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.

Social Links for daily news: Facebook | Twitter | LinkedIn 

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.

Social Links for daily news: Facebook | Twitter | LinkedIn 

You can view our current property investment opportunities here.

Team Track Capital

CategoriesWeekly News

Property Investment News UK – 08.05.20

This week has been a relatively subdued one with property investment news UK headlines. We are still on tenterhooks to see what the UK Prime Minister is going to announce with regards to the plan moving forward and easing lockdown. This will hopefully give us an indication of how the economy and property market may move forward in some way shape or form.

Construction remains positive with our available investment developments meaning there should minimum delay in completion dates which is great news. This cements our ethos that working with proactive professional developers and companies is fundamental.

So let’s take a look at the media headlines that we have found insightful this week:

Property news this week

  • Lockdown Sales: virtual auction raises almost £8 million– SDL Auctions managed to raise £7.7 million for property sellers showing that there is still an appetite for property purchasing. The online auction is held virtually and proves to be a huge success in the current climate. One might argue that with the current buying conditions, an auction might not be the best place to go for a bargain as there is clearly a lot of demand.
  • Why property investments are a safe choice during the current pandemic– This is a great article which highlights the advantage of property investing, this is something we are highlighting with a lot of novice investors. When you look at the financial crash of 2008 data, stocks fell a lot more and quicker than the UK property market did (Dow Jones fell 50% compared to UK property at 20%). Something to definitely bear in mind, especially if you are assessing your current investment portfolio across all assets and looking to add more stable investments for the long term.
  • Market rebound as new and completed tenancies rise again– The latest Goodlord rental index has shown that there was a drop in new and completed tenancies in the first half of April but they have then risen again in recent weeks. It also reports average rents dropped across the UK from £878 to £861, but let’s not read into this too much. The initial feedback is that rents have dropped due to the fact that savvy landlords are dropping their rents to entice tenants into vacant properties due to social distancing restrictions leading to less demand. Once lockdown is lifted and the market comes back to normality, demand will rise meaning landlords won’t have to reduce rental asking prices. If you would like to view the report click here.
  • COVID-19 Triggered Opportunity for Investors– This covers a topic of conversation that we are having with multiple investors. Less competition from other buyers in the current market presents an opportunity for purchasers to get better deals. It would be a very good time to capitalise on this because once lockdown is eased and the market resumes, the competition will increase meaning demand increases leaving less room to negotiate with sellers and developers.

Social Links for daily news: Facebook | Twitter | LinkedIn 

You can view our current property investment opportunities here.

Team Track Capital

CategoriesWeekly News

Property Investment News UK – 01.05.20

We have Boris Johnson back at the helm and he has said that the UK has ‘past the peak of the outbreak’ which is great news. Following this announcement, we are now shortly due to get the government’s comprehensive plan for easing lockdown and restarting the economy which will no doubt have a positive impact on the property investment market.

We also had Hometrack’s most recent report this week that has some interesting data which you will see below. We really recommend taking a look at the full report as there is some excellent information which is impossible to summarise in this email.

So let’s take a look at the media headlines that we have found insightful this week:

Property news this week

 

  • Hometrack Report: March 2020

    The latest Hometrack report helps to give us a good insight into the early impact of COVID-19 on the property market. It explains that there is a huge pause on property transactions with a combined estimated value of £82bn. Demand fell over March (which is to be expected) but has begun to increase over recent weeks. Annual house price growth actually increased 1.8%, this may of course change in the April report so this will be interesting to see. We feel that if house prices do go down in April then it won’t be by very much and we would be surprised if it surpassed 1%, let’s check the next report and see.

  • How the Coronavirus pandemic has impacted BTL mortgage rates

    This is a great article that looks at and compares the current mortgage rates on the market. The 70% LTV 2 year average fixed rate is the only rate to actually decrease since 1st April and stands at 2.78%. The most appealing average rate is still the 2 year fixed 60% LTV mortgage at 2.39%. The Mortage Works offers the lowest rate with their 65% LTV 2 year fixed product offering 1.19%. This article is definitely worth a look, especially if you are currently looking at purchasing a property investment with a mortgage or a remortgage.

  • There is a ‘massive amount of pent up-demand’ in the rental market

    ARLA’s CEO David Cox is predicting that once the lockdown is eased, we will see a major release of pent-up demand in the rental sector. They are foreseeing that the first Friday out of lockdown will be one of the biggest moving days in the lettings industry’s history. We have been hinting for a while that there will be a surge in demand for rental properties post lockdown and it will be interesting to see if this has an upward effect on rental prices.

  • Housing market could be back in business soon

    The Royal Institute of Chartered Surveyors (RICS) has confirmed that it is preparing a new set of guidelines for valuers across the UK to enable home valuations to restart safely meaning that the secondary housing market could be back up and running in just a few weeks. The government advice still remains that you should not move unless it is into an empty home but this is a step in the right direction and could see more mortgage products come back to the market with lenders being able to carry out physical valuations.

  • Impact of virus and lockdown set to cause historic decline in housing delivery

    Knight Frank has reported that COVID-19 and lockdown will result in 56,000 fewer homes being delivered in the UK this year. The UK has struggled with a shortage in supply of new homes for numerous consecutive years now, always missing the government’s target of 240,000 new homes per year. This is going to put even more strain on the supply and demand problem and while supply is considerably lower than demand, we might see house prices remain strong and even increase. The lack of new housing being built won’t be great news for the government as they are constantly under pressure to deliver the quota of new homes needed.

We have a really helpful blog from Property Road that we wanted to share with you this week called ‘How To Get A BTL Mortgage As A Limited Company’. It is a question we get asked quite often so if you are considering buying your next property investment in a limited company using a mortgage then please check this piece out.
That’s it for this week, folks.

Social Links for daily news: Facebook | Twitter | LinkedIn 

You can view our current property investment opportunities here.

Team Track Capital

CategoriesWeekly News

Property Investment News UK – 24.04.20

The UK is still asking questions as to when and how the lockdown will ease and we still have very limited answers. The Government is under immense pressure and we hope that with the return of the PM Boris Johnson at the helm any day now, we will start to get some decisions and answers in this difficult time (I know I wouldn’t want to be in his shoes), read on for property investment news.

We are still enjoying home working here at Track Capital and that has probably been helped this week by the sunshine plus the fact that we sold out our Opal Ridge care home investment. If you missed out on this particular investment then please get in touch as we have a very small number of units available from the same provider in a different development offering similar returns.

So let’s take a look at the property news headlines that we have found insightful this week:

Property news this week

  • Demand for rented homes bounces back by 30% in two weeks – Our first piece of property investment news. There are a lot of headlines about property prices but not much being said about the rental market. According to Zoopla’s recent article, the rental demand fell 57% in the last 2 weeks of March 2020 and has seen demand rebound by 30% in the first two weeks of April. The additional flexibility in the lettings market, which has allowed agents to agree rental contracts with delayed start dates and based on online viewings, means that activity has continued throughout the lockdown which ties in with what our industry insider was telling us last week. The most popular price bracket across the country (excluding London) was £500-£600 pcm which is similar to the trend we saw prior to the coronavirus. However, London renters seem to be looking for cheaper rental homes with online interest focused on the £1,200-£1,300 pcm price bracket in April.
  • Chinese interest in UK property soars despite Covid-19 – The drop in sterling along with China’s emergence from the virus crisis seems to have ignited a high level of Chinese interest in buying UK residential property. At Track Capital, we have definitely seen an increase in enquiries, especially for our Liverpool investment, Kingsway Square. The main driver behind property purchases is Chinese students as parents look to purchase property for their children studying at UK universities. The US trade war has also affected Chinese demand for US real estate pushing them to look more at other countries such as the UK and Canada.
  • Build-to-rent boom drives new housing supply across the UK – BTR has jumped 12% when compared to the previous year with outside of London seeing the biggest jump in the number of homes completed with an increase of 58%. It is too early to see the impact of coronavirus on the BTR sector’s pipeline but these homes are going to be needed once we come out of this pandemic so you would hope that if there was to be any indication of issues then the sector would receive the support and help needed to keep the much-needed homes coming. We predicted this sector would grow and this pandemic may be a catalyst to assist in this as the demand for good quality, safe rental property will be even higher once this is over.
  • Lenders kick-start mortgage deals – Now our final bit of property investment news, We have mentioned a few times that lenders are returning to the market with different articles and that is because it affects different types of buyers and gives an indication of market confidence at a corporate level e.g. residential owner-occupiers and previously buy-to-let products. This week has seen the return of higher loan-to-value residential mortgages with Nationwide being one of many offering 85% LTV’s. This sort of stimulus is promising for the property market as it means potential buyers are still able to stay in the market and obtain finance, not like the 2008/9 financial crash where you could not get lending for love nor money.
As a final note on property news, whilst we cover complete and operational property, as well as off-plan developments which are sold during the construction period, we were pleased to see some of the larger public developers returning to construction sites. The majority of developers continued construction at a slower pace, but the listed companies are generally more PR conscious so had to stop really. Taylor Wimpey and the Vistry will restart next week with precautions in place, read more here.

Social Links for daily news: Facebook | Twitter | LinkedIn 

You can view our current property investment opportunities here.

Thanks for reading.

Team Track Capital

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