This week we were awarded 24 new individual trading accounts to manage with a total value of $187,000.
This new addition to our portfolio comes after impressing our client with performance at the beginning of the year, and once again exceeds our growth target for 2020, which in spite of the COVID pandemic, has still been a great year for the continued expansion of ETG.
All 24 trading accounts have been installed with our licensed trade copier software and configured according to each individual investors requirements – low to high risk parameters.
This is a great end to 2020 for ETG and prospects for 2021 remain even brighter.
The squeeze on mortgage lending, renters’ reassessment of lifestyle priorities and students returning to university have all prompted demand for rented property to rise 20% year-on-year across most UK cities.
This is pushing average rents up by 1.7% to £744 a month, while supply into the rental market is flat, according to Zoopla’s quarterly Rental Market Report.
However, these increases in rental prices are not being seen across the board.
Manchester and Birmingham’s average rents have dropped by 0.1% and 0.5% respectively as they, like other cities, feel the impact of office workers continuing to work from home.
Gráinne Gilmore (pictured), Zoopla’s head of research, says that for most of the UK, the demand/supply gap is underpinning moderate levels of rental growth.
“At the same time however, muted earnings growth will start to limit the headroom for rental growth in some markets.”
She adds: “The search for additional space, both indoor and outdoor, within the rental sector is also set to continue as the country goes through additional periods of lockdown.”
Zoopla also says renters’ wish lists have begun mirroring buyers’, as with renters looking for ‘gardens, parking, garages, balconies and pets’.
And as they yearn for outdoor space and the freedom to cope with lockdown, its finds evidence that this is speeding up the market for rented houses more quickly than for rented flats; the average time to rent a house is now 16 days, compared with 18 days for a flat.
To take advantage of this demand for rental properties, contact us today to request information on our property investment syndicates, and receive a great return on investment on anything from 12 months to 15 years.
Although somewhat historic, data released by the ONS and the Land Registry is widely regarded as being one of the most accurate barometers of the Uk housing market. The latest release reveals that UK house prices increased by 2.5% over the year to August, up from 2.1% in July 2020.
According to the figures, average house prices increased over the year in England to £256,000 ( a rise of 2.8%), Wales to £173,000 (2.7%), Scotland to £155,000 (0.6%) and Northern Ireland to £141,000 (3.0%).
UK HPI research also revealed that the East Midlands was the English region to see the highest annual growth in average house prices (3.6%), while the North East saw the lowest (0.2%).
On a non-seasonally adjusted basis, average house prices saw a monthly rise of 0.7% between July and August, compared with an increase of 0.3% in the same period a year ago. On a seasonally adjusted basis, average prices increased by 0.5%, following a decrease of 0.5% in the previous month.
Anna Clare Harper, CEO of asset manager SPI Capital, says: “HMRC’s figures are of interest as they represent a more complete picture than comparable indices.
“What’s interesting about the September 2020 data is that transaction volumes are on a par with transactions in September 2019.
“This suggests that the temporary changes to stamp duty designed to boost confidence in the housing market have worked well to achieve this goal. There are very few sectors where buyers and sellers feel as confident as they did in September 2019.
“What happens next will be a reflection of policy and economics. Trade bodies such as RICS, as well as government policymakers, will play a significant role in the future of the housing market, as they have in the story that has played out so far in 2020.
“For potential home buyers and investors, the key will be not taking on too much credit, despite the relatively cheap cost of debt at present, as it is very difficult to forecast what will happen next.”
Lucy Pendleton, property expert at James Pendleton estate agents, commented: “This was the moment the market began to catch fire over the summer having emerged from the pandemic in better shape than many predicted. Now, as we enter autumn, the heat still isn’t coming out of this market.
“There’s been some talk lately of what effect the removal of many high LTV mortgages is having on the first-time buyer market which is as much a leading indicator as the all-important London market. In the capital, where these two worlds collide, it’s having very little effect. Demand for cheaper properties hasn’t weakened and that’s because the bank of mum and dad is still wide open for business, interest rates remain low and high rents mean it’s still well worth getting on the property ladder.
“As long as mortgage repayments remain cheaper than the cost of rent, demand to buy a first home will continue to show strength, and first-time buyers everywhere are still able to turn to the Help to Buy scheme if they need to.
“We are about to hit a period when the market traditionally slows down. When the clocks change, people switch into hibernation mode and new enquiries begin to soften until the New Year. How much the stamp duty holiday will affect that this year remains to be seen, but this incentive plays a relatively muted role in the capital where prices are highest.”
Nearly a third of landlords reported rising tenant demand during the three months to the end of September, the highest level since the third quarter of 2016.
The survey of more than 700 landlords also found one in 10 landlords reporting significant growth.
However, a clear regional divide in tenant demand appeared, with the strongest increases in the North West and South West, where almost half of landlords saw growth, followed by the East Midlands.
The weakest demand was seen in central London, with just 16 per cent of landlords seeing growth in the last three months.
Outer London was slightly stronger, with a quarter of landlords recording rising demand.
Paragon Bank managing director of mortgages Richard Rowntree said: “The record levels of tenant demand we saw being reported by the likes of Rightmove and Zoopla when the housing market reopened in May has started to feed through to landlords as tenants reassess where and how they want to live.
“Central London is clearly seeing the impact of Airbnb style landlords moving property into long-term lettings, as well as a desire for larger properties.
“Outside of London, demand is buoyant from the East of England, where 27 per cent of landlords are reporting growth in demand, to the North East and South West, where nearly half of respondents are telling us they are seeing positive growth.”
He added: “We expect this to continue for the foreseeable future and there’s a number of factors we’re seeing at play.
For example, there’s been growth in homeowners taking advantage of strong prices and selling to move into rented, people are looking to secure a new home ahead of entering a potential second lockdown, while students left it late to secure property for the new academic year.”
HSBC and Santander have increased interest rates on high loan to value (LTV) mortgages from today, with changes applying to new business and product switching deals, leading many to believe that other lenders will follow in their footsteps.
HSBC has increased its 85 per cent LTV new business range by between 0.2 per cent and 0.3 per cent.
The biggest rate increase has been applied to the bank’s two-year fix with a £999 fee rises from 2.54 per cent to 2.84 per cent.
Its fee-free five-year fix has increased by 0.2 per cent to 3.44 per cent, with all other products in the range, including the tracker, rising by 0.25 per cent.
HSBC has also increased its 90 and 95 per cent LTV product switch ranges for existing customers by 0.1 per cent.
Meanwhile, Santander is increasing its 85 per cent LTV two- and five-year fixed rates by up to 0.15 per cent.
The two-year fix at 2.79 per cent with a £999 fee has increased by 0.10 per cent, while the five-year fix at 2.94 per cent with £999 fee up by 0.15 per cent.
For product transfers increases of 0.05 per cent to 0.20 per cent have been made up on selected residential fixed rate and tracker products to 90 per cent LTV.
This increases mortgage payments for those who have a smaller deposit for their next purchase.
ETG Property syndicates purchase properties with cash, and are therefore not affected by changes in interest rates or mortgage deals.
If you want to start investing in property but have been unable to obtain a mortgage, or are unsure where to start, speak to us about our property syndicates and see how you can start benefiting from day one.
We are extremely proud to announce that we won the award for Forex company of the year.
We were up against some very strong competition but were informed that we were crowned winners last week – having to keep the secret until today when the official announcement was made by the award organisers.
This is a huge achievement for us as some of the firms we were up against have been in business a lot longer than the 4 years we have been going.
2020 has been a difficult year for everyone, both in business and personal life. This makes our award even more special as we know people have a lot of issues they are dealing with at the moment.
Our funds have increased beyond target and our property syndicates have proved a huge success since the launch, and we still have lots more planned for 2020 and beyond remaining totally committed to our business and customers.
Finally a huge thank you to all our customers past and present, and a special thanks to everyone who took the time to vote for us.