I hope you are having a wonderful week. Here at Track Capital, we have been working very hard to help our investors reach their full market potential, bringing fresh new deals and incentives to the table and sourcing the highest-quality products below market value.
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.
- Record Investment Highs in UK Build-to-Rent Market – UK property agent Knight Frank has reported an increase in BTR (Build-to-Rent) investment by 79.8% for the first half of 2021 when compared with the same period last year.£2.35 billion has been invested in the BTR sector in H1 of this year alone, which is already fast approaching the £3.5bn of capital that was invested in total during 2020. Many cities have experienced huge regeneration in this sector, such as Newcastle, Leeds and Bristol. Both domestic and international investors are showing sustained interest in meeting the UK demand for more space which has emerged as a reaction to the pandemic.
- Estate Agents Trial New 5% Mortgage Product – A new financial product is now being piloted by two prominent estate agents which will allow prospective buyers to purchase property using only a 5% deposit. Unlike previous ‘Help to Buy’ schemes, this product coined Proportunity will not be limited to first-time buyers or new home purchases. Its aim is to enable buyers to increase their market capacity by securing financing for up to six times their annual income. This new venture will come as a welcome opportunity for all those struggling to afford the ever-increasing UK property prices in the current market boom.
- Rental Prices Increase in Every Region – The Home Property website has revealed there has been a rental rise in every region across Britain, with record levels outside London, all caused by an overall lack of rental properties. Rents have increased by 3.7% on average but some areas have increased by nearly three times as much. Even the London market is now showing a reversal of the loss it undertook at the height of the pandemic, as people clambered for more space and less centrally-located homes.
- So-Called ‘Death’ of City Centre Greatly Exaggerated – CEO Bob Young at Fleet Mortgages has listened to tales of the mass city exit and emptying of city streets with a large pinch of salt. While some of this concept is undoubtedly rooted in truth, Bob points to data that paints a very different picture, where the current city centre rental yield is only 0.2% off its top performance of 2016. Despite some home-buyers and renters capitalising on new WFH structures and looking for more space outside the city, there will also be many who are happy to forego that space for the promise of bustling city life and more opportunities for work, play and study.
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.