?? Londoners to find rentals elsewhere while housing price growth eases!

Hello reader!

We (Marios and Adjoin!) are coming to you today with our second newsletter of the month.?

How have you been feeling about everything that’s happened in the last week in the UK? We’re dealing with it, but nothing can stall us from bringing you some of the housing market highlights.

Before you enjoy our read, there’s one more thing we need to tell you about: The Adjoin landlord referral program: an awesome chance for you Adjoiners: Introduce your landlord to us and get a ￡1K discount on our joining fees.

Need more information? We’re here to talk to you: email us at [email protected] right now!

Central London rents at record high

• New buyer inquiries keep dropping across the UK,?finds RICS. Near-term sales expectations have decreased further, reaching a net balance of negative 30%.
• RICS also?estimates that during the?next 12 months house prices will drop, as a result of the pressure from the increasing mortgage rates.?
• Talking about predictions, the?Centre for Economics and Business Research (CEBR) forecasts a 7.4% drop in London house prices by 2023, compared to -1.8% in the North West (see image below, taken from The Telegraph).?
• The mini-budget has pushed UK banks to withdraw?60% of first-time buyer?mortgages. This makes it even more difficult for first-time buyers to get their hands on property.?
• A 40% drop in home sales in September. But the horror is still to come, according to?The Guardian.?
• More people need rooms than ever before. And fewer rooms are available to quench the thirst. As a result, rents are high than ever before, reads an informative?blog post?from SpareRoom.
• London to lose a chunk of its renters, a direct cause of the cost of living crisis.?Pocket Living?conducted a poll of 1,000+ London residents in the 25-45 age range, and finds this about their diminishing London dream:
• Gen Z and Millennials think London may not suit them.
• 27% of renters want to leave the capital within 12 months.
• 54% of renters feel as if they don’t have a choice.
• ? of renters are delaying buying their first home.
• 71% of them think they won’t be able to afford a home of their own in this economy.
• Their pain is understandable. Because rental prices?continue to increase. In fact, the highest average rental price ever recorded was in September, closing in on ￡553 per week. Central London recorded the highest average weekly rent in 2022, hitting ￡636.
• Some stats on the mortgage market: 2-year fixed mortgage reaches 6.55%, the highest since the 2008 financial crisis, whereas the average 5-year rate hits 6.43%,?Moneyfacts data suggest.
• Bank Of England’s interest rate hike put more pressure on landlords, and they seem to pass it on to tenants. A new?survey by Superscript?finds that 90% of landlords have either already increased, or intend to increase rents. Out of 600 UK residential landlords, 50% have increased their rent, with half of them eyeing further rent hikes.?
• By ten years from now, in 2032, 8% of UK rentals will be purpose-built, finds the British Property Federation in their?research with 第一太平戴维斯 . Moreover, the number of Build to Rent (BTR) homes could reach 380,000, with a sector valuation of ￡170bn, meaning that sector will have?increased five-fold. Finally, some good news!

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What is BTR, you ask??

Well, it means?Build To Rent?(also abbreviated as B2R) and refers to houses built from scratch, so that they can be?rented out?privately, for a profit, normally for longer tenancy agreements.

These properties are built?by investors, developers or individuals that care for steady cash-flows from the rental income.?

?(Pssht, if you are one of them,?contact us?to see how we can find your renter-buyer, with our?Rent-to-Own framework.)?

???'Hood in the spotlight: Chelsea

Lots Road Power Station is now Powerhouse at Chelsea Waterfront

Together with Battersea Power Station and Tate Modern, this marks the third energy infrastructure redevelopment project in London.?

The Lots Road Power Station was originally built in 1905. Initially powered by coal, and later by oil and gas.?

Here’s what it has to offer:

• Private?apartments
• Affordable housing
• Commercial and retail units
• 20-metre swimming pool
• A riverfront restaurant (nice background for a proposal eh?)
• Wellness facilities and?more

Though the exterior retains its historical heritage, most of its interior is contemporary to cater to the modern audience.?

A weekend visit, perhaps? Because we might. Here’s their?official website.

If you think of renting-to-buy (in Chelsea or elsewhere)?but not sure how to get started, drop us a line. Adjoin can help ;)

Want to learn more about Adjoin Homes? You 're just a click away ??

https://www.adjoinhomes.com/learn-more/