I hope you have had a great week and a fun bank holiday. With a shorter working week and some really lovely weather in much of the UK, there has certainly been a lot to smile about.
At Track Capital, we have something else to celebrate too – the exciting launch of Phase 2 of one of our most popular developments in central Liverpool. With massive amounts of interest already flooding in, we can now talk about this amazing project to our heart’s content!
If you are interested to know more, reply to this email.
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
- Tiny House with a Big Secret Hits Market at £1.2million – Have you ever heard of a shed with an eye-watering asking price of £1.2million? How about a shed that comes complete with its own tennis court? If this sounds absurd, get your shoes on and head over to the most exclusive area in Newcastle, a little-known location where the prices will leave you clutching your purse and gasping for breath. With such a premium on houses in this area, it may be less surprising that this strange property should ask for so much, with the earning potential for converting the space into a more conventional home being sky-high. Sitting in a stunning tree-lined suburb and kitted with planning permission for a three-storey detached home, we expect someone with deep pockets to see the earning power soon and jump on this unique project.
- Demand for UK Office Space Enters 2022 Recovery – The RICS Commercial Property Market Survey has been released, detailing analysis from property sector professionals on market activity in Q1 2022. According to the results, participants in the survey noticed a significant rise in demand for UK office space, with a net improvement of over 30% when compared to the end of last year. This positive feedback suggests a turning point for this sector which has struggled to return to pre-pandemic levels of activity. The Head of Government Affairs at RICS has called on the government to acknowledge the importance of the office property market in establishing a stable economy and to advocate for it in with tangible support and decisive policy handling.
- Property Sector Reacts to Fourth Base Rate Increase This Year – This Thursday, the Bank of England made the move many homeowners have dreaded, opting to raise the base rate for the fourth consecutive time this year. Now sitting at 1%, the base rate is now at the highest level in thirteen years. This decision has been taken with a big picture view, meaning that while the public will certainly feel the squeeze now, the mitigation of “cheap money” will benefit consumers in the coming years. Although property prices may not be immediately affected due to the drastic supply crisis currently underway in the UK, the interest rate will certainly have a dragging effect as more and more people tighten their budgets in preparation for an economic struggle. That said, the current interest rate is still at one of the lowest levels since recording began plus the current supply and demand imbalance will still keep prices on the up.
Supply-Demand Imbalance Causing Longer Tenancy Lengths – The most recent figures released from PropertyMark suggest that the constant rise of the average UK rent is pushing more people to stay in their current home rather than attempt to move. This is a very common-sense response as tenants already under contract have more protection from rising rents and more recourse to either get help paying rent if they fall into arrears or to challenge rent rises than those on the hunt for a new place to live. This is compounded by the fierce demand for properties which cannot be met with the low number of available homes. 71% of those surveyed reported an increase in rent amount, which is over 10% higher than the same time last year. Agents have also warned that many landlords are opting to leave the sector as they feel persecuted by the government and unable to make their once-flourishing businesses viable, thus decreasing supply.
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.