso,

I hope you’ve had a great week and managed to stay somewhat dry! As we enter into the final quarter of 2021, we have been looking back at the vast changes the property sector has undergone in the course of this turbulent year. From significant changes to landlord regulations to soaring UK-wide capital growth, no one can say it has been a smooth ride.

If you are wondering which property investment type is best suited to your current situation, click here to take a closer look at a selection of asset classes.

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
  • BTL Mortgage Rates Lowest Since January – The average 2 and 5 year fixed BTL mortgage rates have now dropped to their lowest point since January. This news will be encouraging for landlords who are scouring the market for BTL mortgage deals. Now sitting at 2.94% for an average two year fixed BTL mortgage deal and 2.35% for an average five year fixed, many landlords will be considering this as a great time to expand their portfolio or enter the sector for the first time.
  • UK Economy Recovered More Than Expected in Q2 –  In the second quarter of 2022, Britain’s economy grew by more than had been estimated. This growth continued until recently when pressure on the overall economy resulted in a sharp slowdown. Factors such as the national truck driver shortage have been implicated in this sudden downturn.
    The ONS has adjusted its data to reflect these changes and as such,
    Britain is no longer rated as the lowest-performing economy among Group of Seven developed countries. The picture painted for Britain is one of exceptional bounceback from the pandemic, only for momentum to be lost at the last hurdle as supply issues put a strain on recovery.
  • House Prices and Rents Predicted to Keep Rising in 2022 –  According to this article, house prices are predicted to carry on rising well into 2022, albeit at a slower pace than the exponential market explosion seen this year. Factors that are still likely to drive house prices include a notable lack of supply in the UK. A shortfall of labour and difficulty delivering building materials due to logistics disruptions are also expected to push house prices up. This will have a knock-on effect on rental prices as landlords increase rent averages in order to cover larger mortgages. This will put more pressure on those in the rental market already struggling with recent cuts to benefits and increasing energy costs.
  • How Build-to-Rent Boom Will Impact Property Market – First launched in 2016. the Build-to-Rent sector is the industry of one single landlord building and owning a 50+ new apartment block developments. Although this is currently a small niche in the market, commercial giants such as Lloyds Bank and John Lewis have now launched aggressive moves into this sector. Although these companies are adamant that adding new properties in areas of high demand can only be a good thing for renters, there are fears that big businesses could create a monopoly on available homes and subject renters to hiked rental costs with no suitable alternatives available.

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.

 

CategoriesWeekly News

Weekly Property News Round Up – 27.09.21

By Tobi Mancuso,

We’ve just touched down on the familiar damp of British soil again after returning from our company trip to Dubai. It’s been a week filled with site viewings, spectacular sunsets and conversations with some world-class developers – We really hope that in the coming weeks you’ll be as blown away by these exciting new projects as we were!

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

  • Renewed Interest from China in UK Property Market – The Chief Executive of Chinese Planning and Marketing Consultancy has stated that the UK property market is experiencing renewed interest from China after restrictions designed to cool their own market have resulted in a slowing down of capital growth. It has been essential for Chinese municipalities to put a damper on property investment since many areas have seen drastic increases of over 50% in house prices in less than 5 years. The response to the enforced slow down of their own market is that more Chinese investment focus has migrated overseas to UK property offering them better returns.
  • 25th Anniversary of the BTL Mortgage – 24th September 2021 marks the official 25th anniversary of the buy-to-let mortgage for landlords in the UK. First offered in 1996 by only a small selection of lenders, the inception of the BTL mortgage made groundbreaking advancements in helping investors match the growing tenant demand and fill the shortage of homes at a time of recession in the UK housing market. In the past 20 years, the buy-to-let market has made massive leaps, with the Private Rental Sector nearly doubling in size.
  • More Expat British Landlords Admit Tax Evasion  – In a shocking revelation shared with City A.M, 248 overseas investors who own BTL UK property confessed to the HMRC that they had consciously evaded tax.
    This data has been shared by the accountancy firm UHY Hacker Young. The firm discovered that the majority of those culpable were UK ex-pats living abroad as opposed to foreign investors. In a campaign called ‘Let Property’ the HMRC sent warning letters to those investors it believed to have underpaid their taxes, offering them 90 days to register the correct amount owed or face a full investigation.
  • Bank of England Holds Back on Interest Rate Changes – The Bank of England committee is fully aware that the economy cannot carry on using “cheap money” or risk future inflation rising to an uncontrollable level with no money for emergencies. That being said, a rise in interest rate at this time could spell disaster for many borrowers. UK consumers have already seen retail prices inflate and are now being told energy prices are set to soar. The current supply crisis is also putting further strain on the economy. However, an increased interest rate at this point could cause many borrowers to spiral into further debt. Already consumers have been faced with rising prices in the shops, but now energy prices are also being hiked and rental prices are increasing across the UK. Considering all these factors, it is likely that most committee members will leave making a firm decision on BoE interest rates until well into next year.

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.

CategoriesWeekly News

Weekly Property News Round Up – 19.09.21

By Tobi Mancuso,

I hope you’ve had a wonderful week. It has been full of excitement for us at Track Capital as we finalise our preparations to travel to Dubai and meet with property developers for our latest project launch, Emaar Beachfront.

Get involved in our plans too, by joining us at The Property Show in Knightsbridge, London on 2nd and 3rd October. Held at the Jumeirah Carlton Hotel from 10am to 10pm, this free event will teach you everything you need to know about investing in Dubai.

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

  • In the Past Year, Homesellers have Significantly Profited – The latest research from Savills and data recorded by the Land Registry suggests that property sellers in England and Wales made an average capital gain of just over £110K in the past year, which was a year-on-year profit increase of £15,587. The steepest increase was recorded from owners selling between the three and seven-year period of their ownership, at 38.3%. The region with the biggest gains year-on-year was the South East, with sellers profiting an average of £141K from their house sales. The Stamp Duty tax break and “race for space” market trend are likely factors in these exponential profits.
  • Landlords Selling Up Causes Stock Concerns for Estate Agents – The most recent State of the Lettings Industry report from Goodlord and Vouch suggests that one-third of surveyed estate agents are concerned about a current marked lack in stock and therefore listings. 83% of those surveyed reported that some of their landlords were leaving the sector, and 64% believe this concerning observation will continue into 2022. With increasing regulations restricting both capital gains and net yield, many landlords appear prompted to reduce or dissolve their portfolios. This restriction in supply will be good news to landlords holding their rental properties as the further stock restriction will be sure to see a continuation of rental price increases.
  • Average Age of First-Time Buyers is Now Thirty-Five  –  According to insurance giant Compare the Market, the average age of a first–time buyer in London has now reached 35, with the average across the rest of England approaching the same age. Even more alarming is the prediction that by 2031, the majority of first-time buyers may not see the inside of their first property until the age of 37.
    The head of home insurance at comparethemarket.com Chris King, has observed that despite all of this, buying habits do not appear to have adjusted as one might predict.
  • Michael Gove Becomes New Housing Secretary – A new juggling of positions within government has revealed that Mr Gove has now taken the place of Mr Jenrick in the top position of Housing Secretary at the Ministry of Housing. Since February 2020, Mr Gove has been working as the Cabinet Office Minister. Mr Gove has already gained previous experience in this new role between 2005-2007 when he acted as a shadow housing minister. It is hoped he will use this experience to improve processes within the Housing Sector.

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.

CategoriesWeekly News

Weekly Property News Round Up – 11.09.21

By Tobi Mancuso,

I hope you have had a great week. Here at Track Capital, we have been discussing the variety of investment plans available for those seeking to enter the market or diversify their portfolio. Whether you’re wondering about how best to invest your capital or what attraction Purpose-Built Student Accommodation may hold, our podcast and blog posts hold a wealth of information at your fingertips, ready to explore.

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.

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Property news this week

  • Few Tenants Feel Pandemic will Affect Rent Payments – A report released by Goodlord’s surveying 1,750 tenants has revealed that only 6% are concerned that the pandemic could impact their ability to pay rent. According to the same survey, reports of an increase in the number of rental arrears this past year has actually halved among lettings professionals, dropping from 64% to 32%.14% of lettings professionals reported a decrease in arrears. The most prevalent issue appears to be a pervasive lack of stock, with over 50% of agents revealing a 5% loss of their landlords in the past year. 64% of agents believe this situation will worsen, creating a wider gap in the market. This situation will likely continue to put upwards pressure on rental prices.
  • UK House Prices Jump as Market Strength Persists –  As reported in a recent survey from Halifax, British house prices rose sharply in August by 0.7% – the biggest rise in 3 months. This paints a picture of strong momentum in the market that hasn’t been slowed by the partial withdrawal of tax breaks on property purchases. When the year-long stamp duty exemption for the first £500K of a house purchase ended in July for residents in England and Northern Ireland, property purchases slumped.
    However, other sources show that the momentary slump is unlikely to result in a long term drop in house purchases.
  • Boris Johnson Unveils Shock Dividend Tax Increase – In a shocking revelation, Boris Johnson has revealed plans for a sharp increase in dividend tax in the contractor sector by 1.25%. This has come out of the blue and even caught experts off-guard as the increase had only been expected to affect NICs. Boris remained unyielding as he insisted that all three HMRC payments can expect a new, UK-wide ‘Health and Social Care Levy,’ resulting in higher tax bills for both umbrella and PSC contractors. This effectively means that owners and contractors of companies will have to contribute to the Care Levy regardless of whether they choose to take dividends or a salary.
  • Buy to Let Market Rising – Should You Invest? –  A new report by Shawbrook Bank has reported that as rents increase across the country and mortgage rates fall, Landlords are becoming more confident about expanding their portfolios. The report also found that investors are focussing on properties with gardens and more living space in order to attract tenants. New research by Shawbrook Bank revealed that 34% of landlords are looking to expand their portfolios in the coming year, with 10% interested in diversifying by investing in a different area from that of their current properties. These plans may be fuelled by changes in tenant priorities since the onset of 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.

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