Property News — 18th January 2021
The Property with Potential blog is back with a roundup of the best property news of the week. We will be posting every week with everything you need to know about the property market, so make sure that you subscribe to keep up with our latest posts.
First time buyers finding deposit a struggle
Despite the pandemic and Brexit, property prices have remained high leaving potential first-time buyers struggling to save for a deposit. A new affordability report from Nationwide building society has found that finding a deposit is still the biggest challenge for first-time buyers as house prices remain high with. The average 20% deposit is now around 104% of average income.
The latest figures are a part of Nationwide’s new annual HPI Affordability Report.
Andrew Harvey, a Senior Economist at Nationwide, said earnings growth has largely remained in line with house price growth over the years, but it was at a high level. Mr Harvey explained: “At the end of 2020, the UK First Time Buyer (FTB) house price to earnings ratio stood at 5.2, close to 2007’s record high of 5.4, and well above the long-run average of 3.7.”
Warehouses look to be a good investment
Fuelled by the online shopping boom brought on by the pandemic, Warehouses look to be the next big property investment. Eskmuir Properties said it has bought the portfolio from Legal & General’s industrial property investment Fund for a cool £45 million.
The portfolio includes eight sites spread across the UK and tenants include ScrewFix and Howdens.
Paul Hodgson, managing director of Eskmuir, said: “We are always looking at ways to deliver strong returns to our investors. The Lunar Portfolio is a great opportunity to increase our weighting in industrial assets, a sector which is continuing to benefit from the rise in e-commerce and the need for storage space.”
Read more here.
Parliament considering an extension to the stamp duty holiday
It has been confirmed by the House of Commons that there will be a debate surrounding the extension of the stamp duty holiday after an online petition reached 110,000 signatures.
Although the government did say last month that it did not have any plans to extend the temporary relief offered, chancellor Rishi Sunak is under growing pressure to reverse this decision amid concerns that thousands of buyers could fail to complete before the deadline.
The current lockdown is causing delays and placing extra pressure on conveyancing solicitors, mortgage lenders and surveyors who are struggling to push through purchases.
Speculation on what will happen with house prices in 2021
Despite the lockdown, at the start of last year the housing market exploded. Working from home has obviously made people realise they need more space. But with looming unemployment, the help to buy scheme and the end of the furlough scheme could lead to a more subdued housing market in 2021.
City AM has spoken to several estate agencies to find out what the market is set to look like this coming year. Read more here.
Property of the week: A houseboat on Chelsea Harbour
We know what you’re thinking, it’s cold and wet outside, so who would want to live on a houseboat. But, after being locked down, what more could you want than the freedom of a houseboat? But before you think this is all about small cramped spaces this power yacht houseboat is a pure luxury.
With an exclusive mooring at Cadogan Pier in Chelsea, this houseboat is currently owned by hotelier and entrepreneur Peter de Savary. With a length of 29.75m and a beam of 4.9m, it has three double cabins, plus separate accommodation for crew.
This is an extremely luxurious and unique, Eco-friendly Yacht/Barge for river/canal cruising throughout Europe and further afield. As well as having three bedrooms and three bathrooms, you’ll also experience a state of the art kitchen and your very own swimming pool.
And it’ll only cost you a cool £2,000,000. For more details see Waterview
