Tag Archives: finance
Rental prices in UK up by 2.6% in last 12 months
Private rental prices paid by tenants in the UK rose by 2.6% in the 12 months to January 2016, up from 2.5% in the year to December 2015, the latest index shows. The data from the Office of National Statistics (ONS) reveals that rental prices grew by 2.7% in England, 0.3% in Wales and 0.8% in Scotland with rents up the most in London at 3.9%. It means that overall rents are up 0.1% in annual terms compared with the year to December 2015, and up 0.7% compared with the annual price increase in January 2015. The regional breakdown of the figures shows that annual rental price growth varies, rising in Yorkshire and The Humber from 0.8% to 1.2%, and in the North East from 0.6% to 0.9%, whereas it fell in Wales from 0.7% to 0.3%. Rental growth in Scotland has gradually slowed to 0.8% in the year to January 2016, from a high of 2.1% in the year to June 2015. Rental prices in England show three distinct periods, increasing from January 2005 until February 2009, then decreasing from July 2009 to February 2010, and increasing again 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 January 2016 rental prices being 2.7% higher than January 2015 rental prices. Excluding London, England showed an increase of 2% for the same period. A shortage of suitable properties combined with strong demand, both from people priced out of the housing market and those who prefer to rent, lies behind these increases, according to Steve Bolton, founder of Platinum Property Partners. He believes that the Government is taking an enormous gamble on the private rental sector through its announced changes to buy to let investment and this could affect prices and growth. ‘Ending tax relief for landlords and levying a higher rate of stamp duty will ultimately increase investor’s costs, forcing many to push tenants’ rents up to remain profitable. Standards may also be reduced, with landlords having fewer funds to invest in the quality of their property. In some instances, landlords will be forced to sell, adding additional strain to private rented sector housing stock,’ he explained. ‘It is hard to see how the proposed changes will benefit prospective first time buyers. The biggest barrier to homeownership is a lack of adequate property supply, and discouraging buy to let investment will do nothing to alleviate this. With prices standing at such high levels, first time buyers need to raise a substantial deposit and as rental prices continue to grow this will become ever more difficult,’ he added. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, believes that the traditional January uptick in activity and a scramble by second home and buy… Continue reading
Home building starts in England up 6% in 2015, but planning system sluggish
More than 143,500 new homes were started in England last year, up 6% year on year, nearly double the low point of 2008 and the highest level since 2008, but concerns remain over slowness of planning system. The figures from the Department for Communities and Local Government also show that in the final quarter of 2015 some 37,080 homes were started, a rise of 23% on the same quarter a year earlier and up 91% when compared to June 2009. Completions for the fourth quarter of 2015 are estimated at 37,230, some 6% higher than the previous quarter and up 22% on the same quarter in 2014. Annual housing completions totalled 142,890 in the 12 months to December 2015, an increase of 21% compared with the previous 12 months. Seasonally adjusted starts are now 116% above the trough in the first quarter of 2009 but 24% below the peak in the first quarter of 2007. Completions are 23% below their peak also in the first quarter of 2007. It means both starts and completions for new build homes are at their highest level since 2008 with more than 700,000 new build homes started since April 2010. Meanwhile, the latest figures from the Home Builders Federation show planning permission for 59,875 homes was granted in England during the third quarter of last year, up from 53,409 in the same quarter in 2014, a 12% rise. The data also shows that 242,819 permissions were granted in the 12 months to October, the highest moving annual total since early 2008. However, many of the homes identified in the report still have a significant part of the planning system to navigate before any construction work can start, a process that could still take two or three years. ‘Our reforms to the planning system are delivering the permissions needed and schemes like Help to Buy have given builders the confidence to invest and build, with starts and completions now at their highest since 2008,’ said Communities Secretary Greg Clark. A breakdown of the figures show strong regional growth with Cambridgeshire, Northamptonshire and Leicestershire experiencing high levels of starts along with areas in North Oxfordshire and the Thames estuary. The current projection is to deliver a million new homes by 2020/2021 and Housing Minister Brandon Lewis pointed out that proposals published last week will speed up the planning process. They include dedicated fast track application services. However, the industry remains concerned that the lag of turning permissions into homes is becoming lengthier and the HBF hopes that the planning proposals will have an effect as it says that efficient planning is the best way to ensure that local people have an early say in the future shape of their communities and are able to benefit from the wealth of social and economic benefits that house building brings with it. ‘The house building industry has delivered an unprecedented increase in build rates over the past two years. The largest companies have… Continue reading
Home lending in Scotland up in 2015, but tailed off at end of year
More first time buyers took out a loan for a home in Scotland in 2015 than in any year since 2008, the latest data shows. Home owner house purchase lending in the fourth quarter of 2015 totalled 17,200 loans, down 4% on the third quarter but up 14% in the fourth quarter 2014, according to the figures from the Council of Mortgage Lenders. A breakdown of the figures shows that first time buyers took out 8,000 loans, 2% down on the previous quarter but up 14% on the last quarter of 2014. They borrowed £870 million, down 2% on the previous quarter but up 14% on the fourth quarter 2014. Home mover lending totalled £1.4 billion, down 4% on the previous quarter but up 18% on the fourth quarter 2014. The number of loans in the period was 9,200, down 5% quarter on quarter but up 14% on year on year while remortgage lending went up by volume quarter on quarter and year on year. Annual home owner house purchase lending in Scotland totalled 64,800 loans, up 9% on 2014. This came to £8.5 billion, up 14% on 2014. First time buyers took out 30,000 loans worth £3.3 billion, up 8% by volume and 12% by value, on the previous year. Meanwhile, home movers took out 34,800 loans worth £5.2 billion, up 9% by volume and 15% by value, compared to 2014 while remortgage lending came to £3.1 billion, up 18% on 2014. This totalled 26,200 loans, up 12% on the previous year. ‘The sustained year on year growth in house purchase lending seen since 2012 continued in Scotland this quarter,’ said Linda Docherty, CML chair for Scotland. ‘This meant more first time buyers and home movers in 2015 took out a loan to purchase a home than in any year since 2008. With an economic climate of low interest rates and competitive mortgage deals, we would expect this growth in the Scottish market to continue into 2016,’ she added. Continue reading
