UK Property Has Best January Since 2005
UK property prices increased by 0.8% in January bringing year-on-year growth to 11.2%, according to Nationwide Building Society. Activity in high end properties was particularly robust according to one of the leading London agents who noted that buyer demand in this sector was up 15% on last year with valuation requests up a dramatic 44%. This data supports what we mentioned in last week’s market update with savvy investors moving before building cost increases filter through completely.
Posted by: Kelvin Tayfield, Sun, Feb 6th 2022
Record UK Property Rental Price Surge
According to leading property portal Rightmove growth in rental prices outpaced growth in purchase prices in 2021. Rentals increased by 9.9% year-on-year with London leading the way at 10.9%, allowing landlords to achieve their highest yield since 2016, the year Brexit was announced. Rightmove highlighted the ongoing supply shortage and predicts rental prices to rise an average of 5% in 2022. Longer term prospects for landlords are also positive given the expected rise in building costs which will maintain upward pressure on rental rates.
Posted by: Kelvin Tayfield, Sun, Jan 30th 2022
Prime Central London Back in Demand
Whilst Brexit and the pandemic put the brakes on Prime Central London (PCL) property prices, 2021 saw the highest number of transactions over £5m since 2013. International buyers from the US, Europe and the Middle East have been actively snapping up trophy homes whilst Asian buyers are still sitting on the side-lines due to lockdown. With easing travel restrictions and return to work Knight Frank predict a healthy 7% growth for PCL property in 2022, the highest since 2013.
Posted by: Kelvin Tayfield, Sun, Jan 23rd 2022
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
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