Tag Archives: british
Rents in UK down by 0.4% in November, latest index shows
Residential rents in the UK fell by 0.4% in November, taking the annual rate of increase from 3.9% to 2.9%, according to the latest index figures to be published. The drop was led by London where rents fell by 0.6% month on month as part of the seasonal slowdown in monthly rent prices, according to the Landbay Rental Index. This took the average monthly rent in the UK to £1,290 and November’s rent increases were fastest for one beds that are most popular with first jobbers and young professionals which were up 4% year on year. The data also shows that three bed properties, which are often rented by families moving for work, saw rents rise by 3.6%. Overall, the index report points out that rents have been on a strong upward trajectory since early 2013 and have climbed 7% since January 2013 when they stood at £1,206, slightly ahead of wage growth which is up 4.8% since January 2013. The rental increase over this period has been led by rent rises for one bed flats, up 8.6% over the same period. The November data also reveals that the South East dominates the areas with the fastest rental growth. York was the only area from outside the South East to feature in the top 10 rental risers. According to John Goodall, chief executive officer of Landbay, London’s rental market is very sensitive to changes in supply and demand. ‘The November dip is likely to reflect softening tenant demand as new hiring slows in the run up to Christmas and fewer people move to the capital for work,’ he said. ‘On an annual basis rental inflation is tracking wage growth quite closely. Scotland was only part of the UK to see rental growth below 2%. The big picture is that we are in the midst of a housing crisis and that wages are rising and both these facts mean that rents are more likely than not to continue to climb next year,’ he explained. ‘With house prices rising at the same time it is little wonder that there is such a strong appetite for investments that are secured against British homes,’ he added. Continue reading
Property sales in top US ski resort of Aspen hit eight year high
Sales in Aspen, regarded as the US’s premier ski resort, have reached an eight year high, and prices are up 3.9% year on year. The data from Knight Frank residential partners Douglas Elliman shows that the resort, which covers four mountains, saw more than 80 properties changing hands in the first nine months of 2015, nine of which were above US$10.6 million. Aspen Mountain itself generated the strongest volume of property enquiries and the highest property prices, with values around US$3,000 per square foot, the report reveals. By comparison, a luxury home on one of the neighbouring mountains of Snowmass, Buttermilk and Highlands ranges from US$1,000 to US$2,000 per square foot. Overall residential prices in Aspen rose by 3.9% in the 12 months to September 2015 and more enquiries have been coming from Chinese buyers. The report explains that each resort has its own distinct appeal. Aspen Highlands is favoured by the locals, Snowmass appeals to families and Buttermilk is considered the best mountain for beginners. Property demand is primarily domestic but international interest is on the rise. Alongside those Europeans seeking a ski retreat, primarily German, French and British, and Australian and Chinese enquiries are strengthening. Aspen is described as a truly year round resort, offering a programme of events from Jazz Aspen, Food and Wine Classic, the Aspen Music Festival and the Aspen Institute’s Ideas Festival in the summer months. The X Games, Wintersköl and World Cup Ski Championships dominate the winter months. The report says all of this helps to put Aspen on the radar of international buyers. Aspen, due to its cooler climate, is also popular with Texans and Californians in the summer months. It adds that the Aspen-Pitkin Co. Airport is located less than four miles from the heart of Aspen and has a more regular service from major carriers than any other regional ski town airport in North America. In the winter, its regular, weekly flights number more than 170. In addition to regular service from Denver, Aspen sees more than 20 flights a week from Chicago and Los Angeles. Continue reading
UK lettings agents report fewer rent rises in October
Fewer tenants are experiencing rent increases in the UK with the number of letting agents reporting rent rises falling to a quarter, according to the Association of Residential Letting Agents (ARLA) latest report. This is down from 32% in September meaning that the number of rent hikes in October is the lowest reported this year, the data from the ARLA private rental sector report shows. The data also shows that demand for rental properties dropped in October, alongside supply of available housing, a trend typical of the time of year. ARLA agents registered 33 new tenants on average per branch this month, the lowest amount this year. However, the London rental market bucked this trend. The report found that demand for rental housing in London continued to increase in October with an average of 42 prospective tenants registered per branch, up from 39 in September, an 8% increase. Supply of rental accommodation decreased in line with demand, dropping from 182 properties on average per branch in September, to just 173 in October. However, prospective renters in the East of England and the South West will have better luck finding a property; agents in those regions managed more properties in October than September, with 199 and 184 properties managed respectively. ‘Fewer agents reporting rent increases should bring some relief to tenants before Christmas. It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes,’ said David Cox, ARLA managing director. ‘Although it’s typical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we except to pick up again in January,’ he added. Looking ahead to next year, ARLA hopes to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out. ‘However, a lot is resting on the economic and political agenda. We’re still waiting for new houses, promised by the Prime Minister to be built,’ said Cox. ‘Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market,’ he pointed out. ‘Further, it’s been a waiting game all year to see if Bank of England governor Mark Carney will raise interest rates in the New Year and this will play a big part in determining whether renters looking to buy a home will be able to afford to,’ he explained. ‘And when interest rates do rise, the goal of home ownership will be pushed further out of reach for many and of course put further pressure on the private rental sector,’ he added. Continue reading
