Friday News #0122 – Private Rented Sector Grows to £1.4trn

Borrowers continue to take advantage of interest rates being at an all time low, remortgage numbers are rising as property owners release equity, and in many cases that equity is being used to invest in a buy-to-let property. 

Recognising the present opportunity, the private rented sector across the UK continues to grow as new landlords enter the market and existing landlords grow their portfolios.

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

Private Rented Sector Grows to £1.4trn: The value of the Private Rented Sector (PRS) in England, Wales and Scotland grew by 5.8 per cent to £1.4trn in the last year according to a new report. Read more. 

Housing market suffers from shortage: The housing market is facing an acute shortage of homes for sale after record transactions to beat the end of the stamp duty holiday used up the stock. Zoopla, the property portal, said that Britain was in the midst of its “greatest stock shortage since 2015” as the number of properties for sale in June dropped by 26.4 per cent compared with the 2020 average. Read more. 

House prices: Demand changes, not tax waiver, pushed prices up: The current house prices boom was not caused by the stamp duty holiday, a new report has argued. The Resolution Foundation says prices will keep rising because of pandemic-related factors like low interest rates and changing home preferences. Read more.

Remortgage completions up 31% in July: 31% more remortgage completed in July compared to June, with instructions increasing by 27%, according to the latest figures from LMS. Pipeline cases increased by 14%, while the overall cancellation rate increased by 0.53% to 6%. Remortgagors reduced their monthly payments by an average of £124 in July and 49% of borrowers increased their loan size. 32% of remortgager’s primary aim when remotgaging was to release equity from their property. Read more.

10 Features That Tenants Look For In A Rental Property: When investors are looking for a rental property its useful to understand what tenants are looking for, read our latest article to learn more. 

Off Plan property investment Benefits: In one of our latest videos, Nichola and Stuart highlight the benefits of investing in property prior to construction being completed. Watch the video here.

Is it safer to keep your money in the Bank? Oliver discusses how inflation can affect your wealth, watch the video here.