I hope you’ve had a great week. Here at Track Capital, it’s that time again – an influx of exciting new developments has hit our portfolio and it’s all hands on deck to get them circulating and on the radar for our investors.
There is nothing better than having options when it comes to property investment. The UK market may be hot right now, but it’s our job to source you a wide variety of properties offering incredible returns and hefty capital growth – and that is exactly what we do.
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
- The Crucial Role BTR Will Play in Levelling Up the Country – Residential real estate manager Long Harbour has released The White Paper – Build-to-Rent: Helping the UK Build Back Better – a manifesto which explores the Build to Rent (BTR) sector and the crucial part it may play in the government’s plan to use the pandemic as a step toward nationwide improvement on all fronts. According to the report, a secure method of financial support can be found by fostering long-term institutional investment in the Build to Rent sector. It is said that doing this will result in more affordable homes of quality being built throughout the UK, particularly in areas of acute need. The report also speculates that the building of modern, sustainable houses will contribute to the government’s ambitious plan for net-zero carbon by 2050.
- Rental Reform White Paper to Turn BTR Sector on its Head – This Thursday, the white paper was published for The Fairer Private Rented Sector, detailing plans to empower millions of families across the UK to live in safe, cared-for homes. The paper represents the biggest re-boot of the PRS since the early ’90s. According to the paper, 21% of private renters currently live in unfit homes and need more legal rights to take action against rogue landlords. The paper also outlines significant changes to policy, such as outlawing blanket bans on renting to families with children or those in receipt of benefits illegal. Pets were also mentioned, with a view to making it harder for landlords to deny a pet to prospective and current tenants. The Chief Revenue Officer at online lettings agent Mashroom views many of the proposed changes as unfair to the genuine landlords who form the vast majority of the PRS. The CEO of No Letting Go has also suggested the radical paper has been released now simply to detract from other thorny issues, with content that offers landlords no protection from rogue tenants.
- Interest Rate Rises for 5th Time Since December 2021– It’s all over property news again: Another interest rate rise – The 5th to hit the headlines consecutively since December last year. With so much economical constraint on homeowners in the UK, property experts have analysed what this latest rise really means for those on the ladder, prospective buyers and for the property market in general. The Head of Research at Zoopla believes that this latest mark-up will result in higher mortgage costs for homebuyers. The Director of Research at Savills has stated that the next few years will inevitably see growth capacity sharply pruned, despite demand and undersupply pushing house prices currently. The CEO of The Guild of Property Professionals has warned that people on tracker mortgages or with a variable rate are most at risk from repayment increases, while the Managing Director at Chestertons expects the impact to also fall significantly on new homeowners with 75% LTV mortgages. That said, the property market is still forecast to remain strong.
- Supply-Demand Crisis Continues to Drive Demand in the UK – Home.co.uk has recently published a market analysis showing that every region in England, Scotland and Wales experienced significant house price growth in May this year, with marketing times for properties falling to an all-time low as undersupply fosters fierce competition among buyers. The analysis also reveals that the Bank of England’s actions to reign in inflation are falling far short of what is required to save the situation from escalating, even as interest rates were raised for the fifth consecutive month. The current rate now sits at 1.25% – a 13-year high. The market has heated up to such an extent that even areas formerly known for sluggish prices and lack of demand are now experiencing a historic growth spurt. With issues in homebuilding persisting from the onset of the pandemic crisis and affecting every part of the construction chain, the average stock of houses available has now fallen by approximately 11% from last year alone.
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.