Welcome to Edition #11 of our Weekly Property Roundup, where we’ve done the hard work sifting through the week’s most relevant news so you as a landlord, tenant or investor can be confident you’re up to date with everything you need to know in the property world.
Edinburgh Council to seize empty properties to combat housing crisis
Edinburgh city council are pushing ahead with plans to force owners to sell up their abandoned homes, in an attempt to free up housing stock.
The capital currently has 1,267 properties that have been empty for more than 12 months, and over 5,000 that have been vacant for over 6 months.
They are said to be using controversial legal measures, Compulsory Purchase Orders (CPO), to force homeowners to sell up. The council will have to present business cases for each CPO to wishes to pursue and will need the approval of the Full Council and Scottish Ministers in order to go ahead.
Source: Edinburgh Evening News(Friday 31STAugust)
House price growth since the 2008 crash
Hometrack UK’s Cities House Price Index for July 2018 analyses house price growth since the 2008 crash. It has been 10 years since the financial crisis, and the city level house price growth has varied widely.
Three cities have prices below the levels a decade ago, whilst four cities are over 50% higher than 2008. Edinburgh houses prices have increased 14% since 2008, and Glasgow only 1%, whilst Nottingham and Leicester are the fastest growing cities.
Hometrack also predict that the underperforming cities will close much of the gap in the next 10 years and will catch up with the top performers in terms of the percentage price change since 2008. Average prices in the highest value cities is set to remain largely static for the foreseeable future.
Source: Hometrack website (Monday 27thAugust)
Countrywide investors vote for £140m rescue plan
Investors in Countrywide have approved £140m emergency fundraisingat the company’s annual meeting, which has caused shares to fall even further.
When the fundraising was announced, shares fell as much as 80%. They went down 7% to 14p on Tuesday, valuing the company at only £76m.
The company plan to use around £115 million to cover debt, whilst using £14 million for general corporate purposes and to support working capital. Around £11 million will be used to pay fees and expenses arising from the equity issue.
98% of investors voted in favour of the fundraising initiative.