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Most UK regions see a rise in residential rents
UK new tenancy rents have increased by 1.7% in the last year taking the average monthly amount to £876, according to the latest data to be published. However, month on month rents saw a slight decrease of 0.8%, down from £883 per calendar month in January, the analysis from Countrywide shows. The majority of regions saw an increase in rent in February, with Greater London seeing the largest increase, up 8.4% year on year. Two and three bedroom newly let properties see the largest growth in rent, up 4.5% and 3% respectively year on year and two bedroom properties were the only property type to see a month in month increase in rent, up 0.7% to £816. One and four plus bedroom properties saw a 2.9% decrease month on month, followed by three bedroom properties down 0.4%. It is only the four plus bedroom properties that did not see an increase in rent year on year as rent decreased 6.9% from £1,345 to £1,306 in February. In the regions, the majority of the UK saw an increase in rent month on month, with central London seeing the greatest increase, up 2.5% to £2,629, followed by the Midlands up 1.7% to £652. Wales saw the greatest decrease in rent, down 7.5% to £616, followed by the South East, down 4.3% to £991. Year on year, Greater London saw the largest increase in rent, up 8.4% to £1,251pcm and the South East the greatest decrease, down 8.1%. The firm said this is due to a fall in demand for rental properties in the region, as more tenants move out of the private rented sector and into the owner occupier sector. The average UK rent for renewed tenancies in February is £841 per calendar month, an increase of 0.7% month on month and 1.9% year on year. One and three bedroom properties saw a decrease in rent, down 1% and 0.1% to £674 and £874 respectively, when compared to January 2015. Two and four plus bedroom properties saw an increase of 0.9% and 3% to £770 and £1,390 respectively. One bedroom properties were the only type to see a decrease in rent year on year, down 1%. Two bedroom properties saw a 2.4% increase, three bedroom properties a 2.6% increase and four plus bedroom properties an increase of 3%. Central London and the South East saw the greatest increase, up 3.2% and 2.6% to £2,543 and £1,036 respectively when compared to January 2015. The Midlands see rent stay flat for the month on January and the East of England, Wales and Scotland saw decreases of 2.2%, 2.2% and 1.1% respectively. The majority of regions have seen a slight increase in rent in February when compared to January. The greatest increase is in Scotland where rent increase 0.5% to £629 followed by Greater London up 0.4% to £1,142. Wales and Central London both saw a decrease in rent of 0.5% to £638 and £2,435 respectively. The data also… Continue reading
UK govt announces new measures for residential lettings sector
New measures are being introduced in the UK that will create a bigger, better private rented sector for tenants and landlords aimed at getting rid of rogue operators. There are more than 4.4 million households renting privately in the UK and Housing Minister Brandon Lewis said the measures that will ensure tenants know their rights and where to go if they have a problem in their home. He explained that these changes aim to root out the small minority of rogue operators who shirk their responsibilities and make people’s lives a misery without hampering the efforts of the vast majority of landlords who are diligent and responsible. But they also aim to avoid strangling the industry in red tape which would deter much needed investment, increase rent and reduce choice for tenants. ‘We’re determined to create a bigger, better private rented sector that meets the needs of tenants and landlords well into the future, and encourages investment along the way. The measures we’ve taken give tenants the information and confidence they need to rent, allows the vast majority of landlords to provide a good service to continue doing so and are enabling developers to build specifically for private rent,’ said Lewis. ‘But they also mean we’re also rooting out the minority of rogue landlords who blight the lives of their tenants, providing peace of mind for people seeking a place to call home,’ he added. A new guide for tenants has been published so they know what to look out for when renting a home. The guide makes clear the standards people should expect and the signs of a poorly managed property. This includes testing that windows and doors can lock properly, how to recognise potential health hazards like damp and mould, and to check the temperature of the property and what heating is available. This comes on top of new measures announced a few days ago in which landlords will be required by law to install working smoke and carbon monoxide alarms in their properties. From October, anyone renting out a property will be required to install smoke alarms on every floor, and carbon monoxide alarms in high risk rooms. Councils can also benefit from revised guidance on dealing with rogue landlords in their area. In particular, the new guidance gives advice on building up an effective case in court, demonstrating how a rogue landlord has caused misery for their tenants, to ensure the full effect of their poor practices can be revealed. The guidance also covers new rules which require letting agents to belong to one of three approved redress schemes so people have somewhere to go if they have a complaint, and how to successfully prosecute a bad letting agent. New laws currently before parliament will also end so-called ‘retaliatory evictions’, giving tenants greater security, and will require letting agents to publish full details of the fees they charge tenants so people can know what to expect to pay. Continue reading
Property stamp duty revenues up over 20% in England and Wales
Stamp duty revenues in England and Wales raised on residential properties are projected to have risen by over 20% in 2014/2015 to a record £8 billion, according to new research. Three quarters of all home buyers are liable to pay stamp duty, ranging from nearly all sales in London to around half in northern England and Wales, says the study from the Halifax. London’s share of all revenue raised in the UK increased from 28% in 2006/2007 to 42% in 2013/2014 and two thirds of all first time buyer purchases in London are above £250,000 compared with only 1% to 2% in many regions. The research also suggests that there is no evidence so far of a dampening in activity at the very top end of the market following the recent reform of stamp duty. The Halifax estimates that the increase in revenues from stamp duty on residential sales from £6.45 billion in 2013/2014 to a record £8 billion comfortably exceeds the previous high of £6.68 billion at the peak of the last housing market boom in 2007/2008. This is more than a 15 times as much as the £520 million raised by residential stamp duty 20 years ago’ in 1994/1995. Under the new progressive structure of stamp duty introduced at the beginning of December 2014, no tax is paid on any of the value of a property below the starting threshold of £125,000. Above the first threshold, tax is charged at the relevant rate on the amount by which the selling price exceeds the threshold. This is continued through the various thresholds to the top rate. Based on the current average house price in England and Wales of£259,708, a typical home buyer pays a total of £2,985 in stamp duty. Under the old flat structure, a buyer paying this price would have been subject to stamp duty payments of £7,791, a saving of £4,806. In all regions, buyers are often making large savings. In cash terms the largest savings are in London at £4,830 and the South East at £3,843. The ‘tipping point’ price is £938,000, at which point the buyer is worse off under the new structure. The Halifax says that while it remains very early days, so far there are no signs of any marked changes in behaviour as a result of the changes made to stamp duty at the start of December. Indeed, the proportions of all sales in each of the bandings in December 2014 and January 2015 are almost identical to those in the preceding three months of September to November 2014. This equally applies at the top end of the market where the proportion of sales in London above £925,000 is unchanged at 9%, suggesting that the increase in stamp duty on such sales is not significantly deterring purchases in this market segment. Continue reading
