I hope you have had an enjoyable week. This week we have been celebrating the official launch of our latest high-spec development in Manchester, Botanical Gardens.
Investing in a newly-launched product means getting the first pick of available units. It is our job to secure the best unit quickly for you, bypassing the hassle and competition that is currently fierce among UK properties.
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
- Agents to Encourage Landlords to Apply for Boiler Upgrade Scheme – In the past few years, the government has put an increasing emphasis on “going green” and the real estate sector has been among those most affected by policy changes. While private rented properties currently need an EPC of E or higher, the government plans to switch this for a minimum rating of C for all existing tenancies by 2028. In light of this, Propertymark is now encouraging Letting agents to work proactively with their landlords in applying for government funding in schemes that help will properties to become more energy efficient. Combined with grants available for low-income households and the new 0% VAT rate on certain energy-efficient materials, the government has now brought out the Boiler Upgrade Scheme which offers grants of up to £6,000 to eligible applicants.
- Crossrail Boosts House Prices by up to 215% Since Inception – Using 14 years of data analysis on areas that are planned to have a Crossrail service, Benham and Reeves have revealed that postcodes with a nearby Crossrail planned have already experienced an average house price increase of 79%, rising to up to 215% in prime areas like Bond Street and Tottenham Court Road. The data analysed has been comprehensive, to say the least, with information gathered on house price growth since 2008 and cross-referenced against each postcode’s wider local authority for comparison. The official launch of Crossrail is now imminent, and it is clear from this extensive analysis that the vast majority of homeowners in the areas affected have seen a huge lift in the capital appreciation of their homes. This is anticipated to rise even higher as the service launches and gains popularity.
- Manchester House Prices Have Risen More Than Any Other UK City Since 2002 – Using figures from the ONS, property data giant Plumbnation has released a new house price analysis spanning cities across the UK and drawing a parallel between the values this year and those from 20 years ago. In order to find out which UK city has experienced the greatest increase in property value since 2002, Plumbnation calculated the percentage difference between then and now. The overall winner? Manchester of course. Renowned for its exceptional market strength, Manchester has long been known as a property investment hotspot. In 2002, the average Manchester property stood at just £48,845. Compared to the average cost of a Manchester home now, house prices have risen by a staggering £161,802 in the past 20 years. This puts the current Manchester house price average at £210,647, which, despite its exponential growth, is still well below the UK national average of £270,708 as of November 2021.
Survey Suggests Landlords See BTL Sector As Pension Investment – A report released by the Department for Levelling Up based on the latest English Private Landlord Survey has revealed that between 54-58% of English landlords view their portfolio as being a future asset to tap for their pension fund. With the continually-rising house prices, it is easy to see why, but the senior pensions and retirement analyst for Hargreaves Lansdown has warned landlords not to become over-confident in this plan. The costs of maintaining properties are already heavy and are only set to increase in the future as BTL regulations tighten. Combine this with the possibility of a market crash and it could spell disaster for any landlord counting on their properties as their only retirement pot. A retired landlord may also find it difficult to sell quickly enough if their capital is suddenly needed to fund long-term care. As with any investment portfolio, the key to stable growth is diversity and temperance – no matter how sure you are of an investment strategy, never put all your eggs in one basket.
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.