A Number of Positive Factors Still Driving UK House Price Growth
A recent report from the Bank of England showed that UK house prices grew by 7.6% in July, despite the phasing out of the stamp duty holiday from 30 June. BOE officials noted that bigger homes are preferred as work from home is making buyers more willing to pay for space. The officials also went on to note that banks are offering higher loan to value mortgages for UK residents. This is against the backdrop of record low interest rates, making it more affordable for both first-time buyers and those looking to purchase bigger homes. Separately, Nationwide, one of the UK’s largest lenders reported that they expect the housing market strength to remain for the rest of the year due to these factors as well as the persistent supply shortage.
Posted by: Kelvin Tayfield, Sun, Aug 8th 2021
High End Property Sales in London on the Rise
Leading UK estate agent Savills recently revealed that there had been 237 sales of properties above £5m in London in the first six months of 2021, up 61% on a pandemic affected 2020. This has been driven by local buyers and internationals already resident in London. At this stage international buyers that have been unable or unwilling to travel to London due to quarantine requirements are still sitting on the sidelines and prices in the most expensive post codes such as Mayfair are some 20% down on the previous peak. However this situation is about to change as fully vaccinated travelers from the EU and US will be able to travel without having to quarantine from August 2nd.
Posted by: Kelvin Tayfield, Sat, Jul 31st 2021
Record Low Stock Levels Continue to Boost UK Property Prices
According to a report published by Home.co.uk housing stock levels of property for sale in England and Wales were 273,531 some 35% down on 2020 and 43% down on 2019 levels. Consequently, the real estate firm does not believe the phasing out of the stamp duty holiday will have much of an effect on property prices. While the South West has the highest shortage and London the lowest, demand for London rental properties is increasing again driving yields back up after a period of weakness since Brexit and Covid. Buy-to-let investors are therefore becoming more active in London property investment.
Posted by: Kelvin Tayfield, Sat, Jul 24th 2021
London Rental Market Bottoms Out
According to the latest data from Savills Central London saw it’s first positive growth month since the pandemic as international undergraduates and commuters returned to the City. Prime Central London (PCL) rentals grew by 1% in Q2 this year – the highest since 2007 and Savills are predicting rental growth of 14.2% over the next five years. Another leading property company, JLL confirmed a rise in interest in PCL property over the last three months, noting that the tendency is towards longer term contracts in anticipation of rental increases.
Posted by: Kelvin Tayfield, Sat, Jul 17th 2021
Birmingham To Be the First Major Beneficiary of HS2
The UK Government recently reaffirmed it’s commitment to the High Speed 2 Rail project and confirmed that all planned phases will be completed. Construction work on phase 1 from London to Birmingham continues with completion expected in 2026. Travel times to London will be cut from one hour 21 minutes to just 52 minutes which isn’t much more than many Greater London commutes. The city is expected to benefit significantly with new jobs being created while some major firms such as BT and PWC are expanding in the UK’s second largest city. Buy-to-let investors are making significant moves ahead of the completion date with developers and agents reporting robust demand across the city.
Posted by: Kelvin Tayfield, Sat, Jul 10th 2021