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Weekly Property News Round Up – 25.07.20

This week we saw a positive report from Rightmove which is one of the UK’s leading property portals. There are some very encouraging figures which help solidify our recent views that the property market is incredibly strong at the moment. The average asking price of property coming to the market in Britain hit a record this month with a 2.4% (£7,640) increase in comparison to March pre-lockdown and a 3.7% annual rate of increase is the highest since December 2016. Buyer enquires are up 75% year-on-year in Britain since the start of July and Rightmove reports that 44% of new properties that came on the market in May after the English market re-opened are now ‘sale agreed’.

Miles Shipside, Rightmove director and housing market analyst comments: “The busy until interrupted spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown.

These figures are the earliest indicator of house price trends. They show on average prices gently rising not falling, and this will be reflected in the coming months in other house price reports.”

Overall, it seems that the property market is fully moving again and the future trend looks promising so far. You can view the data and report here.

Property news this week

  • New tenancies are now almost back to pre-pandemic levels– Due to the pandemic we saw Q2 2020 figures for tenants moving drop by 32%. However, according to the Deposit Protection Service (The DPS) June saw a swift recovery which means tenants are on the move again. Good news for landlords that are purchasing a buy-to-let and/or looking to list their property for rent.
  • What do you need to think about when analysing a new property deal?– This is a brilliant article and is something we like to run through with all our clients. We think it is very important to do this so you can mitigate risk as much as possible. A lot of people think that you just look at the cost of the deposit or the cost of the property as a whole but there is so much more. Check this article out so you can give yourself a great understanding of what to look for. We like to do this for our clients but there may be some investments you might source on your own or there may be some companies that do not cover this for you and expect you to do it all yourself.
  • Boost for London tenants as rental prices nosedive– It seems that an oversupply of properties and reduced demand may have caused a dip in rental prices in London. The recent data released by Rightmove shows London’s rental asking prices drop 2.8% between April and June. Interestingly, Rightmove suggests that the reason for this is an oversupply of long-term rental properties diluting the market. The surge in long-term rental supply seems to be because landlords using their properties for short-term holiday lets via Airbnb have had to make the temporary switch to finding long-term tenants. So not as doom and gloom as the title may indicate as the data would suggest that this is just temporary until short-term lets get back on track.
  • New figures offer hope to UK construction – Positivity for the construction industry following the impact that COVID-19 initially looked to take on it. The industry analyst Barbour ABI reports that the number of construction contracts awarded in the UK rose by over 81% in June with contractors signing contracts amounting to €2.42 billion based on a 3-month rolling average. The report shows London leading the way with 21.6% of all contracts in June followed by the South East with 16.4% and then the North West with 13.6%. The single largest contract went the infrastructure sector with Gatwick Airport’s railway station refurbishment valued at approximately €165 million. Barbour ABI said the growth in contract numbers represents an improvement in conditions, as the UK emerges from its coronavirus lockdown status.

Get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.

Social Links for regular news: Facebook | Twitter | LinkedIn Team Track Capital

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CategoriesWeekly News

Weekly Property News Round Up – 17.07.20

Let’s take a look at the media headlines that we have found insightful this week:
  • Liverpool remains top for BTL yields– Great news for our investors purchasing or considering our Kingsway Square and 19 Keel Wharf investments with Liverpool at the top of Totally Money’s buy-to-let yield map with the L1 postcode and 5 other postcodes also making it into the top 25. Liverpool really has an impressive case for property investment and this further strengthens the argument of why it should be considered for your next investment area. If you look at the table as a whole, it suggests that the North East is where you should be heading for strong yields.
  • Lenders predict improving higher LTV availability in Q3– The Bank of England Credit Conditions Survey has reported that lenders expect all measures of mortgage lending to improve in the next three months. Unsurprisingly they reported a decline in Q2 which is, of course, the effects of the pandemic but it seems that the professionals are confident of a market boost on the horizon.
  • Universities see record applications in lockdown – It is great news for investors in the student sector as it is the first time that more than four out of 10 students (40.5%) had applied by 30 June to go to university. The figure last year was 38.9%. This could be down to the uncertainty of available jobs meaning students feel more secure knowing they can go into higher education while the economy gets fully back on track.
  • China’s June property investment accelerates, home prices pick up– Not directly related to the UK property market, but China’s real estate investment in June rose 8.5% on year and home prices expanded 4.9%. The interesting thing about this data is that the government in China has been taking measures to encourage people to purchase property such as boosting credit and cutting interest rates which have seen a rebound in mortgages and consumer loans. We could liken this to that of our English government and the measures they have taken to help the property market here such as the stamp duty holiday and interest rates being cut.

Not necessarily worthy of a place in our headlines above but an article we thought could be an interesting read for you. It is one about how the mega-wealthy do property investing and the article shows John Terry’s lavish property portfolio including a £16m mansion with a £150k golf course. It is incredible to see the money he has made in from property over the years and a development project he has coming up.

That’s it for this week, get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.

Social Links for regular news: Facebook | Twitter | LinkedIn Team Track Capital

Property News
CategoriesWeekly News

Weekly Property News Round Up – 10.07.20

It’s that time of the week where we bring you a round-up of the head-turning headlines that caught our attention and this week the main one that had our head on a swivel was the Chancellors announcement of a Stamp Duty Holiday up to £500,000 until March 31st 2021, which is excellent news for the property market.

What does this mean for investors? The 3% surcharge will still apply to investors and 2nd home purchasers, however, the extra stamp duty you would usually pay up to £500,000 is waivered saving money on purchases over £125,000.

For example, if you purchased a property for £250,000 without the stamp duty holiday then the stamp duty would be £10,000. The breakdown demonstrated below:

SDLT 1

If you purchased a property for £250,000 with the stamp duty holiday then the stamp duty would be £7,500, saving you £2,500. The breakdown demonstrated below:

SDLT 2

According to estate agent Barrows and Forrester, there will be an average saving of £2,465 on purchases in England and it seems that London is set to save much more due to the higher prices with the average London stamp duty savings being £14,290. This could be the catalyst the London property market has been waiting for.

This is sure to boost property market activity and there are already reports of a surge in enquiries for buying and selling. The UK government has recognised that the property market is such an important cog in the economy and this is a sure-fire way of them keeping it moving.

Well, that is the main property news that has taken much of our attention so now onto the rest of the news that may have been overshadowed by the Chancellors announcement.

Property news this week
 
  • BTL landlords will benefit from £2bn home insulation scheme – Due to the SDLT announcement, this new incentive which will see homeowners receive vouchers of up to £5,000 (with the poorest getting up to £10,000) has largely been swept aside and gone unnoticed by many even though it was announced at the same time. This is good news for landlords and investors of older properties as from September ‘homeowners and landlords can apply for vouchers to help to fund energy-saving home improvements, an amount which the chancellor estimates will cover up to two-thirds of costs per household’. This is worth looking into if you think your property would benefit.
  • Rise in UK construction output indicates ‘sector’s increasing health’ – June has seen a sharp turnaround in the performance of the UK construction sector due to the phased restart of work on sites. Housebuilders accounted for the bulk of the uplift in construction after the PMI construction survey found that 46% of firms reported an increase in business. New orders stabilised and purchasing activity expanded at the fastest rate since 2015. This is very promising to see and it looks set to continue which will further boost the economy.
  • Rightmove records busiest day ever as demand surges – There is no surprise when reading this headline as this was the desired effect of the Chancellors SDLT holiday. Following the announcement, Rightmove attracted 8.5 million visits which surpassed the 7.7 million record that was set the previous day. Rightmove also recorded the number of people phoning and emailing estate agents about property for sale hit a new record on Wednesday, up 1% on the previous record set on 11th June. This surge in demand is set to continue and it will be interesting to see what part this will play on property prices, especially in areas that have had slower growth due to the higher property values.
  • What property pros are saying about the impact of COVID-19 – This is a good insight into how other property professionals are viewing the market and effects of the current pandemic. At Track Capital we are always liaising with industry professionals from all parts of the property sector which helps us form a great overall perspective of the market so this article is a great read if you would like to catch a glimpse of what others are experiencing.  

In light of the SDLT holiday announcement, we thought it would be great to leave you with a handy tool to enable you to easily see how much stamp duty you would have to pay on a property purchase. This SDLT Calculator is via the gov website and easy to use.

That’s it for this week, get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.

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Team Track Capital

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CategoriesWeekly News

Weekly Property News Round Up – 03.07.20

This was the week that we saw PM Boris Johnson announce that Britain must ‘build, build, build’ to bounce back from the coronavirus crisis. The property industry can definitely have a skip in its step knowing that the PM is fully behind it as he sets out his recovery plan with building homes and infrastructure at the forefront of his operation. These plans and the promised £5bn for it will no doubt have a positive impact on the overall property market and hopefully help generate jobs and money for the economy along with new homes to help ease the ever building demand.

The reforms that the PM announced are the most radical to the planning system since the Second World War which will make it easier to build better homes where people want to live. New regulations will give greater freedom for buildings and land in our town centres to change use without planning permission and create new homes from the regeneration of vacant and redundant buildings.

Overall, removing a lot of the frustrating and sometimes unnecessary red tape will be great news for builders and developers alike.

So let’s take a look at the media headlines that we have caught our eye this week:

Property news this week
 
  • Buy-to-let landlords shift from risk management to portfolio expansion – It seems that landlords/investors are getting more confident and rather than scaling back or risk managing, they are actually building a war chest for expansion. According to this article, 30% are creating a war chest. It seems that they are looking to capitalise on an uncertain market for sellers and see if they can pick up some good deals. That said, landlords are still being cautious as lowering monthly payments is now the second most important concern when remortgaging.
  • Residential purchase activity rises above pre-pandemic levels – More good news for the property market as Mortgage Brain has seen the amount of ESIS (European Standardised Information Sheet) increase and surpass pre-pandemic levels. Thus showing activity in the property market being very buoyant. Home mover ESIS generated is now 8.5% higher than before the COVID-19 outbreak and buy-to-let is 4.8% higher. This shows that activity and confidence are very much apparent.
  • The top three trends in the housing market right now – Zoopla’s head of research has highlighted three main factors that are present in the UK market. 1) Demand is moderating, but still strong. This was going to happen after the immediate pent up demand was released following the property market opening back up. That said, buyer demand is still 40% higher than they were in March before the effects of COVID-19.  2) Supply is constrained. Overall supply is 15% down year on year which will likely lead to an uplift on UK prices, potentially seeing a 2%-3% increase during the summer. 3) Post-COVID moves. Lockdown has led to many homeowners or tenants reevaluating their current home situation meaning we could have a pipeline of new movers coming to the market later on down the line. This could help keep the momentum of the market going on longer than some are anticipating.
  • Mortgage searches in June exceed pre-lockdown levels – This week, the mortgage market has been a great barometer for market activity with data from Twenty7Tec suggesting that there were 1.2 million mortgage searches in June exceeding the year high numbers seen in January and February that we saw as a result of the ‘Boris Bounce’. It is even more promising to see that the majority of these were for purchase mortgages which accounted for around 63% of the interest. Fixed-rate mortgages accounted for nearly all the searches, 1.16 million out of the 1.2 million, showing that people are clearly trying to take advantage and fix in the very low-interest rates on offer.

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Team Track Capital

Property news uk
CategoriesWeekly News

Weekly Property News Round Up – 26.06.20

It’s that time of the month when the latest Hometrack UK report is released showing property values and data from the UK’s largest 20 cities. We have been waiting in anticipation to see how the market has settled since May’s report and the reopening of the property market.

It’s good news, UK house price growth is +2.4% year on year and up from 1.4% at the start of the year. Manchester has also moved up from 3rd place into 2nd, just behind Nottingham (+4.3%), with a year on year increase of 3.9%. The English market has also seen agreed sales surge to being 4% higher than pre-COVID levels, asking prices for sold homes are also 7% higher than last year. These positive reports could be due to low supply which is 15% lower than a year ago.

There are more interesting stats and perspectives so it is well worth a read. To view the latest Hometrack UK report please click here.

Property news this week

  • Why landlords could be keen to expand their portfolios in 2020– This is an insightful article which highlights how the fundamentals of property investing have potentially been strengthened over the course of the past few months. It seems that landlords may currently be keen to add to their portfolios and are utilising existing property portfolio equity to do so. Again, it all comes down to the resilient and strong bounce-back that the rental market has had coupled with the continued strength of property prices.
  • London is still calling to international investors– According to property consulting firm PSS London, despite the fallout from COVID-19 and flights grounded, overseas investors are still very active in the London and regional property markets. It would seem that for overseas investors, London’s fundamentals are still as strong as ever and it appears there has never been a better time for buyers. They can also take some positivity from JLL’s new report which predicts a 17.1% increase in London prices over the next 5 years.
  • New research highlights why and where to invest in new-build homes– Some very interesting stats and insights here. One that caught our attention was the fact that new-builds house price growth has increased 6-8% across the UK whereas the existing property market has only seen growth of 3%. Surprisingly, London has performed strongly with 7.6% increase for new-builds and existing properties experiencing only 1.2%. So the benefits of buying new-builds (such as easy/chain free purchase, better incentives, better energy efficiency and little initial maintenance for a number of years) have now been improved with better capital growth being added to the equation.
  • How to avoid unwarranted suspicion when applying for a mortgage– This is a great guide for making sure you apply for your mortgage in a correct and efficient way to avoid unnecessary suspicion from the lender. This article can help get you prepared for when looking to apply for your next mortgage enabling you to know how to do it well with guidance on topics such as deposits. We always recommend obtaining your mortgage through a broker so they can advise you while also searching for the best deal from a variety of lenders.

In summary, the UK market is still riding the wave of the post-lockdown surge, our enquiries on various property investment projects have been the highest in a while, with confidence returning to traditional residential projects and off-plan schemes due to construction being back on track, rather than the fixed-income assets which saw strong demand over the past few months.

Team Track Capital

Property News
CategoriesWeekly News

Weekly Property News Round Up – 12.06.20

The main talk this week in the general news has been the latest figures that show in April the UK economy shrunk by 20.4%. These figures are stark but not a surprise. it needs to be taken into consideration that the majority of the country was fully locked down along with businesses unable to operate so there was bound to be a big impact. The Bank of England has come out to say that they are ‘ready to act’ to help the UK economy weather the coronavirus storm. There have been reports that interest rates could drop to 0 or below. This would be good news for property investors that would look to utilise the unprecedented and even lower cost of borrowing in the UK.

In more positive news, the lettings market seems to have rebounded very well and seen a surge in demand. Plus, the Government has indicated that in response to the coronavirus pandemic, Stamp Duty could be reformed as part of tax changes. When questioned about considering the merits of introducing a Stamp Duty holiday, the financial secretary to the Treasury,  Jesse Norman, answered on behalf of the chancellor and stopped short of ruling out such change.

Further property news from this week:

  • Lettings demand 40 per cent higher than five-year average – According to Knight Frank, the lettings market has bounced back to life in the four weeks since the property market was opened back up for business. Demand from new prospective tenants was 40% above the five-year average and the second-highest in 2020. They anticipate the demand to continue getting stronger once there is more certainty over how universities will be teaching next year. Tenant viewings were also 1% higher than the five-year average and Knight Frank reports that the sales market is taking longer to rebound with buyer viewings 26% lower than the five-year average.
  • The rise and rise of PBSA – growth continues despite Covid-19 – StuRent says Private PBSA is currently anticipated to grow by 5.7% year-on-year whilst university accommodation is set to only increase by 1.1%. It seems that investors are increasingly looking at more stable investments by looking at alternative sectors such as purpose-built student accommodation. Mistoria Group has seen demand for student property in the North West rise by 8% year on year. Investors that purchase PBSA units can benefit from assured net returns between 8-10%. The high demand for student accommodation has been consistent and continually increasing with constant shortages of bed spaces which have made it a stable investment for companies and thus investors as well.
  • Investec funds £12.3m acquisition of Clapham Junction Buy-to-Rent scheme – The strength of the UK property market is further highlighted in this recent acquisition by Investec. A purchase of this magnitude in the current economic circumstances shows that domestic and international investors recognise the strong fundamentals of the UK property market.
  • How much does it cost to rent in London’s ‘walk to work’ hotspots? – They say when it comes to property that it’s all about ‘location, location, location’ and in the new research from Howsy this is definitely the case for London. The firm looked at the cost of renting across 20 areas of London that offer a stroll into the City of London taking an hour or less and found that across these 20 locations the average cost of renting is £2,001; 18% higher than the current London average. The current tenant demographic for city rentals continue to show that they want amenities and work locations on their doorstep and will certainly pay more for the luxury. This is why we have seen the emergence of new developments offering luxury facilities such as gymnasiums, rooftop terraces, concierges and cafes to entice buyers and tenants alike.

See you next week.

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Team Track Capital

CategoriesWeekly News

Weekly Property News Round Up – 05.06.20

Welcome to the latest weekly news insight from Track Capital.

We have had a great week here at Track Capital HQ and confidence is definitely apparent in the market with developers starting to bring new property launches to us. Including new Manchester and Birmingham projects launching next week.

The property news this week has been positive overall, with a balance of the shock tactics we usually see from the media to gain clicks. Nationwide reported house price growth ‘slows sharply’. We encourage you to conduct independent due diligence, when you look at the stats, they focus on prices being down -1.7% month on month but prices annually have increased 1.8% showing the resilience of the UK market.

Either way, we are cautious not to always present the ‘everything is perfect’ picture but more so in our conversations with investors we try to put things into perspective, all we need to do is look at the big picture, example below of the average property values from Nationwide shown below.

 

 

Lenders are coming back to the market, activity is apparent and the market is moving but data is very premature so keep checking in with us to see how it progresses. But as far as we can see, it looks promising. We are advising our investors to capitalise on a market where there is uncertainty to get the best possible deals because once certainty/confidence creeps back into the market, sellers and developers will not be so lenient and willing to negotiate.

Property news this week

  • Kensington ups LTV to 80% and resumes HTB & BTL – The is really promising news to see a mortgage company such as Kensington introduce higher loan-to-values and Help To Buy lending. This would indicate that lenders are feeling more confident about the property market. Companies such as Barclays and TMW are all slowly bringing back more products. The confidence has definitely been helped with the reinstating of physical valuations. Let’s hope that this continues as it can be an indication of the property market being in a good position.
  • Liverpool named UK’s best buy-to-let area to invest in – We have been singing Liverpool’s praises for quite some time at Track Capital and have always said it is a great investment area with great fundamentals. Previously, Totally Money’s BTL Yield Map 19/120 had Liverpool at the top with the L1 postcode averaging a 10% yield. Now, Mojo Mortgages have reiterated this with L7 coming out on top with a very attractive 10.30% yield and five more Liverpool postcodes in the top 20 with yields ranging from 7.40% to 10.30%. If you haven’t researched Liverpool as a buy-to-let area for you to consider already then we recommend you do so. Great entry prices and yields make it a hotspot with room to grow.
  • BTL house purchases up 7% during Q1 – The drop in first-time buyers seemed to have been made up by investors in Q1 this year according to UK Finance’s latest figures. Purchases of buy-to-let properties increased by 7% and while the Coronavirus lockdown may have temporarily hampered this incline we can be optimistic by the positive signal’s since the property market reopened and believe that investors will still remain active in the market, which is something that is needed to keep it strong.
  • Will surveyors apply a Covid-19 ‘haircut’ to property values? – A very interesting article from Bob Young of Fleet Mortgages. This demonstrates the pressure that will be on the head of surveyors going out for mortgage companies and it is going to be interesting to see of they down value properties in a cautioned way. Are they going to cover their backs and include a post-coronavirus price drop in anticipation. With surveyors being back for not very long, the main data they have for comparable evidence will be property completions pre-coronavirus so this may lead to them applying a slight ‘haircut’ to the price to prevent them being pressed by lenders if the market fall slightly (this happened with the financial crash). I (Tobi) will be a test dummy as I have a mortgage valuation going ahead on an investment property I am currently purchasing and I had a pre-coronavirus mortgage valuation done but then the mortgage company pulled the original product so I had to start the process again with another lender. Let’s see what the surveyor says this time and if they give it a ‘haircut’.

New Manchester Launch – 20% Below Market Value

As well as the pay monthly Birmingham launch coming next week, just this afternoon we have finalised discussions on a new Manchester scheme. Whilst we don’t like to use the phrase to often, this scheme merits it, it’s offered at 20% below market value and approved for short-term lets, meaning investors can expect projected yields of 10% net.

This is a genuinely rare opportunity, we challenge you to find a development for sale in Manchester today at this value, from £135,000, that allows for short-term lets. If interested email [email protected] and we will send you the details, alternatively, you can call the team on +44(0)203 627 3987.

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Team Track Capital

CategoriesWeekly News

Weekly Property News Round Up – 29.05.20

Welcome to the latest weekly news insight from Track Capital. 

It is that time of the month when we have the latest Hometrack report released and this time we have been waiting in anticipation to see exactly how the property market has reacted and whether it would go up or down. Overall, it is fairly positive news with buyer demand spiking, new sales agreed increasing 12% since the market reopened and 60% of would-be home movers still intending to go ahead with their property plans. UK House prices grew annually by 1.9% and Nottingham tops the table with an impressive 4.1% increase.

We will have to keep a close eye and will still be waiting dubiously for the next report to see if this trend continues. This could be a limited effect of the pent up demand created by lockdown which we have suggested before. However, as long as the market fundamentals stay strong like they currently are and the economy looks to get back on track (albeit it, at a steady pace), we would expect the property market to hold its ground. With the government easing lockdown and moving through the later stage of the government’s plan, things are heading in the right direction. Time will of course tell and we will all be wary of a second spike.

I strongly suggest clicking the link and taking a good look at the latest Hometrak report to get a feel for the market and now, without further ado, please see the property headlines that caught our attention this week:

Property news this week

  • London rents drop by up to 15% amid the coronavirus crisis – According to Chestertons, private landlords in London have had to drop rents by up to 15% following a growing number of vacant properties on the market. A decrease in corporate relocations and overseas students looking for accommodation has seen a sharp fall in tenant demand in the capital. Interest is there though, with an increase of 52% more enquiries compared to last year but a 27% decrease in new tenancies being agreed as tenants are looking for the best value meaning landlords have to reduce prices to prevent long voids. When businesses had to shut down due to COVID-19, this was always a possibility of happening in London as rental affordability has always been tight with a single persons rent sitting at 46% of their income. Of course, this may be shortlived and once the economy gets moving again we could see the tide turn in the capital.
  • First-time buyers could lead economic recovery if government reconsiders regulation – In a new report by the IMLA, it seems that first time buyers could be key to keep the housing market going. With many dropping off after the financial crash in 2008, a 2.7 million shortfall of young households potentially looking to buy a home was accumulated making it difficult for movers up and down the market as the first part of the property chain was just not there. The outlook is positive though as lending is still affordable, interest rates are low and lenders have an appetite to support this group buyers. Also, the Help to Buy would need to be extended or replaced by a similar incentive.
  • Leicester is the best city to invest in business or property – Now don’t read into this headline too much and start running from Liverpool, Leeds & Manchester just yet. This is based on the business survival rate for Leicester being over 91%, office space price per sq ft and house prices rising 28.3% in the past two years. This does build a good case for Leicester being an area to consider as it shows a sign that the local economy should remain fairly strong after the pandemic. However, the highest average yield for Leicester is found in LE9 which is 4.9% and a far cry from Liverpool’s L1 average yield of 10 gross.
  • Stamp Duty Holiday – Zoopla shows how it could help the housing market – This is a good article to check out where Zoopla have looked at how and if a stamp duty can help the housing market going forward and the effects of previous stamp duty holidays/incentives that the country has had. If we look at hyperlocal markets where a stamp duty holiday would be most effective, London and the South East definitely come out on top with these paying 72% of all duty in 2018/19.

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You can view our current property investment opportunities here.

Team Track Capital

CategoriesWeekly News

Weekly Property News Round Up – 22.05.20

Welcome to the latest weekly news insight from Track Capital. 

This week we have seen an influx of both UK and overseas motivated property investors, It seems that confidence is creeping back into the UK property market and people are looking to take advantage of attractive deals before the market goes back into full swing leading to vendors being less flexible with discounts and incentives, see an example here

We can say for sure, speaking to property developers every day, that there were no significant price drops during the lockdown period (other than one scheme in Manchester which is currently discounted by 15-20%, see here) and we are not expecting discounts anytime soon. The bigger developers are leading the way, see a senior executive here explain how developers will hold their pricing. 

One of the more interesting reports that came out a few days ago was the indication that the UK government are proposing first-time buyers and key workers get a 30% discount on new homes in their proposed scheme. This could mean an average savings of nearly £100,000, read more here.

So let’s take a look at the other media headlines that we have found insightful this week, we always try to summarise the links to save you having to click through. 

Property news this week

  • Interest rate cut means mortgage costs have fallen for landlords – The cut in interest rates by the bank of England has begun to be passed on by mortgage companies and we are now seeing lower rates being offered to landlords, on both shorter and longer terms. It is reported that the average 2 year fixed rate mortgage for May has dropped from 3.02% to 2.51% year on year saving an average of £63 a month or £756 a year. With 5 year fixed mortgages having dropped from 3.53% to 2.94% giving an average monthly saving of £74 or £888 a year. Now is definitely a great opportunity to lock in some great rates for at least 2 years and reap the benefits.
  • Demand for rental property increases by a third – Rightmove has seen an increase of 33% in demand for rental properties in comparison to this time last year with Monday 18th May recording the highest level of demand ever recorded in one day on the property portal. Rental stock has increased 13% since lockdown and asking rents are up 2.1%. These numbers show the determination of home-movers, landlords and the pent up demand accumulated during the lockdown. It is only a week’s worth of data so not a guarantee for what the market is going to go on to do over the long term, but it is definitely a positive start.
  • 86% of construction sites now open across England and Wales – This article is really positive news for the construction industry and shows that things are hopefully moving in the right direction. It reports that contractor members are beginning to bring staff back to work with the percentage of furloughed staff down from 30% to 22%. With construction sites back on track and homes being built again, this will help stop seeing an even bigger strain on supply.
  • UK house prices were on an upward trajectory before coronavirus hit – Before lockdown brought a standstill to the property market, prices were on the up with London soaring 4.7% which is the largest 12-month growth since December 2016. The UK average rose by 2.1%. A lot of this increase would have been the ‘Boris bounce’ that we were seeing which really saw the market take off. This data is interesting to see but the most intriguing part will now be what prices look to do post lockdown especially as Rightmove has reported a 90% decrease in properties coming to the market on the same period a year ago. Good demand with little supply could see prices hold out, time will tell.

That’s it for this weeks news, keep an eye out for weekly updates.

Social Links for daily news: Facebook | Twitter | LinkedIn 

You can view our current property investment opportunities here.

Team Track Capital

Weekly Property News
CategoriesWeekly News

Weekly Property News Round Up – 16.05.20

Welcome to this weeks property news from Track Capital.

The government announcement regarding the reopening of the UK property market has seen the pent up demand released. The majority of industry professionals are back to work and the market is moving again. We will be watching closely over the coming weeks and months to see how the property market reacts but so far so good as demand seems to already be back on the rise.

With the positive property market news that we had this week, let’s take a look and see if the headlines match:

Property news this week

Current UK BTL hotspots where yields are rising – In their latest research, lettings management platform Howsy has highlighted parts of the UK rental market registering the strongest yields and where yields have increased despite the current pandemic. Bradford topped the highest average yield leader board at 10% with Liverpool and Manchester also ranking high. The worst average yields of 2.3% saw the likes of Kensington and Chelsea at the top. The largest rise in yields can be found in North West Leicestershire where yields are up 1.4%. That is the good thing about property investing, even in tough economic and market conditions, rental prices are resilient.

Construction sites can now stay open until 9pm to help enable social distancing – The government has shone a light on the construction industry giving the green light for extended working hours on construction sites. The government realises the need for this industry to get back up and running after weeks of standstill due to lockdown.

Housing market back with a bang after lockdown easing – UK property website Rightmove reported a rise of 45% in site visits on Wednesday morning in comparison to a day earlier after the government gave the go-ahead to reopen the housing market. Email enquiries to Estate Agents increased 70% and new listings increased with 2,115 new properties added in just five hours. The government giving consent to renters and buyers being able to move again has seemed to have released the pent up demand that was building up. It will be interesting to see how the property market shifts in the coming weeks and months.

Build to Rent giant bucks virus with a big rise in rental income – Grainger is one of the biggest companies in the BTR sector and they have just defied the coronavirus with a surge in rental income. The firm saw an increase of 27% in rental earnings in the six months to the beginning of April compared to the previous year. BTR rental growth on their properties was 3.4% over the year and they are continuing to work on their 9,000 unit pipeline. Their growth, resilience in the COVID-19 market and continued investment in this sector shows the strength in the rental market as a whole.

That’s it for this weeks news, keep an eye out for weekly updates.

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