Hello,
I hope you have had a great week. At Track Capital, we are preparing for the upcoming launch of an excellent new development in Liverpool, just minutes away from St. John Moores University and Lime Street Station.
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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.
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The UK property market has bounced back from the pandemic downturn, particularly in London, where sales are 11% higher than in March 2019. Despite 13 consecutive interest rate hikes by the Bank of England, buyer demand remains robust.
The lending sector’s release of 100% mortgage products indicates confidence in the property market’s long-term prospects. London property prices have stayed stable, offering investment opportunities. Meanwhile, rental demand is strong, especially in urban areas, and a 65% tenancy renewal rate shows tenants’ willingness to meet rising costs.
June data from HomeLet reveals UK rental prices increased in all but one region, with the average now at £1,229, a 1.3% rise from the previous month. London rental prices reached a record high, jumping 1.9% to £2,077 per month.
This ongoing surge poses risks for tenants, who might struggle to meet these costs, and landlords, who may face payment difficulties from tenants. The steady rise in rental prices reflects a sustained and growing challenge across the nation’s housing market.
UK retail tycoon Mike Ashley has invested an additional £150 million ($190 million) into McGrove Developments, a company he founded for a luxury residential project in Chelsea, London. The funds, sourced through Ashley’s personal investment firm Mash Holdings, are expected to complete the development, featuring 78 high-end apartments, a gym, and concierge services.
Despite a broader dip in London’s housing market, luxury properties like this project remain stable due to cash-rich buyers, with 50% of homes in Kensington and Chelsea bought in cash over the past year.
The latest Landbay landlord survey reveals that 41% of buy-to-let landlords plan to acquire more property within the next year, primarily due to increasing tenant numbers, which is up from 30% last quarter.
The anticipation of falling house prices as a motivator decreased to 33% from 54%, suggesting less expectation of rapid price drops. Over half of the landlords owning 11 to 20 properties aim to expand their portfolios, along with 40% of landlords with over 20 properties and 44% of landlords with two or three properties.
That is all we have for you this week. If you have any comments or questions on this weeks news summary then please feel free to hit ‘reply’ – if not, see you next week.
Tobi Mancuso
Director, Track Capital
Listen to The Pure Property Podcast from Track Capital here
