I hope you have had a great week. At Track Capital we are eagerly anticipating the newest arrival on our portfolio – a stunning development in Liverpool that is due to be launched any day now.
With prices from £148,000 and brought to us by award-winning developers, this exceptional apartment block is guaranteed to sell out fast.
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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
- UK House Prices Continue to Defy Odds as Inflation Grows – The Office for National Statistics has reported that the average UK house price in June revealed a £20,000 boost from the same month last year, bringing the average house price to £286,000. The national average price growth over the past year has come in at 7.8%, with London 1.5% behind this. Across the country, England’s capital has remained at the top spot for house prices, as the average house purchase cost around £583,000 as of June 2022. It is hard to imagine that buyers will continue with their eagerness to get on the ladder when faced with the current cost of living crisis and rising mortgage rates, which is how it appears from the data available. However, as more data comes available further on through the year, we are likely to see the true impact of the crisis gradually creeping in.
- Claims Against Barratt Homes Dismissed on Lack of Evidence – In 2020, the Competition and Markets Authority (CMA) launched an investigation into Barratt Homes and several other real estate agencies under suspicion of both misselling products and including unfair terms in their contracts. It was thought that buyers who purchased a leasehold property were not fully informed of their unique obligations. has closed its investigation into potential mis-selling by Barratt Homes after concluding there was insufficient evidence. Two years later and the CMA has closed its case against Barratt Homes due to insufficient evidence, although the wider investigation into other companies continues. Since the investigation started, Barratt Homes has stopped selling leasehold properties and has adjusted its sales practices to in order to avoid further controversy.
- Are Online House Price Estimates Really Accurate? – When considering options for buying and selling property, many people look to online companies to find general house price estimates. While these can be useful in giving a rough figure, it is important to understand that each company works using its own selection of data, which is why many of them will vary in the estimates they provide. Zoopla uses an extensive collection of algorithms to determine house prices, updated every month for accuracy. Rightmove capitalises on its vast number of listings past and present to create a detailed picture of the UK market, using actual asking prices recorded on its site. Nationwide goes by the statistics at mortgage approval stage to find out what is truly being paid for properties. Of course, you still can’t go without a valuer to look at your property in person and take its unique condition into account. Ultimately though, a property’s value is only determined by its final purchase price, irrespective of what the market has to say about it.
- Should You Invest in BTL with Interest Rates Skyrocketing? – This has been a year of soaring inflation, monthly BoE base rate rises and climbing mortgage rates. Maintenance fees and insurance premiums are also on the rise, putting the squeeze on potential profits. Inevitably, some potential landlords will be put off dipping their toes in the buy-to-let waters, and some current landlords will be looking to exit the business as they see their profit margins dwindle. Many landlords have already started passing the rising costs on to their tenants by raising rents. However, some property agents are confident that great profits can still be made without ruining the finances of renters. The trick is to widen the location search pool to find the best deals, where low purchase prices can increase profit margins without the need to make rental prices extortionate. These prime investment locations are often in areas where housing demand is greatest, offering tenants a chance at housing that wouldn’t have otherwise become available.
That is all we have for you this week. If you have any comments or questions on this week’s news summary, please feel free to email us at [email protected] – if not, see you next week.