Welcome to today’s news and views…
You can chat to the developer, you can visit with me – I’ll show you around – and you can read all the bumph that’s on offer; but, if you want to invest in the Cheltenham JV, you’ll need to make a move in the next few days. Email back?
The latest Nationwide review reveals that UK house prices rose by 0.7 per cent in May which means they are now 11.1 per cent higher year-on-year. Where next? ‘There have been tentative signs that activity in the housing market may be starting to moderate with mortgage approvals in April around 17 per cent below January’s high. It is too early to say whether nationally this is indicative of a cooling trend in the wider market. The slowdown may partly be the result of the introduction of Mortgage Market Review (MMR) measures, which may take a few months to bed down.’
‘The underlying pace of activity should become more evident as we move through the summer months and the impact of MMR becomes clearer. However, with mortgage rates close to all-time lows and labour market conditions continuing to improve, underlying demand for homes is likely to remain strong.’
‘The modest numbers involved so far suggest that Help to Buy is unlikely to be the main factor behind the recent pickup in the wider housing market. For example, 12,853 Help to Buy mortgages were completed in the first quarter, some 6,327 under the mortgage guarantee scheme and 6,526 under the shared equity scheme, equivalent to around 9 per cent of total mortgage completions over the period. Low mortgage rates and growing buyer confidence on the back of improving labour market conditions and the brighter economic outlook are probably playing a much greater role in stimulating buyer demand.’
The latest facts and figures on buy-to-let returns from HSBC reveal BTL ‘hotspots’. Southampton, with a rental yield of 8.73 per cent, comes first and is followed by Manchester, Nottingham, Blackpool and Hull with 7.98 per cent, 7.67 per cent, 7.63 per cent and 7.47 per cent respectively.
Of course, we need to put this into context – the data suggests that the lowest yields are to be found in London; the implication being that this is a place for BTL investors to avoid. We should point out, for newcomers at least, that most investors look for the best returns from a mix of yield and capital growth.
Remember the BMV BTLS deals we ran at the weekend? Let me stress – these deals are in England, Wales, Scotland and Northern Ireland. If you want to bag these bargains, email back. There is currently availability in Liverpool and Scotland; more to follow for those who ask for details. We will, shortly, go ‘behind-the-scenes’ with this service.
Our friends at UK-Analyst.com – visit to sign up for free – offer various property-related tips today. Let’s quote, ‘Numis upgraded its recommendation on housebuilder Bellway (BWY) from ‘add’ to ‘buy’, leaving its target price unchanged at 1,810p. Numis highlights the fact that the stock has shown one of the best long run total shareholder returns in the sector which it puts down to the company’s balanced approach to growth and risk management. Numis went on to argue that the company has a platform to show an accelerating rate of volume growth. The shares were up by 12p at 1,392p.’
‘St. Modwen Properties (SMP) expects pre-tax profits for the first half of this year to be significantly ahead of the same period in the prior year as occupancy rates continue to rise across the income generating portfolio. Demand for commercial properties has increased, signalling returning confidence in the UK market. Management is now confident of achieving sustained future growth through asset management, land sales, and development. The shares rose by 9.2p to 378.1p.’ Do check out the site.
All for now, see you again soon.