Tag Archives: crisis
More new residential lets in the UK being agreed before tenants move out
An increasing number of landlords in the UK are able to re-let their property before their existing tenant moves out with the average property being let in 32 days, the lowest figure on record. So far in 2015 some 33% of all new lets were agreed while the property is still occupied, up from 27% last year, according to new research from Countrywide. The average let agreed while tenants are in place is equal to 105% of the asking rent, or an average of £35 a month more than the asking rent. With landlords still receiving rent from the vacating tenant, they are under less pressure to negotiate. In comparison tenants moving into an empty property have more room to negotiate on the rent, knocking an average of £21 a month off what the landlord was looking for. The research also shows that in London 51% of new lets are agreed while there is still a sitting tenant in the property, up from 41% in 2014. The level of demand from tenants in markets where the level of demand is highest and the time to find a tenant is shortest, means landlords are able to reduce the time a home is empty. Where a deal is agreed before the existing tenant leaves the property, there is an average of just six days between the existing tenant moving out and a new one moving in. 10% of the time a new tenant moves in on the same day that the existing tenant moves out. Where a property hasn’t been let prior to a tenant leaving the property, the first week of marketing is when landlords are most likely to achieve the highest rent. During the first seven days, the average let is agreed at full asking price, a figure which falls the longer a rental property is on the market. The first weekend after coming onto the market is when the majority of the most motivated would-be tenants view the property. In London’s fast paced rental market, fewer landlords need to wait until the weekend to find a tenant. Twice as many lets are agreed on a weekday in London than in any other part of the country. Every day a rental property is on the market without a tenant, the landlord is losing rent. If a deal is not agreed during the first week of marketing, landlords become increasingly receptive to offers. 98% of the cases where a landlord accepts an offer below the asking rent are after the property has been on the market for more than a week. In slower rental markets, generally outside of cities, the average landlord has to wait an extra 15 days to find a tenant willing to pay the full asking price compared to those letting a property in the city centre. ‘In larger rental markets, more new lets are being agreed well… Continue reading
Number of rental properties available for new tenants in UK falls
The number of rental properties available for tenants in the UK decreased in May at a time when demand is increasing and is predicted to keep rising over the next five years. Supply of rental property fell by 7% compared with April with just 179 properties per branch of lettings agents who are members of the Association of Residential Letting Agents (ARLA), the organisation’s latest monthly report shows. The report says it is a worry that London, known for its booming rental culture, has the least amount of rental properties per branch, with only 134 managed in May, compared to 273 properties per branch in Scotland. Whilst overall available rental properties decreased, demand remained the same. ARLA members reported 36 potential tenants registered per branch in May, remaining the same as the previous two months. The report also shows that during May 34% of ARLA agents reported rent increases for tenants. This figure has been slowly creeping up from the start of the year, when just 27% of agents reported hikes for tenants. Those living in the South West were the most affected by monthly rent increases with 49% of agents in the region reporting an increase. The situation is set to get worse with 76% of ARLA member agents nationally predicting that rents will continue to rise over the next five years. ‘It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs,’ said David Cox, ARLA managing director. He pointed out that while the months following any major event such as the General Election will always cause uncertainty and shake things up for the property market, the dwindling supply and already high demand is an issue that’s going to continue to plague the property market. ‘We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all,’ he added. Continue reading
London borough of Kensington and Chelsea has most expensive homes in UK
Boroughs in London continue to dominate the UK’s list of most expensive places for property on a per square metre basis, led by Kensington and Chelsea, new research shows. However, there are pockets outside Southern England where property fetches a high price per square metre, including Altrincham in Cheshire, a number of towns in Warwickshire and the Scottish cities of Edinburgh and Aberdeen. Overall there has been a marked widening in property prices per square metre between southern England and the rest of Britain since 1995, according to the research from the Halifax. Indeed, prices per square metre have risen by 388% in Great London compared with a national increase of 227%. Kensington and Chelsea is Britain's most expensive area with an average price of £11,635 per square meter, nearly six times the national average of £2,033. The borough is the only area in Britain with an average price above £10,000 per square meter with Westminster having the next highest prices at £9,571. Some 16 areas, all in Greater London, have an average price in excess of £5,000 per square meter, four more than last year. Outside southern England, Altrincham in Cheshire remains the most expensive town with an average price of £2,446 per square meter and is followed by a cluster of towns in the West Midlands with Solihull at £2,367, Warwick at £2,363 and Leamington Spa at £2,353. The Scottish cities of Edinburgh at £2,297 and Aberdeen at £2,281 are the next most expensive areas outside southern England. Aberdare in south Wales has the lowest average price, at £910 per square meter. This is less than one tenth of the average price per square metre in Kensington and Chelsea and all 10 of the towns with the lowest prices per square metre are outside the south of England. Four of the ten towns with the lowest average price per square metre are in Scotland with Wishaw at £926, Airdrie at £998, Greenock at £1,004 and Coatbridge at £1,004. Three are in Wales with Merthyr Tydfil at £967 and Neath at £1,005 in addition to Aberdare. The three English towns with the lowest home prices on a per square metre basis are Accrington at £990, Scunthorpe at £1,022 and Blackpool at £1,052. The 10 areas recording the highest house price growth on a per square metre basis over the last five years are all London boroughs. Hackney at 71% recorded the biggest increase over the five year period closely followed by Southwark at 70%. Nationally, house prices per square metre have risen by 18% since 2010 from an average of £1,719 to £2,033 in 2015 with increases across all regions. Greater London has experienced substantially faster growth than elsewhere in Britain with an average increase of 45%. The South East at 22% recorded the next biggest rise. Price increases have been much more modest in many other parts of the country with the smallest rises in the North at 3%… Continue reading
