This has been a huge week for the UK property market as capital growth hits record highs in cities such as Liverpool and Manchester. It seems that this market explosion is nowhere near finished either, making this the perfect time to invest in these promising areas, where exceptional value for money and below-market opportunities are still available.
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 having to click through.
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Property news this week
- How UK Budget Affects Expats – The details of budget 2021 has been an area of unease for expats wondering what, if any, changes would be made to alter their earnings and financial processes. Offshore pensions for expats will remain untouched though, as there was no mention of QROPS or international SIPPS in Chancellor Rishi Sunak’s Budget 2021. Early pension access rules for savers aged 55 or older will also stay the same. Income tax will rise by £70 from April and undergo no further increases until 2026. Inheritance Tax nil-rate bands will also stay the same until April 2026. Capital Gains Tax, Savings and ISAs will all remain unchanged.
- August Release: Latest UK House Price Index Report for July 2021 – Track Capital addresses the recent UK house price index report covering July 21. Strong figures are seen across the board which indicate incredibly positive overall house price growth in the UK. According to Hometrack, the average UK house price growth is +6%. Liverpool sits at the top of the list, with outstanding growth of 9.4% reported. It is followed by Manchester at 7.7%. These fantastic growth percentages are driven by high demand and low supply for housing in many areas. Demand has increased by 21% year on year. Comparing this to the current housing stock available for sale (down 26% from 2020) it is easy to see why house prices throughout the UK are seeing such exponential rises.
- A Third of Landlords Doubt They Can Hit 2025 EPC Targets -The government’s plan to make an EPC rating ‘C’ a requirement for new tenancies by 2025 has not been well-received by landlords. A recent survey revealed that a third of landlords are unsure if they can meet the ambitious target. Many reasons were given, such as owning older properties which would cost more or even be impossible to improve to that extent. A lack of financing was also cited and concerns that a lack of return on investment would make the cost impractical. While landlords may opt to sell rather than meet new standards, the current market boom offers a great opportunity for them to simply reinvest in new developments which are already built to desirable EPC standards. This is a factor that we are seeing some of our investors consider when swaying towards our new-build and off-plan investment opportunities.
- Investor Demand for Properties Continues to Rise – New analysis from Zoopla reveals a 21% increase in demand for properties from buy-to-let investors. It is anticipated that this strong demand for rental properties from investors will continue into the foreseeable future. Zoopla cites demand from investors, increased interest from first-time buyers and a lack of new developments to meet demand as the three pivotal reasons why the supply shortage in the sales market is currently so severe. With house prices soaring across the county, many investors are looking to areas of regeneration such as Liverpool and Manchester, which are home to new luxury developments at below-market prices, in order to make the most of the current capital growth surge.
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.