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.
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- 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.