UK Housing Shortage Attracting First Time Buy-to-Let Investors
The UK housing shortage continues to grow with demand from June to September increasing 39% compared to only a 10% increase in supply, according to research by property portal, Zoopla. This ongoing trend has attracted many new buy-to-let investors with research by Legal and General showing a significant increase in searches using terms such as ‘first time landlord’ and ‘non-owner occupier’. In addition, searches by expats not in the country increased by 50% as investors look to take advantage of the UK’s weak currency and safe haven status.
Posted by: Kelvin Tayfield, Sun, Oct 4th 2020
East and South East Commuter Belt Benefitting the Most Since Lockdown
As people re-evaluate their living options post lockdown, sales for the two months end mid-September were up 58% on the same period last year. According to Savills using data from a TwentyCi homeowner report, the strongest demand has been in London’s commuter zone with the East and South East regions benefitting the most. According to Knight Frank, anywhere within a short drive or cycle to the station and a 35-40 minute train ride to Central London has been proving popular. Many parts of Kent fit the bill where areas such as Medway with it’s waterfront location and high speed rail access offer great value to potential buyers.
Posted by: Kelvin Tayfield, Sun, Sep 27th 2020
UK Sellers Not Reducing Prices
According to a recent survey by online agent, Strike despite 45% of buyers asking for discounts, most sellers are not willing to reduce prices. A quarter of those surveyed said they would accept a reduction of 5-10% whilst 29% said they would not accept a lower offer.
These findings are not surprising given the surge in demand post lockdown aided by the stamp duty holiday announced in July. Reports from leading property portal Rightmove and others have shown dramatic year on year increases in transactions across the UK. Somewhat surprisingly sales in the prime market were up 100% year on year in July and August according to Savills which underlines the robust nature of the UK property market in general.
Posted by: Kelvin Tayfield, Sun, Sep 20th 2020
Five Reasons to Invest in UK Property Now
1. Stamp Duty Holiday
Savings of up to £15,000 can be achieved if closing prior to 31 March 2021. In addition, a further 2% will be saved by international investors due to the introduction of a surcharge on 1 April 2021
2. Supply/Demand Gap
Supply of new homes continues to lag demand by more than one million, a gap that will not be filled for many years despite best effort
3. Transparent Market
The UK was ranked the most transparent market in the world in JLL’s 2020 Global Real Estate Transparency Index
4. Exchange Rate
Sterling continues to offer good value for foreign buyers having depreciated by close to 20% against the Dollar and Euro over the last five years
5. Positive House Price Predictions
Savills predicts that house prices will grow 15% on average by 2024 with regional cities and towns set to exceed this
Posted by: Kelvin Tayfield, Sat, Sep 12th 2020
UK House Prices Hit Record High
According to Nationwide Building Society, August saw the highest house price rise for sixteen years with pent-up demand, a shift in buying preferences, low interest rates and the stamp duty holiday all playing a role. Average prices rose 2% from July whilst year on year price growth reached 3.7% despite the recession and uncertainty over Brexit. Estate agents are seeing demand for coastal and country properties increasing the most as buyers and tenants are happy to commute from areas where they have a better quality of life.
Posted by: Kelvin Tayfield, Sun, Sep 6th 2020