The UK’s student accommodation has been targeted by private equity firms, who are making major investments in what they see as a lucrative market, according to a new survey.
£100 billion summer housing market on horizon
House prices have been rocketing since the start of the
pandemic, as people have sought more space, saved more money and taken
advantage of tax breaks on buying a home.
Households have been unable to spend as much money as usual, allowing those
that have still been in work to save up for a deposit.
After the property market was temporarily paused in March last year, activity
surged, with record sales.
The average sale price of a home in England jumped 10.2 per cent in a year from
the start of the pandemic in March 2020.
Now the UK residential property market’s first £100 billion summer is on the
horizon.
A forecast, by consultancy UK Residential Research, which takes the current
trajectory of the housing market and applies it to the rest of summer months,
estimates that there will be 420,000 sales in the UK across June, July and
August at a total spend of a record £107bn.
This will make this summer the highest grossing quarter in UK residential market
history, and is in stark contrast to previous years. Throughout the past half
decade, total spend from buyers during the summer months has averaged £69 billion-per-year,
a figure that comprised a little over 300,000 sales.
Speaking on the forecast, Nick Whitten, head of UK living research, said: “It
is well-documented that the summer is the best time to sell a home, with
sentiment receiving a natural positive boost from the warmer weather. However,
our data suggests that this post-lockdown summer will set a new record.
Commercial property eviction ban extension sparks dismay
A ban on landlords
evicting firms for unpaid commercial rent is being extended for another nine
months, sparking dismay from senior property industry figures, with one
describing it as ‘crazy.’
The ban, which stops landlords taking tenants to court for non-payment, was due
to end on 30 June.
Treasury Secretary Stephen Barclay said the delay in easing lockdown
restrictions, had presented additional challenges to business.
It is estimated that firms in retail and hospitality are £5bn in rent debt.
Still time to settle commercial property rent arrears
As the moratorium on business evictions comes to an end this month, landlords have confirmed there is still ‘breathing space’ to come to an arrangement over arrears.
Residential property market slows but demand remains high
Demand for residential property remains high in the UK, despite a slowdown in April.
According to HM Revenue and Customs (HMRC), the “mad rush” to take advantage of stamp duty holidays waned last month.