Property News Round-up 25/5/16
Property News All The Latest Updates
Hi guys welcome to another edition of our property news blog, today we once again look at the latest goings-on in the domestic market from looking at the average house prices in Greater Manchester in 2030 to focusing on landlords that have had a property abandoned by tenants. If you missed our last property news round-up, catch up here.
Average House Prices In Greater Manchester Are Set to Reach Record Levels By 2030
According to new research from property search engine eMoov, the average house price in Greater Manchester is set to reach record levels by 2030.
First-time buyers will struggle even more, with an average home in the Greater Manchester area predicted to cost £316,920.
eMoov’s UK property research, which also looked at house prices from the start of the millennium to 2015 revealed that property prices had increased by 84%. This increase was then applied to every area of the country.
The only regions offering house prices below £280,000 are Merseyside at £275,074, East Riding of Yorkshire at £277,411 and County Durham at £279,985.
eMoov created a map (view here) which illustrates just how dangerous this current artificial inflation of the market could be in the long run (as mentioned in a previous article by eMoov’s CEO Russell Quirk), and the worrying thing is that it isn’t just the capital that will go beyond the average reach for these seeking to get on the property ladder.
Direct Foreign Investment Levels In Manchester Are Currently At A 10-Year High
According to Select Property Group 98 project deals were struck in the north-west in 2015, with the growth contributing to a 190% increase in new jobs across the region in just 12 months.
Key foreign investor focus included :- software, business services, construction and retail markets. In addition, it was revealed that investment from US funds was the north-west’s number one source of FDI projects, followed by European nations the Netherlands, Germany and France.
Manchester is the leading city in the north west according to the latest EY UK Attractiveness survey. Increased investment from foreign investors plus job growth in the city and the region have risen by 190% over the past year.
More Than Half Of UK Home Buyers Rent Before They Can Buy A Property
Some 64% of aspiring home owners in the UK rent a property before they pick up the keys to their very own home, new research has found. (Property Wire, May 2016)
Saving for a deposit remains one of the biggest financial hurdles facing first time buyers and research from Clydesdale and Yorkshire Banks found that renters are less likely to benefit from help from family, with only 41% receiving any financial assistance, compared to 62% of those who are living with their parents or family members.
Our very own research last year on millennials showed that Generation Y feel that UK property is so out of reach that 23% say they will have to wait until they inherit money before they can get on the property ladder, also, 36% of those surveyed said they felt they’d have to rent forever.
Another sobering piece of research, this time conducted by Royal London, almost five million renters in the UK have no plans in place to cover their rent if they became too ill to earn for three months or more, even though recent cuts to housing benefits could leave them at risk (as mentioned in this Property Wire article).
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Britain’s ‘Property Premier League’ Locations With The Highest House Prices
Leicester might have been crowned 15/16 Barclays Premier League Champions but when it comes to the ‘Property Premier League’ the Foxes sit in 8th place whilst Chelsea win the Property League title with the highest average house prices (£1,152,137!), however, it is not all good news for the Stamford Bridge side as luxury properties prices in the area saw a significant slowdown this year which brought the average value down with it.
So how did our Manchester clubs get on? United finished the property season in 11th place – the M16 post code saw a hefty drop since the season kicked off back in August. Moving to The Etihad, City ended their property season in 16th place. The Citizens had the biggest house price drop on the whole list, by almost 6%.
Despite sitting in the lower ends of the table, both Manchester sides would finish top if the league was based on achieving higher rental yields for investors. The average rental yield in Manchester is at 6.02%.
A Third of Landlords Have Had A Property Abandoned By Tenants
Some 36% of UK landlords have had a property abandoned by tenants, according to research. (Letting Agent Today, May, 2016)
The National Landlords Association (NLA) study revealed abandonment can be very costly for landlords especially when there is an outstanding amount of rent owned.
The NLA’s data shows that the issue is most prevalent in the North East, where 58% of landlords surveyed said they have had a property abandoned.
In contrast, the lowest recorded region for having properties abandoned was in the South West with 31%. In London 33% of landlords experienced similar issues.
The Housing and Planning Act – which includes measures to tackle tenants abandoning properties, will come as a huge relief to landlords up and down the country.
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