Some Positive Signs for the UK Economy

A recent S&P survey revealed that the UK services sector recorded its second consecutive month of growth in March boosted by the strongest growth in new business in a year and the best export performance since 2014. The services sector accounts for some 80% of the UK economy so this is indeed good news although there are still economic headwinds mainly in the form of inflation to overcome. As we all know, sentiment is almost as important as statistics and it is pleasing to see that according to S&P, optimism is at its highest since March last year which along with reduced energy bills should support the economy going into summer.

Posted by: Kelvin Tayfield, Sun, Apr 30th 2023

Retiring Landlords Fuelling Rental Shortage

Leading estate agency Hamptons recently reported that a generation of retiring landlords who bought properties in the 1990’s is selling them to fund their retirement and the next generation does not have the means to fill the gap. Hamptons noted that of the 2.75m landlords, 924,000 are over 65 with another 96,000 reaching that age each year. The agency observed that London is the most affected as landlords cash in on the huge price increases in the City since the 1990’s. Furthermore, as we have previously noted builders are failing to deliver sufficient new homes to meet demand adding more fuel to the frenzied rental market.

Posted by: Kelvin Tayfield, Sun, Apr 23rd 2023

Rising Flat Sales Boosting UK Property Market

Leading property portal Rightmove recently reported apartment sales across the UK are 10% up on pre-pandemic levels of 2019. This figure jumps to a whopping 23% in London as people flock back to the capital. The housing market as a whole has returned to pre-pandemic levels for the first time since September 2022 boosted by the popularity of apartments. According to one leading real estate broker this demand is driven by professionals wishing to shorten their commute, parents investing for their children as well as overseas investors taking advantage of the exchange rate. The broker unsurprisingly noted that new build flats are particularly popular as buyers look to future-proof their investment in terms of energy efficiency regulations and cost savings.

Posted by: Kelvin Tayfield, Sun, Apr 16th 2023

Making Sense of UK House Price Indices

With several well-known industry specialists publishing house price indices, all reflecting different numbers it can be confusing for market participants. Nationwide for example uses mortgage data from the approval stage through to valuation which provides a more comprehensive and up-to-date view of the market. On the other hand, Rightmove and Zoopla use asking prices to calculate their indices. Nationwide’s index revealed that house prices fell 0.8% in February bringing the annual decline to 3.1% whilst Rightmove reported a 0.8% rise and an annual increase of 3% and Zoopla a 5.3% yearly rise.

Perhaps it’s best to combine the different published data to get a better understanding of where we are and where we are heading. Nationwide’s index indicates there are currently monthly declines while those published by Rightmove and Zoopla show that there is more confidence in the market.

Posted by: Kelvin Tayfield, Sun, Apr 2nd 2023

Manchester Property Market to Maintain Top Growth Position

Despite showing a whopping 22% rental price growth in 2022, Manchester is set to continue its robust growth through to 2027 according to well-known real estate company, JLL. Their five-year outlook has Manchester as the leading UK city with predicted sales price growth of 19.3% and rental increases of 21.6%. These are due to a combination of factors including the post pandemic return to work, rising interest rates and the ending of the help-to-buy scheme. Manchester is followed by another investor favourite, Birmingham at 19.3% rental growth with both cities showing superior growth prospects due to employment opportunities and regeneration investment whilst the planned HS2 is an added stimulus for longer term growth.

Posted by: Kelvin Tayfield, Sun, Mar 26th 2023