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Each and every month we bring to you the most pertinent property news from around the United Kingdom so that you remain well-informed and up-to-date on all things housing.

Property investors remain unfazed by Brexit

As we’re now finally closing in on 29th March, our scheduled departure date from the European Union, there is anticipation as to what Brexit will look like. In terms of property development, however, a recent study has shown that the majority of property investors are unfazed by the political upheaval and remain steadfast in their faith in the British property market.

A recent global survey carried out by SevenCapital, a leading

property developer, has found that 85% of individuals who are currently investing in property around the world are investing in the UK’s property market, in spite of the Brexit furore whipped up by news headlines.

Andy Foote, director at SevenCapital, said: “These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market. Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the EU.”

“Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks. In other words, if it takes a dip, as it did 10 years ago, it will recover and come back stronger.”

The survey of “High Net Worth Individuals” (HNWIs) – defined as earning more than £100,000 per year – has shown that property remains as popular as ever for global investors, with 59% investing in property, second only to stocks and shares. Out of those who responded, more than 30% of those from within the United Kingdom confirmed they were investing in UK property and, furthermore, almost a quarter actually cited Brexit as one of their reasons to invest.

With cities such as Birmingham performing impressively well post-Brexit vote, with property prices growing 16%, the investment possibilities remain strong. Moreover, the rental yields being posted by the likes of Birmingham, Manchester and Liverpool are amongst some of the highest around the country at between 5 – 10%.

Overall, the sensational headlines which Brexit has provided have been utilised well by the media as a means to engage people. However, when we look at the statistics it is evident that there are further far-reaching events which weigh more heavily on the property market, such as interest rates. With property investment remaining encouragingly high across the United Kingdom, first-time buyer activity at unprecedented levels and the pound being predicted by Goldman Sachs to be the highest-performing G-10 exchange rate this year, the property market is set for a strong and stable year ahead.

First-time buyers at highest level for over a decade

The number of first-time buyer mortgages has reached its highest level for 13 years, with some 370,000 new first-time buyer mortgages completed in 2018. Official trade body UK Finance has released data which shows that the highest number of first-time buyer mortgages since 2006 was reached last year, underlining the fiscal viability of purchasing a home for first time buyers.

This consistent increase in the number of first-time buyers

entering the property market can be seen as a result of; government schemes, greater mortgage availability and fewer rental properties on the market. Government policy has consistently targeted buyers who are keen to enter the property market primarily through their Help-to-Buy scheme and financial aid to first-time buyers, whilst competition amongst mortgage providers has brought a greater variety of finance options to the market. Amongst these mortgage varieties, we have seen more providers offering the 100% mortgage (or Loan-to-Value) and variations thereof, thereby opening up property to more people than ever before.

Richard Campo, managing director of Rose Capital Partners, said: “Lenders have been making it easy for first-time buyers over the last couple of months, with several providers announcing reduced rates on high loan-to-value mortgages.

“There are currently over 17,000 products available for first-time buyers.”

Twinned with the influx of mortgage varieties, and mortgages demanding a lower deposit value, is the reduced cost of these lower-deposit mortgages. The average two-year fixed rate LTV mortgage has fallen by over half a percent since last August, and big brands are also reflecting the consumer desire for LTV mortgages with Barclays, HSBC, Lloyds Bank, NatWest and Santander all cutting their rates.

Yopa chief property analyst Mike Scott agrees: “Since FTBs drive the whole housing market, allowing home movers to find a buyer and take the next step on the ladder, this is good news for the whole market,” he says.

In fact, the Halifax bank has recently found that first-time buyers are now so active in the marketplace that they make up the majority of home purchases bought with a mortgage in the United Kingdom. Based around the same UK Finance statistics, Halifax has found that the average price of a typical first home has jumped by 39%, from £153,030 in 2008 to £212,473 in 2018 with terraced houses and semi-detached remaining the most popular choices for first-time buyers.

The buying process explained

Buying a property can be a complicated process. Whether you are experienced or a first-time buyer, we can help you secure the home of your dreams … or help you take that all-important first-step on the property ladder.

Click here to read The buying process explained.

Queen's billion-pound property portfolio revealed

Given the vast wealth of the Royal Family, it certainly shouldn’t come as a surprise to hear that Queen Elizabeth II’s property portfolio spreads the width and breadth of the British Isles. Yet figures released by the Crown Estate last year paint a picture of a stunning property portfolio, almost incomprehensible in its wealth.

At present, the estate is valued at an astonishing £13.1 billion, even though the Queen herself doesn’t own all of the property associated with it and whomever sits on the throne isn’t able to sell parts of it off at will. Properties themselves can be split between those owned by the Queen herself and land that falls under the control of the Crown Estate itself; any monarch won’t receive revenue from this property.

Still, the magnitude of some of the properties contained within the estate is remarkable, with 7,936 plots owned and land of their own within 271 of the 342 districts across England and Wales ranging from grand hotels to historic castles. They feature:

Sandringham House

Inherited from the Queen’s father and located in Norfolk, Sandringham House is a 20,000-acre estate which passed to her when George VI died in 1952. It’s typically where the Queen spends her winters and was the setting for her first televised Christmas message.

Palaces

The Crown owns several palaces across London, including, unsurprisingly, Buckingham Palace, Clarence House and St. James’ Palace, all of which are maintained by the Royal Household Property Section. That will offer clarity for those of you who may have wondered how the Queen and her family were able to keep up with what will surely be an astronomical amount of tidying up.

Castles

What’s a monarch without their castle(s)? The Queen and Prince Phillip spend the majority of their summer at their 20,000-hectare Scottish estate Balmoral Castle in Aberdeenshire, but can also lay claim to Lancaster Castle in Lancashire, Pickering Castle in Yorkshire and Hillsborough Castle in Northern Ireland, to name but a few.

Beyond this, the Crown Estate also own the site for the world-famous Gold Cup, Ascot Racecourse in Berkshire, the entirety of Regent Street and St. James’ Market in London, around 263,000 acres of farmland across Great Britain and, funnily enough, fishing rights in Scotland. That means that any of you fancying a trip north of the border to catch whales and sturgeons could find yourself in hot water with the Crown, as these are designated ‘royal fish’ and will presumably be less-than impressed with being caught.

For more information on the Queen’s gigantic property portfolio, please click here for more details.