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Rents in Scotland show no rise, latest index shows
Residential rents in Scotland have begun to plateau as growth cools off in urban centres but are still at an all-time record high of £549 per month. In July there was no change in the average rent and there has been a down turn in annual growth, according to the latest buy to let index from lettings agent network Your Move. Scottish rents are now 2.8% higher than a year ago, however this slowed from 3.1% in the year to June, after a prolonged period of accelerating rent rises in the first half of the year. ‘We reached a tipping point in July. Rents in Scotland have been building to a crescendo so far in 2015, and rent rises have been quickening their step. But now we’ve reached a mid-point in the year, the rental market has clearly paused for breath,’ said Brian Moran, lettings director at Your Move Scotland. ‘Tenants will be relieved for now, but only time will tell whether we’ve reached a fork in the road for the private rented sector, or whether rent growth will start to ramp up again as autumn approaches, and the age old disparity between available homes and those looking to rent rears its head again,’ he pointed out. He explained that the record rents are not necessarily found in areas where they would expect to be. ‘With the severe squeeze on housing in the cities, households are casting their nets much more widely for places to live, which is driving somewhat of a renaissance in the more affordable areas of Scotland. And rental prices are holding up a mirror to this nationwide demand for homes,’ said Moran. A regional breakdown of the figures show that rents are higher than a year ago across the country while they are at an all-time high in the East, the Highlands and Islands and the South of Scotland. The average monthly rent in the Highlands and Islands has increased at the fastest rate over the past year, up 5.4% since July 2014 to reach a record £568 per month. Compared to a year ago, the East of Scotland has witnessed a 3.8% rise, bringing the average monthly rent to a historic peak of £531. Rents in the South, while still the cheapest location in Scotland to rent, now stand at £513 per month on average, after a 2.7% rise year on year. But rent growth in Scotland’s foremost urban centres appears to be on a cooler trajectory. In Edinburgh and the Lothians the typical monthly rent is now 1.8% higher than in July 2015, while Glasgow and Clyde has witnessed a 1.7% yearly climb in rental prices. Average rents in both these regions are below past peaks. On a monthly basis, rents have increased across four of the five regions of Scotland, one fewer than last month. The only region to experience a fall in rents during July was Glasgow and Clyde, where average rents dropped 1.5% during the… Continue reading
Auctions set to continue as popular means of selling a home in Australia
While housing market conditions remain strong in Australian cities, particularly in Sydney and Melbourne, auctions will continue to be a popular way of selling a residential property, new research suggests. Over the past financial year some 25.6% of all properties advertised for sale were taken to auction across Australia’s capital cities, with Melbourne, Sydney and Canberra showing more than one third of all listings being taken to auction, according to data from real estate firm CoreLogic. There were approximately 380,000 dwellings advertised for sale across Australia’s capital cities over the 2014/2015 financial year, of which roughly 84,000 or 26% were advertised as auction sales. The proportion of auction sales has broadly been rising since the 2008/2009 financial year when auctions comprised a much lower 16% of all dwellings listed for sale. According to CoreLogic RP Data research director Tim Lawless, the rise in the proportion of residential properties taken to auction should come as no surprise, considering how hot housing market conditions are in the auction centric cities of Melbourne and Sydney. ‘When market demand is high and buyers are highly competitive, the auction process is likely to provide the best possible price on a property transaction. The opposite is true when housing market conditions are weak, auctions aren’t as popular due to fact that there is less urgency amongst buyers and the competitive bidding environment isn’t likely to be as conducive to finding the best possible price on a home,’ he said. ‘Melbourne, Sydney and Canberra have a well-established auction culture with this sale method well accepted by vendors and buyers. The other capital cities still list the vast majority of homes for sale via private treaty,’ he added. The data confirms that across the capital cities, Melbourne is still the city where auctions are the most popular method of selling a home. Some 39% of all Melbourne's residential property listings over the past financial year were taken to auction, with Sydney and Canberra not far behind at 38% and 36% respectively. However, an examination of the proportion of listings taken to auction across product types, Canberra and Sydney are both showing a larger proportion of auction listings for houses than Melbourne. The remaining capital cities are all showing auctions to be a far less popular method for selling a home. Some 16% of Adelaide listings were taken to auction over the past financial year, while 11% were taken to auction in Brisbane and Darwin and less than 5% of listings in Perth and Hobart were auctions. It is generally the more expensive or unique dwellings in these cities that are taken to auction. ‘With auction clearance rates remaining in the high 70% range across Sydney and Melbourne, as well as values continuing to show a strong rate of appreciation, we can expect the high proportion of auction listings to remain in these cities,’ Lawless explained. Looking across the suburbs, there were five suburbs, all in Sydney, where more than 95% of… Continue reading
Gazumping falls overall in the UK residential property market
Despite a shortage of supply in the UK property market, the number of UK buyers being gazumped has dropped over the last 10 months, new research shows. The practice, where a buyer makes a higher offer for a house than someone whose offer has already been accepted by the seller and thus succeed in acquiring the property, has fallen by 40% since October 2014, according to a survey by online estate agent eMoov. A year ago some 22% of all home owners had been gazumped during their property purchase, however this has now reduced to 13%, particularly in Brighton which is no longer the gazumping hot spot with a fall of 68% in the practice. Gazumping is also down in London by 46% with just 17% of buyers in London having experienced gazumping first hand. The firm suggests that this could be because prices and demand have levelled out. Sheffield is named as the new gazumping capital of the UK. Some 29% of buyers in the city have been gazumped when looking to purchase a property, an increase of 25% over the last 10 months. The firm says that since December 2014, Sheffield has seen a steady increase in demand, up by 35% overall and this is almost certainly the main contributing factor to the increase in gazumping, as desperate buyers scramble to get a foot on the ladder by any means possible. Plymouth has also seen an increase in gazumping of 31% which coincides with a strong uplift in property demand in the area since the end of last year with growth of 27%. Newcastle is the only other UK city to see an increase in gazumping during this time frame, with 16% of buyers being gazumped, a rise of 12%. Other cities where gazumping is still more prevalent despite a drop are Birmingham at 17%, Leeds at 16%, Manchester at 15%, Nottingham and Bristol both at 12% and Brighton at 11%. At just 2%, Southampton had the lowest rate of gazumping in the UK. Continue reading
