More properties sell for over the asking price
One in eight (13%) properties sold for more than the original asking price in August – the highest recorded since November 2015.
For years investors have built up student rentals because of the constant supply and demand, but things are changing. There will be 24% fewer students heading to London this term, which is why diversification, understanding local markets and having the capital to acquire properties when others aren’t is imperative to progress your portfolio.
The pandemic has seen the cost of renting fall by -7.9% in London and -7.7% in the South East between March and September.
The typical month rent is now £1,519 in London and £1,061 in the South East, analysis shows. This is a prime example of why APAC focuses on low income, stable rental markets. Every buy to let we acquire, we look at: How much is it? How long will the tenants be there? What is the annual ROI?
The Autumn Budget has been cancelled due to the uncertainty caused by the pandemic. Typically the Budget outlines long-term measures for the economy and happens around November.
The Home Buying and Selling Group and Law Society have produced an industry pledge, which indicates some of the tasks buyers and sellers can currently perform.
Knowing at an early stage for example that a transaction needs certain fire safety certificates can avoid wasted effort.
For sellers, the pledge recommends they instruct a property solicitor on the day they market their property and fill in the property information forms as soon as possible.
For buyers, it is recommended that they secure a mortgage agreement in principle and ensure the money they need to complete the sale is readily available.
NHBC, the warranty and insurance provider for new homes, has launched its first ever house building apprenticeship scheme. The company has become an Education and Skills Funding Agency-approved provider of apprenticeships.
NHBC has welcomed the first cohort to its Construction Site Supervisor (CSS) apprenticeship programme.
Sales activity in the £1m+ property market is storming ahead according to Rightmove, as wealthier buyers prioritise space and leafier locations
Houses over £1m are selling 18 days faster than this time last year – the fastest pace since 2014.
According to the latest Halifax House Price Index the average price of a home was £241,604 last month, 1.7% higher than June's £237,834. Prices are 3.8% higher than July 2019.
This will not last, commentators say, and over the coming months, house prices will inevitably fall on average, according to the government's official forecaster, the Office for Budget Responsibility.
It has predicted falls of anything between 2% this year, to 22% by the later half of next year.
Its central forecast is an 11% fall by the end of 2021 and flatlining thereafter.
The Government announced that mortgage payment holidays will not affect future lending decision, but reading yesterdays papers, my understanding now is that it might. This further enhances our business model and investing into property without the requirements to obtain lending.
Arguably the forgotten generation, getting on the property ladder is becoming harder and not a position I envy any one in. Our world has changed, I think the first time buyers mortgage market needs a shake up, the salary to property price ratio is getting wider and wider and could create a generation of renters.
Because we are adaptable and building portfolios, downward trends play directly into our hands. It offers us the opportunity to acquire property below market value, purchase from real sellers who need to sell and as such means we can negotiate considerable reductions.
APAC was created to be resilient through both bull and bear market cycles, the development arm and the buy to let arm balance one another out, creating short- and longer-term options for us. We will never need to panic sell.
COVID 19 is creating a shift in the way we live our lives, is the HMO sector going to be hit the hardest long term?
There are so many questions and opinions on this subject, I feel that the need for independence and the segregation could re ignite the studio apartment market. Generally speaking, its good value for money and usually conveniently located to high density areas of work.
The widely anticipated COVID 19 recession. Unfortunately, we live in a world where winners and losers are decided by recessions. Despite the negative connotations towards recessions, its actually a magnificent time to be cash rich, brave and decisive.
From our stand point, a recession just offers us better value – more buying opportunities and greater yields. All markets come back, generally speaking, record highs usually follow recessions. The age old adage of buying low and selling high.
Well the chancellor has really pushed the boat out in order to drive the property market, is it a false economy or a stroke of genius…. I guess we wont know until the middle of 2021, but I can see from APAC’s prospective, activity next year stamp duty or no stamp duty, it will be a buying frenzy when the over leveraged need to sell.