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Private rental prices in Britain up by 1% year on year, latest index shows
Private rental prices paid by tenants in Great Britain rose by 1% in the 12 months to September 2014, the latest figures from the Office of National Statistics show. A regional breakdown of the figures show that rental prices grew by 1% in England, by 1.4% in Scotland and by 0.2% in Wales. Since January 2014, the annual rate of change in Wales has fallen below that of England and the Great Britain average. The annual growth rate in Scotland continues to be higher than both England and Wales. Rental prices increased in all the English regions over the year to September 2014, with rental prices increasing the most in London with growth of 1.5%. Private rental prices in England show three distinct periods: rental price increases from January 2006 until November 2009, rental price decreases from December 2009 to November 2010, and increasing rental prices from December 2010 onwards. Of these three periods, 2008 showed the largest rental price increases. When London is excluded, England shows a similar pattern but with slower rental price increases from around January 2011. Rental prices excluding London grew by 0.8% in the same period. The ONS said that the difference is due to the higher inflation in rental prices experienced in London when compared to the rest of the country and its large weight in the Great Britain index. The large weight that London has in the overall index reflects its high average rental prices and its large volume of private rented property. The Index of Private Housing Rental Prices (IPHRP) measures the change in price of renting residential property from private landlords and is currently an experimental index. The index is published as a series of price indices covering Great Britain, its constituent countries and the English regions. IPHRP measures the change in price tenants face when renting residential property from private landlords, thereby allowing a comparison between the prices tenants are charged in the current month as opposed to the same month in the previous year. The index does not measure the change in newly advertised rental prices only, but reflects price changes for all private rental properties. Continue reading
UK home owners set to spend £6 billion on property upgrades in next three years
Nearly a third of UK home owners are looking to carry out work on their home in the next three years, with up to £6 billion in projected works planned annually over the next three years. According to a new study from the Federation of Master Builders (FMB) over a million home owners (1,050,000) are looking to build extra space to accommodate grown up children who can’t afford to leave home. Families up and down the country are seeking to be more creative with the space in their property with 22% of home owners investing because of a property plateau which sees them unable to afford to move in to a bigger property despite having a growing family. Almost 40% of home improvements are set to be major refurbishments, including new kitchens, new bathrooms and home extensions, while smaller works such as loft conversions and conservatories account for 38%. Home owners are putting families first, as wider motivations to invest in their property include planning for having a family and parents wishing to boost their children’s’ future inheritance. ‘We have seen a rising trend of multi-generational households with grown up children opting to stay with their parents while they save money for their own homes,’ said Brian Berry, chief executive of the FMB. The study also revealed that half of home owners feel their properties are in urgent need of modernisation to increase its value and a quarter of home owners in London wish to upgrade in order to let out their spare bedrooms or whole properties. Home owners in London, followed by Wales and Yorkshire are most likely to upgrade for stay at home kids who haven’t been able to move out and almost half of home owners in Northern Ireland feel compelled to upgrade their current homes as they cannot afford to move. The study also shows that when it comes to choosing a builder, one in four home owners feel out of their depth. Word of mouth remains essential, with 82% relying on personal recommendations to choose a builder, followed by 36% consulting trade association websites. When prioritising how to choose a builder, 63% say reliable references are the most important followed by 61% citing the cost of the quote, and 59% the professional manner when quoting and estimating. Some 55% said the most important thing was whether the firm is a member of a professional trade association and 54% rated knowledgeability as a top priority when discussing the project. Fear of being ripped off was the top worry, cited by 55%, while 29% were worried that a workman would make a major mistake and the same percentage cited anxiety that builders would disappear before finishing the work. Berry pointed out that the FMB has a Find a Builder matching service that is a simple, easy to use online tool to ensure home owners have absolute confidence when choosing a builder. ‘Our members have a minimum of 12 months’ trading history and have passed credit checks, public… Continue reading
Prime central London house prices expected to be flat for rest of 2014
House prices in the prime London market are expected to stay flat until end of the year after slowing considerably in the third quarter of the year. House price growth across the sector slowed to 0.5% from 3.1% in the previous quarter, according to the latest London Property Monitor from estate agent Marsh & Parsons. The data also shows that the ratio of buyers per property dropped to 12 in September, as supply soared 13% in three months. However, one and two bedroom homes in the outer prime London sector outperformed the rest of the city in annual growth stakes, up 19% in past year Overall, following a robust 11.4% climb in prime London property values over the past 12 months, equivalent to £163,973, there has been a sharp drop in the rate of quarterly price growth across the capita. The report suggests that house price rises have been steadied by rising supply of prime London property on the market, up 13% in the last three months. This has cooled the level of competition in the market and the number of registered buyers per available property in Prime London has fallen from 24 at the start of 2014 to 12 in September. ‘We’ve reached a plateau in the course of house price growth, and the path paved out for London property prices for the rest of 2014 looks to be levelling off. This isn’t terminal, but just a necessary pit stop in the long term growth and sustainability of the market,’ said Peter Rollings, chief executive officer of Marsh & Parsons. ‘And it doesn’t mean we’re in for a quiet winter either. Sales will continue, albeit at a more normal level, as buyers revel in the greater choice on offer, and without the frenetic competition many faced at the start of the year. With more realistic pricing sellers are prospering too, and on average 98% of the asking price is currently being achieved on properties sold,’ he explained. He pointed out that in the hubbub surrounding the property market recently, seasonal patterns have been lost in translation. The majority of house price growth typically falls in the first half of the year, so this autumnal re-calibration is nothing new. He believes that in the run up to the general election next May caution will be exercised by many home owners and would be investors, as high end property is marked out as a key battleground for politians. ‘Wading in with a mansion tax threatens to douse the growth at the top tiers of the market, and in London especially, thousands of ordinary families would get swept up in its wake. Packaging it as a levy on mansions is misleading as across the capital it is tricky to find a home big enough for your average 2.4 family without a million pound price tag,’ added Rollings. The agent believes that there are still strong capital gains to be had… Continue reading
