UK Housing Boom Set to Continue Despite Lockdown
Unlike during the first lockdown the real estate industry in England is allowed to stay open this time around. Viewings subject to social distancing rules will still be allowed, surveyors can conduct valuations and moving home is permitted. Given that buyers will now have more time to focus on home buying, the stamp duty holiday deadline draws closer and the new home shortage continues, experts expect the market to maintain the upward trajectory.
Posted by: Kelvin Tayfield, Sat, Nov 7th 2020
UK Build to Rent Investment Hits Record High
Newly released figures from CBRE show that £1.43bn was invested in this sector in Q3 this year, the highest quarter on record. In fact, the property company believes the figure would be even higher with a further £1.4bn under offer at the end of the period. The global pandemic has resulted in a renewed focus on secure, resilient long-term investments which UK rental properties have proven to be. Build to rent projects in regional cities that offer modern living spaces, luxury facilities and easy commutes are by far the most popular for investors since the pandemic struck. CBRE also stated that many new investors specifically targeting these locations have emerged resulting in a very optimistic outlook for the sector.
Posted by: Kelvin Tayfield, Sat, Oct 31st 2020
UK High Value Property Transactions Increase
Figures from Savills show that it’s not only lower value properties that are seeing good volumes. The property firm’s research revealed an increase of 66% in transactions since June for properties over £1m compared to the same period last year. It seems there is still plenty of momentum left in the system as property portal Rightmove reported that enquiries with agents from prospective buyers are up by a similar percentage compared to a year ago.
Posted by: Kelvin Tayfield, Sun, Oct 25th 2020
John Lewis to Build Rental Homes on Twenty UK Sites
In an acknowledgement of the opportunity that the UK housing shortage presents, the owner of Waitrose and John Lewis stores plans to become a significant residential landlord in order to bolster profits. The company is already a major land owner and has identified twenty sites on which it will build fully furnished rental homes across the UK including some in Greater London. This makes them the second retailer to announce such plans after Swedish furniture giant, Ikea announced plans last year to build affordable housing in the UK.
Posted by: Kelvin Tayfield, Sat, Oct 17th 2020
UK Property Prices to Rise 20% Despite Recession
According to Savills' latest five-year property forecast, UK property prices are set to rise in excess of 20% over the next five years. The property expert predicts that the highest growth will be in the North West at 27.3% with significant growth expected from 2022 onwards. With rental yields in this region mostly above 5% and growth of 13.6% expected, overall returns over the five-year period should be in the 10% per annum range. This is a highly respectable return for a safe haven asset when alternative investments such as equities are highly uncertain and interest rates are at a record low. Further underpinning this positive outlook is the huge supply demand shortage of new builds across the UK which we have highlighted previously.
Posted by: Kelvin Tayfield, Sun, Oct 11th 2020