I hope you have had a lovely week. At Track Capital, we have been discussing the various different strategies a property investor can employ to maximise both their budget and their yield.
We have recently acquired an exclusive range of HMO properties for our portfolio that offers investors exceptional yields combined with long-term rental assurances.
If you are interested in learning more about these exceptional new opportunities, reply to this article.
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
- St. Modwen Landmark Scheme Promises All-Electric Homes – One of the UK’s leading developers committed to innovative and green approaches has recently started a brand new project to deliver 350 all-electric homes in Birmingham. The concept of the build is based on smart-grid power and is designed to offer sustainable living solutions that are in keeping with the company’s ambitious carbon-negative goal. St. Modwen’s company ethos is to demonstrate that environmentally sustainable homes are achievable at a commercial scale, with the hopes of prompting other developers to follow suit and together create a better future for both the environment and residents. The new all-electric homes will be 100% gas-free and have energy-saving features throughout that enable users to control their output.
- 15-Year High in Quarterly Rent Rises in Q2 2022 – The Deposit Protection Service has recently published data that shows the rents in the UK rising by 2.47% during the second quarter of this year. This rise, which equates to an average rental increase of £21pcm, was the largest increase in a single quarter recorded in fifteen years across the country’s rental values. The UK’s largest protector of deposits also stated that average rents had increased by £66 since the same time last year, bringing the average UK rent to £870. Incredibly, the organisation revealed that four of the biggest recorded quarterly rent increases in 15 years occurred during the same time period, skyrocketing the UK’s rent inflation rate as seen over the past year. The critical supply-demand imbalance has been a large contributor to this situation, along with an increased interest in larger, more spacious rental properties after the pandemic, which drew many people away from inner-city areas.
- Annual Report Calls for More Education in Housing – An annual report on the status of shared ownership in England has recently been published by the MTVH, one of the UK’s most established housing associations. The report included the participation of 2,000 individuals ranging in age from 18 to 30 years old, interviewed by phone on a range of related topics. Of those asked, 70% of respondents voiced a desire to own their own home. Sadly, out of these, two-thirds admitted knowing next to nothing about the process of home buying. Less than one-fifth of respondents knew anything about affordable housing schemes that might be available to them. Another issue uncovered was an over-reliance on education from parents, when the parents’ own experience of homeownership does not reflect the lived experience of the modern generation. The report proved that once well-informed, around 50% more respondents showed interest in pursuing homeownership as a viable option.
- Nationwide Backs Launch of UK’s First Rent-to-Own Scheme – Homebuyers who are unable to access traditional funding have been thrown a lifeline by Kettel Homes as they launch the very first open market rent-to-own scheme in the UK. Backed by Nationwide, Kettel Homes will purchase freehold single-family homes valued between £125k and £400k. The company will then charge first-time buyers 2% of the total value of the property price, to be added toward their future deposit. After this, Kettel Homes will rent the home back to the buyer for a fixed period of three years as they save for their deposit. The rental amount during this period will be fixed and will not rise, as will the future purchase price of their chosen property. The savings, too, will remain at a fixed rate which ensures the homebuyers will be able to put down the correct deposit amount after the three-year rental period is over.
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.