Direct Property News

April 24, 2018

New figures show equity release for UK home owners has doubled since 2016

Equity release lending in the UK has more than doubled in the last two years to reach £870 million in the first quarter of 2018 resulting in almost £10 million of housing wealth being withdrawn a day. The value of quarterly lending in the first three months of 2018 increased by 25% year on year, according to the figures from the Equity Release Council which said that product innovation and flexibility has led to new customers rising by 22%. The figures also show that the average initial instalment on a drawdown lifetime mortgage was up 4% from the final quarter of 2017 to £64,785 while the average lump sum lifetime mortgage was down 5% to £96,483. […]
April 30, 2018

Annual house price growth up slightly to 2.6%

The latest house price report from Nationwide shows a property market lacking in any real momentum. According to the figures released this morning, annual house price growth saw a slight increase of 0.2% on the month – picking up to 2.6%. Robert Gardner, Nationwide’s Chief Economist, commented on the figures: “There was a slight pickup in UK annual house growth in April to 2.6%, from 2.1% in March. House prices rose by 0.2% over the month, after taking account of seasonal factors. February saw a softening in house purchase approvals to 64,000 cases, following a surprise rise in January. These figures are broadly in line with our expectations and close to the average for the last […]
May 2, 2018

Landlords in east of England ‘most confident’

Landlord confidence across a range of measures remained stable or increased in the first quarter of 2018 compared with the end of last year, according to a recent survey of 1,043 landlords carried out by BDRC on behalf of Paragon. While still weak compared with historic levels, this quarter’s figures make welcome reading after a sharp dip in confidence following the announcement of new tax measures for landlords in 2015 and a further fall after the introduction of tighter underwriting rules for buy-to-let mortgages last year. Landlords in the East of England were most positive about the future, with over half (53%) of those surveyed indicating that they felt upbeat about the prospects for their own […]
May 8, 2018

London leads annual rental growth in the UK with rise of 4.5%

Rents in the UK increased by 1.5% in April to an average of £918 compared to the same month in 2017, led by growth in London, the latest index shows. Rents in London increased by 4.5% year on year to an average of £1,588, the highest regional year on year growth, according to the figures from the HomeLet index. When London is excluded, the average rent in the UK reached £761, up by 0.9% year on year and while overall rents increased, they fell by 2.1% in Wales and by 0.4% in the South East and the North East. A breakdown of the figures reveal considerable regional variation in rental growth. After London the next biggest […]
May 10, 2018

UK housing land values rise where property prices are growing

The value of development land for housing in the UK continues to rise, but increases are concentrated in locations still seeing strong house price growth, the latest national analysis shows. In areas where the underlying residential property market has slowed then development land prices are not rising, according to the report from property adviser Savills. The report explains that sites that are well-connected or tied to strong employment centres are most in demand. This is reflected in prices being paid for land. The biggest increases are being seen in key towns and cities across the Midlands and Scotland, with Birmingham the standout performer. London developers continue to seek opportunities beyond the capital, where planning constraints and […]
May 14, 2018

How much could an average long term property investment earn you?

New research and analysis by specialist mortgage lender, Kent Reliance, has shown that long-term property investment could still deliver significant returns for landlords, despite recent regulatory and taxation changes. According to their report, over the course of a 25 year investment, a basic tax paying landlord, placing a typical 30% deposit of £73,908 on a property, would generate a total profit of £265,500 after all costs and taxes. Accounting for the impact of inflation over the period, this represents a profit of £162,000 in today’s money, or £6,475 every year. Capital gains comprise a significant portion of a landlord’s returns. Assuming that house prices and rents rise in real-terms by 1% per year – well below […]