UK property price news
A buyer’s market for UK property this summer?
Rightmove.co.uk, publishers of the UK’s largest survey of asking prices reported a 1.7% fall in the value set by sellers in July. With sellers outnumbering buyers by 2 to 1 and the Olympics just about to start in the UK, sellers may be about to experience an Olympic -sized pre-season lull in demand.
However, at the same time, almost a third of respondents in the June Association of Residential Letting Agents survey stated that they had added to their portfolios in the last year. Commenting on the figures, Tim Harvey, managing director of Offshoreonline.org said, “Professional and small scale expatriate landlords alike are quietly using dips in the market to add to portfolios, in the knowledge that in prime areas such as central and south west London, both capital values and rental yields are holding firm.” Erica Evans of UK property search agency Expatfindaproperty.com agrees, “In South West London, for example, it is possible to achieve rental yields of 5% or more with a good prospect of capital growth in areas such as Clapham, Wimbledon and Wandsworth. At the same time, mortgage costs can be as low as 4.28%, giving overseas landlords the basis of a profitable lettings portfolio.”
With many expatriates about to return to the UK for holiday breaks and some planning a trip to the Olympics, Offshoreonline.org is recommending that clients get initial agreement for their mortgage funding in place before they return, so those looking to snap up property can strike while the iron is hot.