I hope you have had an excellent week. At Track Capital, the office has been buzzing with activity as investors are rushing to get their feet in the door of our latest and hottest new development just launched.
With deposit prices from £10K and the incredibly rare ability to pay your deposit in manageable monthly instalments, it is not surprising that things have been going crazy!
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.
Remember, you can also listen to this week’s newsletter on the podcast as well.
We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.
Property News This Week
- UK Property Boom Fueled by Continuing House Price Rises – Britain’s property boom is still going strong based on the latest data published from the ONS. On Wednesday, it was reported that UK house prices had climbed another 0.9% from the end of April to the end of May, where it sat at an impressive 12.8% year to date. According to the ONS on Wednesday, May 2022 saw the average UK house price reach £283,000 – a staggering £32,000 higher than the same time last year. Exceptional growth has been seen in every country in the UK, with Wales seeing the biggest yearly increase of 14.4%. England is well ahead of the other UK countries in the
average house price, which has now reached an eye-watering £302,000. Within England, the regional winner for the highest annual house price growth was the South West, where prices rose by 16.9% year to date from May. London was the region with the lowest annual growth at 8.2%, but its gain of 1.3% since April shows that prices in the capital are still accelerating.
- Liverpool Property Market Going from Strength to Strength – The most recent quarterly report released by Liverpool property company City Residential has revealed that the popular northern city’s residential market is performing strongly in both sales and lettings. When compared with data from April to June last year, the same time frame in 2022 has outperformed sales by no less than 30%, leaving investors in little doubt about where to put their cash. The majority of buyers are still keen on moving further from the city centre people look for more space for their money, leading to increasing prices in the suburbs. The subsequent gap in pricing between the city and the suburbs is set to give even more value to buyers. As with the rest of the UK, the low availability of properties for sale is likely to continue to push price growth and there are likely to be further rises in both sales and rentals for some time to come.
- Rent Inflation Rises Despite Steady Growth of Real Estate Stock – Propertymark has reported that among member branches, the average number of properties available for rent has been steadily growing over the past few months. However, the overwhelming majority of agent respondents have remarked that rental prices are continuing to shoot up at an alarming rate. 80% of participants reported seeing rents increase month-on-month in June. According to the data analyst, there were an average of 11 available properties to rent in June. Although this is a positive uptick from the critical low stock seen in February, the average of 93 new applicants registered per member branch in June shows that the demand-supply crisis is far from over. As landlords across the UK struggle to keep up with the stringent regulations putting pressure on profit margins, many are finding it difficult to stay in business. With a complete lack of affordable social housing, the government is urged to see how pressure on landlords will only result in less housing and increasing rents for tenants.
- The UK Property Bubble Continues to Defy the Odds as Inflation Rises – In 2019 it would have been difficult to convince anyone that a global pandemic and cost of living crisis would coincide with one of the biggest property market booms in living memory, but here we are! Now over the halfway point of 2022, the UK property market continues to defy the odds, with an additional 10% of households reporting a desire to move house when compared to three months ago, now totalling some 402,011 potential house movers. The latest Property & Homemover Report published by TwentyCi has reported a 6% increase in the number of households moving soon. With an increase in sales volumes now reaching near-pre-pandemic levels, the total volume of sales transactions anticipated to go ahead in 2022 is 1.2 million. The supply and demand imbalance has been a key factor in the continued increase of house prices, with stock down nearly 50% on historical norms.
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.