Weekly Property News Round Up – 27.05.23

Hello,

I hope you have had a great week. This week we are set to launch another collection of high-yielding investment options located in prime areas across the UK.

With low entry point prices across a wide variety of asset classes, we have something for everyone right now and there has never been a better time to explore your options.

If you would like to learn about our upcoming launches, reply to this article today.

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.

Episode 61: Where Should You Be Investing Right Now? – The latest episode of the Pure Property Podcast is out now. You can listen to it on Apple Podcasts and all other major platforms.

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Property News This Week

• Labour Party Vows to Abolish Leasehold if it Wins Next Election –
  The UK Labour Party has committed to abolishing the leasehold system within its first 100 days in power if it wins the next General Election. The party believes that the system, which has been criticised for preventing homeowners from remortgaging and selling due to leasehold charges, is archaic and unfair. Labour plans to replace leaseholds for new build houses with a commonhold system, arguing that this approach is successful worldwide. This comes amid reports that Housing Secretary Michael Gove has reneged on pledges to abolish leaseholds.

 

• Private Sector Rent Rises Hit Record Speeds Across the UK – Rental prices in England, Wales, and Scotland have surged at an unprecedented rate due to high demand and limited supply of homes. Data from the Office for National Statistics reveal that London experienced the sharpest annual increase since November 2012, with rental prices climbing by 5% from the previous year in April. Rising mortgage costs have compelled numerous buy-to-let landlords to raise rents. Regulatory changes and taxation have also discouraged landlords from investing further in the sector.

 

• Rightmove Data Reveals 1.8% Asking Price Increase in May – The average asking price rose by £6,647 or 1.8% month-on-month in May, marking the biggest rise this year, as reported by Rightmove. However, property experts offered varied views on whether it’s a buyer’s or seller’s market. While some experts like Gary Bush from MortgageShop.com believe it’s a seller’s market due to a shortage of decent property stock, others such as Samuel Mather-Holgate from Mather & Murray Financial and Justin Moy from EHF Mortgages view it as a buyer’s market. Lewis Shaw from Shaw Financial Services opines that the market isn’t in favour of either, given the current economic uncertainties.

 

• Britain Experiences Steepest Drop in Inflation Since Crisis Hit –
  The UK has witnessed the sharpest fall in inflation since August, with the annual rate dropping to 8.7% in April from 10.1% in March, the Office for National Statistics (ONS) reported. This reduction was partially driven by decreased electricity and gas prices. Meanwhile, average house prices rose 0.5% last month, marking the end of a seven-month decline. The increase has brought the average price up to £260,441, lifting the annual rate of house price growth to -2.7%.