Surelock Network Auctions August Newsletter
Welcome to Surelock Network Auctions’ August Newsletter!
The summer is here and things have been pretty busy in the property business. July was an interesting month and even though things usually slowdown during August as people relax and enjoy some sun, we think there’s going to be quite a lot going on. Read on for our top news picks from July – and we’ll try not to mention Brexit!
The New Housing & Planning Minister has a Tough Time Ahead
With a new Prime Minister comes a new cabinet and this one includes MP Gavin Barwell as the new housing & planning minister. He steps into the role at a time when here aren’t enough homes being built in the UK to accommodate the number of people living here or the natural growth of the population. He also needs to work with the planning department to further simplify the complex, time-consuming and frustrating process that is currently in use.
On accepting his new role, Mr. Barwell appears to understand the importance of it and is committed to working hard to push house building and standards in the UK forward. “Every MP will tell you that housing is one of the most common issues they deal with in their surgeries,” Mr. Barwell said. “I look forward to working with councils, housing associations, developers, investors and local communities to make sure we build the mix of tenures that people want.”
What this new appointment means for the property market will take time to unfold. However, if Barwell is supportive of more property construction, particularly in the areas where it is most needed, it should mean more sales and opportunities for home-buyers, investors and landlords.
Property auction activity slowed a little in June
The latest data from the Essential Information Group (EIG) shows June was a slower month for property auctions with fewer properties for sale and a lower rate of sales than a year earlier.
With an 8.8% fall in the number of lots sold, the residential sector fared better than commercial where the number of sales was 29.9% lower than in June 2015. However, the outlook for July is brighter: “It is perhaps no surprise to see the property auction market retract slightly during this period of uncertainty,” EIG Managing Director David Sandeman said in his July newsletter. “History also shows us that the auction market is usually very quick to respond and I expect confidence to return before long – indeed a cursory glance at July’s catalogues indicate a busy period ahead!”
To that end, a separate report from Property Investor shows activity in July likely did improve, with an 83% successful sale rate reached at Network Auctions two-day London and Birmingham sale. That shows investors who are well-placed can still find the right property at the right price at auction.
Property Investment is a Real Alternative to Low Savings Rates
While financial markets remain unsettled and uncertainty is weighing on confidence, the Bank of England is meeting to discuss the future path of inflation, interest rates and the economy. Ahead of the meeting, economists are expecting rates to be cut to a new record low of 0.25% from the current 0.50%. This expected move would be a bid to reassure markets, businesses and consumers that the central bank will do everything it can to support the UK economy and that they should go on borrowing, spending and investing to support growth.
Great news for borrowers, but not so great for savers. But, at a time when stock markets might seem a little volatile other options still remain open, including investing in property. You don’t have to become a long-term landlord, you can look for renovation projects or go into business with a partner and let them handle the side of it you’re not too confident about.
If these are ideas that have been in your mind for a while now, then it’s worth coming to an auction to see how things work and what types of properties you can buy in order to get your money working harder. It might seem daunting to start with, but you’ll be surprised at how enjoyable an auction can be and you could end up with a great new investment that you can count on for your retirement or to pay for your children or grandchildren’s education.
We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.
Upcoming auctions: London, September 13th. Birmingham, October 25th.