I hope you have had a relaxing week. At Track Capital we have been discussing the rise of commuter locations for property development, as the prospects for yield and capital growth in these areas begin to rival that of more established investor cities.
When diversifying your portfolio, keep your eye out for these upcoming areas in the UK showing signs of promising growth, where prices are still highly competitive.
If you would like more information on the best upcoming investment locations, reply to this article today.
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.
Remember, you can also listen to this week’s newsletter on the podcast as well.
We would really appreciate it if you could subscribe and leave feedback for our Podcast on Apple.
Property News This Week
- Finding Out What Makes an Area Posh in 2022 – In the current climate, it is understandable that many house buyers are more concerned with affordability than the ambience of their chosen location, but the latter has far more importance than may first appear. The truth is that affluent areas have a tendency to hold and grow their value as the years go by, and the savvy investor can learn to spot signs of upcoming affluence in less-established areas. These signs include artisan eateries, specialist shops and the presence of electric cars in local neighbourhoods, which can all signify a fundamental difference in tenant demographics. Although cities such as Oxford, Windsor and Cambridge are well-known for their affluence, investors in 2022 can look to areas like York, the Lake District and Preston for an affordable entry into areas with future high-wealth potential.
- Nationwide Reports House Prices Inching Forward in July – As pressure mounts on UK households with sky-high inflation and the exponential explosion of house prices from coast to coast, we have been watching with bated breath for any possible sign of a market slow-down. Although Nationwide’s July House Price Index indicates a slight slowdown, where an increase of just 0.1% last month left the annual UK house price exhibiting only a slight rise of 0.3% year to June, the market is still showing resilience against all odds. The index commented on strong labour market conditions, such as 50-year-low unemployment rates and the housing undersupply continuing to push house prices up leading to double-digit house price growth.
- Housebuilder Report That Housing Market Remains Strong – Taylor Wimpey has reported that the UK housing market is still benefiting from excellent mortgage options, despite interest rates rising. Combined with heightened demand for quality homes in the wake of the pandemic, the UK market has shown remarkable resilience to aggravating factors threatening a house price slump. Mortgage lender Nationwide reported on Tuesday a slight quickening of year-on-year house prices at 11% from June’s reported 10.3%. In the heat of rising economical pressures, even a modest rise is a positive sign that demonstrates the true power of the historic supply-demand imbalance currently gripping the nation.
- Controversial Proposals to Fix the UK House Market Crisis – Is there anything our government could propose that might rival the controversy of Margaret Thatcher’s decision to sell off council houses in the 1980s? There might just be. The Conservative Department for Levelling Up has unveiled a host of ideas to encourage new house buyers to enter the market. If their concept of a 40-year fixed rate mortgage sounds good right now, consider what the result would be for millions if house prices crash into a recession, leaving unfortunate buyers with negative equity they will struggle for decades to recover from. Perhaps it would be more helpful to the majority if the government simply focused on honouring its promise of delivering much-needed affordable housing in the UK and demonstrated equal support of tenants and landlords as both being essential for the health of the struggling rental market.
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.