This week we saw a positive report from Rightmove which is one of the UK’s leading property portals. There are some very encouraging figures which help solidify our recent views that the property market is incredibly strong at the moment. The average asking price of property coming to the market in Britain hit a record this month with a 2.4% (£7,640) increase in comparison to March pre-lockdown and a 3.7% annual rate of increase is the highest since December 2016. Buyer enquires are up 75% year-on-year in Britain since the start of July and Rightmove reports that 44% of new properties that came on the market in May after the English market re-opened are now ‘sale agreed’.
Miles Shipside, Rightmove director and housing market analyst comments: “The busy until interrupted spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown.
These figures are the earliest indicator of house price trends. They show on average prices gently rising not falling, and this will be reflected in the coming months in other house price reports.”
Overall, it seems that the property market is fully moving again and the future trend looks promising so far. You can view the data and report here.
Property news this week
- New tenancies are now almost back to pre-pandemic levels– Due to the pandemic we saw Q2 2020 figures for tenants moving drop by 32%. However, according to the Deposit Protection Service (The DPS) June saw a swift recovery which means tenants are on the move again. Good news for landlords that are purchasing a buy-to-let and/or looking to list their property for rent.
- What do you need to think about when analysing a new property deal?– This is a brilliant article and is something we like to run through with all our clients. We think it is very important to do this so you can mitigate risk as much as possible. A lot of people think that you just look at the cost of the deposit or the cost of the property as a whole but there is so much more. Check this article out so you can give yourself a great understanding of what to look for. We like to do this for our clients but there may be some investments you might source on your own or there may be some companies that do not cover this for you and expect you to do it all yourself.
- Boost for London tenants as rental prices nosedive– It seems that an oversupply of properties and reduced demand may have caused a dip in rental prices in London. The recent data released by Rightmove shows London’s rental asking prices drop 2.8% between April and June. Interestingly, Rightmove suggests that the reason for this is an oversupply of long-term rental properties diluting the market. The surge in long-term rental supply seems to be because landlords using their properties for short-term holiday lets via Airbnb have had to make the temporary switch to finding long-term tenants. So not as doom and gloom as the title may indicate as the data would suggest that this is just temporary until short-term lets get back on track.
- New figures offer hope to UK construction – Positivity for the construction industry following the impact that COVID-19 initially looked to take on it. The industry analyst Barbour ABI reports that the number of construction contracts awarded in the UK rose by over 81% in June with contractors signing contracts amounting to €2.42 billion based on a 3-month rolling average. The report shows London leading the way with 21.6% of all contracts in June followed by the South East with 16.4% and then the North West with 13.6%. The single largest contract went the infrastructure sector with Gatwick Airport’s railway station refurbishment valued at approximately €165 million. Barbour ABI said the growth in contract numbers represents an improvement in conditions, as the UK emerges from its coronavirus lockdown status.
Get in touch with the team anytime to discuss your UK property investment plans through [email protected] or on +44(0)203 627 3987.