Property News Round-up 25/10/16

Property News All The Latest Updates

 

Hi guys and welcome to our property news round-up, as usual we give you a quick snapshot of the latest goings-on in the property world. This week we start by looking at property rentals will outstrip property sales in 2017 to focusing on planning approvals in the Northern Powerhouse and London. Missed our last blog news round-ups? If so, catch up here.

 

Property Rentals Will Outstrip Property Sales in 2017

Property Money

Forecasts have suggested that 2017 might be the first year in eight decades where property rentals will outstrip property sales.

Johnny Morris, research director at Countrywide, mentioned in a recent Guardian article : “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”

A sobering thought – homeownership levels had fallen to their lowest levels in 30 years at the start of 2016, although recent figures from mortgage lenders showed a pick-up in the number of loans taken out for house purchases, the number of homes for sale remains near a record low and prices are rising. Recent events such as Brexit uncertainty as well as a lack of supply has also contributed to the dip.

Being able to get onto the property ladder is becoming even more difficult for first time buyers with prices going up steadily.

However, that’s only the beginning.The 3% stamp duty surcharge that the government introduced back in April has led to a boom in buy-to-let purchase, the ramifications have led to a bigger amount of rental properties available to tenants.

The rental market has grown at such a rapid rate that the property industry needs to start focusing on offering the right kind of property for an array of people from millennials to retirees. Many commentators have mentioned that the industry needs to move away from traditional small portfolio landlords renting out their old home to a more professional approach offering tenants the best value and services available.

 

UK Rents Growing Fastest in Manchester

Manchester Property

Rental rates have risen by 7.1% in the north-west city over the last 12 months, as more investors turn to Manchester in search of the highest yields. (Select Property Group, October 2016)

The Northern Powerhouse city was named last year by HSBC as the city with the highest yields in the country. A recent report from Countrywide outlines that rents in the UK are now rising the fastest in Manchester.

At a national level, the rate of growth in the 12 months to September 2016 was 2.2% (last year it was at 2.8%). However,in Manchester, the rent growth rose by 7.1%, more than any other city in the UK. In addition, it’s also worth noting, of the 20 largest cities in the UK, the five which recorded the largest rental rate rises were in the north and Scotland, including York, Glasgow and Liverpool.

In contrast, the south paints a different picture, for example, London and Cambridge had the highest proportion of landlords cutting monthly rates in the last year.

Both domestic and international investors are turning to Manchester to find a property asset that can deliver a strong and sustainable income.

Johnny Morris, research director at Countrywide (who we mentioned in the previous news item) mentioned that there’s a different type of two speed rental market that’s emerging, with falling stock and growing demand driving rental growth in many northern cities at a higher rate than those in the south.

 

Reasons Why Build-To-Rent is The Future of Rented Living

build to rent

This news item links with the first – in a nutshell, a new sector and product that’s on the horizon and one that syncs very well with a tenant’s lifestyle and eliminates compromise – I’m of course referring to build-to-rent.

So why is build to rent the future of renting? Firstly, build-to-rent has been constructed with today’s end-user in mind. Ideal amenities such as gyms and communal cinema rooms in the same building. Locations in the city centre close to friends and employment hubs are ideal for the likes of millennials.

A key point about build to rent that it creates a community. Having these build-to-rent apartments slap bang in the city attracts people with similar jobs and interests, with friendships and an array of activities, tenants will want to rent for a longer period.

To simply put it, it just makes sense. Tenants want it, the government agrees with the build-to-rent idea, and investors too want a slice of the share too.

Demand for rental accommodation has increased by over 17k per month over the last decade, as more people move away from homeownership and turn to the private rented sector instead. As mentioned in the first news item, with property rentals looking to outstrip property sales next year, build-to-rent is more than likely to become the number one rental product in the UK. It’s therefore an investment opportunity that cannot be ignored.

 

A Brief Look At China’s Passion For Foreign Property

China P2P

Many real-estate agents and property experts in east Asia believe a new wave of investment is just getting under way, as mainland investors develop a taste for international real estate, including postcodes up and down the UK. (The Guardian, September 2016)

When it comes to buying property, Chinese investors look at four main motivations: investment, lifestyle, emigration and education. Many seek a foothold in the UK and hope their children will go on to study at university.

In addition, cities such as London are seen as a secure place to store money that investors want to move out of China, to guard against the devaluation of the Yuan. It’s known that people in mainland China want to get their money out. They therefore use cities such as London as a safe-haven to store their hard earned cash.

However, it’s not just London, investment is now heading north and Chinese investors and hungry to invest in the likes of Manchester and Liverpool.

Manchester for example has had a lot of interest from China when president Xi Jinping visited the city last year to lend his support to George Osborne’s “northern powerhouse” project during his first state visit to the UK.

Since 2014, Chinese investors have been rushing to buy houses in the UK, the high rental yields and stable property prices have been key driving factors.

Also, the UK is very attractive to Chinese property investors because it does not have the high duties that have been introduced in countries such as Canada and Australia for foreign buyers.

Property industry commentators argue that foreign investment from countries such as China is helping to transform urban centres around the globe, they mention that it’s the only way to finance affordable new homes in cities such as London.

They also see foreign investment beneficial for helping to create jobs, improve infrastructure, and in general making the quality of life better.

However, London mayor Sadiq Khan has warned against the capital’s homes being used “as gold bricks for investment”, and has spoken out over how some new developments are given to foreign investors before locals.

Khan mentioned back in May that he sees no point in building homes in the capital if they are bought by investors from the Middle East and Asia.

He stressed that he didn’t want homes being left empty. He emphasized that he doesn’t want London to be the world’s capital for money laundering and wants to give first dibs to people who live in the capital.

 

Northern Powerhouse Outstrips London for Planning Decisions

northern powerhouse

New research shows that local planning authorities in the Northern Powerhouse deliver 22% more planning decisions per resident than those in Greater London.

Research published by the British Property Federation and GL Hearn revealed that 25 boroughs in the Northern Powerhouse made 11 major planning application decisions per 100,000 residents in comparison to nine decisions per 100,000 residents in the Greater London area.

Melanie Leech, chief executive of the British Property Federation, said: ‘It is really encouraging to see the North live up to its ‘powerhouse’ moniker, and to be powering ahead with its development pipeline. The development industry has an important part to play in ensuring growth across the country, and it is good to see that there is lots of activity in the North West. (LocalGov, October 2016)

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Property News Round-up 22/9/16

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

2988469720_f9b56a87a5_o

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

Manchester Property

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

Liverpool Property

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

Property Money

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

Millennials

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.

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Property News Round-up 13/7/16

Property News All The Latest Updates

Hi guys and welcome to our first property news blog of the month, as usual we will be given you a snap shot of the latest goings-on in the domestic market. This week we look at the Manchester property market and how it is still strong after the Brexit vote to ending our round-up and focusing on landlords setting up companies in order to save tax. Slightly behind with what’s going on in the property world? If so, catch up with our last property news blog update.

Manchester Property Market Still Strong Despite Brexit

Property News North West

New development plans in the city are not overheating despite recent news of apartment developments that have been given the green light.

New schemes approved in the last few days include Salford council’s approval for a 35-storey tower and a 17-storey tower at New Bailey Street developed by Trinity Riverside Holdings and a 68-storey tower at Owen Street proposed by Renaker. The landmark development will provide 1,508 apartments and penthouses in four blocks of 39, 46, 52 and 66 storeys. (MEN, July 2016)

Natwest’s Heath Thomas mentioned in MEN that consumer confidence will affect demand for mortgages, but the fundamentals in the city’s residential market are remain sound because there is a structural shortage of homes across the length and breadth of the country.

Addleshaw Goddard’s, Marnix Elsenaar also added his views in the MEN saying Manchester has all of the ingredients it needs to take forward housing delivery, however, it will need to fight with the central government to be able to deliver the right housing products that cater for the city specifically.

He stressed that it is important to ensure central government policies don’t kill off this growing sector.

Read more on this topic here.

 

Chinese Buyers Look Again at U.K. Property

China P2P

Due to the recent drop in the pound, many Chinese property investors have started to look at the U.K. market for potential bargains.

The number of so-called leads from Chinese home-seekers for U.K. properties recently doubled according to Juwai.com, a real-estate website based in Shanghai that allows Chinese buyers to browse residential and commercial properties around the world. Leads indicate that a buyer was interested enough in a property to contact a real-estate agent or developer. (WSJ,June 2016)

Manchester in particular has seen a wealth of Chinese buyers and investors. For example, a recent development at Salford Quays, called the Dock Office, just half the apartments were sold to locals. A quarter went to Chinese nationals.

They are not just buying and investing they are also involved in the construction process.

The Beijing Engineering Construction Group is investing £800m in Manchester’s Airport City, which will include a hub for other Chinese firms to set up. President Xi Jinping saw the site in person when he visited last year. (BBC, April 2016)

Now that Manchester has direct flights to both Beijing and Hong Kong also makes it even more easy for potential investors to visit the city and seek long-term opportunities.

 

Rental Prices Increased in June

Property News Landlords

Rents kept increasing in the three months to June, but there are signs that the growth in the rental market slowed in the first half of 2016 as compared to last year. (City A.M., July 2016)

According to HomeLet, The average renter in the capital now pays £1,575 per month, up 3.9 per cent on last year. For the rest of the country, renters pay an average £773 per month, which is 3.5 per cent higher than last year.

Barbon Insurance Group’s chief executive Martin Totty shared his views in City A.M. stating : The impact of the EU referendum vote will now play out over the months ahead: if as expected, the result acts as a restraint on the supply of new housing, the gap between demand and supply in the private rental sector will remain marked; all the more so if more people decide to rent while waiting to see what happens to house prices.”

 

How Much Will Your House Be worth in 2030?

Property News - First-time buyer mortgage

The average price of a home in England will be more than £450,000 in 2030, according to research from estate agents eMoov.

Their calculations were based on the 84 per cent increase in house prices during 2000 and 2015 and applied it to the next 15 years.

The map (below) illustrates just how dangerous this current artificial inflation of the market could be in the long run (as eMoov’s Russell Quirk mentions in the Daily Mail), it’s not just London (where typical values of £1.9million could climb to £3.4million in some parts), the issue will spread all over the country.

UK Property Map 2030

Image Source : eMoov/Daily Mail

 

Landlords Expected To Set Up Companies To Save Tax

Crowdfunding News

Landlords are increasingly expected to exploit a loophole in the law that allows them to avoid the Chancellor George Osborne’s hefty, punitive tax raid on rental properties, according to a leading mortgage expert. (Landlord Today, July 2016)

Foundation Home Loans‘ commercial director Simon Bayley told the FT that he predicts to see over 75% of mortgaged buy-to-let acquisitions going through a limited liability company (LLC) structure in the next 12 year or so.

In addition, Mr. Bayley believes that many landlords may consider transferring their existing properties to a LLC.

He goes onto mention that if landlords are using income from a current rental they may require help calculating if the capital outlay is affordable for them, even if the long term benefits suggest to explore the LLC route (also mentioned in Landlord Today).

Mortgage Concepts Associates director Mike Richards agrees with Bayley’s insights, his view is that gradually most lenders who are in the sector will offer this (the 75% or more projection) and premium lenders that are charged for limited company mortgages of around 0.5% will ultimately vanish.

Moreover, he reckons that you will still get a percentage of people who will mistrust the limited company route, but in reality, this is really the only way to go for the future of the buy-to-let market in the UK.

 

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Property News Round-up 8/6/16

Property News All The Latest Updates

 

Hi guys and welcome to another property news round-up this week we start off by focusing on the EU referendum and look at whether house prices will go down if we have a Brexit vote. We end our round-up in France for the Euros and take a look at the winners and losers of the tournament if it was based on property. Missed our last property news round-up? If so, catch up here.

 

Will Property Prices Go Down If There’s Brexit?

Property News Brexit

With less than three weeks to go until we cast our votes at our local polling stations on whether we should leave or stay in the European Union, one question that stands out in the property industry is whether property prices will go down if we leave.

So will it? Well, not exactly. Recent stats from National Statistics indicate that house prices are still rising fast. They increased at a rate of 9 per cent a year in the year to March 2016.Prices are predicted to increase by roughly a further 10 per cent by the end of 2018.

In addition the treasury have mentioned that the Brexit would bring about an increase in the general cost of borrowing across the economy. This, in turn, would crush demand for housing and lead to fewer transactions. (The Independent, June 2016). This would therefore have a negative effect on price growth. Some analysts have even said that leaving the EU would also have a negative effect on foreign investment – this causes problems for the top end of property investments in London and the ramifications would lead to reduced investments.

But we all want cheaper homes right? Some have argued that we should welcome lower prices because that will help make homes more affordable, especially for first time buyers. Pro-Brexit Tory Lead of the House of Commons Chris Grayling, has tried to expand on this topic, and mentioned that staying in Europe will make it even harder for young people to buy a house due to immigration from the Continent which, he claims, is driving up domestic demand for housing (as mentioned in a recent article by The Independent).

 

London Property : Prices Rise 432% In Two Decades

Property News London Property

Property prices per square metre have risen by 432 per cent in Greater London over the past two decades. This compares to a national average increase of 251 per cent, or £2,216 per square mile according to data that was conducted by Halifax.

In addition, Land Registry data indicates Greater London has gone past the £600,000 milestone for the first time.

Moreover, property investment firm London Central Portfolio [LCP] have said that this new London average price (£600,076 to be precise) is 14 per cent higher than a year ago. This has been linked to low mortgage rates and the falling cost of stamp duty on properties costing less than £937,000.

 

Survey Claims Student BTL Investment Due For Major Expansion

Property News - HMO

Research from Mistoria Group found that one in 10 student property landlords say their HMOs enable them to offset the new tax rules and remain profitable, while a further 50 per cent do not believe any other asset class offers the same yields and return on investment as student property. (Letting Agent Today, June 2016)

The Mistoria Group’s report which was based on a survey of 500 landlords last month – reveals that 35 per cent of student landlords purchased HMO properties in the first quarter of this year to beat the new stamp duty rise, moreover, a further 43 per cent of landlords plan to acquire between two and three new student properties in the next 18 months.

Student accommodation has been the strongest growing investment property market in the UK and the north west has attracted many investors. For example, a HMO that houses four students, can be purchased for just £160,000.

Want know more about HMOs? Check out our handy infographic.

 

The North-West Has UK’s Highest Property Yields

Property News North West

According to research from LendInvest, the north-west of England produces the best average rental yields over the past five years. In addition, it is estimated that investors could achieve yields some 200% higher with property outside of the capital.

Manchester and Liverpool were top with regards to yields, Manchester producing yields of 6.02% whilst Liverpool saw yields of 5.15% respectively.

Manchester has Europe’s largest student population and a graduation retention rate of 58%, demand for rental accommodation within the northern city continues to outpace supply and continues to attract a wealth of investors.

Interested in the Northern Powerhouse city? Check out our Manchester guides for more info, (North and Central).

 

Euro 16 : Winners & Losers Of The Property Championship

Property News - Euro 16

Property prices have changed a lot since the last the Euros in Poland and Ukraine.

Just like the property market in England, in Europe there is also a north-south divide.

Turkey, Iceland, Sweden, and Ireland had the biggest rises, though not all for the same reasons.

The Turks win the property championship with a 65.6% increase, Istanbul has helped The Crescent Stars in the tournament as there is burgeoning young population who are new to housing investment and eager to buy in the city that stretches across two continents.

Other successful nations such as the Republic of Ireland, benefited from a booming economy, with GDP expanding 7.8% in 2015 thanks to huge capital investments from abroad. Moving further north, Iceland has enjoyed a nice recovery since the 2008 financial crisis, with demand for high-end properties since 2013.

The Swede’s property boom was down to negative interest rates, many in the Scandinavian country are concerned that high household debt and low-interest rates could lead to a crash.

The home nations also saw property prices increase. As mentioned previously about London property, The average house price in the capital passed £600,000 mark.

Host nation France and one of the favourites to win the tournament, has experienced negative property price growth between 2012 and 2016. This could be inferred to a decrease in household income and stricter mortgage conditions.

See how other European countries did at the Euro 16 property championship below.

Property News Euro 16 Property

Image Source : Yahoo

 

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Property News Round-up 25/5/16

Property News All The Latest Updates

 

Hi guys welcome to another edition of our property news blog, today we once again look at the latest goings-on in the domestic market from looking at the average house prices in Greater Manchester in 2030 to focusing on landlords that have had a property abandoned by tenants. If you missed our last property news round-up, catch up here.

 

Average House Prices In Greater Manchester Are Set to Reach Record Levels By 2030

Property News Greater Manchester

According to new research from property search engine eMoov, the average house price in Greater Manchester is set to reach record levels by 2030.

First-time buyers will struggle even more, with an average home in the Greater Manchester area predicted to cost £316,920.

eMoov’s UK property research, which also looked at house prices from the start of the millennium to 2015 revealed that property prices had increased by 84%. This increase was then applied to every area of the country.

The only regions offering house prices below £280,000 are Merseyside at £275,074, East Riding of Yorkshire at £277,411 and County Durham at £279,985.

eMoov created a map (view here) which illustrates just how dangerous this current artificial inflation of the market could be in the long run (as mentioned in a previous article by eMoov’s CEO Russell Quirk), and the worrying thing is that it isn’t just the capital that will go beyond the average reach for these seeking to get on the property ladder.

 

Direct Foreign Investment Levels In Manchester Are Currently At A 10-Year High

Property News Manchester Investment

 

According to Select Property Group 98 project deals were struck in the north-west in 2015, with the growth contributing to a 190% increase in new jobs across the region in just 12 months.

Key foreign investor focus included :- software, business services, construction and retail markets. In addition, it was revealed that investment from US funds was the north-west’s number one source of FDI projects, followed by European nations the Netherlands, Germany and France.

Manchester is the leading city in the north west according to the latest EY UK Attractiveness survey. Increased investment from foreign investors plus job growth in the city and the region have risen by 190% over the past year.

 

More Than Half Of UK Home Buyers Rent Before They Can Buy A Property

Property News

Some 64% of aspiring home owners in the UK rent a property before they pick up the keys to their very own home, new research has found. (Property Wire, May 2016)

Saving for a deposit remains one of the biggest financial hurdles facing first time buyers and research from Clydesdale and Yorkshire Banks found that renters are less likely to benefit from help from family, with only 41% receiving any financial assistance, compared to 62% of those who are living with their parents or family members.

Our very own research last year on millennials showed that Generation Y feel that UK property is so out of reach that 23% say they will have to wait until they inherit money before they can get on the property ladder, also, 36% of those surveyed said they felt they’d have to rent forever.

Another sobering piece of research, this time conducted by Royal London, almost five million renters in the UK have no plans in place to cover their rent if they became too ill to earn for three months or more, even though recent cuts to housing benefits could leave them at risk (as mentioned in this Property Wire article).

Are you looking for an alternative? If you are a part-time/ novice investor who does not have a deposit available or the ability to get a mortgage, property crowdfunding might be for you. Why not take a look at how the process works here.

 

Britain’s ‘Property Premier League’ Locations With The Highest House Prices

Property News Property Premier League

Leicester might have been crowned 15/16 Barclays Premier League Champions but when it comes to the ‘Property Premier League’ the Foxes sit in 8th place whilst Chelsea win the Property League title with the highest average house prices (£1,152,137!), however, it is not all good news for the Stamford Bridge side as luxury properties prices in the area saw a significant slowdown this year which brought the average value down with it.

So how did our Manchester clubs get on? United finished the property season in 11th place – the M16 post code saw a hefty drop since the season kicked off back in August. Moving to The Etihad, City ended their property season in 16th place. The Citizens had the biggest house price drop on the whole list, by almost 6%.

Despite sitting in the lower ends of the table, both Manchester sides would finish top if the league was based on achieving higher rental yields for investors. The average rental yield in Manchester is at 6.02%.

At The House Crowd unfortunately we can’t help your club crowdfund the next Mourinho or Pep Guardiola but we can offer you some free handy Manchester guides (North and Central).

 

A Third of Landlords Have Had A Property Abandoned By Tenants

Property News Landlords

 

Some 36% of UK landlords have had a property abandoned by tenants, according to research. (Letting Agent Today, May, 2016)

The National Landlords Association (NLA) study revealed abandonment can be very costly for landlords especially when there is an outstanding amount of rent owned.

The NLA’s data shows that the issue is most prevalent in the North East, where 58% of landlords surveyed said they have had a property abandoned.

In contrast, the lowest recorded region for having properties abandoned was in the South West with 31%. In London 33% of landlords experienced similar issues.

The Housing and Planning Act – which includes measures to tackle tenants abandoning properties, will come as a  huge relief to landlords up and down the country.

 

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Property News Round-up 10/2/16

Property News: All The Latest Updates

Hi guys and welcome to our fortnightly property news edition, today we look at an array of news items from the domestic market from the average home in Britain will cost over a £1 million to looking at the strangest estate agent photos ever taken! In the last property news blog post in our quiz we asked asked about what is all the property in the world worth? The answer was B $217,000,000,000,000!

Average Home In Britain To Cost Over £1 Million By 2032

UK Property

According to research by the Lib Dems, the average home in Britain will increase from £290,000 to £1.017 million in 2032.

Party leader Tim Farron mentioned in The Telegraph that a child born on the day of the debate faces the prospect of paying at least a million for a home to call their own.

He stressed that relying on the “Bank of Mum and Dad” isn’t an ideal option for everyone, and as a result, it puts a monumental amount of pressure to millions of families who have worked hard and done the right thing.

The Lib Dems research revealed that the average property price in the UK will reach £650,000 within the next ten years, which is an increase of £360,000 on today’s average price.

Farron’s solution, as mentioned in The International Business Times (IBT) is that we need new garden cities, allowing councils to build housing stock, and bring thousands of empty homes back into use.

So how did the political party come to this frightening property statistic? They looked at trends from National Statistics figures showing house price inflation for the past three years. Whether you agree or disagree with their research, it remains apparent that no matter what way you look at the property situation in the UK, we have a crisis on our hands. Again, whether the 1.017 million is accurate or has been hyperbolised, we need to look at alternative ways to get us out of this property black hole.

 

Yorkshire Property Investment Market On The Rise

Yorkshire Commercial Property

According to new research published by the national commercial property consultancy Lambert Smith Hampton (LSH), investment in commercial property in Yorkshire and the Humber increased by 11% in 2015.

Their research claims that a total of £1.765bn was invested in the region in 2015, with £189m of this coming in Q4. However, Q4 saw a fall in deals completed of nearly 30%, 31 compared to 44 in 2014.

The director of agency and investment at Lambert Smith Hampton Bill Lynn told BDaily that: “Despite a reduction in Q4, the figures for Yorkshire and the Humber are nonetheless positive, with an 11% growth in 2015 as a whole. This is something that is mirrored in other regions across the country and shows the continued strength of the investment market in virtually every sector. The indication for 2016 is that supply is robust and a strong year is expected.” (BDaily, January 2016).

The demand for hotels, student accommodation and healthcare (alternative assests) seen in Yorkshire also occurred nationally and was a key driver of activity during 2015, investment also increased to £14.8bn over the year, 53% above 2014’s total.

Are you thinking about investing in property in Yorkshire? If so, why not check out our South Yorkshire guide to help you get started, click here to access.

 

Manchester Leads The Way As Commercial Property Investment Hits £1.2bn

manchester commercial property

Leading commercial property information provider CoStar Group research shows that a total £67.5 bn was invested in UK commercial property last year, making it the second strongest year on record and 46 per cent above the 10-year average.

Manchester as we know has been centred around the Northern Powerhouse concept and in addition it was the first city to receive ‘City Deal’ funding and regional devolution.

Being centred around the Northern Powerhouse and having a demand in office space has made Manchester a very lucrative place for investors. As a result, investment in commercial property in the city hit a total of £1.2bn in 2015, a three per cent increase on the £992m recorded in 2014.

Manchester commercial property should continue to attract investment as many investors are looking for an alternative to London. Are you interested in property investment in Manchester? Why not check out our very own Manchester guides (North and Central).

Image Source : Manchester Evening News

Northern Ireland Sees Sharpest Rise In Building Of New Houses In UK

Northern Ireland Property

The National House Building Council revealed that there was a 30% increase in registered new homes, from 2,487 to 3,223 last year in the province.

One Northern Ireland based housebuilder said 2015 had seen the biggest number of developments come up for tender since the housing crash. (Belfast Telegraph, January 2016)

However, the National House Building Council claimed that Northern Ireland’s increase came “from a relatively low base” because house-building slumped so drastically during the economic downturn.

One managing director of a property firm from Northern Ireland mentioned that they faced barriers to house-building that were not present in England. These barriers included sewer bonds, gold-plating of EU regulations and demands to upgrade underfunded infrastructure and services.

The managing director went on to say that despite these barriers they have found ways of overcoming them, in addition, one representative stated : “In general, builders are now more confident about prospects for house-building and this optimism is shared by potential buyers.” (Belfast Telegraph, January 2016)

Richard Ramsey, the Ulster Bank chief economist said the house-building recovery in Northern Ireland still has a very long way to go, though picking-up from the downturn was welcome news.

Image Source : Property Pal

It’s Gone All A Bit Pete Tong In London! The Strangest Estate Agent Photos Ever Taken

Property Fails

A collection of the strangest photos taken by people attempting to shift properties around London has been made showing just how little they’re trying as ITV News points out.

The bizarre photos have been put together by a man called Andy Donaldson who stumbled upon the images whilst he was looking to buy a flat.

From a cluttered bedroom with a bunch of chairs stuffed together to an all in one shower toilet with a washing machine next to it!

Want to see more of these property fails? Click here.

Fortunately our very own property investments are fail free so you won’t find any toilets in kitchens or doors fitted in the wrong places! Check out our latest investments here.

Image Source : ITV News

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. 

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Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning

Property News Round-up 2/12/15

Property News – All The Latest Updates

Hi guys and welcome to another edition of our property news round-up. Today we look at a variety of stories from last week’s Autumn Statement to looking at Brits who struggle with property terminology. In our last property news blog post we asked you how much did the dilapidated shed in Peckham sell for… we can reveal that it was sold for £920,000!

 

A Brief Insight Into The Autumn Statement 2015

Autumn Statement 2015 George Osborne

Last week the government announced to spend nearly 7 billion on building 400,000 affordable (debatable) homes.

A Starter Homes Initiative was mentioned on the day, the announcement will see an extra £2.3bn earmarked for these homes, with direct funding being given to developers to get the process moving. (Which, November 2015).

The initiative caters for households who earn less than £80,000 outside of London and £90,000 for those who live in the city.

Shared ownership allows buyers to buy a stake between 5% and 75% of a home and pay rent on the remainder, this scheme is popular with buyers who will be stepping onto the property ladder for the first time.

Another issue that was raised on the day was the increase in stamp duty for buy-to-let properties. From April next year buy-to-let landlords and people who are planning on buying second homes will have to pay a 3% surcharge. Frazer last week blogged about the budget and how it may affect buy-to-let and property crowdfunding and what the ramifications would mean for the likes of buy-to-let landlords.

In addition, another topic mentioned that was linked to property was specialist homes and reduced rent. There has been a lot of talk about specialist homes particularly for the elderly and those with disabilities.

It was revealed that a £200 million fund will be spent on 10,000 reduced-rent homes that tenants can live in for five years whilst saving for a deposit. Once a tenant has saved up their deposit they are entitled to have the first right to buy the property.

 

Image source : The Spectator

 

Bed Under The Stairs In A Shared Flat In Manchester Is Advertised For £380 A Month

Bed under the stairs in a shared flat in Manchester

The claustrophobic looking single bed  as pictured on the right hand side is located in the Gorton area of Manchester and has grabbed many people’s attention when it was spotted on spareroom.com for £380.

The rental price, which is in addition to a £100 deposit, the prospective tenant will have to share a bathroom, a kitchen, living room space and a garden.

The monthly rent includes all bills plus broadband, while the room claims to be furnished the tenant will have to find their own parking space if they wish to bring a car as there is no available garage or parking facility to park outside of the Gorton property.

Luckily, at The House Crowd you won’t find any beds under the stairs in our Manchester properties! If you would like more info on Manchester properties and other investments that won’t make you feel claustrophobic click here.

 

Image source : Daily Mail

 

18 Areas In the UK With New Home Development Opportunities

Manchester Property

A report from Knight Frank has indicated 18 areas in the UK where economic fundamentals are good opportunities for developers.

The areas that were mentioned in the report were :- Leeds, Manchester, York, Durham, Birmingham, Nottingham, Warwick, Leicester, Brentwood, South Cambridgeshire, Bristol, Bath and North East Somerset, Exeter, Cherwell, South Oxfordshire, Guildford, Reigate and Banstead and Tunbridge Wells.

Factors that were taken into consideration included economic and employment growth, affordability, and liveability.

In the north, Manchester and Leeds are expected to see the strongest rates of household growth in the next decade, York also scores well, particularly on liveability rankings.

If Manchester and the Yorkshire areas interest you and you would like more information, feel free to take a look at our Manchester guides (North and Central) and also our South Yorkshire guide.

 

One In Three Property Buyers Influenced By Mobile Phone Coverage

Property Mobile Phone

One in three property buyers or renters look for areas that have good mobile telephone coverage as part of their decision making.

Root Metrics (who provide independent mobile phone analytics) conducted a survey on mobile phone coverage and property buyer and found that 34 per cent of buyers and renters regard good phone coverage as vital.

One of the main factors that people are concerned about their signal strength is that 83 per cent stated they have experienced poor mobile phone coverage and 54 per cent mentioned that they have experience some kind of difficulty with their mobile internet.

The survey also revealed that had they known about problems with their mobile phone coverage before moving, nearly a third of participants said it would have discouraged them from buying or renting the property.

Are you currently looking for a property investment that’s in an area with good mobile phone coverage? If so we can help, feel free to contact us here.

 

Two-Thirds Of Adults Do Not Know What Stamp Duty Means

stamp duty

Nearly a half of Brits have claimed that they do no not understand property or to be more specific, home buying terminology.

A survey which was conducted by First Direct found that most people lack even a basic understanding of key terms. 66% of first-time buyers don’t know what stamp duty means and one in four (25%) don’t know who pays the stamp duty. 5% of Brits think stamp duty is a sales tax based on the square footage of the property. (Financial Reporter, November 2015).

In addition, almost 70% of adults can’t give the correct defintion of an offset mortgage, while 67% of Brits do not know what the acronym ERC stands for (if you don’t know already it stands for Early Repayment Charge).

If you would like to improve your knowledge and understanding on property and investment we recommend watching our latest videos, click here.

 

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 Information

 

Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning.