Direct Property News

July 6, 2020

Is now the time to invest in buy to let?

Buy to let remains a popular investment option for Brits, despite being the subject of major reform over the last three years. Government legislation since 2017 has been increasingly hostile towards buy-to-let owners but could the aftermath of the pandemic prompt a change? Figures from 2018 show that the Private Rented Sector [PRS] provides homes for over a fifth of the population, that’s more than 4.7m households, making it bigger than the Social Sector and it’s doubled since 2002. Large institutions are discovering their appetite for what’s called Build To Rent [BTR] – effectively whole developments given over to renting – somewhat later than their European counterparts who, despite a lack of house price inflation in […]
July 2, 2020

Property: This UK city was most successful during lockdown – where to buy and sell now

THE PROPERTY market has been very different for the last few months due to the coronavirus crisis. These are the UK cities that have fared the best during this time. Those hoping to buy or sell a property will have noticed a huge change to the property market during the coronavirus lockdown. As the market has started to pick up again, these are the towns which have been most successful in putting properties on the market. At the beginning of the coronavirus lockdown, it became more difficult to buy or sell a property. House viewings were cancelled and homeowners were discouraged from moving into new properties. As restrictions relax, more normality has returned to the housing […]
June 30, 2020

The best way to invest in property

The perennial debate among investors focused on adding property exposure to their clients portfolio is the choice of open or closed ended funds if investing in bricks and mortar property. Open-ended funds can fall foul of a liquidity mis-match, whereby the end client can withdraw their money at one day’s notice, but the underlying investment is in an asset that cannot quickly be sold. This creates the potential for funds to be unable to pay out clients in the event of an economic downturn. Fundhouse M&G suspended its property fund at the end of 2019 as investors withdrew £1bn. And the Covid 19 crisis meant that the 11 open-ended property funds with daily dealing in the […]
June 24, 2020

Property market sees ‘astonishing upsurge’ as sales rise in May – latest house price data

THE PROPERTY market continues to show signs of initial recovery, with the number of homes sold rising in May, according to latest data from released by HMRC this morning. Despite estate agents and surveyors in England only being able to return to work from the middle of last month, the number of homes sold increased by 16 per cent, with a total number of 48,450 completed sales in May, compared to the 41,760 residential sales recorded in April, according to seasonally adjusted figures. While encouraging, these figures do illustrate the impact of the Covid-19 pandemic on the UK housing market, as when viewed against the 96,050 homes sold in the UK in May 20190, today’s figures […]
June 22, 2020

New Savills data shows revised five-year predictions for UK housing market

There’s good and bad news for the UK housing market, with short-term struggles offset by long-term recovery. How will the economic backdrop affect the sector? National estate agency Savills, which annually publishes comprehensive five-year housing market predictions, has revised its outlook in light of the coronavirus pandemic. The new research shows several changes compared to its original November 2019 forecast. One of the main factors affecting housing market recovery is, of course, the speed of the country’s economic recovery. Savills’s latest report takes this into account, with GDP set to fall 8.3% in 2020 before a rebound in 2021. On an economic level, income growth is also expected to play a part in both house price […]
June 19, 2020

Property as an alternative income investment

The collapse of bond yields over the past decade, coupled with the more recent spate of companies cutting their dividends, means investors’ hunt for income has become a tougher task. The persistently low bond yields of recent times prompted many investors to invest in alternative income assets, including a number of investment trusts that invest in niche sectors of the property market, as alternatives to bonds and traditional equities. Among the sectors to have found favour with investors are student property, health centres and infrastructure. The income from assets such as student property and some infrastructure investments is ultimately derived from the government, potentially placing some of those income streams into the very low risk category […]
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