Friday News #0118– Homeowners Cashing In On House Price Boom To Buy More Property

With reports that the market is cooling, investors who had previously been wary of the busy market may well be considering their options now. This said, there is a disparity between locations; prices and rental demand has shifted for many areas and navigating micro-markets, historical trends and forecasts can be a complex process – guidance from an experienced investment advisor can prove invaluable.

One of the greatest current opportunities for investors is the cheap mortgage rates available which significantly improve the potential for capital appreciation and impacts net yield figures.

To learn more about why now is a good time to invest in UK property and where investors should be focusing their attention, get in touch.

Here’s what we’ve seen in the news this week:

Homeowners Cashing In On House Price Boom To Buy More Property: Homeowners have cashed in on house price growth by freeing up money when remortgaging to buy another property. The proportion of borrowers releasing equity from their homes when remortgaging has increased in the last year, according to UK Finance, the banking trade body. Borrowers took out extra money in 57pc of remortgage cases in March, which are the most recent figures. The sums of cash withdrawn have also increased “very significantly” in that same period, UK Finance said. One of the most common reasons for withdrawing a sizeable sum in the past year had been to purchase another home, a spokesman said. This included buying a buy-to-let property, second home or a gift for family members. Read more.

Housing market cools as stamp duty break withdrawn: Stamp duty holiday withdrawals have “taken some of the heat out” of the UK housing market, according to the Nationwide. The building society said house prices dropped slightly in July compared with June, but were still 10.5% higher than a year ago. Any stamp duty savings have been outstripped by rising prices. But the tax break, alongside the search for space, has created a housing boom during the pandemic. The mortgage lender said the typical home cost £244,229 in July. Read more.

Demand boom – Covid strengthens UK holiday accommodation market: The Covid-19 pandemic has had many adverse effects on businesses, but an industry that has benefited immensely from the pandemic is the UK holiday accommodation market. New research from building society, The Cumberland, shows a huge boost to the UK’s staycation market. Read more.  

Prospective tenant numbers at all-time high for June: The number of new prospective tenants was the highest figure on record for the month of June, at 88 per branch, according to figures released this morning from ARLA Propertymark. Year-on-year this is the highest figure on record for the month of June, with the previous June high being 79 prospective tenants registered per branch last year. Despite the record numbers, the figure was actually down against the previous month when May saw 97 per branch. Read more.