I hope you have had a pleasant week. At Track Capital, we have been busy preparing for a brand new launch in Manchester that has been designed to offer residents communal green spaces to relax in and connect with nature.
As a large city with a rich industrial heritage, Manchester has had a significant influence on the development of the entire country since the onset of the industrial revolution. It is reassuring to see the massive regeneration efforts now being put into industrial cities, along with new developments that allow space for nature and people to thrive together.
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
- Will UK Follow Italy with New Video Viewings Service? – Italian property portal Immobiliare.it has implemented a controversial new facility allowing potential home buyers to book a live virtual viewing via its online portal. This is the only platform of its kind in Europe, despite many agents having already broadened the scope for virtual participation for renters throughout the pandemic. Immobiliare.it users will be able to book a video tour through its online platform and watch as the viewing is conducted live by an estate agent. The company hopes that the service will assist in further digitalising the process of property acquisition and widen its services to encompass more than just listings. Industry watchers are waiting to see if the top UK property portals make the same move, or whether such a drastic change from the currently prescribed practice norm is just too much for the conservative UK buyer temperament.
- Average UK Rental Value Hits Record 14-Year High – According to the latest Zoopla analysis, UK rental prices have now reached a staggering record 14-year high, showing the most significant growth since the 2008 global financial crisis. This revelation comes as tenants fight back pressure from an onslaught of inflation and price hikes in nearly all aspects of UK life. We are now in the midst of a cost of living crisis not seen since the great 1970 depression. The data published on Tuesday revealed prices shot up 11% between Jan and March this year, leading to an average rental amount of £995pcm. This is £88 more than the average amount pre-pandemic and the increase has largely been attributed to a drastic supply-demand imbalance. To put the rise into context, the proportion of income now spent on rent alone now amounts to 37% for a single earner in the UK, rising to 52% for a single earner living in the capital.
- Nearly 46,000 New Home Registrations in Q1 2022 – New data published by the National House-Building Council has revealed that the UK experienced a year-to-date increase of 25% in new home registrations throughout the first quarter of 2022. In Q1 last year, a total of 36,665 new homes were registered – an amount surpassed this year by 9,326. The number of new homes registered has increased for every house type, although detached homes have been particularly common, hitting a 20-year high. This may be in response to the ‘race for space’ and WFH culture that started at the onset of the pandemic. The increase in new homes registered signifies a long-awaited recovery in the housing development sector, which has struggled to regain a foothold amidst issues with both material and labour supply shortages.
- Data Suggests ‘Landlord Exodus’ May Be Exaggerated – Although it is true some landlords are opting to sell off their portfolios, bowing to increased pressure from governments and mortgage rate rises, there is still a strong case for the ongoing popularity of UK buy-to-lets among both domestic and overseas investors. According to Propertymark, the demand for rented accommodation continues to rise, offering a huge amount of potential for landlords to maximise their rental yield. Letting agents continue to report fewer properties available for rent, with more applicants per property year-on-year. With 73% more applicants in February than there had been the year previous, Propertymark is in no doubt that tenants are now in heavy competition for properties, with many struggling to even book a viewing for the handful of properties left on the market.
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.