Friday News #086 – How to make sense of the contradictory house price headline

Friday News#086 – 4th of December 2020

The frenzied property market continuously reported on by the media is largely focused around country houses and in many ways is creating a distorted picture in the media. 

The properties we recommend to our investors are within areas seeing continued and sustainable growth – where investors can secure properties at a good price as the market leans in the buyer’s favour and units can be secured with more incentives available than we have seen for some time.

Just a few weeks remain of 2020, we continue to be incredibly busy working with astute investors who recognise the present opportunity.

Here’s what we’ve seen in the news this week:

UK house price growth ‘fastest for almost six years’: UK house prices are 6.5% higher than a year ago – the sharpest rise for nearly six years, the Nationwide has said. The acceleration came as the housing market remained “robust” despite the economic effects of the coronavirus pandemic, the lender said. Read more.

Stamp duty holiday ‘stampede’ drives soaring UK mortgage market: A “mad stampede” to buy houses before the stamp duty holiday ends drove UK mortgage approvals in October to the highest level since 2007, defying surging unemployment and an economic downturn. Read more from the Financial Times.

October housing demand still very high: The average number of prospective buyers registered per estate agent branch reached 451 in October, the highest number ever recorded for that month, NAEA Propertymark’s October Housing Report found. Read more.

How to make sense of the contradictory house price headlines: On the surface, house price data can sometimes seem to be utterly contradictory. In mid November, for example, property website Rightmove’s house price index reported a 0.5pc year-on-year drop. The Office for National Statistics, however, recorded a 4.7pc jump. Read more.

Who is buying in the current UK market? In our latest video, Senior Portfolio Manager Francis talks about who is buying in the current UK market, the 3 types of investors he is seeing buying, why they are buying, and how you can take advantage too – Watch here.