It’s that time of the month when the latest Hometrack UK report is released showing property values and data from the UK’s largest 20 cities. We have been waiting in anticipation to see how the market has settled since May’s report and the reopening of the property market.
It’s good news, UK house price growth is +2.4% year on year and up from 1.4% at the start of the year. Manchester has also moved up from 3rd place into 2nd, just behind Nottingham (+4.3%), with a year on year increase of 3.9%. The English market has also seen agreed sales surge to being 4% higher than pre-COVID levels, asking prices for sold homes are also 7% higher than last year. These positive reports could be due to low supply which is 15% lower than a year ago.
There are more interesting stats and perspectives so it is well worth a read. To view the latest Hometrack UK report please click here.
Property news this week
- Why landlords could be keen to expand their portfolios in 2020– This is an insightful article which highlights how the fundamentals of property investing have potentially been strengthened over the course of the past few months. It seems that landlords may currently be keen to add to their portfolios and are utilising existing property portfolio equity to do so. Again, it all comes down to the resilient and strong bounce-back that the rental market has had coupled with the continued strength of property prices.
- London is still calling to international investors– According to property consulting firm PSS London, despite the fallout from COVID-19 and flights grounded, overseas investors are still very active in the London and regional property markets. It would seem that for overseas investors, London’s fundamentals are still as strong as ever and it appears there has never been a better time for buyers. They can also take some positivity from JLL’s new report which predicts a 17.1% increase in London prices over the next 5 years.
- New research highlights why and where to invest in new-build homes– Some very interesting stats and insights here. One that caught our attention was the fact that new-builds house price growth has increased 6-8% across the UK whereas the existing property market has only seen growth of 3%. Surprisingly, London has performed strongly with 7.6% increase for new-builds and existing properties experiencing only 1.2%. So the benefits of buying new-builds (such as easy/chain free purchase, better incentives, better energy efficiency and little initial maintenance for a number of years) have now been improved with better capital growth being added to the equation.
- How to avoid unwarranted suspicion when applying for a mortgage– This is a great guide for making sure you apply for your mortgage in a correct and efficient way to avoid unnecessary suspicion from the lender. This article can help get you prepared for when looking to apply for your next mortgage enabling you to know how to do it well with guidance on topics such as deposits. We always recommend obtaining your mortgage through a broker so they can advise you while also searching for the best deal from a variety of lenders.
In summary, the UK market is still riding the wave of the post-lockdown surge, our enquiries on various property investment projects have been the highest in a while, with confidence returning to traditional residential projects and off-plan schemes due to construction being back on track, rather than the fixed-income assets which saw strong demand over the past few months.
Team Track Capital