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Most UK regions see strong annual rental market growth
Nine out of 12 UK regions saw rental price rise in November compared to the same month last year, according to the latest rental index. However on a month on month basis there was the traditional autumn with nine out of 12 regions recording lower rental prices compared to October 2014, the findings from the Home Let index shows. It means that the average monthly private rent in the UK is £874 per month or £702 excluding London and Scotland saw strong rental price growth with an 8.7% increase in November 2014 compared to the previous month and 11.7% up on the same month last year. Overall the regions that have experienced the highest growth compared to this time last year include Scotland, Greater London, and the West Midlands, with rental prices 11.7%, 11% and 8.7% higher than this time last year, respectively. Regarding the autumn dip, with the exception of Scotland, the East Midlands and the South West all saw lower rental prices in November than in October. Scotland recorded a monthly increase in rental prices of 8.7% with the East Midlands and the South West recording monthly increases of 1.5% and 1.4% respectively. The index report says that the recent dip in prices reflects typical seasonal movement in the rental market and sits within the context of a market that remains strong. Annually, only three regions of the UK recorded lower rental prices in November 2014 compared to the same month last year. The North West dropped 3.6%, the North East fell by 2.5% and Wales was down 2%. ‘We see the autumn’s moderation in rental growth as broadly in line with the typical seasonal effect that often sees rental prices balance or even slip into reverse in many areas of the country at this time of year,’ said Martin Totty, chief executive officer of the Barbon Insurance Group of which Home Let is part. ‘The outlook for the private rented sector remains positive for several reasons, the pace of house building is unlikely to have a significant effect on the supply of property to buy or to rent in the short term, high house prices, and a mortgage market where lending criteria remains constrained, are combining to ensure that the demand from tenants needing rented accommodation remains strong,’ he explained. ‘In terms of seasonal highs we see Scotland bucking the trend of the rest of the country, the rapid growth in the Scottish rentals market reflects the strength of the economy north of the border, particularly in oil-rich Aberdeen, which has a thriving rentals sector, but also in other Scottish cities and throughout the country,’ he added. Continue reading
Belgrave Square named as having the most expensive homes in England and Wales
The streets of Belgravia and Knightsbridge in central London are the most expensive locations in England and Wales to buy a property, according to new research. Located in one of London's most prestigious areas in the heart of Belgravia between Hyde Park Corner and Belgrave Square, Grosvenor Crescent is the most expensive residential street, the research from Lloyds Bank shows. To acquire a typical Grade II listed house on Grosvenor Crescent will cost an average of £16,918,000, it reveals. Indeed, five of the 10 most expensive streets are in the prime residential areas of Belgravia and Knightsbridge in the City of Westminster. They include Eaton Square with an average property value of £15,520,000 and Chester Square at £8,282,000, both in Belgravia. This is followed by Trevor Street at £10,150,000 and Montpelier Street at £8,483,000 in the Knightsbridge area. The remaining four streets are in all in the Royal Borough of Kensington and Chelsea. They include Cadogan Square with an average value of £8,592,000, Elgin Crescent at £7,683,000, Egerton Crescent at £7,100,000 and Hillsleigh Road at £7,091,000. Outside central London the capital's most desirable addresses are Cambridge Gate in Camden which has an average property value of £6,670,000, Coombe Park in Kingston upon Thames at £3,515,000 and Lichfield Road in Richmond upon Thames at £2,863,000. ‘London dominates the list of the most expensive residential addresses in England and Wales. As an international city, London has always attracted overseas buyers and in recent years the capital has been a magnet for ultra high net worth individuals,’ said Andy Hulme, mortgages director at Lloyds Bank. ‘This has led to soaring demand for homes in the prime residential areas of central London and as a result values have grown significantly. For the first time since this survey began, there are three streets with an average property price of over £10 million,’ he explained. ‘The Royal Borough of Kensington and Chelsea has always pulled in wealthy buyers, but this survey shows that properties in Belgravia and around Knightsbridge are now the ones commanding the highest prices,’ he added. Away from London the most expensive streets are both in Oxshott, Surrey; Spicers Field at £3,734,000 followed by Leys Road at £3,609,000. They are followed by Virginia Avenue in Virginia Water at £3,320,000 and Icklingham Road in Cobham at £3,264,000. A place near the sea has obvious attractions for many wealthy buyers and several exclusive addresses are dotted along the south coast. These streets include Sandbanks Road on Poole harbour at £2,493,000, Western Avenue also in Poole at £2,450,000 and Restrongeut Point in Truro at £2,097,000. The only address outside southern England in the top 50 most expensive streets is Park Lane in Altrincham with an average property price of £2,494,000, followed by South Road, also in Altrincham at £2,025,000. Other expensive addresses include Withinlee Road in Macclesfield at £1,960,000, The Ridgway in Leicester at £1,783,000, Tiddington Road in Stratford upon Avon at £1,313,000, Runnymede Road in Newcastle at… Continue reading
Latest CML figures show lending to first time buyers still rising
Lending to UK first time buyers increased by 12% in October compared to the previous month and is now 14% up on the same month in 2013, according to the latest figures from the Council of Mortgage Lenders. By value, there was £4.4 billion advanced to first time buyers in October, 10% up on September and 22% higher than October last year, the CML data also shows. But first time buyer affordability changed fractionally, with first time buyers typically borrowing 3.39 times their gross income, compared to 3.4 in September. The typical loan size for first time buyers fell slightly month on month to £125,800 in October, down from £126,000 in September. First time buyers in October paid 19.5% of gross income towards covering capital and interest payments, little changed from 19.6% in September but still significantly less than the recent peak of 24.8% in December 2007. Lending to home movers also strengthened month on month. In October, the number of loans advanced to movers was 35,000, a 10% rise on the previous month and up 4% on October last year. By value, lending to movers totalled £6.5 billion, 8% up on September and up 10% on October last year. Remortgage lending activity saw a decline month on month in October, with the number of remortgage loans totalling 26,600. This was 6% down on September and 11% down on October last year. The value of these loans at £4.1 billion was down 7% on the previous month and down 5% on October last year. There were 19,600 buy to let loans in October, representing lending of £2.7 billion. This continued the growth seen last month with loan volumes and the value of these loans up 8% on September. Compared to October 2013, the number of loans increased 22% and the value of these loans went up 29%. ‘This has been a year of change for our industry, but the market has shown remarkable stability with house purchase and buy to let lending showing steady, consistent growth throughout 2014 compared to 2013,’ said Paul Smee, director general of the CML. ‘There have been fluctuations month to month but overall the market appears to be showing a positive direction of travel going into the New Year. Stamp duty reform was long overdue and it is welcome that the tax has been changed. It will now be interesting to see how the market reacts. The new structure should be less of a barrier to mobility for those looking to get on the housing ladder or movers looking to switch homes,’ he added. According to David Newnes, director of Your Move and Reeds Rains estate agents, while first time buyers have been forging ahead in the market this year, more recently lending to new buyers is starting to wane. ‘Mortgage market measures introduced in April have trimmed back lending since, coupled with the ongoing debate about when interest rates might rise and the LTI cap this has discouraged… Continue reading
