Podcast Summary
Rob B and Rob D's Exciting £33,000,000 Acquisition in Derby: Rob B and Rob D acquired a £33,000,000 property in Derby, a hotspot, with 209 units. They plan to share more details in future episodes. Property prices are rising and expected to be newsworthy.
Rob B and Rob D, the hosts of the property podcast, have recently made an exciting acquisition worth nearly £33,000,000, which involves 209 units in Derby, a hotspot for the year. This acquisition is significant in scale and location, and they plan to share more about it in future episodes. The property market update also includes rising property prices, with numbers still coming in from last year. Despite the lagging data, it's clear that property prices are newsworthy and a topic of interest for listeners. The hosts, who advise a multimillion-pound property fund, aim to provide valuable insights and knowledge gained from their experiences in the property market for free. Stay tuned for more information on this acquisition and the property market.
UK Property Market Sees 10% Yearly Growth: Despite pandemic challenges, UK property market experiences 10% yearly growth, with demand for flats exceeding other property types, and city center living remaining popular.
The UK property market continues to see significant growth, with property prices up 10% year-on-year and an average price of £270,000. This trend is not limited to one index, as all major indices report similar figures. The January surge in the property market has been the biggest in the last 5 years, with a 49% increase in interest. Contrary to popular belief, demand for flats has even surpassed that of other property types. Additionally, contrary to expectations, figures show that the pandemic has not deterred people from moving to city centers, as reported in The Guardian. These findings suggest that the property market remains a strong investment option, despite the challenges posed by the pandemic.
City centers bounce back faster than expected: City centers, like Manchester and Liverpool, have surpassed pre-pandemic population levels and offer significant investment opportunities due to increased investment and employment.
City centers have bounced back faster than expected from the pandemic, with Manchester and Liverpool leading the way. The population in these cities has even surpassed pre-pandemic levels. This trend is not unusual and goes against the negative sentiment in the market. It's essential to keep an eye on the crowd's perception and consider the opposite. Manchester, in particular, has become a northern powerhouse with significant investment and employment opportunities, making it a great place for real estate investment. The article discussed in the podcast further highlights the success story of Manchester and other cities. Overall, city centers have proven to be a great investment opportunity despite the initial negative sentiment.
Significant growth in UK house prices and rents: Secure deals below market rate in current UK property market, as house prices and rents continue to grow, making real estate investment advantageous.
In the current UK property market, securing a deal even 2% below market rate is an excellent opportunity, as house prices are experiencing significant growth. The longer you wait, the less beneficial the market conditions may become. Additionally, rents are also increasing at unprecedented rates, making it an advantageous time for real estate investment. The market's dynamics have shifted, making it more challenging to secure discounts, but the monthly market growth offsets this challenge. London, in particular, has seen the largest quarterly jump in rents, with an average of £2,142, a 9.9% increase from the previous year. Overall, the imbalance between supply and demand for rental accommodation is driving the rental growth trend, and it is expected to continue in 2022. Therefore, conducting thorough research and taking swift action in the current market conditions is essential for successful real estate investments.
UK government plans to make industry pay for cladding remediation instead of leaseholders, but landlords are excluded: The UK government aims to shift the burden of cladding remediation costs from leaseholders to the industry, but landlords are currently excluded from this support. The holiday let sector is experiencing a surge, with over 230 types of deals available and a 25% increase since September.
The UK government has announced plans to make the industry pay for remedial action on cladding and fire safety issues, instead of leaseholders. This is a significant shift in the ongoing debate that has been ongoing for four years. However, there is a caveat as leaseholders who live in the properties they own will be the only ones exempted from this new rule, while landlords are currently excluded from this support. This decision raises questions about how the government intends to enforce this and whether they may reconsider their stance on landlords. Meanwhile, in positive news for the property market, the holiday let sector is experiencing a surge with over 230 types of deals now available, triple the number from August 2020, and a 25% increase since September. This trend is likely due to more people choosing to holiday in the UK rather than abroad. Overall, these developments highlight the adaptability of the property market and the potential for better deals for investors.
Record number of mortgage products for buy-to-let investors: Buy-to-let mortgage market sees surge in products, leading to increased competition, better terms, and potential mitigation of rising interest rates.
The buy-to-let mortgage market is a hot sector, with a record number of mortgage products available to investors. This growth is particularly impressive when considering the significant reduction in mortgage products during the early stages of the COVID-19 pandemic. The surge in mortgage products translates to more choice, better terms, and increased competition for buyers. Additionally, the ongoing surge in the property market could lead to mortgage lenders accepting smaller margins as they compete for market share, potentially mitigating the impact of rising interest rates on borrowers. Another notable development is the proposed legislation to restrict ground rents for new long-term residential leases to a nominal fee, which is positive news for future buyers. However, the application of this reform to existing leases remains uncertain, leaving some buyers in a challenging position. Overall, the mortgage market and leasehold news highlight the dynamic nature of the property sector and the importance of staying informed.
Shifting real estate market: Longer leases and restrictive ground rents: New regulations and mortgageability issues lead to longer leases and restrictive ground rents in real estate. Developers respond with more attractive offers, but older properties remain a concern. Wales' new Renting Homes Act increases minimum tenancy term to a year and eliminates no-fault evictions, aiming for tenant stability.
The real estate market is seeing a shift towards longer leases and more restrictive ground rents due to mortgageability issues and upcoming regulations. Developers are adapting to these changes by offering more attractive ground rents on new developments. However, the historical properties with less favorable leases remain a concern. In Wales, the Renting Homes Act starting July 2022 brings significant changes to property rentals, effectively increasing the minimum tenancy term to a year and doing away with short hold tenancies and no-fault evictions. This new framework aims to provide more stability for tenants, but it remains to be seen how it will impact the market as a whole.
New eviction laws in Wales benefit tenants, challenge landlords: Wales introduces new eviction laws, tenants benefit, landlords face challenges. Stay updated for leasehold reforms. All rental properties in Wales must have carbon monoxide alarms by law, install now to avoid shortages and price increases.
Wales is introducing new laws for eviction processes, which will significantly benefit tenants but potentially pose challenges for landlords. This change may influence upcoming leasehold reforms in England. For those renting properties in Wales, it's essential to stay updated as this new regulation will take effect in July. The built-to-rent sector has proposed alternative terms like "resident contract holder" to replace the outdated term "tenant." Another practical tip for landlords concerns the upcoming carbon monoxide alarm laws. All rental properties will be required to have these alarms installed, and landlords are advised to get ahead of the legislation by installing them now. This proactive approach not only demonstrates care for tenants but also helps avoid potential shortages and price increases once the law takes effect.
Stay informed about the property market and use your phone productively: Encourage others to stay informed about property market, name app folders with motivational labels, and move less-used apps to iPad to reduce distractions
There's a lot happening in the property market, and staying informed is crucial. If you know someone who could benefit from keeping up-to-date, encourage them to listen to the property podcast or sign up for the free weekly newsletter, Hub Extra. In addition, a small but effective tip for using your phone more productively is to name app folders with motivational or goal-oriented labels. For example, renaming a finance folder to "getting rich" or a health tracking folder to "losing 5 kilos." This simple mental nudge can help reinforce your goals and make your phone a more positive place. Another tip for iPhone and iPad users is to move less-used apps to the iPad and remove them from the iPhone to reduce distractions. These small changes can make a big difference in your daily usage and help you stay focused on your goals.
Moving distracting apps to a secondary device: Moving time-wasting apps to a secondary device can help reduce mindless usage and save time.
Identifying and moving distracting apps from your primary device to a secondary one can help reduce mindless usage and save time. This niche hack requires having both an iPhone and an iPad, but it has worked effectively for some individuals. Reflect on your phone usage and consider which apps are not adding significant value to your life. If you're not quite ready to give up the app completely, try moving it to your secondary device instead. This simple change might help you break the habit of mindless scrolling and make better use of your time. Tune in next week for a mortgage special episode featuring expert advice from Kelly Ruhl of Vibe. Remember, you can learn more about Portfolio and their offerings at portfolio@portfolio.co.uk. We value your feedback and encourage you to engage with us on social media at propertyhubuk.
