Higher interest rates may have softened market sentiment and impacted price growth but, this has not stopped rental rates from increasing, particularly in the UK’s growing cities where there is a severe lack of available rental supply.
Recent data puts Manchester in the UK’s top spot for rental price growth, at a whopping 20% increase, outperforming London again.
Just recently, the UK government introduced the Renters Reform Bill to Parliament. The Bill, aimed at improving tenants’ rights and the quality of rental properties will have a big effect on the private rented sector once it becomes law.
While significant changes are expected, there is no need for landlords to panic. Read to learn more about how the Renters Reform Bill relates to landlords.
With inflation gripping the global housing market, interest rates have skyrocketed causing many to wonder if the property market would crash, but signs are indicating a buyers market. In Singapore, where home ownership is high (90%), 55% now plan to delay plans to buy a home whilst 24% are considering dropping their plans to buy a home at all. In America, there is a buyer-seller standoff because prices have become too unaffordable for the former. In Australia, where availability of rental vacancies are now at its lowest since before the pandemic, interest rates are being passed in full to home loan customers. Globally, higher living and borrowing costs are slowing demand and pushing down house prices.
As house prices adjust and the market becomes more favourable for buyers, a common impulse for investors is to hold back from investing because of fear. Understandably, the media’s constant coverage of high interest rates has further amplified fear. However, it is very possible to grow wealth in the current climate, just as in times of crisis. As we enter into the buyers market phase, here’s how and where to invest to grow wealth.
Property investment is a steady game. Its low risk profile and ability to bring returns in the form of capital growth AND rental income is what makes it very attractive. But it is a slow game, too, because it takes time: your money gets tied up in bank loans, which limits the number of properties you can buy at one time and consequentially, your ability to double, triple or quadruple your returns. Or so we think. But there’s a way to multiply your properties and increase your returns faster without feeling over-leveraged to the gills. We explain how refinancing is an important strategy/ hack in helping you build wealth.
Perhaps the biggest influence on the global housing market thus far has been the hike in interest rates. By mid-June 2022, at least 45 countries had raised interest rates in a desperate bid to contain the most rapid inflation in decades. Some countries like the US, UK and Australia had raised bank rates no less than 7 times by the end of 2022, whilst Singapore had tightened its monetary policy 5 times.
Unlike 2021, which was a year of exceptional house price growth, 2022 was a year of 2 halves with growth marking the first half, and a slowdown blighting the latter half. As the spectre of interest rate hikes looms over 2023, how are housing markets impacted and what are the mistakes that investors should avoid?
[vc_row][vc_column][vc_column_text]The tussle between Manchester and Birmingham for the position of the UK’s second city is a longstanding one. What Manchester offers in Science & Technology achievements, Nobel prize winners (25 and counting!), the Oasis and as the UK’s Most Liveable City; Birmingham counters with the likes of its incredible diversity, JRR Tolkien, Duran Duran and perhaps the highest number of Michelin-starred restaurants outside the capital! Both cities have a young population, are home to the prestigious Russell Group Universities, and are growing dynamically as a result of massive regeneration in the last decade. But how do Birmingham and Manchester measure up in investment terms?
[vc_row][vc_column][vc_column_text]Two months ago, Birmingham basked in the global spotlight of the 2022 Commonwealth Games. The largest multi-sport event to be held in England in 10 years, it was beamed live to 134 countries. More than 5 million people arrived into the city centre during the 2-week period—a 200% increase on the same period in 2021, and a massive benefit to the local economy.
The Games happened at a good time: normalcy was returning post-Covid as regeneration schemes progressed through the city and more international employers relocated to Birmingham.
Buoyed by positive momentum, the City of A Thousand Trades is experiencing growing tenant demand and promising growth forecasts ahead. Read on to learn more about the outlook for Birmingham over the next few years.
[vc_row][vc_column][vc_column_text]Last Thursday, 22 Sept, the Bank of England (BoE) raised interest rates by 0.5 percentage points, to its current 2.25%, to control high inflation. The BoE joins several other central banks around the world who have also increased their bank rates.
Yet, with the possibility of recession looming ahead, UK property investors remain bullish about the UK property market. Sounds counter-intuitive, no? Read on to learn the the Top 3 Reasons why UK property remain a sound investment in current times.
[vc_row][vc_column][vc_column_text]Investors with their fingers on the pulse understand that the best cities to invest in are built upon regeneration and urban renewal.
Europe’s fastest-growing tech city and most popular property investment destination—Manchester—has been nothing short of spectacular. This Northern city has built a reputation for creating more than its fair share of world firsts, including the first IVF baby, first split atom and graphene isolation, and where the first stored programme computer was built.
Manchester’s growth from a market town of some 10,000 people, and its rise from industrial decline to the heaving, bustling metropolis that it is today, was founded on the back of regeneration and urban renewal. Some of Europe’s most successful regenerations took place here.
[vc_row][vc_column][vc_column_text]Previously we discussed the opportunities offered by Singapore property and overseas properties investment, and how the two investments compare. Today, we discuss the considerations that could impact your property investment returns.