In the news this week: tooling up for a ‘building bonanza’

Plans to double investment in affordable housing were among the property-related measures announced in the government’s Spending Review.

The move prompted rises in several housebuilders’ share values and is likely to strengthen the outlook for supply chain firms in the construction sector. The Guardian highlighted a domestic plasterboard manufacturer, a timber business and a brick factory as gearing up for a ‘building bonanza’ that is expected to boost the number of starts on residential housing by more than five per cent from next year. To support the growth, builders will be among the 120,000 skilled workers the government has pledged to train by 2030 with an additional £3 billion in the budget for skills improvement nationally.

Among other property news, it was great to see the regional sector celebrating once again with the ninth annual South Coast Property Awards. Held at the Hilton Utilita Bowl in Southampton, hosted by The Business Magazine in partnership with Insider Media and compered by comedian Mark Watson, the awards encompassed 15 categories, from housebuilders to landlords and top young talent. We congratulate all the winners and nominees.

Local market trends were the focus of new data analysis by Property Solvers which indicated the priciest and least expensive streets across the country. Using figures from HM Land Registry, streets that had seen more than three property sales in the past five years were ranked. A number of local newspapers and news websites, including the Bournemouth Echo, Blackpool Gazette and Northern Echo, reported the rankings most relevant to their readers.

Meanwhile, BTL Insider has highlighted new research indicating that a third of Brits would like to become landlords. The survey of 2,000 adults by Market Financial Solutions found that 33% want to own a buy-to-let (BTL) property in the future. At the same time, 60% said they believe property investment is a good way to build long-term wealth.

The poll also found that younger people, those aged 18 to 34, are more motivated to get involved in BTL investment. More than half of respondents in this age group expressed an ambition to own BTL property. The proportion fell to 14% among those aged 55 and over.

Comparing BTL with other kinds of investment, 37% of respondents say they would prefer to invest in BTL property over stocks and shares, and 58% said if they won £1m in the lottery they would use some or all of it to buy property.

Commenting on the findings, Market Financial Solutions CEO Paresh Raja said the message was clear that many Britons are enthusiastic about property investment. “The rise in house prices and borrowing costs, coupled with tighter rules and regulation in the rental market, has undoubtedly caused challenges for both current and prospective landlords,” said Paresh. “I am sure this will have given some people reason to question whether BTL ownership is the right route for them, but these survey results underline the love affair that the UK has with bricks and mortar.”

We concur. As a current example of our confidence in the property market, we are delighted once again to have joined forces with Clive Emson Auctioneers to act as joint agent on a freehold property sale. It concerns a block of six two-bedroom flats on the Isle of Wight, offered under the auctioneer’s hammer for £450,000. Let at £42,840 per annum under the terms of Assured Shorthold Tenancy agreements, the block includes communal gardens and is located at Kingswood, Coronation Road, Cowes.

For more details on Kingswood and for any other property-related enquiries, contact us on 02392 826731 or visit www.chinneckshaw.co.uk.

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