Property News Round-up 24/2/16
Property News All The Latest Updates
Hi guys and welcome to another fortnightly edition of our property news round-up. As usual we will be looking at the latest goings-on in the property market from looking at what would a Brexit mean for UK property to looking at Robbie Fowler aka “King of the terraces” and how he got into investing into property.
What A Brexit Means For The UK Property Market
One of the biggest talking points at the moment is about leaving/staying in Europe and as we know in June we will be going to the ballot boxes to cast our votes.
There are so many questions around this topic such as what does a post-EU Britain look like? How long would a formal Brexit take? And that there are plenty of uncertainties in the property market.
Many in the property industry have said that if the UK does stay in Europe business will resume quite quickly, it we leave, well that’s when it gets all a bit misty, we will still be stuck with many uncertainties.
To get some idea, it seems that we would have to break down two buyers, the first being a domestic buyer and second, an overseas buyer.
The Brexit might not have such an impact for the domestic buyer as the market is linked to supply and demand and property prices are linked to people’s incomes. It seems that in this country we have still got this demand and supply imbalance, the demand as we know is definitely there and the supply is still fairly limited. Because of this, many analysts and industry experts think it would therefore not have a significant impact if the “leave” voters prevailed in June.
Moving onto the overseas buyer/investor, areas such as London that have a high percentage of overseas buyers, the Brexit may cost London its “safe haven” status (especially with wealthy Europeans) and look to go somewhere else in Europe, it could also put off a lot of investors altogether.
On the flip side, a weaker sterling could attract more investment in London property. As mentioned in the IBT, when sterling plummeted during the financial crisis, the London market boomed because foreign investors flooded in and bought up property in prime central postcodes at relatively cheap prices. (IBT, February, 2016).
Whether we leave or stay, until there is a relative amount of certainty about what’s going on, for now people will likely hold off from participating in the market.
Want to know more about the Brexit? We recommend reading The FT’s article on What are the economic consequences of Brexit?
NEARLY two million younger people have been locked out of the property market since 2001
A recent stat we stumbled upon this week via The Express was that if ownership rates among 25 to 34-year-olds were the same as 15 years ago, an extra 1.8million of them would own their own homes in England.
As we all know, soaring house prices, stricter lending criteria for mortgages and the difficulty of saving for a deposit are the main barriers for millennials.
A leading think tank recently warned that the current situation is only likely to get worse as the UK faces a shortfall of 1.3 million homes by 2026.
An economist that we applaud, Katie Evans, is calling on the Government to support more innovative ways of helping young people get on to the ladder, such as through crowdfunding.
Are you in the 25-34 age bracket and looking for an alternative? If so, why not take a look at our Property Crowdfunding How It Works page for more info.
Shock study finds a quarter of homes EARN MORE than their owners
We don’t like to be the bearer of bad news, but another headline that grabbed our attention this week was that UK house prices are rising so rapidly that a number of homes now ‘earn’ more than their owners, according to new research.
Halifax found that more than a quarter of local authority districts property value increases have surpassed average earnings and these areas tend to be in London, the South East and East of England.
Martin Ellis, the housing economist at Halifax told The Express that “Clearly, this is good news for some homeowners. However, it does make conditions tougher for those looking to buy their first home in such areas, with prices being pushed increasingly out of range for many young people.” (The Express, February, 2016)
Council tax is cheaper for millionaires in London than those in terraced homes in Liverpool
Multi-millionaires living in one of the most exclusive and expensive parts of London pay the same or even cheaper council tax than those in a terraced street in Liverpool mentions The Liverpool Echo.
City mayor Joe Anderson described the situation as obscene and stresses that there should be a review on how councils are funded.
An example of how obscene the situation is as the Liverpool mayor quite rightly puts it, can be seen via Zoopla. A seven bedroom house in the heart of Westminster which is near to having a £20 million price tag and council tax costing £1,345.48 a year. In Liverpool, a Band B property, an owner would pay £1,256.65 a year.
Anderson has slammed the tax comparison and mentioned that wealthier areas such as central London need less help than disadvantaged cities such as Liverpool which suffers from high levels of deprivation – which places more costs on the local authority.
The mayor also mentioned that “If there was ever an argument to review the funding and stop it from disadvantaging cities like Liverpool you could not get a clearer example.” (Liverpool Echo, February 2015).
Robbie Fowler – The King Of The Terraces!
The former Liverpool and City player is giving lessons on how to be successful in the property market. Beginner landlords get free tips on raising cash, spotting the best deals and negotiating.
The 40 year old Kop legend put his career earnings into property and has been named in a list of the UK’s 1,000 richest people, with a fortune of about £28million.
On his property academy site, Fowler mentions “Off the pitch one of my biggest successes has been investing in property”, he also mentions that he gained valuable property advice from people who understand the ins and outs of how the property industry works.
Fowler retired from football in 2012 and now runs his business with his wife. Want to become the next Robbie Fowler in property crowdfunding? Why not check out our latest investments here.
What Are Your Thoughts?
Which of our chosen property stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.
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