Tag Archives: crisis
UK private sector rents up 2.6% year on year
Private rental prices paid by tenants in Great Britain rose by 2.6% in the 12 months to March 2016, unchanged when compared with the year to February 2016. The figures from the private housing rental index from the Office of National Statistics also show that rental prices grew by 2.8% in England, 0.2% in Wales and 0.6% in Scotland. Rental prices increased in all the English regions over the year to March 2016, with rental prices increasing the most in London at 3.7%. Since January 2011 England rental prices have increased more than those of Wales and Scotland. The annual rate of change for Wales at 0.2% continues to be below that of England and the Great Britain average while rental growth in Scotland has gradually slowed to 0.6% in the year to March 2016, from a high of 2.1% in the year to June 2015. Private rental prices in England show three distinct periods with rental price increases from January 2005 until February 2009, rental price decreases from July 2009 to February 2010, and increasing rental prices from May 2010 onwards. When London is excluded, England shows a similar pattern but with slower rental price increases from around the end of 2010. Since the beginning of 2012, English rental prices have shown annual increases ranging between 1.4% and 3% year on year, with March 2016 rental prices being 2.8% higher than March 2015 rental prices. Excluding London, England showed an increase of 2.1% for the same period. In the 12 months to March 2016, private rental prices increased in each of the nine English regions. The largest annual rental price increases were in London at 3.7%, down from 3.8% in February 2016, followed by the East at 3% and the South East at 2.9%, both unchanged over the same period. Annual price increases have been stronger in London than the rest of England since November 2010. The lowest annual rental price increases were in the North East at 0.8% down from 0.9% in February 2016, followed by the North West at 1.1%, up from 1% and Yorkshire and the Humber at 1.2%, down from 1.3% over the same period. According to Adrian Gill, director of lettings agents Your Move and Reeds Rains, rents will start to build a gradual but inevitable path, ultimately reaching the very peak of the market in the autumn. ‘Early spring is just the calm before the storm. Demand for homes in the private rented sector is driven by the flow of jobs and the flux of a generally more mobile workforce looking for a place to live,’ he said. ‘This reflects the strengths of private renting, the opportunity for young independent adults to strike out on their own, or for families to move across the country and earn the best possible livelihood. In the towns and cities with the biggest renting populations it is a constant struggle for supply from landlords to match demand from tenants. With a… Continue reading
Initial planning permission for new homes in England rise steeply
Initial planning permission for 255,032 new homes was granted in England in 2015, up 57% from a low point of 162,204 in 2009, according to the latest pipeline report. Permissions granted in the fourth quarter of 2015 were up 13% on the same quarter in 2014, to 74,759, as developers submitted more applications to ensure they can continue to deliver further increases in supply. The report from the Home Builders Federation (HBF) and Glenigan also shows that permissions have risen steadily every year since 2009, with actual housing supply also increasingly markedly over the past two years as more of the permissions are progressed to the point that infrastructure work can start and house builders can begin building new dwellings Over 180,000 new homes were added to the housing stock in 2014/2015, up 22% on the previous year as house builders increased output in response to the rise in demand for new homes. However, many of the permissions counted in the report still have many hurdles to cross, the report points out as builders and developers navigate the complexities of the planning system before actual building work can get underway, for example discharging planning conditions. The industry continues to urge Government to streamline the planning process and ensure local authorities have the capacity to deal with the volume of applications now being processed so builders can get on to more sites more quickly. The figures though are a strong indicator of future supply, and suggest that housing completions will continue to rise as these permissions are turned into implementable permission and are the sites built out over the coming years. ‘The number of planning applications now being submitted demonstrates the commitment of the industry to deliver further increases in housing supply,’ said Stewart Baseley, executive chairman of the HBF. ‘The past two years have seen huge increases in house building levels. Whilst the increase in the number of permissions is welcome, and a strong indicator of future supply, many still have to navigate the complexities of the planning system,’ he explained. ‘This is a further sign that house builders continue to step up investment in future housing supply but we need to see these permissions being processed to the stage where we can get onto site and start building more quickly and really start to meet demand for housing,’ he added. According to Allan Wilén, economics director and head of business market intelligence at Glenigan, the strong rise in planning approvals during the closing months of 2015 was driven by an increase in the number of private housing units approved, bodes well for house building activity during the current year. ‘The expanded development pipeline will help housebuilders to meet any strengthening in demand from house buyers. Furthermore the rise marked rise in approvals in the Midlands and North of England last year demonstrates that the recovery in housing market activity is becoming more established across the country,’ he added. Proposals announced earlier this year by the… Continue reading
Rents in UK edging upward in first quarter of 2016
Rents in the UK, excluding London, increased by 0.8% in the first quarter of 2016 and are 3.9% higher than the first quarter of 2015, the latest index data shows. In Greater London they increased by 1.3% quarter on quarter and are 1.6% higher than a year ago, according to the figures from Rightmove. This takes the average rent in Greater London to £2,021 and in the rest of the UK to £761. The figures also show that rents have seen growth in 2016 compared to a quarterly decline of 1% in London and 0.8% elsewhere in the fourth quarter of 2015. After Greater London the North West was the strongest performing region in the first three months of the year with a rise of 1.1% with the South East and the East of England both falling by 0.1%, though the East of England’s annual increase of 5.9% still sees it outstrip all other regions. The top five growth areas outside of Greater London year on year were Harpenden, Luton, Rushden, Corby and Salford with rents up 14.3%, 12.8%, 12.7% 12.6% and 11.7% respectively, taking averages to £1,217, £828, £619, £585 and £797. The Rightmove data also shows that interest in buy to let properties fell in March, with new purchases from buy to let investors down 27% compared to the same month last year. This reversed the upward trend between December and February which saw a 24% year on year increase in buy to let enquiries. This was probably due to the looming April change in stamp duty which saw a new 3% rate levied on buy to let properties and second homes. ‘This waning of interest definitely seems to predict a slowdown in the buy to let market, but what’s not yet clear is if this will only turn out to be a short term pause. It could be that some investors are waiting until the tax changes have some time to bed in before they review their business and continue to make purchases,’ said Sam Mitchell, Rightmove’s head of lettings . ‘If this removes some of the competition for smaller properties then it could spell good news for many first time buyers with a deposit ready as they may find now is the ideal time to make a move,’ he added. The report suggests that buy to let investors not deterred by the tax changes and looking for the best yields could consider buying in areas in the north such as Durham and Merseyside. The top four locations for best yields are all in these counties, with Peterlee in Durham highest at 9.1%, followed by Bootle in Merseyside at 8.6%. In third place is the neighbouring town of Birkenhead offering a yield of 7.8% and fourth is Stanley in Durham at 7.7%. ‘These areas where you can buy a two bed property for around £60,000 to £70,000 seem to offer a sound investment as long as the demand is there from… Continue reading
