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.
You can view our current property investment opportunities here.
Team Track Capital