Tag Archives: crisis
Families in rented homes struggle to save a deposit, new research shows
Families who rent their homes are less likely to have a cushion of savings or protection products to protect them against financial shocks, according to a new financial report. Some 25% of private renting families, or 650,000 people would struggle to cope compared to 11% of those who have a home with a mortgage and 5% who own their home outright, says the research from insurance firm Aviva. Renting families are also less likely to have insurance in place to provide financial cover should they become ill or die. Just 20% families who rent privately have life insurance, compared to 25% who own their home outright and 48% who own their home with a mortgage. Similarly, 4% of renting families have critical illness cover and only 3% have income protection. The findings follow a significant rise in the proportion of families with dependent children living in rented accommodation, according to Aviva’s analysis of data from the Office for National Statistics (ONS) In 2013 some 17.7% of couples with dependent children were private renters. This rose by 3.6 percentage points to 21.3% in 2014. The same trend is true for single parents with 31.9% in rented accommodation in 2014, compared to 30.2% in the previous year, a rise of 1.7%. As a result, there were 1.5 million families with dependent children in rented accommodation in 2014, a 19% rise since 2013 when it was 1.3 million. ‘Renters might not have a mortgage to pay, but they still have financial obligations like bills and monthly rent. Not having a savings cushion in place means unexpected costs could make day to day living a struggle, while a lack of income protection could be disastrous should they become ill and unable to work,’ said Louise Colley, managing director, protection at Aviva. ‘With growing numbers of parents in rented accommodation, it’s vital all families think about the future and put financial plans in place, regardless of whether they are a home owner or not,’ she added. Aviva’s Family Finances report also reveals renting families are less happy with their homes. While 32% of home owning families with a mortgage feel emotionally attached to their home, this falls to just 18% of families who are private renters. The take-up of home contents insurance is also lower amongst renting families, with 42% owning this product compared to 81% of families with a mortgage. Unsurprisingly, the majority of renters have ambitions to move on. Only 4% of privately renting families want to stay in their current home for the rest of their lives versus 20% who own their home with a mortgage and 76% would like to become home owners in the future. However, the need to save for a deposit is the main barrier to the property market for today’s renters and 30% of families who rent privately say they cannot afford the deposit and fees associated with purchasing a house, equating to 775,800 households. On top of this some 574,500… Continue reading
Northern Ireland set to see strongest house prices growth in UK in 2015
Northern Ireland is forecast to see the highest house price growth in the UK this year, with the latest report predicting an 11% rise in house values. The region is likely to see ongoing increases in prices according to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) and Ulster Bank. This is based on a comparative analysis between our price indicator and data from the Office for National Statistics (ONS) while for the UK as a whole the survey predicts that house prices will rise by 6%. The survey reports a net balance of 72% of Northern Ireland surveyors saying that prices increased in August, a higher net balance than all other UK region’s apart from East Anglia. Northern Ireland surveyors remain positive about the outlook too, with three month price expectations also amongst the highest in the UK. When it comes to sales, Northern Ireland surveyors are confident that increases seen in August will continue, with a net balance of 40% of respondents expecting sales levels to be higher in three months’ time. ‘A shortage of new instructions has characterised the Northern Ireland property market this year, with buyer enquiries outstripping the rate at which properties have been coming to the market,’ said RICS Northern Ireland residential property spokesman, Samuel Dickey. ‘As we move into the autumn, we should see more instructions, helping address this imbalance and ease upward pressure on prices. On the whole, RICS forecasts that average prices in Northern Ireland will have risen by 11% between the fourth quarter of 2014 and the fourth quarter of 2015,’ he explained. ‘This represents robust growth, but we should remember that this is from a low base, with average prices still someway from their 2007 peak,’ he added. The data also shows that in terms of prices, a net balance of 72% of Northern Ireland surveyors said that prices rose in the past three months. A net balance of 46% said that they expect prices to continue rising in the three months ahead. Continue reading
Three bed homes in UK see fastest rent rises, new index shows
UK rents are rising fastest for three bedroom homes with 4.6% year on year growth in August compared to a rise of 3.3% for all UK properties, according to a new index. The new index from Landbay Rental is the first to track rental trends to the county and London borough level in combination with the number of bedrooms. Areas where three bed rental growth is highest are mainly located within commutable distance of London, such as Windsor and Maidenhead up 22% to £1,936, Southend on Sea up 20% to £1,121 and Swindon up 13% to £813. The data shows that across the UK as a whole, rents climbed by 3.3% in the last year to £1,281 and this is well ahead of inflation but while rents continue to climb year on year, the rate at which they are growing has eased from a high of 4.9% in February. It also points out that average UK rents fell between May and July 2015, with August seeing the first monthly rise in rents since March. Across all property sizes, the top rental rises outside of London were Southend on Sea up 12.6%, York up 12.1% and Wrexham up 11.1%. At the other end the biggest fall was in Cheshire were rents were down 6.9%, Aberdeen City down 5.7% and Buckinghamshire down 3.5%. ‘At the national level, rents performed very strongly in 2014 after a dip in 2013. This year has seen rents continue to grow, but at a slower rate. The macro trends at the national level aren’t uniform when you drill into the local level and look at different types of property, which is why we want to establish a rental index that gives landlords, tenants and others interested in the private rented sector access to a more granular level of insight,’ said John Goodall, chief executive officer of Landbay. ‘For investors in the private rental sector, our data makes family homes in the south east look like an attractive proposition. As well as performing well now, rents for three bedroom homes saw the smallest falls when rents dipped in 2013. The challenge for investors looking to benefit is finding suitable properties for professionals at a cost that produces a good yield,’ he added. Continue reading
