So the market has had a bit of a shock recently, thanks to the unpredictable nature of his orangeness across the pond, lenders have started pulling mortgage products and pushing up interest rates. As a knock on effect of this we’ve seen gilt yields rise, which along with SWOP rates are the true barometer of what’s happening, and we could see inflation rise and this is why the Bank of England decided recently not to lower the base rate, with one member of the MPC even voting to put up rates to head off inflation.
Now, you’re probably asking what this means for ‘me’, well take a look at our articles on pages 12 and 30, where we take an in-depth look at what’s been happening and why, and what it could mean for us as property investors.
Another somewhat seismic change recently, has been that the Renters’ Rights Act came into force on 1 May, which now means that both Section 21s and ASTs are no more, plus of course many other changes for landlords. We spoke with Mustafa Sidki about exactly this and you can find the interview on our website and on our YouTube channel.
In this issue however, on page 41, Richard Blanco has taken a step back and analysed not just his own position, regarding what the RRA means for him, but also for the wider market and whether it’s time to stay and ride it out or make the decision to exit. Many will of course be considering the latter, but property is in its natural form a long-term investment and there will be peaks and troughs, so if you’re in it for the long-term, this is a trough where you’ll need to hang on and ride it out, before coming out the other side in a better position, assuming you have adapted to all the regulation and got your systems in place.
On page 16, we have an interview with James Quinn, who has been building homes in South East London, taking advantage of smaller sites and creating some beautiful properties, focusing on quality and meeting local demand.
On page 27, David Kemp has taken another look at permitted development - what the current status is, what’s allowed, and how developers can take advantage by knowing what they can and can’t do.
We’ve also looked at what is happening with the Olympia and Earls Court developments on page 34, and on page 20, our resident architect Lucia Piccinini has highlighted a worrying trend of affordable housing developments being abandoned, or in some cases demolished.
There are of course plenty of other articles, Suzi Carter on page 32 comments on the commercial property market, Ritchie Clapson discusses finding and creating deals in property development on page 24, and on page 46 Jay and Piotr talk about whether flipping at auction has come to an end.
