Tag Archives: british
Rents in England and Wales fall for first time since March
Residential rents across England and Wales have fallen on a monthly basis for the first time since March, despite fresh records in three regions, according to the latest index. Average rents fell by 0.1% on a monthly basis, down from £804 in July to stand at an average of £803 in August, the data from the Your Move and Reeds Rains index shows. However, on an annual basis rents are now 5.5% higher than in August 2014, representing a slowdown since July when annual rent rises stood at an all-time record of 6.8%. ‘August has witnessed a break in a series of blistering rent rises. Yet this mild correction comes on the back of a whole year of acceleration. Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants and the peak lettings season is only just about to start this autumn,’ said Adrian Gill, director of estate agents Reeds Rains and Your Move. ‘There is also no major change to the fundamentals of supply and demand. This means that in the longer term, faster rent rises may become a semi-permanent feature of the British property market. Alongside purchase prices, rents will continue to rise rapidly until something happens to address a drastic shortage of homes in the UK,’ he added. A regional breakdown show that despite a slower picture across the board, three individual regions of England and Wales saw rents hit fresh records in August. In the West Midlands average rents of £586 per month represent the highest levels on record, while rents in the East Midlands have set their own record at £596. As the third region to see record rents, the East of England has also overtaken London to see the fastest annual growth of 11.5%, ahead of 10.2% annual increases in the capital. This takes average rents in the East of England to £843 per month. Meanwhile, while relegated to second place in terms of annual rent rises, London’s tenants still pay by far the most in absolute terms, with average rents of £1,278 in August. Annual rent rises in the West and East Midlands were also particularly strong, standing at 4.6% and 5.9% respectively. At the other end of the spectrum, Welsh rents are 3.1% lower than a year ago and the only region to see an annual fall. This comes as Wales has also seen the most negative trend on a monthly basis, with rents in the principality dropping 4% since July. In total five out of 10 regions have seen rents fall on a monthly basis. After Wales this is led by the South East, with rents 1.4% lower than in July, and the North East with a 1.1% monthly decrease. In London rents have seen a rapid reversal with a 0.3% fall following a 3.3% increase over the previous month. Leading the field on a monthly basis, South Western rents rose 3.2% between July and August,… Continue reading
UK reinvigorated Right to Buy programme hailed a success
A reinvigorated Right to Buy programme in the UK has created nearly 40,000 new home owners in the last three years, according to new figures published by the government. Housing Minister Brandon Lewis said it is further evidence of how government-led efforts to help aspiring home owners are working, adding that there were 3,644 new starts and acquisitions since the Right to Buy was reinvigorated in 2012. He explained that this means that the 3,054 additional homes sold in the first year of the scheme are already being replaced on a one for one basis nationally. ‘For years, the discounts available under the Right to Buy were left to dwindle, denying thousands of people the opportunity to own their own home,’ he explained. ‘This reinvigorated scheme has turned that around, and means nearly 40,000 people have been able to buy the home they love, many of whom might otherwise never have had the chance to become homeowners. On top of that, it’s getting homes built, with councils replacing the additional homes sold on a one for one basis,’ he added. The data also shows that since the reinvigoration of the Right to Buy scheme, nearly £964 million in sales receipts are being re-invested into building new homes, levering a further £2.2 billion of investment over the next three years. This means that in total, over £3.2 billion will be raised to invest in affordable house building as a result of Right to Buy. A breakdown of the figures shows that in the three months to June, some 2,779 households bought their homes under Right to Buy. Local authorities received approximately £223 million from Right to Buy sales, 5% higher than the £212 million in the same quarter of 2014 to 2015. Lewis also pointed out that since 2010 the government has introduced a range of measures to support aspiring homeowners to buy their own home. In addition to reinvigorating the Right to Buy, this includes the Help to Buy scheme, which has enabled nearly 120,000 people to buy with a fraction of the deposit they would normally require. Overall, since 2010 232,000 households have been helped to purchase a home through government backed schemes including Help to Buy and Right to Buy. On top of this, the government has also pledged to build 200,000 new Starter Homes, which will be available to young first time buyers under 40 at a 20% discount, while a new Help to Buy ISA will help aspiring home owners to save up a deposit for a new home. Continue reading
Debt is not holding back graduates in the US buying a home, new research shows
Having a lot of student debt doesn't greatly reduce young people's chances of home ownership in the United States, as long as they graduate, a new analysis has found. The findings challenge a popular concern that giant student loan payments are holding back people from home ownership. As it turns out, graduates' debt loads don't materially hurt their chances of buying a home, especially if they get at least a four year degree. Overall student debt has only a small negative effect on the odds of home ownership for a person with a bachelor's degree or higher, according to the research from real estate firm Zillow. The chances of a married couple with no student debt owning a home are about 69.8% if at least one of them has a bachelor's degree. If the same couple has $30,000 in student debt, their homeownership chances drop slightly, to 67.7%. ‘The income advantage of getting a degree pays off in terms of being able to buy a home in the long run. Student debt isn't the evil-doer it's made out to be, at least not when it comes to homeownership,’ said Zillow chief economist Svenja Gudell. ‘As long as students stay in school and get a degree, student debt doesn't deter them from homeownership, although it is possible that student debt could delay home ownership. People in their 20s and 30s are renting longer because they're delaying marriage, paying a lot in rent, and struggling to qualify for a mortgage when they finally find an affordable home. Add to that list that they are paying off student debt,’ she explained. The research also found that the least likely to own homes are people who have student debt, but no degree. In fact, a couple who borrowed more than$30,000 for school but never graduated has a less than 40 percent chance of home ownership. Graduates with advanced degrees are the most likely to own a home, even if they racked up a lot of student debt. For example, if a couple owes $50,000 in student loans, but one of them has a master's degree, they have a 75% chance of home ownership. A similar household with just $10,000 in loans and only a bachelor's degree has just a 69% chance of home ownership. Student debt has the greatest impact on the home ownership rate of people with two year associate's degrees. A couple with AA degrees and no debt has a 70% chance of owning their home. That declines significantly as debt grows. If the same couple has $50,000 in student debt, they own their home only 57% of the time. Getting an associate's degree improves chances of home ownership until a person has borrowed $70,000. After that, their chances of home ownership would have been better without a degree and no student loan debt. Getting a bachelor's, master's or doctorate degree, regardless of debt, increases the chances that people will… Continue reading
