Property News Round-up 23/6/16
Property News All The Latest Updates
Hi guys welcome to yet another property news edition – our second of the month (where has the time gone?!), as usual we will be taking a look at the latest goings-on in the domestic property market from looking at the Brexit and how it might affect Manchester property to punishing landlords will not fix the current housing crisis. Missed our last property news round-up? If so, catch up here.
Brexit: How Will It Affect Manchester’s Property Market?
So what would happen if the leave voters got their way?
George Osborne recently mentioned that there will be up to a 25 per cent drop in house prices as well as the added effect of an increase in mortgages.
What would happen to Manchester? HouseSimple‘s CEO Alex Gosling told MEN that : “If you believed everything you read, a Brexit could see property prices in Manchester plummet as economic uncertainty hits demand and increases mortgage costs.”
He also mentions in the article that the impact of the EU vote on property prices is definitely being felt at the moment, with a lot of uncertainties from both buyers and sellers.
Despite the politics involved, Manchester still has a strong demand, whether we leave or stay, any drop in prices may be a short-term dip he explains.
Savills also mentioned about the uncertainties in their referendum report, however, the global real estate provider hopes that whatever the outcome is on Friday morning, the property market will be buoyant and that there will be light at the end of the tunnel.
In contrast, chief Economist for Countrywide Estate Agents, Fionnuala Earley, who is feeling less optimistic about a possible Brexit mentioned in MEN : “If the vote is to leave, most economists believe that this will hit economic growth and that sterling will fall and that would hit the North West housing markets too”.
She also mentions that most housing market activity is funded by mortgages, which could be bad news for regions like the North West where property prospects are relatively good.
Still confused on whether we should remain or leave the EU?
Check out Michele’s recent EU Referendum & The Property Market article here – if you DO have a prediction about the next 12 months and turns out to be accurate, there’s a Martini waiting for you! (Worth reading her article to find out more ?)
Image source : [Gif] Giphy
Tube Map Shows The Average Property Prices At Every London Underground station
It’s common knowledge that to live in the capital you need a fair bit of wonga, and to illustrate this sobering thought the guys over at Total Money have put together this insightful map, which shows the average property price, per square foot, within 0.3 miles of every London tube station.
Their research reveals that the Hammersmith and City line is the most expensive at £1,125 per square foot, in contrast, the Metropolitan line has the cheapest average property price, at £504 per square foot. It’s worth noting that the Metropolitan line stretches all the way out to Zone 9, so you might save on property but you’ll have a loooooong commute and will have to shell out a lot on travel.
View the full map here.
Image source : Time Out
Best Seaside Areas For Landlords To Invest In
Beach holiday hot-spots such as Brighton and Eastbourne have lost out to northern beaches as the best places for landlords to invest in rental properties. (City A.M., June, 2016)
This one may surprise you… Hull has been named as the top seaside area for landlords in England and Wales.Investors in the Humberside postcode enjoy rental yields up to 10.7 per cent in coastal resorts such as Withernsea.
Moving to the north west, Blackpool claimed second spot and investors can gain rental yields of of 8.2 per cent.
Llandudno in North Wales came in third place, investors there can gain an average rental yields of 6.1 per cent.
Moving down sarf – Brighton came tenth in the list.
View the rest of the stats here.
Boost For First-Time Buyers As Mortgage Rates Battle Hots Up
The battle to slash mortgage rates continues – Yorkshire Building Society is offering customers with just a 10% deposit saved a two-year fixed rate at 1.98%, with a £1,345 product fee.
Many lenders have been offering their lowest mortgage rates ever in recent years, as the Bank of England base rate remains at its record 0.5% low.
Finance expert Rachel Springall from Moneyfacts mentioned in a BT article : “It’s fantastic to see Yorkshire Building Society support first-time buyers by offering a competitively priced deal for those with a 10% deposit. It can be a great hardship trying to get on to the property ladder so finding a cost-effective deal to reduce monthly mortgage payments is essential”.
She also mentioned that in this current low-rate market, first time buyers should ideally be aiming to overpay on their mortgage whenever possible so that they can raise the equity in their home and therefore reduce the term of the loan.
Punishing Landlords Will Not Fix Our Housing Crisis
In the past year, the Government has declared all-out war against Britain’s growing army of private landlords. As we’ve seen, their taxes have shot up, and stamp duty has increased. They have been victorious with these initiatives.
As the Telegraph’s Matthew Lynn points out, what makes us think that the Government is any better at planning the housing market than it is at planning anything else?
Landlords have had to abide by some extra new rules from health and safety regulations, to making them informal border guards, responsible for checking the immigration status of their tenants.
Moreover, George Osborne changed the rules even more, interest on their properties can no longer be set against tax – a measure that is not applied to any other business – plus increasing the stamp duty on any additional property.
There are some perfectly good reasons why the UK needs more rental properties over the last two decades. We have seen an increase in students, especially from other countries, and they typically they want to rent (like most millennials do).
Another example is also the country’s flexible labour market. We’ve seen a lot more people move from city to city and their career choices change all the time which means there is a demand to rent a property.
To sum it up briefly, we may need more housing in the UK, but that will only happen when we rip up the regulations and planning restrictions rule book to allow more homes to be built. If we continue to punish landlords hard enough, we can make them leave the market, but all we will actually do is create a shortage, and the ramifications would be that prices would increase for the people who do want to rent, while making very little difference to the people who want to buy.
Is this a topic you can relate to or have an interest in? If so, read more here.
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