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Arabian Property Awards

Supply Chain, Labor Shortages Expected to Impact UK Housing Shortage

As the UK Government struggles to reach the annual target of providing 300,000 new homes, builders are concerned about material shortages as well as labor issues post Brexit. Only 201,000 homes were provided between April 2020 and March 2021, a period when these issues weren’t yet a major factor. Builders also point to the longstanding problem of delays caused by difficult and cumbersome planning approvals. With a growing population, this situation will continue to put upward pressure on house prices and rentals in most parts of the UK.

Posted by: Kelvin Tayfield, Sun, Jan 16th 2022

Arabian Property Awards

UK Build-to-Rent Investment Hits Record High

Investors poured £4.1bn into the sector in 2021, some £500m more than the previous record. More than half of this occurred in the fourth quarter as institutions looked to deploy as much capital before year end. Moreover, there are already £2bn of transactions in the pipeline for 2022 with a further £2.5bn being marketed which should see another record year. In addition to attracting leading local investors including Lloyds Banking Group and John Lewis, international players such US investors Goldman Sachs and Greystar are showing interest in this sector as the UK housing shortage persists.

Posted by: Kelvin Tayfield, Sun, Jan 9th 2022

Arabian Property Awards

2021 UK Property Market Review

UK house prices increased once again in December raising the annual growth rate above 10%, the highest in 15 years. Prices are now 16% above pre-pandemic levels, something very few economists predicted as lockdown and travel restrictions were implemented. Experts highlight that the stamp duty holiday and low interest rates were major contributors to record numbers of transactions which exceeded those of 2007. They acknowledge that the absence of the stamp duty concession and rising interest rates in 2022 will see growth slowing but point to the dramatic supply demand gap with new builds which should ensure steady growth in the coming years.

Posted by: Kelvin Tayfield, Sun, Jan 2nd 2022

Arabian Property Awards

UK Build-to-Rent Boom to Continue

Whilst predictions are for a cooling of the spectacular house price growth of 2021, investment in the build-to-rent sector is set to continue to grow fueled by the ongoing housing shortage. Planned investment by heavy weights John Lewis, Lloyd’s and Macquarie have highlighted the attractiveness of this sector as they seek to diversify their portfolios. In terms of locations likely to see the strongest activity, the North West is expected to maintain its strong growth trajectory according to most analysts.

Posted by: Kelvin Tayfield, Sat, Dec 18th 2021

Arabian Property Awards

UK Race for Space Could Be Over

Whilst house prices during the lockdown period outstripped those of flats, the reduced work-from-home hours seems to have resulted in a reversal of that trend according to mortgage lender Halifax. In November prices for flats were up 10.8% year on year whilst houses saw a 6.6% increase. Property website Rightmove have also seen a reversal based on searches during the same month, stating that must haves for prospective buyers include balconies, shared gardens and on-site facilities. This is playing into the hands of the major developers who usually offer such facilities with those having communal work spaces proving particularly popular.

Posted by: Kelvin Tayfield, Sat, Dec 11th 2021