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UK residential rents up by over 2% in last 12 months, latest data shows
Private residential rental prices paid by tenants in Great Britain rose by 2.1% in the 12 months to March 2015, the latest index shows. Rental prices grew by 2.1% in England, 2.1% in Scotland and 0.8% in Wales in the 12 months to March 2015, according to the data from the Office of National Statistics. Rental prices increased in all the English regions over the year to March 2015, with rental prices increasing the most in London at 3.2%, the data also shows. It's no surprise rents are rising, according to Matt Hutchinson, director of flat and house share site SpareRoom.co.uk. ‘We have a chronic shortage of housing in the areas where jobs are being created, so rents continue to rise as supply fails to meet demand. In some areas of London we're seeing up to 13 people compete for every room advertised during peak months,’ he explained. He believes that whoever forms the next government after next month’s general election will need to look at introducing policies aimed at making housing, of all tenures, genuinely affordable. ‘The upward pressure on rents is rapidly making the situation both unmanageable and unsustainable for tenants,’ he added. Steve Bolton, chairman of Platinum Property Partners, pointed out that the blame for rising rental prices is often attributed to landlords, but it is because there are simply not enough suitable rental properties coming on to the market. ‘Rental demand is growing as first time buyers struggle to access the housing market and the UK’s workforce becomes increasingly mobile. At the same time, the number of new rental properties is lagging behind, creating a dangerous imbalance between supply and demand that is pushing rental prices upwards,’ he said. ‘Buy to let investors need to consider how they can meet growing rental demand in a way that is affordable for consumers. Houses in Multiple Occupation (HMOs) are a great way of creating high quality rental accommodation by making the most of existing housing stock,’ he explained. ‘They are also far more affordable than renting a one bedroom flat, providing young professionals with high quality accommodation that also enables them to save for their long term financial goals,’ he added. Continue reading
Miami real estate market continues to be popular with US and overseas buyers
The Miami real estate market, one of the most popular in the nation with international and domestic buyers, continued to gain momentum in March with sales growing strongly. The latest data shows that single family home transactions registered double digit growth year on year and existing condominium sales rose despite an increase in new condo construction. The figures from the Miami Association of Realtors reveal that single family home sales are up 10% compared with a year ago. This comes on top of a record 2014. While condo sales were up 4.2% year on year. ‘Miami continues to attract international and domestic home buyers looking to live in a global city with world-class amenities and a diversified economy. Buyer demand in Miami properties is leading to more sales and higher sale prices,’ said Christopher Zoller, the association’s 2015 residential president. The report points out that single family home prices remain at affordable 2004 levels despite more than four years of consistent year on year increases. Condo prices has seen 45 months of growth in the last 46 months. Prices are also seeing growth. The median sale price for single family homes increased 10.6% to $260,000 in March 2015 from $235,000 in March 2014. The average sale price for single family homes increased 3.2% to $473,677 last month from $459,102 during the same time period last year. The median sale price for condominiums surged 7.5 percent in March to $215,000 from $200,000 a year ago. The average sale price for condos increased 5.8 percent to $398,994 from $377,290 in March 2014. Miami single family homes and condominiums continue to sell close to asking price, reflecting a strong consumer demand, the association says. The median number of days on the market for single family homes sold in March 2015 was 54 days, an increase of 14.9% compared to the same period in 2014. The average percent of original list price received was 94.6%, down a negligible 0.3% from a year earlier. The median number of days on the market for condominiums sold in March 2015 was 60 days, an increase of 1.7 percent compared to the same period in 2014. The average percent of original list price received was 93.5% a 0.7% decrease. In Florida as a whole sales of existing single family homes were up 24.6% over March 2014, according to Florida Realtors while condominium sales were up 13.7% compared to March 2014. The statewide median sale price for single family existing homes last month was $190,000, up 9.2% from the previous year, according to Florida Realtors. The statewide median price for townhouse condo properties in March was $152,000, up 8.6% over the year ago figure. Miami sees twice the national average of cash buyers, representing 54.2% of sales in March 2015, down from 60.5% in March 2014. Nationally, just 24% of all national housing transactions are made in cash. Since 82% of foreign buyers in Florida purchase properties all cash, Miami’s high percentage of cash… Continue reading
UK election not harming house price sentiment, latest index suggests
Households in the UK perceive that the value of their home rose in April despite the uncertainty being created by the country’s forthcoming general election, the latest sentiment index shows. Some 20.9% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 4.5% reported a fall, according to the House Price Sentiment Index (HPSI) from Knight Frank and Markit Economics. This gave the HPSI a reading of 58.2, the 25th consecutive month that the reading has been above 50 and a slight increase on last month’s reading of 57.5, suggesting that households believe prices continued to rise in spite of the uncertainty surrounding the outcome of the election. ‘The outcome of the election may be uncertain, but there are some key factors underpinning house prices at present. Confidence in the economy continues to grow while the cost of living has stopped rising,’ said Grainne Gilmore, head of UK residential research at Knight Frank. ‘Mortgage rates have dipped to a new low, making owning a home for those who can clinch a mortgage deal cheaper than at any time before. The cost of buying a home for the majority of purchasers has also fallen after the reform of stamp duty in December last year. A lack of supply of homes for sale in recent months has also boosted prices,’ she explained. The future HPSI, which measures what households think will happen to the value of their property over the next year, also rose in April to 70.2, up from 69.6 in March and the highest reading so far this year. According to Tim Moore, senior economist at Markit, the UK housing market showed resilience in the face of upcoming election uncertainty, with April’s survey highlighting the first back to back monthly rise in house price sentiment for almost a year. ‘Reduced pressure on household finances, improving labour market conditions and low mortgage rates continued to support house price sentiment in April. However, stretched affordability and tighter lending conditions are keeping a lid on house price momentum,’ he said. He pointed out that on a regional basis, people living in the East of England are the most likely to anticipate rising property values over the next 12 months, followed by those living in the South East. Meanwhile, the gap between UK wide house price growth expectations and those in the capital fell to its joint lowest since the start of 2011. The report also shows that some 6.5% of UK households said they planned to buy a property in the next 12 months, up from 5.7% in March. On a regional basis, nearly one in 10 households in Wales is planning a purchase in the next 12 months, followed by those in the East of England where 9.5% of households said they would be buying a property in 2015. Individuals aged between 25 and 34 are more likely to be considering buying a home in… Continue reading
