Property News Round-up 3/8/16

Property News All The Latest Updates

 

Hi guys and welcome to our first property news blog of the month! 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 Generation Y and their renting habits to focusing on Aegon’s research on homeowners and pensions. Missed our last round-up? If so, catch up here.

Millennials Like The Flexibility & Freedom of Renting

Millennials Property

Recently, a study confirmed something that most 18 to 30-year-olds already know: they can’t buy houses and also something we are familiar here at The House crowd from conducting our own research. As The Independent’s Thea De Gallier points out : “Millennials are abandoning their dreams of home ownership,” declared a damning report that revealed home ownership in the UK has fallen to 63.8 per cent (for context, it was 70.8 per cent in 2003).”

So why is it so hard for millennials like myself to become a property owner? Firstly, the average house price in this country is just over £200,000, (almost 10 times the average wage!) Secondly other regions are playing catch-up with London’s astronomical prices which has left us no choice but to rent.

But is renting necessarily a bad thing? Today, Generation Y are known for their fast paced life style and are constantly on the move, renting is surely ideal for them.

Research can back this claim up, for example, Deloitte found out that 44 per cent of millennials want to leave their current jobs in the next two years, in addition, Econsultancy found that 69 per cent of all graduates thought freelancing was a more attractive option than long-term employment. (Stats taken from The Independent)

On the other side of the Atlantic, many commentators have mentioned that millennials simply don’t want to own a property. One source in particular views that millennials are “[thinking] differently about what it means to “own” something”.

I totally agree with the commentator as we are currently living in a sharing economy. Moreover, I completely side with De Gallier’s points in her article that we need a similar renting cap that is used in European cities such as Berlin. It’s fair to say the current system isn’t working for us even though some of us like to rent. We definitely need to seek alternatives – the likes of property crowdfunding could be one of those methods, which you can read more about here.

Why Are Fewer People Purchasing Properties in Greater Manchester?

Property News North West

BBC News reported yesterday that home ownership has fallen more sharply in Greater Manchester than anywhere else in England.

The biggest question on everyone’s lips is why? Financial Analyst Louise Cooper says the issue stems from house cost to wage ratios. She told the BBC that : “The average house price in England in 1986 was £38,000, today it is £226,000,” she said. “Over the same period the average salary has gone up two and half times.”

She adds : “The price of property compared to salaries has gone up hugely. Everyone says it is a London problem. It is not. Manchester is one of the worst.”

Our very own Frazer Fearnhead mentions in the BBC article that Manchester has a large student population and young professionals in the city prefer to rent.

Frazer believes that the Greater Manchester area mirrors the rest of the UK in the fact there are not enough houses being built, fuelling a demand that pushes up prices.

Read more on the issue here.

 

Investors Pull £1.4bn From UK Property Funds in Brexit Month

Brexit

Retail investors withdrew £1.4bn from property funds in June, 6 per cent of the sector’s assets, as the Brexit vote sparked an exodus that forced some of the largest funds to halt trading. (FT.com, August, 2016)

Following to the leave the EU in late June, led to many moving money out of property funds which forced Standard Life’s UK Real Estate fund to suspend redemptions in early July.

Others followed suit, such as Aviva, M&G, Columbia Threadneedle, Henderson and Canada Life.

Senior analyst at the retail investment broker Hargreaves Lansdown, Laith Khalaf, told the FT : “The scale of the exodus from investment funds in June is quite extraordinary, with the Brexit vote eclipsing the financial crisis in terms of putting the frighteners on retail investors in the short term.”

At present, around £15bn of investors’ money remains trapped in suspended funds that lack enough liquid assets to meet redemption requests.

 

UK Construction Crashes At Fastest Pace Since Financial Crisis

UK Construction

Construction output in June has fallen at its fastest pace since the dark days of the financial crisis in 2009 according to a survey by Markit and the Chartered Institute of Procurement and Supply (Cips).

Purchasing Managers Index figures indicate that Slower demand has lead to a drop in purchasing activity for the first time in just over three years. The index dropped from 51.2 in May to 46.0 in June, with anything below 50 indicating a contraction, as The Independent’s Ben Chapman reports.

Despite having record house prices, it was revealed that the weakest performing sector was residential construction. In addition, commercial building work was also weak, as new projects did not start to replace those that were coming to completion.

The EU referendum has been linked to the slowdown as there are still many uncertainties. Senior economist at Markit, Tim Moore told The Independent : “Widespread delays to investment decisions and housing market jitters saw the UK construction sector experience its worst month for seven years in June.”

However, David Noble, chief executive officer at Cips mentioned that the only glimmer of light through the brickwork is the rate of decline was not as sharp as that experienced during the previous financial crisis.

A spokesperson for Home Builders Federation said recent figures should not be viewed in isolation and that long term trends for the sector were good.

 

Little Appetite For Using Property As Pension As Research Shows

Property News Landlords

Research conducted by Aegon revealed that majority of homeowners do not want to use their property wealth to fund retirement.

Their study showed 74% of homeowners would only use their home as a “last resort” to provide a retirement income or do not consider their home as a source of retirement income at all. (Professional Adviser, August, 2016)

Moreover, Aegon found out that more than half of the research respondents want to leave their home to their loved ones.

Only 3% of those surveyed said that they would sell their property and move in with family as a means of funding retirement. 21% of homeowners are hoping they can fall back on inheritance to assist them with their retirement plans.

 

What Are Your Thoughts?

Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now for more Info

July Update-a Month in Numbers

 

As many of you know we started offering peer to peer secured loans in 2015 in addition to our equity investments.

Here’s a few stats to show how we are doing (correct as of 31st July 2016)

 

  • Total sum loaned                             £8,339,734
  • No. of loans made                           22
  • No of loan repaid                             5
  • Returns Paid to date                       £ 95,028
  • Av. loan period                                  10 months
  • Av. loan size                                       £379,079
  • Default rate                                        0%
  • Av. Loan To Value                            68%
  • Av. interest rate                               8.95%

To learn more about our secured peer to peer loans download our free guide here

You can always read more about our new peer to peer loans, equity investments and Property Crowdfunding by simply registering on our website

 

Register Now for more Info

April Update-a Month in Numbers

 

Last month we paid out a whopping £114,632 in returns to 492 investors.

We also raised an additional £1,660,000 over 3 projects and 133 more people are now earning a very healthy 9% a year on their investment.

If you have money festering in a bank account, perhaps it’s time to get your slice of the pie and put it to work with one of our fixed rate short term secured loans.

Alternatively, if you prefer a longer term deal that produces both income and capital growth you may want to look at one of our fully tenanted properties which have blue chip clients and should produce up to 9.5% in rental yield. The last one of these, HCP165 filled up in just one afternoon and the latest, HCP166, was 50% funded before we even launched it.

We are hoping for another record breaking (and sunny) month in May with more assured rental deals and have the exciting new development project at the landmark Bank Chamber (below) in Stockport launching this week.

HCDC005 ext

 

You can always read more about of new projects by registering on our website Register Now For More Information

Development updates

Regent Street Town Houses Newton Heath and Station Road Marple,Development Updates.

Both of our development projects are racing on and both have had the tilers in.

Granted they are at different build stages with the Regent Street Town Houses having the roof tiled and Station Road Marple nearing completion of the bathrooms but I am sure that you will agree from both sets of photographs they are certainly flying up compared to our last update.

The project at Regent Street will soon have the roof finished and judging by the speed the contractors are working it won’t be long before these super modern homes will have families moving in.

The photographs of the Station Road Marple project show that the rear extension is starting to really take shape with Velux windows ready to be fitted in what will be a huge open plan family space.
The bathroom tiling is looking great and as mentioned in the last blog the new attic suite certainly does make the most of the once hidden archway and lovely large space to get away from it all.

We are certainly looking forward to seeing photographs of the new development in Alderley Edge which is just starting-watch this space!

 

You can always read more about of new projects by registering on our website

Register Now For More Information

Marple Photographs (bathroom, attic suite, family room and feature arch)

marple pics 13.5.16

Newton Heath Photographs 

newton pics 13.5.16

You can always read more about of new projects by registering on our website Register Now For More Information

Spring Into Action

Regent Street Town Houses, Manchester 

Whilst our last set of photographs showed a light dusting of snow across the site the latest picture shows that spring has finally arrived and the contractors are steadily proceeding with internal blockwork on the 6 townhouses.DSC04306

We have had a huge amount of interest from local house buyers and our estate agent is receiving requests for property information now that their salesboard has taken a prominent position on our site.

As work proceeds over the next few weeks we will continue to keep you informed with features and articles showing plenty of photographs and updates.

Our film crew have also been on site filming the build stages so we will have some really great footage from laying the foundations to laying the carpets!

You may also be interested in our development at Station Road in Marple Cheshire which is also starting to take shape!

 

We have just launched phase 2 of this development so please register below for more details-

Register Now For More Information

It’s Just a Bit of Snow

Regent Street Town Houses, Manchester 

Photos of the building works at our Regent Street Mews site today can hardly be described as a total white-out but in fairness I for one am happy to be sat next to a large radiator with a hot cup of tea!snow 2

As you can see from our latest set of photographs from Andrew the inclement weather hasn’t been holding up the contractors who will soon (snow permitting) start the ground floor internal blockwork.

The bricklayers have loaded up the slabs with blocks ready for a break in the weather and then townhouses will start to take shape.

And our estate agent is moving equally as fast having already sold a number from plan with over 475 requests for property information from Right Move alone!snow

Over the next few weeks we will continue to keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.

You may also be interested in our development at Station Road in Marple Cheshire which is also starting to take shape!

 

We will be launching phase 2 of this development later in March so please register below for more details-

Register Now For More Information

Out on the Floor

Regent Street Town Houses, Manchester 

Photos of the building works at our Regent Street Mews site very early this morning
IMG_2599

All 6 floors have been laid after only 4 weeks – now that’s quick work by anyone’s standards!

It’s taken no time at all to reach dpc level and the contractors have been fitting the concrete pot and beams floors this week. Before you know it (probably in the next set of photographs) we will have the window formers in place and you will start to see the external skins flying up.
We have had our film crew down in the last few days filming the build stages so that one the properties are complete we will have a great video showing the process.

And our estate agent is moving equally as fast with 2 units out of the 6 have already sold and there have been over 475 requests for property information from Right Move alone!IMG_2594

Over the next few weeks we will continue to keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.

 

 

 

Building on a Strong Foundation

Regent Street Town Houses, Manchester 

Laying the foundations: Our new build development of 6 town houses at Regent Street in Manchester is well underway, with a 28 week month build schedule.Newton Heath Foundations 2

The Contractors have been busy clearing the site and excavating the foundations for the 6 town houses.

You can clearly make out where the living room, kitchen and carport areas of the properties will sit within these three storey 4 bedroom modern family homes.

The Ground floor of each property feature a spacious entrance hallway, WC and substantial modern open plan living with open plan living/dining area and a modern fully fitted kitchen.
The open plan living space opens onto a generous garden with paved and turfed areas for those sunny Manchester weekends and BBQ’s (ok we may be stretching it a bit saying we get sunny weekends in Manchester but at least you will be able to run indoors when it starts spitting!).

Newton Heath Foundations 1

Over the next few weeks we will keep you informed with features and articles showing how the work is proceeding along with plenty of photographs and updates.