Hello and welcome to our latest Track Capital News Round-Up. This week we have been looking into UK developments that are offered with payment plans. This is a relatively new concept in the UK and we are excited to see more developers offering UK investors this option which enables investment with less upfront cost, risk and the ability to budget-manage over a longer term.
If you are interested in using a payment plan to invest in a UK property, contact us today to discuss this with one of our expert consultants.
Now, let’s take a look at all the news 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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For the first time since May, average two-year and five-year fixed mortgage rates have decreased, influenced by lower-than-expected inflation figures. According to Moneyfacts, the average two-year fixed rate is now 6.79% (down from 6.81%), and the five-year rate is 6.31% (down from 6.33%), albeit these figures are still higher than last week.
The standard variable rate stands at 7.67%. The number of residential mortgage deals on the market has risen to 4,495. Analysts indicate a sense of optimism in the market due to potential slower interest rate hikes, however, 2.2 million homeowners on variable-rate mortgages will continue to face higher costs.
Indian billionaire Ravi Ruia, co-owner of Essar Group, has purchased a £113 million ($145 million) mansion in London from Russian property investor Andrey Goncharenko, marking one of the city’s largest residential deals in years.
Andrey Goncharenko is a Russian businessman who is known for being a significant player in the real estate market. He is noted for making several high-profile purchases of luxury properties in London. The mansion, known as Hanover Lodge and located at 150 Park Road overlooking Regent’s Park, was purchased through the sale of its Gibraltar-based holding company, according to an insider.
UK rental prices rose by 5.1% in the year to June, marking the fastest pace since records began in 2016, according to the Office for National Statistics (ONS). England saw a similar increase, with London rents rising by 5.3%. In Wales, rents surged by 5.8%, the highest annual change since 2010. Scottish rents increased by 5.5%. Meanwhile, UK house price inflation slowed, rising by only 1.9% in the year to May.
This comes as landlords face rising mortgage interest rates and reduced supply, pushing up rents and leading to bidding wars among potential tenants.
HS2 has completed the UK’s heaviest bridge installation at Fulfen Wood near Lichfield, a significant milestone for the high-speed railway project. The 6,200-tonne concrete structure, measuring 56 metres in length and 19 metres in width, was constructed next to the West Coast Main Line (WCML) and then carefully moved into place using a 840-wheeled, remote-controlled transporter.
The bridge will allow the HS2 to pass beneath the WCML. The operation required the removal of over 61,000 cubic metres of earth and is part of a series of major accomplishments for the HS2 project.
That is the hottest news headlines we have for you this week. If you have any comments or questions on this weeks news summary then please feel free to hit ‘reply’ – if not, see you next week.
Tobi Mancuso
Director, Track Capital
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