It has been an exciting week here at Track Capital HQ with new projects launching in Liverpool and Manchester. It has also nice to have the Capital back with more of a buzz now the lockdown restrictions have been eased further. It feels a bit more normal when coming into our London office. All we need is the weather to be a bit warmer and it will be perfect.
Now, let’s take a look at 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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- London Rents Climb for First Time in Over a Year – The London rental market seems to be finally stabilising after its turbulent time throughout the pandemic. The DPS (Deposit Protection Service) reports that rents have increased during Q1 2021 which is the first time in over a year. This would indicate that the tenants who decided to leave the city during the pandemic have already done so meaning the dust has settled in the market from where we had a mass exodus of tenants meaning a surge in stock with little demand which drove rental prices down. The marginal uplift of 0.61% could indicate some people are heading back to the city now lockdown is easing and businesses in the Capital are opening back up. The DPS’s quarterly Rent Index shows overall resilience in the UK’s rental market during Q1 2021 and if we take a look at rents across the North East, traditionally the most affordable UK region to rent, they increased by £37 (7.12%) to £557 the same quarter, largely owing to rents on flats going up by £40 (7.81%) to £552.
- Boris Johnson becomes a landlord (and will allow pets) – It is being reported that the Prime Minister has become a landlord and is charging a nice £4,250 per calendar month for his unfurnished Oxfordshire cottage. He is also accepting pets. The rental property boasts a heated swimming pool, tennis court and uninterrupted country views. We hope he has all his Gas Safety certificates and satisfactory EICR in place, I’m sure he will.
- Inside Bristol’s £140k tiny flat where bed is suspended over sofa in kitchen – You may recall we had a previous article not so long ago about a London apartment opposite Harrods which was practically the size of a walk-in wardrobe which was for sale at £150,000, well it has competition. Bristol has a flat on the market for £140,000 (originally £160,000) that is so minuscule that the bed floats over the sofa on a frame in the kitchen, use the link for the article to see the pictures as you need to see it to believe it. The estate agents selling it describes it as a “truly unique opportunity”.
- House of Lords approves interest rate cap for mortgage prisoners – There is good news for people that have been mortgage prisoners with no way out. A lot of people have found themselves in this predicament since the 2008 banking crash where they became trapped with a mortgage with an inactive or unregulated firm meaning they cannot remortgage because they do not meet strict borrowing criteria, even though they would often be paying less if they switched. This is something that Martin Lewis of MoneySavingExpert.com has been campaigning many years for. Lewis said: “I am delighted that the Lords has seen the injustice that has been heaped on 100,000s of mortgage prisoners. While the Government chose to bail out the banks in the financial crisis, it has never bailed out the banks’ customers who were victims of that collapse. Mortgage prisoners have been left paying obscene interest rates for over a decade, through no fault of their own.”
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.