Gulf Buyers Return to UK Property Market

According to Knight Frank in London, the strength in the UK property market since the lockdown ended has taken people by surprise. This has been further buoyed by the recently announced stamp duty holiday. Other brokers and developers have reported a significant increase in interest from Gulf investors who wish to take advantage of the exchange rate expecting Sterling to strengthen once a Brexit deal is reached. In particular, ready or near ready properties are attracting attention in view of the additional 2% stamp duty on foreign investment which comes into effect on 1 April 2021.

Posted by: Kelvin Tayfield, Sat, Jul 25th 2020

UK House Prices Predicted To Rise 1.9% In Three Months

Website, reallymoving.com has predicted this increase over the next three months based on an increase in activity levels, record low interest rates and the recently announced stamp duty holiday. Despite the Covid lockdown and resultant economic uncertainty, they are predicting an annual growth of 4.7% across the UK. At the same time, data from other sources is showing that properties which offer lifestyle benefits such as gyms, gardens and open spaces nearby remain the most popular as buyers believe that they will be able to work from home more regularly.

Posted by: Kelvin Tayfield, Sun, Jul 19th 2020

UK Stamp Duty Holiday Announced - Up To £15,000 Saving

Chancellor, Rishi Sunak this week announced a number of economic relief measures designed to kickstart the UK economy after an extended lockdown period. Most significant for property investors is a temporary increase in the stamp duty threshold to £500,000 which runs until 31 March 2021. This means that foreign investors concluding transfers before this date will save 5% in stamp duty including the additional 2% due to be implemented on 1 April 2021.

Foreign investors who have been expecting significant weakness have so far been disappointed as property prices have been quite resilient and this move should further underpin the market as the economy strives to recover.

Posted by: Kelvin Tayfield, Sat, Jul 11th 2020

UK Economy Opening Up Again

The UK’s largest commercial and industrial property development company, Land Securities Group recently announced that it will be resuming dividends. The company stated that tenants are now re-opening their businesses as government lockdown rules are relaxed. All of its shopping malls are now open whilst 16 of 18 leisure parks were operating once again. At the same time, many companies are announcing that they are bringing back furloughed employees. This is a highly encouraging sign and a leading indicator for landlords in general.

Posted by: Kelvin Tayfield, Sat, Jul 4th 2020

Time to Ensure Certainty with Guaranteed Rentals

Whilst UK property experts are reporting robust rentals and sale prices, many are nervous about price weakness post the summer spike. What they all agree on is that capital growth will be robust over the long term noting that annual demand for new houses by far exceeds supply. This shortage is expected to grow annually, ensuring landlords achieve good returns on their investment on the long run. In order to reduce short term risk, many investors are opting for guaranteed rentals in new builds.One such development is Chatham Waters in Kent, a 36 minute train journey to Central London which is offering 6% net for 2 years or 5% net for 3 years.

Posted by: Kelvin Tayfield, Sat, Jun 27th 2020