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Advertised rents growth varies considerably in the UK
The South East of England, East Anglia and Scotland have seen advertised residential rents reach record highs in the third quarter of 2014, according to the latest published index. Overall across the UK, advertised rents increased by £66 per month in a yearly comparison to reach £1,034 per month, the data from Move With Us shows. In the South East and East Anglia they reached the highest recorded levels in at £1,254 and £947 per month, increasing by £18 and £11 each month respectively and Scotland also continued to be a strong performing region, with average rents hitting record levels of £727 per month. The firm said that, as with the second quarter of the year, the average national rent has been significantly influenced by a burgeoning London market. The average advertised rent in London increased by £118 in the quarter to reach £2,452 per month, some £230 higher than it was during the same period in 2013. In northern regions of England, however, rents have fallen gradually across the board with Yorkshire and Humber seeing price reductions of over £20 per month. ‘There is a stark contrast between the South and North of England as the divide between the cost of renting increases,’ said Robin King, director of Move With Us. For example, in Yorkshire and Humber the average rent is only £4 per month higher in a yearly comparison but in the South East this figure is significantly higher at £112 per month. North of the border, in Scotland, landlords have benefited from a significant rise in the average advertised rental price. ‘Annual growth is always good news for landlords but those in regions where we are not seeing huge amounts of growth shouldn’t be too concerned as we approach the end of the year. January is likely to bring a new influx of potential renters to the market who are looking to move in the New Year,’ he added. A regional breakdown shows that the average rental price in London is more expensive than in the summer high of 2012 when the London Olympics artificially inflated asking rents. Rents are continuing on an upward trajectory which is likely to continue into 2015. The quarter ended with the average advertised rent at £2,452 per month. Average rents in the South West have grown steadily throughout 2014, however, rents have fluctuated week to week while never falling below an average of £800 per month. In the third quarter the market improved marginally in July before dipping £3 or 0.4% in August and September. The average advertised rent is the region is £33 or 4.28% up in a yearly comparison at £813 per month. While the average rent seems set to continue to grow over the next year, it’s likely that minor fluctuations will persist, according to the index report. The South East is the strongest performing region outside of London and the average advertised rents have grown steadily over the past two years. In the last year, rents have… Continue reading
Farm land values in England up 2% in 2014 as price growth slows
The average value of English farm land has risen by 2% to £10,100 per acre in 2014 with supply remaining at historic low levels, according to the latest data. But the rate of growth has slowed and there has been no change in values in since June, the figures from Smiths Gore show. They also reveal that values have risen by 5% in the past 12 months and by 20% in the past three years. ‘While demand for farms with houses and buildings has increased in the last year as non-farmer buyers return to the market for these types of farms after the recession, the strongest demand is from farmers buying bare land for purely farming purposes,’ said Giles Wordsworth, national head of Farms and Estates Agency at the firm. The data shows that bare land values average £7,400 per acre and have risen 4% in 2014, an increase of 2% in the past 12 months and by 27% in the last three years. Farms with houses and buildings, known as equipped land, have risen by 2%, 7% and 20% over the same periods and now average £11,000 per acre. And the value of arable land is increasing more than grassland at 8% compared with 6% in the past 12 months. Values are continuing to be supported by the lack of farmland available to buy, according to Smiths Gore. Some 10% less land has been marketed so far in 2014 compared with 2013. The 97,700 acres marketed so far is the second lowest amount marketed historically, with 79,200 acres in 2012 being an overall low point. There are significant variations between regions. The South West and East of England are the most active, with 19,300 acres and 18,000 acres marketed respectively in the year to date. The least active regions are the North East and North West, with 4,500 acres and 5,800 acres marketed respectively in the year to date. Continue reading
UK property becoming increasingly important part of retirement planning
Property is becoming an increasingly important part of retirement planning in the UK with new figures showing a surge in the number of retirees using the wealth stored in their home to fund their retirement. The total value of equity release lending passed £1 billion in the first nine months of 2014 and reached a record quarterly amount in the third quarter of £375.5 million, according to the latest industry figures from the Equity Release Council. The data also shows that there were more than 5,500 new customers in the third quarter of the year, the most recorded in a single quarter for six years and the average amount of equity release lending also hit a new high. The amount lent for the first three quarter of 2014 at £1.02 billion is more than the entire year's lending totals for 2009 to 2012 and is already 95% of the total value of the market in 2013. The value of equity release lending in the third quarter was up by 15% on the previous quarter when it totalled £325.6 million, and up 32% year on year from £284.1 million in the third quarter of 2013. The 5,565 new customers in the third quarter of 2014 is the largest amount in a single quarter for almost six years when it reached 7,526 in the fourth quarter of 2008, a rise of 5% on the second quarter of 2014 and a 12% year on year increase. This brings the number of new customers to 15,624 in 2014 to date, putting the industry on track to see 20,000 new customers in total by the end of the year. The average value of equity release lending also broke new ground in the third quarter of 2014 by reaching £67,467, the largest amount on record and up by 9% since last quarter and up by 18% since the third quarter of 2013. The council said that the growth is being driven by the need for additional funds in retirement and by the boost that rising house prices have given to people's available equity. Lump sum and drawdown lifetime mortgages have continued their upward climb, with increases for both products in the third quarter of 2014. The value of lending via lump sum products rose 16% from the last quarter to £148.7 million while the value of drawdown lending rose by 15% to £225.7 million, demonstrating largely even growth across both product options. Lump sum plans accounted for 40% of the total market by value in the third quarter of 2014, while drawdown plans made up 60%. In contrast, for the same period last year 34% of equity release lending was via lump sum plans and 66% was drawdown. The council pointed out that this is a notable shift, potentially fuelled by the appeal of larger initial sums that allow customers to pay off lingering debts, such as outstanding mortgages, or to fund one-off expenses. While making up less than 1% of the market, home… Continue reading
