Property News All The Latest Updates
Hi guys and welcome to our September property news round-up. As usual, we will be taking a look at the latest goings-on in the UK property market with five short stories. Today, we start our property news round-up by looking at the new housing minister’s views on ‘build to rent’ to focusing on the amount of rent that millennials will spend before they are 30. Missed our previous blog entries? If so, feel free to catch up here.
New Housing Minister Backs Build To Rent
Housing minister Gavin Barwell backed the build to rent sector in his first speech since being appointed.
His first speech took place at Property Week’s RESI 2016 conference in Newport and a key takeaway was Mr. Barwell stressing to delegates that there is a need to build more homes of every single type and not focus on one single tenure.
Barwell, who is also the minister for London, said that a growing number of people and families are now preferring to rent, so the build to rent sector will therefore play an important role in providing for changing attitudes.
The recently elected housing minister concluded that in the UK we need to have a thriving private rented sector in place.
He praised Essential Living’s Vantage Point scheme in Archway, north London, the office conversion which has 118 homes has opened for lettings. The housing minister said this was a much needed start for the sector.
Manchester Property Prices Continued To Grow in August
Reeds Rains and Your Move, released their monthly house price index a few weeks ago, and recorded an increase in both prices and transactions for August.
According to their research, the average house price in the north west had risen to £178,423, up from £178,089 in July.
Other commentators mentioned that the UK housing market is settling down from June’s Brexit vote and confidence has emerged from the Bank of England cutting interest rates.
Transactions across the country were also up, rising by 2.6 pc on the previous month, with over 70,000 sales going through.
Manchester and Liverpool Join Forces For Global Property Expo
Manchester and Liverpool will join forces to sell the region to a global audience of investors in October.
Both will send a combined delegation to London for MIPIM UK (the UK’s largest property and investment expo).
Filippo Rean, director of MIPIM UK organiser Reed MIDEM’s real estate division told the Liverpool Echo : Manchester, Liverpool and Leeds provide incredible investment opportunities and their presence at MIPIM UK will provide investors with a unique opportunity to see what these northern giants have to offer.
Mr. Rean added : “As the largest event for real estate in the country, we offer incredible opportunities for investors, developers and representatives from city regions across the UK.”
UK Property Remains The Highest Yielding Investment
Despite the uncertainties of the Brexit vote, investors are choosing to invest in property, including investing in sectors such build to rent.
So why have these investors chosen property? The main reason is that they can outperform the likes of government bonds and stocks and shares.
There are still quite a few investors out there who remain very cautious about the ramifications of life outside of the European Union, however, there are many investors out there who feel confident that investing property in the current climate is an opportunity.
Quite a few European based investors have now started to take an interest due to the fall of the pound. The North West in particular has become even more attractive because of this reason, and investors are hungry to invest into a very appetising region.
If this is a topic that interests you we recommend reading our “Is Property Investment Really Better Than Pensions?” blog post and also “Why The UK Rental Market Is Surging“.
Millennials Will Spend £53,000 on Rent Before Age of 30
A combination of falling homeownership levels and the rising cost of renting meant that people born between 1981 and 2000 would pay £53,000 in rent before their 30th birthday (Guardian, July 2016)
The Resolution Foundation mentioned in The Guardian article that this country’s housing crisis is one of the most visible examples of inequality between the generations.
Our very own research from last October found that a quarter of under 30’s say they need someone to die before they can afford to buy a property.
In addition, 36% of those surveyed said they felt they’d have to rent forever.
So while young people are spending more of their hard earned income on rent and finding it harder to save for a deposit, the baby boomer generation are the most likely to be landlords and benefit from the strong rental market, according to The Resolution Foundation.
However, it has been highlighted that the older generations are just as concerned about Generation Y’s struggle to own their home, and support for housebuilding is growing across a variety of age groups.
What Are Your Thoughts?
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