Shelter has estimated that the average price of a house could rise to more than £900,000 by 2034 if the current trends continue. And within a few weeks of that claim, the BBC reports a record number of families are in temporary accommodation, or homeless. Shelter said currently there was a shortage of 100,000 houses a year in the UK.
With a lack of homes being built this has meant that the average property value across the UK is £183,577. Whilst some 95% mortgages have allowed more to save the deposit the government has a great deal to do, as low supply has clearly driven up prices, and rents. This slowing supply is entirely possible as Developers slow or stop building new homes. Michael Gove (MP) has recently slammed developers for sitting on land rather than building new homes after an investigation by the i newspaper reports they are hoarding more than a million building plots. This is known as land banking, the practice has led to calls from politicians and experts to force developers to increase construction numbers, be taxed on unused land, or face compulsory purchase orders in an effort to increase construction, and slow the price rises. If action is not taken now, that £900k forecasted house price could become a reality, and increase the number of people in temporary accommodation which is not acceptable. I was once a landlord and always kept the rents below the market price to keep motivated great tenants, and maybe if more landlords were created, with less government taxes, we would see less demand on new homes? It also appears we need more affordable homes from the government, and maybe more conversions of offices into flats to ensure the UK dream of home ownership is more available to all.
Investors whom have funds ready to invest can benefit from many landlords exiting the sector as recent government laws have made being a landlord less attractive to some. If your have funds to invest, and meet our criteria on timeframes, then please contact our team today.
We also welcome investors whom wish to join our Joint Venture option. An example could be when an Investor loans us funds at an agreed rate, often within a one year return.
One Berwyn Property JV example: We would invest in the below market value home, and once completed, pay back the initial amount, plus an agreed % payment. In this case the JV (investor) could gain say 6.5% over a six-month loan*.
For this example, a repayment would be made to the Investor on the agreed date of the initial investment plus % from the agreement. What’s not to like from the above example that gains the Investor an agreed benefit from the short-term loan, in this example you would be paid a sum of £206,500. Many investors repeat this process and allow our team to continue the mutually beneficial process. Contact our team to discuss your aspirations for 2023.