Surelock Network Auctions October Newsletter
Welcome to Surelock Network Auctions’ October Newsletter! While the autumn weather is moving in, the flow of news remains heavy. Last month brought more forecasts – some better, some worse – a number of developments and surprising data points. Read on to hear our take on the three details we’ve picked out
Signs of North, South House Price Convergence
High street lender Nationwide’s third quarter house price report not only shows that house price growth is slowing on a national basis, it also highlights signs of convergence between house prices in the north of England and in the south – albeit tentative ones.
The survey reports that when the northern regions of England are grouped together, house price growth in the third quarter was 4%, up from the second quarter. Meanwhile, putting the southern regions of England together saw house price of 7.5% between July and September, a slowdown from the pace of house price growth in the second quarter.
To be sure, at some £323,913, the difference in house prices between London and Yorkshire & Humberside is still higher than the actual average English house price of £255,646. However, it highlights that buying property in the northern regions of England is worthy of more research at least and likely to pay dividends at best.
UK Facing 1.8 million shortage of Rental Homes
A new report from the Royal Institution of Chartered Surveyors (RICS) shows the UK is facing a shortage of rental homes to the tune of 1.8 million by 2025. The study calculates that rising house prices will make home-ownership increasingly unaffordable for people to buy, leading to an increase in demand for homes to rent.
In light if these new data, the RICS is urging Theresa May’s government to encourage more construction and also to reverse the stamp duty changes the previous chancellor of the exchequer George Osborne created. This, the RICS argues, should encourage an increase in private-sector buy-to-let landlords.
“With increasingly unaffordable house prices, the majority of British households will be relying on the rental sector in the future,” Jeremy Blackburn, the RICS head of policy said. “The Government must put in place the measures that will allow the rental sector to thrive.”
A reversal of the April stamp duty rules would certainly be a shot in the arm for the BTL investor market. But, building more homes has the potential to, eventually, lower house prices. We’ll just have to wait and see what plan the Government has and how they will implement them.
Northern Cities Feature as Current Property Hotspots
Liverpool, Glasgow, Birmingham and Manchester all posted stronger house price growth in the three months to August, both on a quarterly basis and compared with a year earlier, a report from property analysts Hometrack shows.
The data – which is in line with the regional figures from Nationwide – highlight that house prices in Northern England and some parts of Scotland are on the up. This increase in house prices, from more affordable levels than southern house prices, makes them attractive to home buyers, both investors and owner-occupiers.
While northern city house prices are in the ascendancy, the average price of the 20 cities index slowed to 8.2% compared with a year ago. And, the quarterly rise of 1.9% was the lowest in 6 months, Hometrack said.
With Brexit uncertainty and new stamp duty rules claimed as the culprits behind the national slowdown, looking north is becoming an increasingly attractive option. Why not take a look at the catalogues for our upcoming auction to see what’s on offer?
We hope you enjoyed Surelock Network Auctions’ thoughts on the issues discussed in our latest newsletter. If you want to keep up-to-date with Surelock’s auction dates visit our website and to keep abreast of our news and views, take a look at the blog section.
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, October 19th. Birmingham, October 25th.