Weak Sterling Presents Buying Opportunity
In a sad week for the UK due to the passing of Queen Elizabeth ll, the British Pound hit a 37 year low against the Dollar due to a combination of Dollar strength and rampant inflation. Incoming Prime Minister, Liz Truss has her work cut out to stem the inflation tide starting with the energy cost crisis as winter looms and most analysts agree the currency will still face some headwinds for the remainder of this year, but the consensus is that it will see improvement from 2023. Savvy investors see this as a buying opportunity for UK property which already has upward pricing pressure due to rising build costs and supply shortages. In particular, GCC investors are taking advantage of the 15% discount their dollar linked currencies are achieving when purchasing British Pounds compared to a year ago.
Posted by: Kelvin Tayfield, Sun, Sep 11th 2022
City Centre Flats Continue their Comeback
Whilst the pandemic drove many renters to suburban locations, city centre flats are now firmly back in demand as work life returns to normal and landlords are reporting a dramatic rise in rental enquiries to on-line advertising. One-bedroom apartment rents in London are up 13.6% since the start of the pandemic, with inner city units up 33.6% from 12 months ago admittedly after falling during the pandemic. The increase in demand is expected to continue against the backdrop of a 37% fall in available properties in the capital compared to a year ago. In fact, according to research by Hampton’s across the UK there are 66% less homes available than five years ago.
Posted by: Kelvin Tayfield, Sun, Sep 4th 2022
UK Housing Shortage; Consents Fall Below Government Target
Whilst housing delivery has failed to meet the Government’s annual target of 300,000 for a number of years, planning consents have fallen below this level for the first time since 2016. Average delivery since 2018 has been around 243,000, some 19% below the desired level with the short-term outlook negatively impacted by supply chain disruptions and rising costs. Looking further ahead, the fall in planning consents paints a picture which will be of concern to potential buyers and tenants alike. The hardest hit region is the South-East which has already seen a decline in housing delivery and has now been heavily impacted by nutrient neutrality regulations which have severely limited planning approvals.
Posted by: Kelvin Tayfield, Sun, Aug 21st 2022
Supply Shortage and EPC Rating Key Factors in UK House Price Forecasts
According to a recent survey by the Royal Institute of Chartered Surveyors (RICS), despite a fall in demand respondents are expecting prices to increase over the next year. Those surveyed noted that older properties that require upgrading and have low EPC ratings are being hardest hit. New build property sales in all areas are still robust and expected to be resilient due to the severe supply shortage and utility bill savings their EPC ratings enable. As we reported last week international buyers for both investment and personal use are seeing the weak Pound as a buying opportunity adding further support to new build prices.
Posted by: Kelvin Tayfield, Sun, Aug 14th 2022
International Buyers Keeping London Developers Busy
This summer has seen London’s influx of foreigners return to normal levels with pent up demand and limited supply making the traditional house buying season quite frenetic. Getting an appointment to view at many London developments across all zones hasn’t been easy. One developer in Prime Central London reported that they have had their busiest two weeks of viewings for many years. This is echoed by other developers whose stock for near term completions is rapidly running out. They also noted that interest from Middle Eastern buyers across all zones has been particularly strong as they seek to take advantage of the weaker pound.
Posted by: Kelvin Tayfield, Sun, Aug 7th 2022