Tag Archives: london
Over third of UK letting agents report rent rises
Over a third of letting agents in the UK saw rent increases last month, the highest recorded this year, while a third saw an increased in short term let enquiries. Indeed, more and more agents are witnessing increases in the cost of renting, according to the Association of Residential Letting Agents (ARLA) monthly private rented sector monthly report. Some 36% of agents said that rents had increased between May and June, the highest number since tracking began and 80% predict that private rents will continue to soar over the next five years. ARLA pointed out that member’s views could be the result of the measures introduced to reduce the amount of tax relief buy to let investors can claim in the Chancellor’s Mini Budget last month. The report also found the highest number of agents reporting rent increases was in the East Midlands where 48% said that rents had increased in June, compared to only 17% in Wales. Supply and demand shifted marginally in June, with an average of 178 properties managed per branch, compared to 179 in May. There was an average of 36 prospective tenants registered per ARLA branch in June, the same as the previous three months. The report also revealed that worryingly, supply in London continued to drop with only 118 rental properties managed in June, compared to 134 in May, a decrease of 12%. As the summer holidays begin, interest in short term lets has risen further, with 33% of agents reporting an increase in enquiries for short term lets in June. This has risen by 7% from the previous month when 26% reported an increase in enquiries. Agents in the North West have witnessed the largest increase in enquires for short term lets, with 43% reporting a rise in June. ‘It is worrying to see so many agents reporting an increase in the cost of rent over the last six months, especially considering so many people rent as a way to bridge the gap whilst they save to get onto the property ladder,’ said David Cox, managing director of ARLA. ‘Findings like this continue to prove that the housing crisis isn’t going to disappear anytime soon and it will take a while before we see steps heading in the right direction. The impact of the Chancellor’s reductions to the amount of tax relief buy to let investors can claim will affect the cost of renting over the coming months and is likely to mean it will take even longer to see any improvement in affordability in the private rented sector,’ he added. Continue reading
Residential property sales up in UK after election slowdown
Residential property sales in the UK increased by 4.7% between May and June 2015 and the seasonally adjusted transaction figure was 3.2% higher compared with the same month last year. he official data from HMRC also shows a total of 104,590 residential and 10,460 non-residential transactions in June. The number of non-adjusted residential transactions was 15.7% higher compared with May 2015 and the number of non-adjusted residential transactions was 5.8% higher than in May 2014. It means that the UK property market is back on track after disruption caused by a wait and see attitude in the run up to May’s general elections, according to Peter Rollings, chief executive officer of Marsh & Parsons. He said that the jump in sales in June has started to make up for any shortfall in the months preceding the general election and the market is seeing growth on an annual basis once again. ‘In London, supply of properties for sale and buyer demand are head to head, squaring up for steady price growth over the rest of the summer. Confidence is returning to the capital once again, particularly in the sector £1 million,’ he explained. ‘Buyer registrations are building as aspiring home owners seize hold of low mortgage rates and other incentive schemes currently available to them,’ he added. Continue reading
Catchment areas of good schools in UK attracting higher property rent premium
Competition for school places in some of the UK’s best educational establishments is affecting the private rental market with more homes near them being rented to families, new research suggests. Some 28% of properties rented around schools with outstanding ratings from school inspectors OFSTED went to families with children, up from 26% in 2014 and 9% in 2008 In London competition for school places means that for the first time over half of properties rented around the best schools go to families with children, according to the latest quarterly lettings index from Countrywide plc. The firm suggests that while this is a product of the significant increase in competition for school places, the growing number of families living in the private rented sector means more of them move both for work and their children’s education. While the figures in London are most marked for schools rated outstanding, the pressure on school places in the capital means there has been uplift in families with children renting in the area surrounding most schools. Given it is the address from which the school application is made in January that the application is assessed against, the summer months are when most families think about moving. Over half of families with children in the private rented sector move during June, July, August or September in time for the forthcoming academic year. Households with children moving into the area close to an outstanding school don’t move far, an average of just half a mile. This confirms the fine margins involved getting into school catchment areas. This distance is considerably shorter than the three miles the average households in the private rented sector moves, the report explains. As with house prices, tenants pay a premium to live close to a high performing school. Given tenants move more often than home owners, this premium tends to be smaller. In 2015 the average tenant living within a kilometre of a school rated outstanding paid 14% more than someone living more than a kilometre away. While the premium attached to one and two bedroom flats is almost negligible, tenants living in three or four bedroom houses pay an average of 16% more. Where catchment areas are particularly tightly defined, a house on one side of the road can be let for 15% to 20% more than an identical house on the other side. ‘There are 1.6 million families with children living in the private rented sector, 20% more than last year, which means school catchment areas are becoming increasingly relevant to the rental market,’ said David Fell, research analyst at Countrywide. ‘Many of these families are choosing to rent close to the school gates and in some cases parents are taking advantage of the flexibility of renting to move from the fringes of their preferred school’s catchment area to ensure their child’s entry,’ he pointed out. ‘The flexibility of renting can… Continue reading
