Here is this weeks, most important UK real estate news compiled by the Real Estate Club! If you find anything missing or want to leave a comment, sound off below! To access the full articles, please click on the title.
Summary: The news that the average house price in the UK now exceeds £250,000 may have panicked potential buyers and deterred them from even thinking of buying a house in the future. Meanwhile, the article states that this statistic has not been clearly explained in most articles. Adding that the stamp duty stampede, cheap lines of credit, and a Covid-induced increase in demand have heavily influenced the average to rise. The growth rate on the other hand has cooled off considerably (0.3% monthly) indicating that many regions have reached their price maximum and that wages will be given a chance to catch-up with prices.
Summary: The average rent across the UK is £974/month up from £953 in October 2019, a 2.2% increase. Similarly, 10 out of 12 observed regions have seen an increase, with the South-West leading the way with an increase of 6.2%. Rental prices in London may have decreased by 3.7% but are still 95% higher than the UK average at £1,603!
Summary: During this lockdown, estate agents and property related business may continue working as usual: this means that although new business transactions seem to be slowing a little, transactions which began before the lockdown announcement are being encouraged to wind-up quickly. Knight Frank research has shown that valuation appraisals are up 38% compared to last week and that many clients are looking to gain more space whilst working from home.
Summary: Legal and General Mortgage Club, a platform that connects borrowers to suitable lenders, has published its data revealing that their top search term in October was “applicants with visas,” and that “expats not in the UK” was among the top 10 as well. This is an indicator of the increased foreign demand according to the article.
Summary: Estate agents Benham and Reeves analysed house prices in postcodes with a military association, such as former war research locations and military schools, they found that on average prices are 155% higher (£618,225) compared to the national average (£250,000). Marc von Grundherr, director of Benham and Reeves, explains that this discrepancy stems from the “pride taken in these locations” and the continued effort to uphold their significance.
Summary: RICS published results of a poll indicating that Britain’s property boom is continuing despite rising mortgage rates, increasing unemployment, and local restrictions. So much have demand and supply increased for the fifth consecutive month that conveyors are struggling to maintain their services. RICS members further note their negative expectations for city centres and inner-city London in particular.
Summary: 2000 brits were polled and 62% agreed that housing policy is an important issue “important issue that has been neglected by successive governments.”, while 51% agreed that the housing crisis is “one of the biggest issues affecting the UK.”
Summary: Despite a record-breaking 7.5% year-on-year average price increase within the UK property industry, another side-effect of the Covid-19 pandemic is the reduced demand for flats. Houses are set to make up the majority of property sales in London for the first time this year. Indeed, flats are on the market in London for an average of 70 days compared to houses which average 29 days on the market. This is partly due to the reduced number of first-time buyers, who are usually interested in flats over houses. Obviously, another driving force behind this trend is that buyers are seeking out more space for anticipated further lockdowns and long-term work from home. Lastly, the sharp decline in foreign investments into the property market or elsewhere further exacerbates these trends. The author notes, however, that even though London flat prices have adjusted downwards in response, that most of the stock is still largely overpriced.