I hope you have had a great week. At Track Capital, the pace has quickened as the summer rush brings an abundance of new developments onto our portfolio and enquiries are flowing in from investors raring to get a piece of the action.
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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.
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Property News This Week
- UK Agents See No Signs of Market Slowdown – Propertymark’s May 2022 Housing Report has revealed that the UK market is still buoyant despite whispers of an imminent market cool-down on the cards. Property experts have been talking of a slowing of transactions as an inevitable outcome of the storm of inflation, supply chain issues and rising mortgage costs increasingly impacting market activity. However, May’s figures in the report showed that the average number of sales achieved by agents hasn’t changed for three months now, and the average number of prospective buyers for each property remains at 90 – a market high. Although the results may have been skewed by long transaction times, nearly 80% of respondents reported that the majority of sales agreed were still at, or even over, the asking price.
- Proposed PRS Reform Will Only Work if Properly Monitored – The PRS Reform white paper has raised many eyebrows since its publication, with as many doubting the efficacy of the proposals as there are supporters of the PRS overhaul. It is undeniable that a shake-up has been needed for some time, as many tenants across the UK are suffering under the bad management of rogue landlords, forcing them to live in sub-par conditions. The reform details the controversial removal of Section 21 ‘no-fault’ evictions, a step that landlords fear will take the control over a property they own away from them and put it directly into the hands of tenants. Much of the reform speaks of changes that will effectively give more power to tenants. Leading payment and reconciliation platform for the residential lettings industry PayProp has welcomed the focus on more protection for landlords and renters but also warned that without clear policies and proper enforcement, the reform will drive the court system to capacity and fail.
- Landlords Must ‘Up Their Game’ for the Expectations of Modern Renters – After completing a survey of 1,000 tenants across the UK, furniture and interior design specialist Hatch has opened up a window to the mindset of modern renters. The analysis reveals that of the 82.6% of participants currently renting from a private landlord, 40.8% are keen to move to a ‘build-to-rent’ development, attracted by their high-spec design and professional management system. Hatch has commented on the findings, saying that tenants’ expectations have changed and many are now setting their sights on properties that offer something special. The poll showed an emphasis on areas such as included white goods, professional interior decor and attractive outdoor spaces. Participants who are interested in build-to-rent developments are looking for high-class amenities that have a community vibe, such as communal gyms, shared social areas and enhanced WFH facilities. Private landlords are now being encouraged to go the extra mile to acquire quality tenants who are looking to stay.
UK Property Transactions Rise in May Despite Market Cooling – The latest data from the HMRC shows an increase of 1.6% in UK property transactions in May, even as evidence grows of a slow-building market cool-down. Adjusted seasonally, 109,210 property transactions were recorded in May, which is 5.1% less than the same month last year, but still 1.3% higher than April this year. With residential property transactions being 2% lower year-on-year, it does appear that the effects of cost-of-living increases are slowly trickling into market data, but this year still gained the place of the third busiest May since 2012. The Senior Personal Finance Analyst for Hargreaves Lansdown has commented that even though the market remains very active, it has dropped well below its peak in June 2021 and there isn’t much wiggle room left for an upward trajectory at this point. It is predicted that sales will continue to drop slowly as more and more buyers feel the pinch of inflation and many potential new buyers are simply priced out of the market.
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.