While 2020 introduced us to something we could only believe in a movie and now cannot bear to hear more about; COVID. The year the world stood still!

Then 2021 brought continuous uncertainty, but not for the property market. Everyone feared the worst which is one of the reasons why the Stamp Duty holiday was introduced.

Estate agents at Pick My Pad couldn’t get properties quick enough for the demand. All properties we put on the market were sold over the asking price by some 17%. These prices were drive-by demand from first-time buyers. However, saying that we noticed investors paying higher prices than would be expected of an investor in order to clinch the deal.

As we entered the Christmas period the only thing that slowed down was having the stock. Not even celebrations stopped the avid investor or determined first time buyer as we were still receiving calls and had requests for properties.

We are now in 2022 and the top subject other than COVID is how utilities are increasing to such an extent it is having an effect on whether first-time buyers can afford to purchase their dream home.

We know house prices have risen faster than salaries over the years which is making the housing market increasingly unaffordable for most and interest rates have increased which adds the expense to mortgages. This slows down the demand for property and can affect the overall market.

We believe the house prices will not continue to increase as they have but will remain stable for the duration of 2022, it has been suggested that between 0% to 2% is the considered level of fluctuation in prices according to Russell Galley, Managing Director at Halifax.

According to Rightmove, house prices are 7.6% up when compared to Jan 2021. The shortfall in houses and continues high demand may prove Russell’s theory to be incorrect as the year unfolds.

I think we can safely say the housing market has been a true phenomenon that has performed against all odds. Could the rise in utility bills be the next epidemic deterring first-time buyers? Or will it just delay their buying decisions!? Or alter their budget, affecting buying habits, which could ultimately have an effect on the overall market, over time.

A recent survey found a massive two thirds of parents are considering investing in student property in Worsley to assist their child through university as fees and costs of living become more and more daunting.

The rising price of rent as well as high fees is making university a harder and harder prospect for many students who can often struggle to make ends meet with just their maintenance loan and a part time job.

The online mortgage broker Trussle found 66% of parents believe helping their child via purchasing a buy-to-let student property was a smart idea.

The idea is to let their child live in the property while they were at university for whatever in-house rent the family agreed, hopefully lowering their living costs.

Once their child had finished their course and were ready to move onto the next stage of their life the parents would then be able to rent out their house to other students and begin making returns on their investment.

The survey of 2,000 homeowners even found 53% of parents would consider downsizing their family home to help support their child through university.

Parents are not wrong that student buy-to-lets are a sound investment at the moment for the past few years they have outpaced the rest of the rental sector, with yields growing by as much as 17.86% larger than the rest of the rental sector.

The value of the private rental sector as a whole has also soared recently.

According to the Shawbrook Bank the total value of the private rental sector rose by 5.8% between August 2020 and August 2021 to a total of £1.4 trillion.

This is lower than the general rise of all properties which increased by almost 10% in the same period.

Shawbrook bank also found demand for rent was soaring with 42% of landlords saying they had more people than ever looking for a property, with a third of landlords adding they are looking to add another property to their portfolio in the next year.

Trussle did note in their survey that tax changes had skewed against landlords in recent years making buy-to-let investments not the super lucrative investments they used to be.

However, Miles Robinson, head of mortgages at Trussle said their data showed “that property is still seen as a safe and reliable way of generating extra income.”

The investments also make sense in the medium term through rental income and in the long term through the rise in property prices.

So, although the cost of entry may be higher than before, and the returns may not be as massive, there is still a huge demand for rental properties plenty of room to grow and huge amounts of confidence the rental market will remain strong.

One way to maximise your returns is to get the best advice on where to invest and how to manage the property.

The multitude of taxes and regulations that come with managing a buy-to-let student property can be mind boggling at first and this is where Pick my Pad can help.

The Mistoria Group manages 1000 properties in the private and student rental sector and is a specialist in helping investors interested in getting involved in the market.

On top of this, The Mistoria Group can also give advice on where to invest, the dozens of university towns and cities across the UK present plenty of options but some offer vastly higher returns than others.

Rents may be high in London but property prices are even higher.

Whereas student property in Worsley and places like Bolton, Liverpool and Salford, property prices are low but the ever-increasing student population means yields are only going to increase over time.

Call us on 0161 790 3999 or email info@pickmypad.com

State of the market: Is now the time to invest in property?

With lockdowns now firmly behind us and no prospect of them returning in full force any time soon the property market has come roaring back – could now be time to invest in property?

There is certainly plenty of evidence the housing market is booming –although figures have been inflated by the rush to take advantage of the stamp duty holiday which came to an end in October.

According to HM Revenue and Customs, in the UK in last month an estimated 160,950 homes changed hands, which was almost 70% higher than in August and 68% higher than the previous September.

Compared to the 50% drop in sales which occurred in April and May 2020 due to the pandemic, it is clear the market has put Covid behind it.

Zoopla has predicted 2021 will be the strongest year in the housing market since 2007, with around £500bn in sales.

Now that the stamp duty holiday has come to an end it is expected the residential sales market will slow and price growth is set to stall making now a perfect time to invest in property.

Sensing opportunity of a market lull before further growth, investors are out in force cash buying property left right and centre after laying low throughout the pandemic.

Property is on the verge of flipping from a seller’s market to a buyer’s market.

What does this mean for rental?

Research from Zoopla found rents were rising at their fastest pace in over a decade in all places in the UK except London.

They found rent would be on average £500 more per year by the end of 2021 compared to 2020.

Demand for rental properties across the country is expected to rise in the coming months.

As people decided to stay put during lockdowns, and with evictions made temporarily very difficult, tenants very rarely moved.

But now the economy is looking increasingly strong and lockdowns fading into memory more and more tenants will start looking for a place to move.

With a rise in demand, it could be the perfect opportunity for House in Multiple Occupation (HMO) property investment.

With the ability of being able to house multiple separate tenants into a single property, HMOs can easily absorb any rise in demand.

Combined with a rise in rents and the reproductive growth HMOs offer, they could be a wise investment.

If you are thinking of investing in property for rental and would like help and advice on how to manage a successful tenancy, please contact our experienced team.

We manage 1000 properties and 3000 tenancies in the private and student rental sector and can help you with all aspects of rental property management.

Call us on 0161 790 3999 or email info@pickmypad.com