It is now the beginning of the end for 2021 as we round December, which has brought with it some decidedly wintry weather for those of us in the UK! I hope all of you are wrapping up warm and getting your jumpers ready.
As 2021 comes to a close, what do you feel the UK property market has been defined by this year? Uncertainty? Exploding house and rental prices? Perhaps even your own new journey in real estate investment? Whatever your thoughts, let us know what 2021 means to you, and what your property dreams and goals are for 2022.
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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Property News This Week
- Demand for Rental Properties Remains Exceptionally High – Based on data for the month of November, the Goodlord Rental Index has revealed that the overall high demand for rental properties has not slowed. Throughout November, they also reported that the average cost of rent had also gone down slightly, but noticeably. Another trend witnessed is the continued drop in void periods; evidence of the continued heavy demand for rental properties across England. Of all areas, the East Midlands and North East experienced the greatest reduction of voids. It has also been confirmed that the average rental value for a property has dropped by 2.5% – going from October’s average rent amount of £1,006 to £980 in November. This will be a welcome relief for renters across the UK and will also likely reduce the number of rent arrears experienced by landlords as pricing becomes more affordable.
- BTL Lender Drops Minimum Income Requirement – When searching for a buy-to-let mortgage product, it is widely known that lenders generally require an applicant to have a minimum income floor in order to be considered eligible. However, Accord Mortgages has stated that it has now removed this criterion and no longer expects applicants to have a minimum income of £25,000 p/a. This important policy change has been designed to demonstrate Accord’s support and commitment to those desiring to invest in buy-to-let properties. The removal of this policy has potentially far-reaching consequences, opening the BTL door for first-time buyers, those on a low income or are self-employed and credit-impaired landlords, provided that the cases are processed by a financial advisor or mortgage broker.
- Nation’s House Prices to Rise by 5% in 2022 – The latest data released from Rightmove’s shows that buyer demand has risen by 2% since this time last year, and is up by 40% in comparison to figures from November 2019. Among the areas experiencing the highest growth rates are Scotland, the West Midlands, the South West and Yorkshire and the Humber. Rightmove anticipates that these areas grow in average house price by over 7% in 2022. Rightmove has also forecast that more properties will come onto the market as owners who were previously put off by the unusual market trends of the past year see things returning to a relatively normal pace. Greater buyer choice would have the positive effect of reducing the proportion of multiple offers on properties, helping to slow down the pace of increasing house prices.
- Abu Dhabi House Prices, Dubai, Grow at Fastest Rate Since 2015 – The Middle East Research experts Knight Frank have stated their belief that there are several important positive factors at play in the surprising resilience observed in the UAE real estate market. It is thought that the UAE’s unprecedented recovery rate from the Covid-19 pandemic has increased the confidence of both domestic and overseas investors, where its swift and successful handling of the situation without the need for draconian lockdowns has been lauded by world leaders. Alongside this, recent resident-friendly policy reforms have made the UAE an even more attractive option for ex-pats. A general improvement in the business landscape is apparent in many key sectors, further boosting buyer confidence.
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.