Weekly Property News Round Up – 23.04.23

Hello,

I hope you have had a lovely week and would like to wish all celebrating a joyous Eid Mubarak as you spend time with family and friends.

At this time in the year, we would like to take a moment to appreciate the incredible level of support we have had from our clients over the years and our hardworking team who are all integral to our ability to continue to serve you with integrity, diligence and commitment.

Now, let’s take a look at all the headlines that caught our attention this week. I always try to summarise the links to save you from having to click through.

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Property News This Week

• Retiring Landlords Are Changing the Landscape of the PRS – The UK housing market is expected to continue to grow in popular investment locations, with an average increase of 8.9% in house prices and 15.9% in rental prices forecasted by 2027. However, a survey analysis by estate agency Hamptons shows that about 140,000 landlords retired last year, accounting for 73% of all sales by investors. This trend is likely to continue as almost one million landlords in the UK are over the age of 65, with around 96,000 landlords expected to turn 65 annually. Consequently, many landlords are leaving the market and selling their properties, which could have an impact on the rental market, although it could provide opportunities for new investors to acquire previously difficult-to-manage properties.
• Experts Claim Government Investment Zones Strengthen Market – According to tax expert David Hannah, the UK government’s new high-growth investment zones have already started to drive up property prices in the Midlands and Northern England, appealing to investors. The £80m funding over five years is aimed at improving skills and local infrastructure clustered around universities or research institutions, benefiting sectors such as technology, AI and the creative industries. The proposals are expected to draw workers away from London due to the high cost of living, with cheaper housing in the North and Midlands. Hannah believes that the government’s efforts to spread wealth evenly across the UK and create job opportunities will positively impact the property market.
• RICS Report Predicts 4% Rental Rise in Next 12 Months – According to a report by RICS, rent prices in the UK are set to increase by 4% in the next 12 months, due to high interest rates on mortgages that make it difficult for first-time buyers to enter the market. Landlords’ costs are also increasing, particularly due to rising interest rates and government targets for energy efficiency, which have led to a lack of available rental properties, particularly in popular locations. Additionally, landlords are dealing with the rising cost of energy, which is being factored into the rent for houses of multiple occupation. The proposed Renters Reform Bill, which aims to balance tenant rights and obligations, is still being considered by the government.
• Top Mortgage Lenders Lower Cost of Fixed-Rate Products – Several lenders, including Family Building Society, Zephyr Home Loans, Santander, TSB, Platform, West One, HSBC, Nationwide, The Mortgage Works and Virgin Money are reducing their mortgage rates in the UK. According to the reports, the lending companies have been cutting fixed rates on owner-occupier, buy-to-let, interest-only, and ex-pat deals. They are also trimming rates on product transfer deals for existing customers, first-time buyer deals, and additional borrowing mortgages, among others. The reduced rates are aimed at new and existing customers with low amounts of equity or a small deposit. The changes come as rents are predicted to increase by 4% in the next 12 months.