Welcome to the latest UK property news and views. Heads up! If you are interested in the ‘£10k Off’ London property, you need to move on this today. Another heads up! If you are investing in the Cheltenham JV, please remember the closing date is 30 June 2014. Invest in this and you have a place in the imminent JV2 (assuming you have funds, of course). Meantime…
The latest figures from ONS, the Office of National Statistics, suggests that prices rose by 9.9 per cent in the 12 months to the end of April 2014. That is up from 8.0 per cent in the 12 months to the end of March 2014. As ever, we need to say ‘think micro-markets’ when it comes to doing your due diligence. After all, we should note that the ONS advises that, in the 12 months to the end of April 2014, prices in London rose 18.7 per cent with the South-East and East of England seeing 8.9 per cent and 8.5 per cent rises respectively. Take them out and the average rise is just 2 per cent.
Peter Rollings at agents Marsh & Parsons suggests we have reached a turning point. ‘After a very lively start to the year, where an acute lack of supply and subsequent competition for homes pushed prices higher, we’re now sailing into steadier waters. Stricter controls for mortgage affordability and the renewed housing stock is moderating the market and property price growth has slowed.’
‘In prime London, the ratio of registered buyers per available property has fallen from 24 in January 2014 to 16 in June, so as the market returns to more normal trading conditions, buyers can make the most of the extra breathing space. London has long been akin to its own city state, and is wholly unrepresentative of the broader nationwide picture. If the government or the Bank of England were to slam their foot on the brake too heavily, they risk setting back the emergent housing market recovery outside of the capital.’
Lots of interest in The BTL Club we are creating from September – in essence, we will stop sending BTL deals out via the general membership and present them solely to members of The BTL Club.
Yes, it’s free but please do not join if you are not serious about investing as it’s a drag for everyone involved to go through everything only to find at the end that you have £6.39 in your bank account.
We are going to split the club in two with a separate one for London; email back now to be added to the list(s). The London list we will limit to just 100 members and we have about 55 so far; so be quick for that one.
The Land Registry has announced that it is to be the sole registering authority for Local Land Charges (LLC) in England and Wales, ‘leading to a standardised national fee for the first time.’
Some newspapers are reporting this as happening now. Not quite, ‘preparatory work will begin from April 2015 for a phased migration of the LLC service to begin later that year.’
‘The proposals will provide a one stop shop digital LLC search service, which will improve and standardise the service through faster turnaround times. This is consistent with government’s digital by default agenda and will ease the process of buying property. We have listened to the consultation feedback on LLC and have made a number of changes to the original proposals. For example, the period covered by a LLC official search will not now be limited to 15 years.’ More to come in due course.
According to the latest residential lettings report from Chestertons, there was increased activity in Q1 2014, with the number of applicants up 7.7 per cent over the year and agreed lets up 6.2 per cent over the same time. Stock levels decreased by 22.5 per cent. You don’t need to be an economist to work out ‘what happens next’. Chestertons is forecasting rental growth of 2 per cent for the prime London lettings sector in 2014.
‘Looking ahead, due to London’s improvement of the overall economic performance, growth rates are set to outpace the national average over the next couple of years. Once the balance between supply and demand has reached healthier grounds, rents are expected to stabilise across the board. In terms of prime locations Tower Hamlets is forecast to see the strongest growth in household numbers of 29,548 over the next five years.’
All for now, see you tomorrow with some more news and views.