How Has Work from Home Impacted the Housing Market?
The Covid pandemic resulted in homeowners and tenants looking for more space with less emphasis on proximity to major cities. Now that many are returning to work at least a few days a week, interest in cities has begun to increase. Mortgage lender Halifax noted that although London lagged other regions in terms of growth, prices remained resilient with a positive outlook. Buyers and tenants are looking for more space and facilities such as resident’s co-working space and gyms with supermarkets and restaurants nearby. Savvy developers that have adapted quickly are reaping the benefits by including the on-site facilities as well as increasing retail and commercial space allocations in city developments.
Posted by: Kelvin Tayfield, Sun, Mar 13th 2022
UK House Rents Reach Record High
Average rents across the UK exceeded £1,000 per month for the first time reaching £1,069, up 8.6% from a year ago according to referencing agency HomeLet. Whilst rentals vary wildly across regions, the Southeast and East of England exceeded £1,000 pm and Central London averaged £1,757. Separately leading lender Nationwide reported that house prices reached an average of £260,000 recording an annual increase of £30,000, the biggest in 30 years with no respite for buyers and tenants in sight given the increasing cost of construction.
Posted by: Kelvin Tayfield, Sun, Mar 6th 2022
Demand For UK property Continues to Soar
According to the National Association of Property Buyers demand for property in all regions remains at all-time highs and is not expected to drop any time soon. Demand was up 16% in February with supply struggling to keep up. This imbalance along with massive building cost inflation due to supply shortages and cost of labour increases is expected to put severe upward pressure on house prices. This scenario is forcing more and more potential home owners to continue renting allowing buy-to-let landlords to capitalise and increase rental yields.
Posted by: Kelvin Tayfield, Sun, Feb 27th 2022
EPC Ratings Driving Property Investment Decisions
Due to the recent hike of over 50% in UK utility prices, buyers are now paying more attention to Energy Performance Certificate (EPC) ratings when making investment decisions. In 2018 the government implemented minimum standards of ‘E’ for rental properties in order to protect the environment and plans to increase this to ‘C’ in 2025 or 2026 which means that many older homes will not be compliant. One leading UK property broker has reported that buyers have acted quickly with 50% of purchases being for properties rated A-C this year which is the highest ever recorded and favours sellers of new build properties. Besides the benefit of living in a state-of-the-art home, the energy savings will be a huge draw for tenants going forward.
Posted by: Kelvin Tayfield, Sun, Feb 20th 2022
Manchester Continues Its Strong Investment Case
According to a research report released by leading commercial real estate company Avison Young, the Manchester economy recorded the second highest growth among major European cities at 8% with economists predicting a robust 6.5% in 2022. The report also highlights growth opportunities in other North-West cities such as Bolton and Preston who are benefiting from major regeneration investment. Around 45% of Manchester’s population are under 35 and it has the highest student retention rates in the UK, factors which drive the build-to-rent sector. Investment is also pouring into Manchester’s hospitality industry with four new hotels planned, adding 1,200 rooms to the city.
Posted by: Kelvin Tayfield, Sun, Feb 13th 2022