Weekly Property News Round Up – 29.10.22

Weekly Property News Round Up – 29.10.22

Hello,

I hope you have had a productive week. We have been enjoying an exceptionally busy month at Track Capital with sales arranged and a large volume of enquiries.

This month, we have had some exceptional products launched in Liverpool and Manchester – two of the UK’s hottest investment locations. If you are interested in finding out more about these excellent investment opportunities, please reply to this post.

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 49: Sunak & Stability – Should You Invest 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.

Remember, you can also listen to this week’s newsletter on the podcast as well.

We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.

Property News This Week

  • Banks Reduce Home Loan Prices Slowly as Markets Calm – On the announcement of Liz Truss’s widely-criticised unfunded tax-cutting mini-budget, the pound nose-dived and 1,700 mortgage products were quickly withdrawn from the market as lenders struggled to price them accurately. Even after many of these were relaunched soon after, the majority came back with increased pricing of 1-2 percentage points in order to counter the widespread uncertainty surrounding the value of the pound. Now Rishi Sunak has taken over as Prime Minister and it appears that British banks are now slowly home loan prices to more achievable levels. While prices have largely stabilised in the wider economy, lenders have been more hesitant to pass cheaper rates onto their customers. However, consumer groups are now putting them under public scrutiny, pushing them to treat customers fairly.

 

  • Residential Construction Sector Value to Rise Despite Challenges – It is no secret that the UK residential construction industry has experienced significant difficulty in the past three years, with the pandemic slowing down output to an almost-complete standstill across the country. Rising build costs, labour shortfall and a backlog of administration have caused the sector widespread difficulty amid an undersupply of affordable housing of epic proportions. Fortunately, the latest market report by Unlatch has predicted that the UK’s residential construction industry could increase in value by nearly 20% by 2025, showing hope for a turnaround in the sector’s fortunes. Current market performance is still lower than pre-pandemic levels, but Unlatch’s annual figures suggest that more than 57,000 residential construction businesses could be active by 2025. This is positive news for home buyers, BTL landlords and those looking for rented accommodation, all of whom are currently struggling to find suitable properties at achievable prices.

 

  • BTR Pipeline Sees 20% Year-on-Year Increase as Demand Grows – New figures released by the British Property Federation have shown a rise of 15% in the total number of Build-to-Rent homes either in planning, under construction, or completed across the UK between Q3 2021 and Q3 2022. Some regions have seen as much as a 22% year-on-year increase in BTR developments under construction as the scheme continues to expand. The pipeline for BTR projects in these areas has also grown by 22% annually, with just over 77,000 homes in the planning phase. The average pipeline of BTR homes across the UK is also showing strong numbers, with a healthy year-on-year increase of 15% – the equivalent of 113,536 homes in planning. Savills has recently projected that if it remains on its current trajectory, the number of completed BTR homes could reach 380,000 by 2032.

 

  • Rishi Sunak to Hike Taxes & Cut Spending up to £50bn a Year – After the resignation of Boris Johnson and the subsequent step-down of Liz Truss from the role of Prime Minister after a scathing backlash from her unfunded tax-cut proposals, Rishi Sunak has now become the UK’s third prime minister in seven weeks. Sunak has vowed to re-stabilise the British economy and rectify “mistakes” made by Liz Truss, who resigned after just 44 turbulent days in office. The new Prime Minister’s first speech outside 10 Downing Street referenced hard times ahead as the nation battles the current economic crisis. The new budget date has been pushed back to the 17th of November, but there are reports that the government will bring in tax hikes and spending cuts worth up to £50bn a year, which is approximately 2% of the UK’s GDP. The new chancellor has promised to protect society’s most vulnerable, boosting jobs, mortgages and bills in an effort to establish long-term growth.


That is all we have for you this week. If you have any comments or questions on this week’s news summary, please feel free to email us at [email protected]  – if not, see you next week.

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