This is the final week before Track Capital takes a holiday break, getting ready for an explosive start to the new year!
We are proud of how far we’ve come this year, with a wider and more diverse portfolio to offer investors than ever before. No matter your budget or property investment goal, we are always happy to help you explore your options.
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
Rising Interest Rates Could Add Over £300 to Mortgages – On Friday, the BoE released the statement homeowners have been dreading for months: interest rates will rise by 0.25%. It was a worrying move in the face of the rising cost of living and recent energy price explosions, but sadly not an unpredictable one. Mortgage broker Trussle has forecast that this interest rise could see mortgages increase by around £324.48 pa. It will affect those on standard variable rate and tracker mortgages. Tips to avoid the worst of this change include saving for a bigger deposit before purchasing, knowing exactly when you are entitled to remortgage and making overpayments wherever possible.
- The Best City in the UK for Buy to Let Property Investment – As a UK buy-to-let investor, it is important to understand that although house and rent prices will fluctuate nationwide, every area of the UK has a ‘micro-market’ that rises and dips according to its own unique trends and circumstances. Manchester has remained in the top 5 performing cities for the past three years, and its affordable homes combined with strong rental performance have led Savills to predict that house prices in the area will grow by 18.8% by 2026. Unlike Bristol, Oxford and Cambridge, which all ranked top of the list, Manchester house prices are some of the most achievable in the UK. Many landlords will begin casting a wider net in the search for the perfect investment opportunity.
- A Third of UK Landlords are Looking to Expand their Portfolio – The Sales Director of Shawbrook Bank has commented that their survey of landlords was evidence of the buoyancy of the UK property market, which has shown remarkable strength and recovery after the pandemic. Analysis of the results shows that 34% of UK landlords have plans to invest in at least one property before YTD 2022. The difficulties homebuyers have had throughout the ongoing pandemic has not deterred landlords, whose confidence in the market remains high. House prices have now reached record levels and are evidently still climbing, attracting landlords with the prospect of excellent ROI. Nearly 70% have said they remain confident in the market throughout 2022 and 13% are keen to extend their portfolios and buy in new areas.
A Look Back at Dubai Real Estate in 2021 – 2021 has been an exceptional year for the Dubai property market as it took on the challenges of the global pandemic. A successful vaccine drive and proactive government handling resulted in Dubai enjoying a return to near-normal as the rest of the world suffered ever-more draconian lockdowns. This has caused overseas investor interest to explode, driven by Expo 2020 and new policies that make it even more attractive for ex-pats to live and invest in Dubai. Although property prices have increased by 4.4%, Dubai still remains one of the most affordable places in the world to buy similar ultra-luxury property. Mortgage rates also continue to be low, giving investors a strong chance to get a good deal.
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.