Tag Archives: europe
Average new tenancy monthly rental rate in UK almost £1,000, latest index shows
The average rent on a new tenancy in UK cities in the second quarter of the year reached £956 a month or £747 excluding London, according to the latest home rental index. But in London alone it is £1,515 a month, some 10.1% higher than a year ago. The HomeLet rental index also shows that there have been increases in every region compared to a year ago. London is not alone in experiencing double digit rent price growth. While the majority of UK regions saw rent prices increase by less than 10% in the three months to June 2015, both the South East and South West of England saw rent prices rise by 11%. The index report has also analysed the movement of people who privately rent property, to and from the top UK cities by population. These new findings reveal detailed information including where tenants new to the area account for the largest proportion of new rental agreements. In the year to June 2015, the city with the highest percentage of new tenancies being signed by people moving into the area was Wakefield, with 28% of new tenancies being signed by people moving to the city from elsewhere in the UK. It was closely followed by Coventry and Brighton. The figures also show how the movement of tenants has changed since the recession began in 2008 and how prices have changed. Since then average monthly rents have increased by 51% in London, by 25% in Brighton and by 21% in Coventry. The data shows that certain parts of the UK are registering a significant proportion of new tenancies from people moving to the area. In Wakefield and Coventry, for example, more than a quarter of tenancies signed over the past 12 months were taken on by people moving to these cities. These are not necessarily the locations registering the largest quantity of incomers by number; however, they are the cities to which more people are moving as a proportion of new tenancies signed. Some cities have seen significant increases in the proportion of new tenancies being signed by incomers to the area, since the recession. Wakefield and Coventry have seen these figures rise by 7% and 4% respectively since 2007/2008. However, it is Greater London that has seen the largest increase, with 18% of new tenancies signed by people moving in to the capital to rent, compared with 11% in 2007/2008. Movement out of the capital has also reduced since the recession, with the number of new tenancies signed outside of London by people who have left the capital dropping by 5% Since 2007/2008 from 17% to 12%. The index also reveals the UK cities in which tenants are most likely to choose to stay, by analysing the proportion of tenancies being signed by people who have previously lived elsewhere in the same city. It… Continue reading
US sees fall in overseas buyers due to stronger dollar, analysis suggests
Fewer overseas buyers are purchasing property in the United States with currency exchange playing its part in the drop off, a new analysis report suggests. In general home sales during the first four months of 2015 have been the best in eight years with year on year growth of 9% helped by a drop in fixed mortgage rates of almost 0.5%. But the National Association of Realtors reports that the number of international buyers dropped to 2% during the first four months of 2015 from 2.5% a year earlier, a 19% decline. About three fourths of real estate agents who work with international clients report that changes in foreign exchange rates have a moderate to very significant effect on foreign buying. Indeed, the US dollar has strengthened against currencies used by many foreigners who buy homes in the country. For example, from the beginning of 2014 o April 2015, the US dollar appreciated 10% relative to the UK pound, 13% relative to the Canadian dollar and 26% relative to the euro. Notable exceptions to these large swings in foreign exchange values were the Chinese yuan and Hong Kong dollar, which have closely tracked the value of the US dollar. A new analysis report from real estate firm CoreLogic points out that a stronger US dollar makes property more expensive for foreign buyers whose currencies have weakened. Consequently, purchases by foreign buyers have dropped, especially for those whose currency was most affected by the foreign exchange swing. Between the first four months of 2014 and the same four months of 2015, the number of homes sold to foreign buyers drastically declined. Foreign purchases were down between one quarter to one third during this period for buyers whose currencies depreciated significantly relative to the US dollar, even though domestic purchases rose. ‘In addition to the shock caused by the stronger US dollar, the markets where foreigners tend to buy have had strong home price appreciation in the last few years. For example, many Canadians, Europeans and South Americans prefer to buy along the Southeast coast of the US for the beaches, cultural amenities, warm winter temperatures and accessibility,’ the report says. Canadians made roughly two thirds of their US home purchases during the first four months of both 2014 and 2015 in Florida. Of these purchases in 2015, nearly a half were located in the Miami-Fort Lauderdale-Palm Beach area where home prices rose about 8% from April 2014 to April 2015. ‘Couple that with the effect of a stronger US currency, and the average Canadian considering a home purchase in south Florida saw a jump in purchase cost of 20% to 25% in the past year,’ it explains. The report suggests that foreign buying could continue to decline, level off or increase in 2016 depending on the value of the US dollar relative to most foreign currencies, but the uncertainties surrounding how the Eurozone will resolve the debt crisis in Greece has made it… Continue reading
Asking prices in England and Wales up 0.4% in last month
Residential property asking prices in England and Wales increased by 0.4% overall in the last month and by 5.7% compared with a year ago, the latest index data shows. Monthly asking price growth was led by the East of England, up 0.7% since June, according to the Asking Price Index from Home.co.uk The data also shows that property is selling faster. The average time on the market for England and Wales dropped to 177 days, the lowest figure since November 2008 and the South East remains the fastest regional market, with a typical time on market of 59 days. Overall the supply of property for sale remains low, down by 6% in June 2015 compared to June 2014. However there are signs of oversupply in the North East and as a result asking prices are down by 0.8% The index report says that a resurgence of buyer demand continues to drive prices higher, predominantly in London and the South of England, bolstering confidence amongst vendors. ‘The UK property market is in good shape overall. Property supply remains behind buyer demand in most regions as evidenced by falling time on market figures. In Greater London, where marketing times showed a worrying increase earlier in the year, a post-election buyer resurgence has taken up the slack. Only in the North East region, where the recovery is still in its infancy, do we see a significant rise in supply and this has served to make prices dip this month,’ said the firm’s director Doug Shephard. The index also suggests that the prime central London market is showing signs of renewed momentum. After a prolonged period in the doldrums, prices there have indicated a new upward trend since May and time on market figures are beginning to fall. Time on market data for the regions shows that the northern markets of Yorkshire and the North East are the most improved over the last 12 months, recording decreases in typical time on market of 9% and 6% respectively. However, they remain among the slowest markets when compared to the rest of the UK. It is only London and the southern regions that show marketing times indicating a similar vigour to the property market pre-crisis. ‘With the recent political uncertainty now consigned to history, UK property has a clear path forward. Consequently, buyers are back in force but hampered by a lack of supply in most regions. We expect only minor price rises towards the end of this year,’ explained Shephard. ‘Demand, on the other hand, looks set to remain high, with indications from the Bank of England that interest rates will stay at their record low until at least next year, perhaps later. Hence, we expect that further competition between aspirant homeowners and landlords will continue to drive prices higher in a growing number of areas, especially in the South,’ he pointed out. ‘Contrarily, despite clear improvements in marketing times, prices remain stagnant in the North of England… Continue reading
