Your June 2021 Market Update
Last updated: 8.32am, Wednesday 30th June 2021
We look at the recent economic and property market and the challanges within that for us all, and the opportunities.
30th June 2021
Firstly, we would like to take a moment to say thank you to all our clients all over the world.
Thank you for your continuous support that has made our business recognised, appreciated, and recommended to new clients.
It is truly appreciated.
Despite a very strong market, we strive to give you a unique offering:
- the best value for money properties that are off market.
- below market value
- high yielding and cash flowing
- always the right properties in the right area with right demand.
That combined with honest feedback, up-to-date information and sharing our 38 years’ experience, knowledge and expertise as award winning landlords and investors to help you create a legacy, wealth, and income.
At time of writing this, over 86% of the population have been vaccinated with 52% having had 2 doses.
The UK has some regionalised/localised and varied degrees of restrictions, hospitality still with the most limitations but by and large it is very much business as normal.
The UK continues to have high levels of inward investment especially manufacturing, and testimony to companies to the country's belief in the economy despite the recent political and economic changes.
In our May Market Update blog https://www.allianceproperty-group.co.uk/items/news-section/Scotland-Property-Market-Update-May-2021,(click to open) we highlighted the growth of the UK economy in detail as it bounces back post Covid.
Businesses have been working at a lower than normal capacity for the last 18 months.
But now that strong bounce back is certainly being seen and felt at all levels of daily life now and in businesses.
With the various government stimulus packages, savings made by the nation in the last 18 months (expected to be £185 billion pounds!) and low interest rates, and with the economy opening up, this has created a huge spike in spending, demand on products and services.
This has a lot of positive effects, but also some challenges as well.
For a long while everyone who was working during Covid and who was not furloughed that we spoke to were busy.
That has now compounded further.
From a lower than normal working capacity (apart from the property sector), most businesses have seen an immediate spike and huge demand.
That combined with pressures on their resources right through the supply chain of raw materials, manufacturing capacity, employment and logistics, it has put pressure on price increases and product shortages.
Also, many businesses and institutions are still not fully operational in their offices, still working remotely/from home, and have a blended rotation approach: one week in the office then 2 weeks at home.
This means there are still delays in getting information e.g., from local authorities, factors, institutions and solicitors.
That in turn causes us delays in securing accurate information not to mention many frustrations!
The Property Market Challenges
The property market in Glasgow is immensely buoyant, very busy and properties selling well above their home report value.
The market is at its highest and most robust that has been seen since 2007.
That was highlighted on our blog Your Scotland Property Market Update: May 2021
We have recently experienced some vendor solicitors taking longer to complete on properties.
This is because of solicitors' huge increase in business and pressures on them to react efficiently and not coping with the volume or have the systems in place either to be frank.
That makes them vulnerable to being exposed compared to the efficiency and tenacity of the solicitor we/you use.
We are more than fortunate and delighted to have Michelle as our power team solicitor and the difference that makes to getting properties completed for you.
As demand for building materials continues to increase combined with the supply chain shortages, prices have increased.
We have also seen a rise in the cost of shipping costs and as a result, the lack of empty shipping containers is now a challenge as we move out of the Covid-19 Pandemic.
Timber has increased by 80% by January 2021.
Plaster, cement, kitchens, electrical items, as a small example, have seen increases in demand and price, despite being manufactured in the UK.
We have partly and intentionally slowed down in the last few weeks.
We have been working flat out for the last 18 months, no breaks or holidays, in delivering off market properties to you, despite some of the challenges mentioned.
We have however still been working away in the background on a few things and have a strong pipeline of more off market properties to come through.
Yes, sometimes, not often, thankfully, there are delays or holdups in the buying process or the refurbishment of a property due to some of the challenges mentioned.
But you can be reassured everyone is working in the background all the time to minimise any delays.
As always, we ensure to keep our communication to you open, upfront and honest regarding any market information, updates and processes.
Despite the continual changes of the world today, the challenges that arise from it, there are always plenty of opportunities and positives to be gained andto be learned from.
We remain dedicated to what we do for you, always looking to improve where we can, and will continue to deliver our properties and services to you, to create you wealth and income.
Thank you for reading and take care.