News
Rents in England and Wales see fastest annual growth since 2010
Residential rents across England and Wales have increased by 4.6% compared to April last year, the fastest annual rise since November 2010, new data shows. Rents are also at a new all-time record in absolute terms with the average rent at £774 the most expensive rental prices on record, according to the latest buy to let index from Your Move and Reeds Rains. The index data also shows that on a monthly basis, rents grew by 0.8% between March to April, the fastest month on month growth since September. Growth is fuelled by a fundamental shortage of housing and renewed wage growth, according to Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘Economic progress has brought about a slow but steady stream of household earnings and employment, the most basic requirements for rent rises and these modest improvements have driven rents up at record speed. People have more money in their pockets, but we’re in danger of seeing that recovery squandered away on a housing shortage,’ he said. A regional breakdown of the figures shows that in the East of England, rents are not just increasing but accelerating on an annual basis. Compared to April last year, rents grew by 12.5%, up from 12% annual growth in March 2015 and 10.2% over the 12 months to February 2015. London comes in second for annual rent rises with a 7.8% increase since April 2014. Again this represents an acceleration compared to 5% annual rent rises in March and 4.9% in February. After London, Yorkshire and the Humber comes in third with a 2.2% annual rent rise. On the other hand rents in Wales are actually 2.8% lower than they were in April last year. On a similar note, rents in the North East have fallen back 0.8% on last April’s figures while rents in the East Midlands have edged down 0.2% over the last 12 months. Looking at monthly rent rises, London is dominant. From March to April, London’s rents increased by 2.3%. The South West came in second, with rents up just 1.1% over the last month, closely followed by the West Midlands with a 1% increase between March and April. By contrast, rents in Wales fell 1.8% on a monthly basis. Similarly, rents in both the North West and North East of England fell by 1.4% between March and April. ‘The East of England has witnessed rapid growth in property purchase prices, and rental prices have taken a similar course, albeit even faster. Away from the East, London is the real figurehead for the housing dilemma. Rent rises tend to follow wage-growth, so it’s no surprise to see this clustered around the South,’ said Gill. ‘However, this could change if demand for jobs and homes in northern England starts to catch up with supply in a similar way…. Continue reading
Research reveals the cost of bungled DIY by UK home owners
As home owners in the UK gear up for a bank holiday of DIY, new research shows that bungled workmanship leads to 90% paying the cost rather than claiming on insurance. Britain’s amateur handymen are set for a disastrous May bank holiday, according to research from the Nationwide Building Society and just 10% are likely to recover the costs of their mistakes by claiming on their insurance. But many people are completely unaware they can claim for accidental damage caused in this way, according to Nationwide’s head of general insurance, Martyn Dyson, when some 80% carry out home improvements themselves rather than asking a professional for help. Many undertake manageable tasks with 70% opting to do some wallpapering and painting, 65% bleeding a radiator and 62% improving the garden. Some tackle more onerous DIY with 24% knocking down walls, 21% laying loft insulation, 12% fitting a new kitchen or fitting a new bathroom. The research reveals the top disasters. Some 35% suffer spillages, including paint, glue or white spirit, 22% marking the walls, and 10% damage to furniture, breaking a window and damage to flooring. Some 90% of those who admitted to home improvement horrors ended up paying the cost of their mistakes themselves rather than claiming on their home insurance. And with 19% of people with DIY horror stories causing over £200 of damage, not knowing what your home insurance covers you for can prove quite costly. ‘The May bank holiday is prime time for getting stuck into jobs around the home you’ve been putting off. Unfortunately, you can end up causing more damage than good, especially if you’re inexperienced,’ said Dyson. ‘Nationwide’s advice to anyone looking to do home improvements this weekend is to not rush into it, stop and think about the job in hand, be realistic about your capabilities and make sure you are covered if things do go wrong, as not all policies include accidental damage like Nationwide’s Home Insurance. As the survey shows, many people may be completely unaware they can claim for accidental damage in this way,’ he added. Continue reading
Home leasing market in Hong Kong stable but flat
The residential leasing market in Hong Kong remained largely stable in the first quarter of 2015 but is experiencing low demand and slow take-up, according to a new research report. Average luxury apartment rents have now bottomed out, and the vacancy rate has fallen to a new low, the latest residential leasing report from Savills World Research. It shows that rents on Hong Kong Island rose by 2% in the first quarter of the year amid the bottoming out of luxury rents. Leasing was mainly active in the rental range of HK$50,000 to HK$80,000 per month. Townhouse rents also stabilised, down about 30% since their peak in 2011, with fewer vacancies and the report says that landlords have been very flexible in terms of lease renewal and are generally not willing to let units stand vacant. ‘Whilst this has attracted some new tenants to the townhouse market, few transactions have been reported and leasing volumes in the townhouse market remain thin,’ said Simon Smith, senior director for Savills Asia Pacific. The report suggests that leasing activity has been driven by a variety of sectors setting up new or additional offices in Hong Kong, mainly in retail and IT services. ‘Landlords are utilizing the stable rental renewal growth rate in prime areas to maintain occupancy levels,’ added Smith. On the demand side, Savills does not note any large expansion from the financial sector, where demand is largely flat, however, the report says that some new small to medium sized financial tenants have set up office in Hong Kong, which increases slightly the demand in the leasing market. New residential developments, such as Azura in Mid-Levels, are gradually entering the market for lease which the report says will gradually help to ease the tight stock situation. In Kowloon, rents are supported by local families who are looking to traditional districts such as Kowloon Station and Kowloon Tong. Vacancy rates in these traditional areas are also falling as vacancies are being filled quickly. Indeed, rents in Kowloon rose by 4.5%. ‘Looking ahead, we expect that the leasing market has now bottomed out, and luxury apartment rents are likely to see 0% to 5% growth in 2015, supported by tighter availability,’ said Smith. The report also says that in the serviced apartment market occupancy is rising alongside tightening vacancy rates in the luxury leasing market. Rents for serviced apartments rose by around 2% in the first quarter of 2015. Continue reading
