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Almost half of UK renters will never get on the property ladder, poll suggests
Some 44% of renters in the UK believe they will never own their own home with not being able to afford a deposit the most common reason for not getting on the property ladder. Just 2% of renters plan on getting on the property ladder this year, according to an independent survey for construction and regeneration company Keepmoat. The average house price in England and Wales now stands at £178,000, according to the latest Land Registry figures, although significant regional variations exist. The average price of property in the capital is currently £462,799. Despite houses in the North generally being more affordable, non-homeowners in Liverpool at 62% were the most likely to say they never expect to purchase a property. This was followed by 60% in both Newcastle and Glasgow and 41% in London. Not being able to afford a deposit was by far the most common reason for not getting on the property ladder, cited by 56% of respondents. The pressure of saving a deposit was also the top concern for those hoping to buy a home at 58%, with 61% of this group saying they will be saving their own deposit. Some 38% of home owners polled said it took between two and five years to save for a deposit although it took 13% of those polled up to 10 years to save their deposit. The research also suggests low awareness of the government’s Help to Buy scheme, an initiative that helps people take their first steps on the property ladder. Less than one in three prospective buyers polled said they will be using the scheme, with 38% claiming they don’t know what the scheme is. ‘It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the property ladder. However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North,’ said Dave Sheridan, chief executive of Keepmoat. ‘There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA,’ he added. Continue reading
London leads eight year high in European corporate real estate sales
Some €14.6 billion in European corporate real estate assets were sold in Europe in 2014, the highest number for eight years, with London leading the growth, new research shows. Over 350 deals were recorded thanks to a continued low interest rate environment and exceptional levels of equity pouring into real estate, according to a new report from JLL. Since 2012 the number of companies raising capital from real estate assets in Europe has been on the increase, coinciding with a period of rising real estate values, the report points out. Indeed, in a separate recent survey from JLL some 40% of respondents reported increasing demands from senior leadership to raise capital through the real estate portfolio. JLL expects this market momentum to continue as businesses take advantage of opportunities to create a property portfolio that better meets their needs whether it’s reusing capital to support business growth, obtaining greater flexibility to aid downsizing or removing unwanted surplus property. ‘Companies are now faced with a once in a cycle opportunity to exploit the best market conditions since 2007. Last year global real estate investment volumes stood at US$710 billion, a level only ever exceeded in the peak of 2007,’ said Michael Evans, head of Corporate Capital Markets at JLL. ‘This momentum has continued into 2015, with an abundance of equity targeting real estate. This presents opportunities for companies with owned real estate to raise capital via sale and leasebacks. Activity has been widespread across Europe involving a range of companies with appetite across a variety of sectors and asset types,’ he added. The report has identified that traditional office and industrial occupiers across pharmaceuticals, energy, manufacturing, IT and telecoms dominated European corporate sales last year, accounting for 38% of activity. Meanwhile hotel operators made up 27% of the sales market followed by retail at 16%. The most notable sales were seen in the media and telecoms sector which included the largest corporate property sale of 2014, sold for €680 million in Paris. In terms of locations, the UK, Germany and France continued to govern the volume of corporate real estate sales, representing 60% of European activity in 2014. This was driven predominantly by the UK, with an 18% year on year increase and almost double the volume achieved in 2008. Spain and the Nordics also featured strongly with 18% of total corporate sales last year. According to Karen Williamson, associate director for EMEA research, with such a compelling market now is the time for companies to rethink their own versus lease decisions. ‘There are a range of solutions available to companies considering raising capital from their owned real estate. Sales can benefit the wider business by allowing capital to be recycled back into the organisation to support growth and expansion,’ she explained. ‘It can also be used to enable financial flexibility and unlock value from assets as part of a planned… Continue reading
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
