Welcome to this weeks property news from Track Capital.
The government announcement regarding the reopening of the UK property market has seen the pent up demand released. The majority of industry professionals are back to work and the market is moving again. We will be watching closely over the coming weeks and months to see how the property market reacts but so far so good as demand seems to already be back on the rise.
With the positive property market news that we had this week, let’s take a look and see if the headlines match:
Property news this week
Current UK BTL hotspots where yields are rising – In their latest research, lettings management platform Howsy has highlighted parts of the UK rental market registering the strongest yields and where yields have increased despite the current pandemic. Bradford topped the highest average yield leader board at 10% with Liverpool and Manchester also ranking high. The worst average yields of 2.3% saw the likes of Kensington and Chelsea at the top. The largest rise in yields can be found in North West Leicestershire where yields are up 1.4%. That is the good thing about property investing, even in tough economic and market conditions, rental prices are resilient.
Construction sites can now stay open until 9pm to help enable social distancing – The government has shone a light on the construction industry giving the green light for extended working hours on construction sites. The government realises the need for this industry to get back up and running after weeks of standstill due to lockdown.
Housing market back with a bang after lockdown easing – UK property website Rightmove reported a rise of 45% in site visits on Wednesday morning in comparison to a day earlier after the government gave the go-ahead to reopen the housing market. Email enquiries to Estate Agents increased 70% and new listings increased with 2,115 new properties added in just five hours. The government giving consent to renters and buyers being able to move again has seemed to have released the pent up demand that was building up. It will be interesting to see how the property market shifts in the coming weeks and months.
Build to Rent giant bucks virus with a big rise in rental income – Grainger is one of the biggest companies in the BTR sector and they have just defied the coronavirus with a surge in rental income. The firm saw an increase of 27% in rental earnings in the six months to the beginning of April compared to the previous year. BTR rental growth on their properties was 3.4% over the year and they are continuing to work on their 9,000 unit pipeline. Their growth, resilience in the COVID-19 market and continued investment in this sector shows the strength in the rental market as a whole.
That’s it for this weeks news, keep an eye out for weekly updates.
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Team Track Capital