Tag Archives: london
Number of rental properties available for new tenants in UK falls
The number of rental properties available for tenants in the UK decreased in May at a time when demand is increasing and is predicted to keep rising over the next five years. Supply of rental property fell by 7% compared with April with just 179 properties per branch of lettings agents who are members of the Association of Residential Letting Agents (ARLA), the organisation’s latest monthly report shows. The report says it is a worry that London, known for its booming rental culture, has the least amount of rental properties per branch, with only 134 managed in May, compared to 273 properties per branch in Scotland. Whilst overall available rental properties decreased, demand remained the same. ARLA members reported 36 potential tenants registered per branch in May, remaining the same as the previous two months. The report also shows that during May 34% of ARLA agents reported rent increases for tenants. This figure has been slowly creeping up from the start of the year, when just 27% of agents reported hikes for tenants. Those living in the South West were the most affected by monthly rent increases with 49% of agents in the region reporting an increase. The situation is set to get worse with 76% of ARLA member agents nationally predicting that rents will continue to rise over the next five years. ‘It is worrying to see that there such a sharp decrease in supply, when we know there is already a struggle to meet housing needs,’ said David Cox, ARLA managing director. He pointed out that while the months following any major event such as the General Election will always cause uncertainty and shake things up for the property market, the dwindling supply and already high demand is an issue that’s going to continue to plague the property market. ‘We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all,’ he added. Continue reading
UK mortgage approvals rising but still down on a year ago
Mortgage approvals in the UK have been steadily improving over the past five months but are still below where they were a year ago, according to the latest figures to be published. Gross mortgage borrowing in May was £10.4 billion, similar to April but 5% lower than in the same month last year, the data from the British Banking Association shows. Much of this could be to tougher new approval rules that were introduced in April 2014. For house purchase approvals, the annual comparison, adjusted for the effect of the new rules, suggests a year on year fall of 3%. Indeed, Charles Haresnape, chairman of the Intermediary Mortgage Lenders Association (IMLA), pointed out that there has now been a fourth successive monthly rise in mortgage approvals which suggests the high street banks have got to grips with recent changes to mortgage regulations. ‘All the same, there were 5,000 fewer approvals in May than was the norm in the six months before the Mortgage Market Review (MMR) took effect. Clearly there is still some way to go before lending activity on the high street is fully restored,’ he said. ‘Looking ahead, our chief concern is that UK mortgage borrowers face another wave of changes headed their way in the shape of the Mortgage Credit Directive (MCD). The short term threat is that another transitional period will slow the applications process and reduce the industry’s capacity to lend,’ he explained. ‘In the long term, extra layers of regulation threaten to squeeze more consumers out at the margins. When the rules change so often, it is very hard to judge the right time to say enough is enough before we are left with a far more subdued market than anyone intended. Balancing consumer choice and financial safety is a constant challenge, and the Bank of England should stand ready to act if the pendulum swings too far in either direction,’ he added. According to Steve Bolton, chairman of Platinum Property Partners, figures from the BBA show that there is life in the mortgage market, indicating that there has been a 2% jump in general mortgage approvals over the last 12 months. ‘However, the figures also show that lending to homebuyers is down on last year by 3%, meaning that access to the property ladder is becoming more and more difficult for many people. This means that the rental sector is likely to come under increased pressure as growing numbers of people look to it for longer term solutions to their housing needs,’ he said. ‘It is therefore of the upmost importance that the market is able to meet the needs of a growing population of renters, and provide them with high quality and affordable housing. While renting is now a lifestyle choice for many young people, the majority still aspire to own their own home and certain types of rental properties can give would be buyers an advantage in times… Continue reading
Wales has lowest median house price while Kensington in London has the highest
Blaenau Gwent had the lowest median house price in England and Wales in 2014 at £75,000, a sharp contrast to the highest in the London borough of Kensington and Chelsea at £1.19 million, official figures show. The data from the Office of National Statistics (ONS) also reveals a sharp north/south divide when it comes to property prices in the country as house prices in London surged by 32% last year, leaving the rest of the country trailing. Every area of the country where property prices increased by over 20% were in the capital, while areas in the north saw homes fall by almost a quarter in value. The figures also look at home prices according to council areas. These show that the local authority that had the largest increase in median house price between 2013 and 2014 is South Bucks increasing by 23% from £390,000 to £480,000. The local authority that had the largest decrease in median house price between 2013 and 2014 is Isles of Scilly decreasing by 15% from £275,000 to £235,000. Figures were also released according to Parliamentary constituencies. Walthamstow in north east London saw the highest house price growth last year, up by 32%, taking the average price of a home from £250,000 in 2013 to £330,000 last year. While in Hammersmith prices increased by 25% from £456,000 to £570,000 on average. Dulwich, Westminster, Tottenham, Lewisham, Chelsea and Islington, representing Parliamentary constituencies across the capital make up the top 10 constituencies for house price growth. Nottingham East is the only area outside of the capital and its surrounding areas which made it into the top 25 constituencies for property price increases with 19% growth taking the typical price from £92,500 to £109,950. Bradford West suffered the worst property slump in the country with prices dropping 23% and in Blaydon in the north east the price of homes fell 5% with Rotherham in South Yorkshire also seeing a 5% drop. Data looking over the last decade shows that the biggest house price rises have been in Kensington in London with a 550% rise to £1.15 million, followed by the City of London and Westminster with a 535% rise to £980,000. Other popular commuting areas in London also saw a big rise such as Tooting with a jump of 515% taking the typical home price to £497,750 while Westminster North was up 50% to £700,000 and Vauxhall up 507% to £485,000. Continue reading
