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Lettings annual review reveals UK rental hotspots
Leicester, Southall and Cambridge have been identified as UK lettings hotspots with average rents in 2014 some 45%, 38% and 24% higher, respectively, than 2013. By contrast, rent prices have fallen by the greatest amount in Colchester, Croydon and Brighton compared to 2013, with rents on new rental agreements 24%, 23% and 18% lower respectively in 2014. The HomeLet Rental Index annual review also shows that on average, rents across the UK in 2014 were 6.6% higher than in the previous year with the average monthly rent in the UK now standing at £867. However, when analysed on a regional and local basis, the data reveals some marked differences in rental market performance. Year on year rents have increased 9% in Scotland but fallen 4.6% in the North West. In Wales average rents have fallen 3.7% year on year and were down 1.4% month on month in December. East Anglia has also seen an annual and monthly fall, down 2.7% and 2.9% respectively. While Greater London has seen a 12% annual rise in average rents, they fell 11% in December, indicating that rental prices are falling considerably in the capital city to an average of £1,393 a month. If London is taken out of the equation then the annual rise is just 1.6%. On a monthly basis the UK wide figure fell by 0.8% in December 2014. Just four regions saw a monthly rise, led by the North East at 5.1%, then the North West up 1.6%, the South West 0.5% and the South East 0.2%. Spokesman Martin Totty said that 2014 was predominantly a year for growth in the rental market. ‘With property prices continuing to grow, and mortgage criteria tightening, the rental market represents a much more accessible option for house hunters than the property ladder,’ he claimed. ‘The demand for rental property is increasing, and we expect it to continue doing so in 2015 as large numbers of people are priced out of buying. As a result, we expect to see continued growth in rental prices across the UK as the new year progresses, particularly as real incomes are starting to rise,’ he explained. However, he pointed out that the data also points to some big differences in rental market performance in 2014 from town to town and city to city. ‘The causative factor behind these differences is as simple as supply and demand. In, locations such as Leicester and Cambridge, demand for rental property is outstripping supply. By contrast, Croydon and some parts of Essex are benefitting from a relative boom in new property building, easing the pressure on the local rental market and this is reflected by a drop in rental prices,’ he added. There appears to have been a typical end of year seasonal adjustment in the market, the figures also suggest. Totty pointed out that while rental prices fell in many regions of the UK in December, the… Continue reading
Home movers in the UK increased in 2014 but well below recent highs
Last year there was an 8% rise in the number of home movers, the highest annual total since 2007 but still little more than half the average between 2004 and 2007, new data shows. The research from Lloyds Bank also shows that the average deposit put down by a home mover in 2014 was £83,302 and stamp duty changes saved the average home owner nearly £5,000. The data also shows that the number of home movers in 2014 was 16% higher than in 2009 at the depth of the recent housing market recession. However, despite the pick-up in recent years, the number of home movers last year was still less than half the all-time high recorded in 2004 of 886,700 and just over half the average during between 2004 and 2007. First time buyer numbers have risen significantly quicker than home movers over the last few years. As a result, home movers have declined as a proportion of all new mortgage financed home purchasers from 71% in 2004 to 54% in 2014. Since 2009, the average price paid by a home mover has grown by 26% from £199,645 to £252,064 in 2014, an increase of £52,418, equivalent to a monthly rise of £874. Home mover property prices increased by 9% in 2014. The average deposit put down by a home mover in 2014 was £83,302, some 9% higher than in 2013 when it was £76,739. This equates to 33% of the average price paid by home movers of £252,064. Regionally, home movers in London put down the largest average deposit of £166,265, some 35% of the average property value of £480,416. This is more than four times the average deposit put down by home movers in Northern Ireland at £40,128, the lowest in the UK. Home movers in the South West put down the largest average deposit in percentage terms at 36%. The report says that the recent changes to the stamp duty system have saved the average home mover £4,958, reducing the tax bill for the average home mover property of £252,064 from £7,561 to £2,603. ‘House price rises over the past 12 months have enabled more homeowners to make the next move on the housing ladder. The resulting higher levels of equity in their property are providing homeowners with more funds to finance the purchase of their next home,’ said Andy Hulme, Lloyds Bank mortgages director. ‘A steady rise in property values in 2015 should further ease the constraint on many of those who bought their first home around the peak of the market in 2006 and 2007, enabling more of them to become second steppers,’ he added. The research also shows that second steppers, those looking to get on the second rung of the housing ladder, have benefitted. Higher house prices have increased the equity of those still living in their first homes enabling more of those who previously had either very low or negative levels of equity to make their first home… Continue reading
New Zealand housing market saw a sales surge at end of 2014
Last year ended with a sales surge in the New Zealand residential real estate market with transactions up 24.2 in December compared with the same month in 2013. It was the strongest December sales since 2006 and the second strongest December on record, according to the data from the Real Estate Institute of New Zealand (REINZ). The index also shows that the national median price at $450,000, is up $23,000 on December 2013 but down $5,750 on November 2014. However, the Auckland median price reached a new record of $678,000. Overall there has been an annual increase in the national median price of 5.4% over 2014 compared with 9.8% over the 2013 and year on year sales were down 7% on the number sold in 2013. ‘The data for December shows very strong sales growth compared to 12 months ago and a much higher level of sales that we would normally expect for the final month of the year,’ said REINZ chief executive Helen O’Sullivan. ‘The effect has been seen right across the country, with a number of regions seeing further increases in sales in December after a strong November. The normal December slow down hasn’t really happened in 2014,’ she explained. However, she pointed out that apart from Auckland, median prices across the country have moderated somewhat. For the year ended December, Auckland’s median price rose by 13%, but the national median rose by only 5.4%. Even Canterbury, which has seen strong price growth during 2014 has seen its rate of price increase pull back to under 2% for the 12 months to December 2014. ‘The real estate market remains split between Auckland, with strong demand and price growth, and the rest of the country. While a number of regions are experiencing listing shortages the situation in Auckland is acute, with less than three months’ supply available and demand continuing to be robust,’ she said. ‘Vendors are simply not coming forward in large enough numbers to meet the demand, despite the strong price rises seen in Auckland over the past three years,’ she added. A breakdown of the data shows that four regions recorded an increase in sales volume compared to November with Hawkes Bay recording the largest percentage increase of 7.2%, followed by Nelson/Marlborough with 6.8% and Northland with 4.2%. All regions recorded an increase in sales volume compared to December 2013 with Manawatu/Wanganui recording the largest increase of 39.7%, followed by Waikato/Bay of Plenty with an increase of 34.8% and Wellington with an increase of 32.5%. The national median house price declined $5,750 or 1.3% to $450,000 compared to November. Compared to December 2013 the national median house price increased by $23,000 or 5.4%, with six regions recording an increase. On a seasonally adjusted basis the national median house price rose 0.2% compared with November and 4.7% compared to December 2013. Taking total volumes and prices into account, Auckland accounted for 98% of the increase in the median price between December 2014 and… Continue reading
