I hope you have had a great week. This week, we have been discussing what kind of information investors really need to have when choosing their perfect property.
A lack of regional knowledge regarding location and market performance can be enough to deter many investors from exploring options to truly diversify their portfolios.
If this sounds like you, please get in touch with us. Track Capital has access to all the latest reports, statistics and resources to help you choose the best product for you.
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
- UK Rents Increase for 5th Quarter Running – The Deposit Protection Service’s quarterly Rent Index has revealed that Q4 of 2021 was the fifth quarter running of national rental increases. The alarming extent of these rises can be attributed to a major imbalance of supply-demand, seeing increased competition for housing among rental applicants. This increase in rental prices has been seen across most regions of the UK and among all types of rental properties. It is expected that this trend will continue into 2022 as more landlords opt to sell all or part of their portfolios amid fears of ever-more government clamp-downs on the sector, putting a significant strain on profitability. This will be more of an issue for older properties with an energy rating of D or lower, which will soon become unreliable under new energy laws. As it stands, the current imbalance is affecting both renters and buyers alike, with prices moving toward unattainable levels for many.
- Leading Housebuilders Commit to Zero Emissions Target – The UK’s most prominent housebuilders have promised to back the UK government in its drive toward a zero-carbon future by joining ranks with the Future Homes Task Force; a collective of professionals and tradesmen working in every aspect of housebuilding who are committed to achieving zero-emission green targets by 2050. The nationwide group is dedicated to creating a healthier, more sustainable future. With such a powerful industry drive to improve the conditions for people, animals and the environment as a whole, there are now calls for the housing development finance industry to follow suit with publicly recognized frameworks, guides for best practice and ESG checklists for the construction industry.
- Latest House Price Index Shows Annual Rise of 10% – Year-on-year from November 2020, the most recent annual index report has revealed an overall house price rise of 10%, with the South-West showing greatest price gains and London the lowest. In an effort to combat the negative effect of the pandemic on the property sector, the stamp duty holiday succeeded in drawing many buyers back to market. Now it seems that despite the relief coming to an end in Q4 last year, the market’s momentum is continuing to move at speed. A lack of supply is expected to continue to drive house prices up in 2022. Despite interest rates rising, borrowing remains largely affordable, keeping potential buyers in the game. Although London’s house price rises have not approached those of the rest of the country, it is also showing signs of healthy recovery
Increase in Landlords Now Using Limited Companies to Purchase – In the years since chancellor George Osborne brought in changes that increased the amount of income tax landlords have to pay, a growing number have turned to limited companies to keep hold of their income. Hamptons estate agents have revealed that the number of BTL landlords utilising a limited company has doubled in the last four years alone. Evidencing the same trend, data from Companies House shows that across the UK, 47,400 new buy-to-let companies were incorporated in 2021. Property purchasing via a limited company has multiple benefits, from reduced tax liability to easier ownership transfer, although it is always important to seek proper financial advice to make sure such an option is right for you
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.