Friday News#074 – 11th of September 2020
Transaction numbers for 2020 are set to be lower than those recorded in 2019 which is of little surprise given the industry was effectively shut down for an extended period earlier this year. More interesting news this week is that forecasts from experts are indicating that this year is merely a speedbump and cumulatively price growth over the next 4 years could be as much as 14%.
With a long term outlook, the question investors need to ask themselves – do I want to capitalise on the present opportunity?
Here’s what we’ve seen in the news this week:
Transactions to fall 15% this year: Property transactions are set to fall by 15 per cent in 2020 compared to last year according to updated forecasts by Knight Frank. The estate agency firm predicts that across the UK, prices look likely to show an increase of 2 per cent over 2020, before dropping back to 1 per cent growth in 2021, 3 per cent in 2022, 4 per cent in 2023 and 3 per cent in 2024. Cumulatively from the start of 2020 to the end of 2024 that is equivalent to a 14 per cent rise. Read more.
Two thirds of British workers are better off financially since lockdown: As the UK went into lockdown, most people were either furloughed or forced to work from home where they can, and for those who adapted to this new way of working – and living – it is possible that they now have more money in their pocket than normal. This extra money has come from the lack of spending on travel, food and clothing expenses, according to a survey. Read more.
Regeneration hotspots for property investment: A number potential property hotspots have been identified for buy-to-let investors with an eye on the future. Government infrastructure spending and investment has been taken into consideration by letting management platform, Howsy, as part of the research. The 34 areas analysed are currently benefitting from government investment and likely to see demand for rental properties increase, ranking them on which offer the best available rental yield right now based on local market data. Read more.
A landlord’s guide to coronavirus: your questions answered: A panel of experts answer some key questions affecting the rental market, from whether landlord insurance covers coronavirus to when running a buy-to-let counts as being self-employed. Read more from The Telegraph.