The property purchasing surge continues this week with more than half of mortgage brokers seeing an increase in buy-to-let purchase business in recent weeks. With this rise in activity it seems that landlords are staging a comeback.
We have seen signs that the Prime Central London property market is bucking the trend of the more negative press London property has been receiving lately as it has been reported by the estate agency Dexters that the number of sales agreed for properties priced over £2 million between mid-June and mid-August was 85% higher than the same period last year. Meanwhile, lettings transactions for properties costing over £1,250 per week were also up 41% compared to the same period in 2019.
It would also seem that as a result of the government introducing more quarantine measures for holidaymakers a ‘Staycation Nation’ seems to be emerging with more and more people opting to holiday in the UK.
Property News this week
- Coronaphobia fuelled property slump: UK house prices fell by 0.2% in March and April– In this article from the Daily Mail Online, the new ONS figures show the impact of the property market shutdown that happened in March. Our very own Director Nick was on hand to give his insight to these figures stating, ‘The April figures don’t tell the full picture, as the data includes transactions that completed before the lockdown took effect, but numbers are down on where we would expect them to be at this time of year, with the impact greater among new-build properties. We know that sales that were put on hold in April have mostly been relocated by a few months, which explains the pent-up demand that was released last month. Consumer confidence is slowly recovering from the dark days of lockdown, and buyers clearly see property as a safe investment.’
- Eviction U-turn: ban stays for another four weeks– It seems the government have given in to the pressure and made a last-minute U-turn on the eviction ban, extending it by four weeks. This is an action that has frustrated many landlords that were hoping to have their repossession cases heard in court once the ban lapsed this Sunday. The government has also announced that six month notice periods must be given to tenants which could massively affect some landlords that want to sell or get their property back.
- The UK property market – A viable investment alternative in 2020– This article caught our attention as it is from Fintech Zoom which is a news platform for investors exploring cryptocurrencies and digital assets. They give a list of reasons why investors should shift their assets into an investment in the property market for more long-term, secure growth. The list of reasons comprises of stability, longevity and secondary income. If you were questioning whether property investing was the investment for you at the moment, then this article should help.
- Pandemic could accelerate UK retail property investment shift– Not residential property related but commercial property related and very interesting none the less as this could be a trend that we see accelerated as a result of the pandemic. It seems that a growing number of retail landlords are now considering converting their leases to replace the traditional upwards-only rent review mechanism with rent based on turnover meaning that effectively, the landlord would be sharing the operational risk. This could also be advantageous for landlords because leases would include a turnover break, allowing the landlord to remove an underperforming tenant to make way for another occupier or to find an alternative use for the space giving flexibility. It will be interesting to see how this plays out.
A little added extra for our readers this week is a piece in Property Investor Today about ‘Manchester’s ever-changing skyline‘ where it takes a detailed look back at the rapid growth of Manchester in recent decades and offers a sneak peek into the future of the city’s high-rising horizon.
Get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.