I hope you have had a great week. We have just received the exciting news that a select number of units have become available in one of our most popular sell-out developments.
Located in the famous, historic city of York and ideally primed for short-term lets, this is a rare opportunity to earn up to 12.22% yield in one of the UK’s most beloved cities.
If you are interested in finding out more, reply to this article today.
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 from having to click through.
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Property News This Week
- Tenant Demand at Highest Ever Level According to Paragon Bank –
A survey by BVA BDRC for Paragon reveals that 67% of landlords witnessed increased tenant demand in Q1 2023. The worsening issue of landlords exiting the market is reducing the supply of affordable rental accommodations, with government tax and policy measures contributing to this trend. The upcoming Renters’ Reform Bill, feared by landlords, seeks to improve conditions for private renters in England, abolish the Section 21 eviction process and fixed-term tenancies, and enhance Section 8 eviction powers. Despite the challenging landscape, landlords able to weather these changes could benefit from high rental demand and the ability to selectively choose tenants.
- Experts Slam Labour’s Overseas Investor Crackdown Plans –
Labour’s plans to increase stamp duty for foreign property buyers and limit overseas investors’ access to new builds have been criticised as ‘unrealistic’ by industry groups. Labour leader, Sir Keir Starmer, plans to include proposals to increase taxes for non-UK property buyers and prevent overseas investors from purchasing more than half the properties in new developments. Despite the increasing presence of overseas buyers in the UK property market, industry professionals warn that these measures could unintentionally hinder apartment developments reliant on off-plan sales to foreign investors for viability.
- Industry Experts Share Insights as Base Rate Climbs to 4.5% –
The Bank of England has announced a 0.25% increase in UK base rates to 4.5%, the highest since 2008. This is the twelfth consecutive hike aimed at reducing inflation towards the 2% target. However, this is set to exacerbate the cost of living crisis for millions in the UK, particularly homeowners and mortgage holders. Experts believe this move has already been factored into the market and will therefore have little immediate impact. Nonetheless, the potential for further hikes in the coming months could lead to increased strain on borrowers on variable-rate mortgages or nearing the end of fixed-rate deals.
- New EPC Rules Threaten to Collapse the Private Rented Sector –
Proposed government EPC regulations are causing a mass exodus of landlords from the Private Rented Sector (PRS), with costs of compliance deemed too high. Over 65,000 rental properties were listed for sale in Q1 2023, with approximately 56% having energy efficiency ratings below D. The potential requirement for a minimum EPC rating of C by 2025 or 2028 is causing confusion and prompting landlords to sell to avoid costs associated with retrofitting. Around 60% of rental properties for sale have a rating of D or lower, a rise from 57% the previous year. Experts warn that these changes may leave properties empty while housing demand remains high.