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Number of retired people renting in UK soars in last four years
The number of people living in private rented accommodation in retirement in the UK has soared by more than 200,000 in the last four years, according to a new poll. Overall, the survey from the National Landlords Association (NLA) shows that the proportion of retired private renters has grown by 13% since 2012 as more and more people turn to the private rented sector. Some 17% of the retired private renting population live in the South East, the area with the highest proportion across the UK. However, just 3% live in London which is the area with the smallest proportion area across England and Wales for renting in retirement. There are almost four times as many retired renters in the North West at 15% compared to the North East at 4% and twice as many retirees rent property in the West Midlands at 8% compared to the East Midlands at 4%. However, the proportion of landlords who let to retired renters has almost halved during the same timeframe, with 9% of landlords saying they currently let to retirees compared to 19% in 2012. The findings suggest that it could become harder for those approaching retirement to find suitable rented accommodation in the future, especially in high demand areas, according to Carolyn Uphill, chairman of the NLA. ‘More and more people are turning to private rented housing at every stage of their lives, including in retirement. Landlords appreciate the stability and assurances often provided by older households, but are finding it increasingly difficult to build businesses around the needs of potentially vulnerable tenants,’ she explained. ‘Successive cuts to the welfare budget, uncertainty about pension provisions, and the devastating impact of the Government’s tax changes are likely to mean that private landlords will soon be unable provide homes in high cost areas like Central London for anyone without a well-paying job,’ she pointed out. ‘As the proportion of retired renters continues to grow there’s a real worry that homes won’t be available in the private sector, forcing people to look further afield, leaving communities they have known and contributed to for decades,’ she added. Continue reading
Average rents in England and Wales fall by 0.2% month on month
Average rents for homes to let across England and Wales fell 0.2% in May month on month and now stand at £792 per month, according to the latest index data. This compares to a long term average monthly rise of 0.4% over every May since the recession but they are still up 1.8% over the last 12 months, the data from the buy to let index from Your Move and Reeds Rains shows. However, on an annual basis rents have seen half the annual rate of rental growth seen at the start of 2016, when in January this stood previously at 3.6%. According to Adrian Gill, director of lettings agents Your Move and Reeds Rains, the number of properties to let coming on the rental market has disrupted the normal dynamics of supply and demand. ‘Landlords escaping a much larger stamp duty bill by completing their purchases before 1st April have now finished their repairs and paperwork, with these homes to let competing for tenants in May and into June. That short term mismatch has made May an exceptional month, with excellent deals available for some prospective tenants,’ he explained. He believes that overall the tax changes to the buy-to-let industry will discourage some property investors, and most of the properties that became available to let in May will have been planned purchases brought forward from later in the year. ‘The net effect will not be more properties to let, quite the opposite. If new regulations and taxes produce a drought of homes to let, then the overall shortage of housing in the UK will only bite harder for tenants. Meanwhile, this heightened shortage and possibly higher rents as a result could also protect landlords somewhat from the financial effects of more punitive rules and regulations,’ Gill pointed out. A breakdown of the figures show that rent rises in London have slowed to just 1.0% over the year to May 2016. This compares to a peak seen in September 2015 when rents in London were 11.6% higher than a year before at the time. By contrast, the East Midlands have witnessed rent rises of 7.3% over the year, followed by the West Midlands with 5.5% annual rent rises and the East of England with 3.6%. All 10 regions of England and Wales have seen rents in May higher than a year ago. However the joint slowest annual rent rises have been in Wales and the South East, both seeing rents rise just 0.5% over the last 12 months. London also leads the negative trend on a monthly basis with average rents in the capital falling 0.7% between April and May, a faster drop compared to a more modest drop of 0.2% in the month before. London is followed by the East Midlands where rents are 0.6% lower than a month ago and Yorkshire and the… Continue reading
Hove named as most desirable place for young professionals to buy a home
The seaside town of Hove is the most desirable location to buy a home in England and Wales for young professionals for the second year in a row, according to the latest research. It is the BN3 postal district in the town on England’s south coast that tops the research from Lloyds Bank with neighbour Brighton’s BN1 postal district coming in as the seventh most popular place to live for aspiring 25 to 44 year olds. Attractive factors include a diverse population, the availability of music venues, theatres, independent shops, bars and restaurants, and the fact that it is under 70 minutes train ride to London, have made Brighton and Hove one of the most sought after places for young professionals to live. London itself continues to prove popular with young professionals, with 16 of the 20 areas with the most property sales to this group being located in the capital. Some 10 of these areas have a SW post code and include locations such as Wandsworth, Wimbledon, Battersea, Balham and Clapham. Away from south London, the most popular areas for young professionals are Hampstead, Kilburn, Paddington and Islington while the RG1 area of Reading is the 20th most popular place for aspiring young urbanites, drawn by a combination of Reading’s short commuting time to London, close proximity to technology businesses and the planned opening of Cross Rail in 2019. Beyond London and the South-East, Didsbury in south Manchester is the most popular hotspot for young professionals. This bustling area has become a magnet for commuters due to its proximity to Manchester city centre and major motorway networks. Around the regions, the other popular hotspots for career minded young people include the CB4 area of Cambridge, West Bridgford in Nottingham, Jesmond in Newcastle, Cardiff Central in Wales and Broomhill in Sheffield. However, on average young professionals pay a premium of £88,000 for a home in the most popular postal districts compared to the wider city or town in which they are located. But the average house price in the most popular postal district of BN3 is £33,972 lower than in the whole of Hove at £352,718 compared to £386,690. In other areas of London the price premium is considerably larger. In the W4 district of Chiswick the average house price of £866,492 is £390,388 higher than in local area district of Hounslow. And, in the N1 area of Islington houses are trading at an average premium of £267,891 compared to the whole of the Islington borough. Even outside London young professionals face hefty prices for a home in the most popular areas. In Didsbury homes trade at a premium of £106,383 compared to Manchester at £266,105 compared to £159,722. In Clifton the average house price of £397,599 is £132,163 higher than in Bristol as a whole and in Harborne they trade at a premium of £101,592 compared to the whole of Birmingham. The three most expensive areas for young professionals all command an average… Continue reading
