Tag Archives: london
UK house price growth pauses, latest index shows
Average UK property prices have increased by 6.8% year on year but the growth has paused with values obtained flat lining so far this year. The latest index from haart estate agents also shows that the average price of a starter home has fallen by 2.2%, good news for first time buyers. Overall the index reveals that in February average prices fell by 0.2% to £204,355 compared with the previous month but are still up by 6.8% compared with a year ago. But in London prices are down 1% month on month to an average of £466,990 and down 4.6% compared to February 2014. However, demand is still high with 21 buyers chasing each home for sale in London and 12 potential buyers for each new property nationwide. Paul Smith, chief executive officer of haart, pointed out that new housing stock across the UK materialised in February with supply up almost 11% in a single month which is matched by a similar uplift in buyer registrations, a sign of consumer confidence in the market. ‘So far this year average house prices are showing no significant fluctuations, which is good news for affordability. First time buyers are now benefiting from a dip in the average price of a starter home by 2% annually and from broader economic factors such as low interest rates and Help to Buy incentives,’ he said. ‘Despite this promising start to 2015, the number of new home starts promised post general election by the main political parties falls well short of what is needed and we still lack a strategic long term policy to address supply,’ he explained. He believes that London’s average property prices declining is no bad thing for affordability and sentiment. ‘This is no boom and bust but the beginning of a return to normality following the peak of the market in Spring 2014. The capital’s property market is still bustling with 21 potential buyers chasing each property for sale,’ he added. Continue reading
Seven out of 12 UK regions see rental growth, but not London
After a period of rent price rises in London outstripping the rest of the UK, the disparity between the growth rate of the London and nationwide rental markets is beginning to narrow, the latest index shows. The average rent in the UK is now £899, compared to £889 at the end of January 2015, and £873 in December 2014, according to the HomeLet rental index. It also shows that average rent prices in London have remained static in the three months to February 2015, versus the wider picture of predominantly rising prices. Indeed, seven out of 12 regions in the UK have seen rent prices rise in the three months to February 2015, with the North East and South West of England leading the way at 3.1% and 2.5% price growth respectively. There was also growth in East Anglia, the North West of England, Northern Ireland, the South East of England and Yorkshire and Humber while rental prices have not increased in Greater London and the West Midlands, and have fallen in Wales, the East Midlands and Scotland. Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with Northern Ireland rising 7.2%, the North East of England 6.2%, the South West of England 4.5% and East Anglia 3.7%. In contrast, rents agreed on new tenancies in London in February 2015 have fallen by 2.5% compared to the previous month. Scotland, the East Midlands and Wales have also seen prices agreed on new tenancies fall in February 2015 compared to January 2015. ‘Last year saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad based with the strongest rent price growth occurring outside of the capital. Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow,’ said Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet. ‘The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available,’ he added. Continue reading
Survey reveals gifts landlords give to tenants
Bad news stories tend to dominate the headlines when it comes to relationships between tenants and landlords in the UK but new research reveals that the relationship is often much more convivial. Indeed, some 34% of landlords have given a welcome or farewell gift to a tenant and 30% of tenants have received an act of kindness, according to a survey from tenant insurance provider Endsleigh. It shows 54% of tenants received help with DIY and 29% a bottle of wine as a result 72% of tenants said such acts positively changed their perception of their landlord. A positive relationship seems to have an impact on the length of tenancy too with 70% of tenants who receive an act of kindness staying in their property for 24 months or more, compared to just 53% who didn’t receive an act of kindness. Landlords were most likely to give a gift of a bottle of wine with the survey finding that 59% did so, followed by 49% giving cards and 25% plants and flowers. However, qualitative data shows landlords have given everything from Christmas hampers, home grown vegetables and gifts for children through to rent free months during periods of unemployment and topped up gas and electricity meters. The survey also investigated what the ideal relationship should be between the two parties. Half of the landlords surveyed said a professional relationship with a tenant is preferable and 49% of tenants agreed. More than a third, 36%, of tenants wanted a friendly relationship with their landlord compared with just 21% of landlords. However, of the landlords and tenants that answered ‘other’ to this question, many said they would prefer both a professional and friendly relationship. ‘The easiest and most stress free lettings come when there’s a good working relationship between the landlord and the tenant. Our survey results show it’s important to remain professional as a landlord, but also that tenants appreciate help getting settled into a property,’ said Endsleigh's lettings and landlords manager Marcus Latchford. ‘Providing a welcome hamper when a new tenant moves into a property will go a long way to setting the relationship off on a good foot. However, the thoughtful, practical gifts and gestures like offering to hang pictures on the wall or letting the tenant select flooring when redecorating add the most value,’ he added. The survey is part of Endsleigh’s 2015 ‘Better Relations’ campaign, which aims to encourage stress free lettings for both tenants and landlords. Continue reading
