Hello ,
I hope you have had a great week. At Track Capital, we have been celebrating the end of a spectacular first half of 2023, which has seen us helping more investors realise their property goals than ever before and adding some truly incredible new investment opportunities to our portfolio.
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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 having to click through.
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UK mortgage arrears and defaults remain at historically low levels, with homeowners holding considerable equity, easing repayment management. A new charter by major lenders, covering over 75% of the market, provides substantial support for mortgage customers.
Measures include providing support without affecting credit scores, not initiating repossession until at least 12 months after the first missed payment, allowing customers to switch deals ahead of term end, and potential for a temporary switch to interest-only mortgages or extending terms.
Last year, 54,000 affordable homes were started in England, marking a 16.7% increase from the previous year, and the highest figure since 2009. However, only 11.7% of these were for social-rented housing, compared to 73% in 2009.
The increase was driven by the Greater London Authority (GLA), with completions under government schemes reaching 38,169, the highest since 2014-15. Michael Gove announced the focus on building more genuinely affordable homes, while the Scottish government reported a 7% rise in completed affordable homes, reaching 10,458, the highest since 2000.
.Labour’s shadow housing secretary has dismissed the idea of rent controls, arguing it could result in homelessness. Her stance comes despite previous support for local leaders freezing rents during winter.
Labour mayors, including Sadiq Khan and Andy Burnham, have advocated for rent freezes. Nandy’s remarks follow record-breaking rent increases in the UK, with private rents rising by 5% in the year to May. The National Residential Landlords Association welcomed Nandy’s statement, warning that rent controls could further diminish rental supply.
Consultancy firm Glenigan predicts that the UK construction industry will face challenging economic conditions, expecting a decline of 18% in 2023. However, recovery is anticipated, with a 12% increase forecasted for 2024 and 3% in 2025.
Construction starts decreased considerably in the first four months of 2023 due to factors such as the conflict in Eastern Europe, materials shortages, inflation, and rising interest rates.
Despite these challenges, growth is anticipated for 2024 and 2025, driven by a rise in industrial and office starts, boosted consumer confidence, and real-term wage increases.
That is all 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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