Tag Archives: news
Rents in UK edging upward in first quarter of 2016
Rents in the UK, excluding London, increased by 0.8% in the first quarter of 2016 and are 3.9% higher than the first quarter of 2015, the latest index data shows. In Greater London they increased by 1.3% quarter on quarter and are 1.6% higher than a year ago, according to the figures from Rightmove. This takes the average rent in Greater London to £2,021 and in the rest of the UK to £761. The figures also show that rents have seen growth in 2016 compared to a quarterly decline of 1% in London and 0.8% elsewhere in the fourth quarter of 2015. After Greater London the North West was the strongest performing region in the first three months of the year with a rise of 1.1% with the South East and the East of England both falling by 0.1%, though the East of England’s annual increase of 5.9% still sees it outstrip all other regions. The top five growth areas outside of Greater London year on year were Harpenden, Luton, Rushden, Corby and Salford with rents up 14.3%, 12.8%, 12.7% 12.6% and 11.7% respectively, taking averages to £1,217, £828, £619, £585 and £797. The Rightmove data also shows that interest in buy to let properties fell in March, with new purchases from buy to let investors down 27% compared to the same month last year. This reversed the upward trend between December and February which saw a 24% year on year increase in buy to let enquiries. This was probably due to the looming April change in stamp duty which saw a new 3% rate levied on buy to let properties and second homes. ‘This waning of interest definitely seems to predict a slowdown in the buy to let market, but what’s not yet clear is if this will only turn out to be a short term pause. It could be that some investors are waiting until the tax changes have some time to bed in before they review their business and continue to make purchases,’ said Sam Mitchell, Rightmove’s head of lettings . ‘If this removes some of the competition for smaller properties then it could spell good news for many first time buyers with a deposit ready as they may find now is the ideal time to make a move,’ he added. The report suggests that buy to let investors not deterred by the tax changes and looking for the best yields could consider buying in areas in the north such as Durham and Merseyside. The top four locations for best yields are all in these counties, with Peterlee in Durham highest at 9.1%, followed by Bootle in Merseyside at 8.6%. In third place is the neighbouring town of Birkenhead offering a yield of 7.8% and fourth is Stanley in Durham at 7.7%. ‘These areas where you can buy a two bed property for around £60,000 to £70,000 seem to offer a sound investment as long as the demand is there from… Continue reading
Property prices in Ireland still rising but growth has slowed compared to a year ago
Residential property prices in Ireland increased by 7.4% in the 12 months to March 2016, down slightly from the 8% recorded in February. The latest data from the Central Statistics Office also show that while house prices are still rising the growth has slowed. In March 2015 the annual rise was 16.8%. Month on month property prices increased by 0.3% compared with no change recorded in February and an increase of 0.9% recorded in March of last year. In Dublin residential property prices increased by 0.9% in March and were 3.9% higher than a year ago. Dublin house prices increased by 1.2% in the month and were 4.1% higher compared to a year earlier. Dublin apartment prices were 1.6% higher when compared with the same month of 2015. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland decreased by 0.2% in March compared with an increase of 0.7% in March of last year. Prices were 10.5% higher than in March 2015. It means that house prices in Dublin are now 34.3% lower than at their highest level in early 2007. Apartments in Dublin are 41.2% lower than they were in February 2007. Residential property prices in Dublin are 36.3% lower than at their highest level in February 2007. The price of residential properties in the rest of Ireland is 35.4% lower than their highest level in September 2007. Overall, the national index is 33.6% lower than its highest level in 2007. Continue reading
UK house prices increase almost five time more in areas with low unemployment
Houses prices in the UK have increased by an average of almost £90,000 in the past decade in areas with lowest unemployment rate, the latest research data shows. This is almost five times more than in those area with high unemployment and the 10 areas with largest drop in unemployment saw house prices increase by 76%, according to the research report from Lloyds Bank. It means that the gap in house prices between areas with the highest and lowest levels of unemployment has widened significantly over the past 10 years. Average house prices in the 20 local authorities with the lowest rate of unemployment have risen by £89,446 since 2006, nearly five times the rise for those with highest unemployment, which increased by just £18,657 over the same period. The average house price for those high unemployment areas is £139,520 which is £102,655 or 42% below the national average price of £242,175. By contrast, areas with the lowest unemployment rates have an average price of £352,224 to £110,049, some 45% higher than the national average. ‘Employment boosts consumer confidence, helps put more cash into customers’ pockets and makes it easier to secure a mortgage, all of which drives increased housing activity,’ said Lloyds Bank mortgage products director Andrew Mason. ‘Unfortunately, in areas where more people find themselves out of work, house prices can stall as people are financially less able to progress up the property ladder, reducing demand. There are, however, other factors which affect house prices such as lower mortgage rates, improved affordability and low housing supply which will have contributed to rising prices in the past decade,’ he added. The 10 areas which have seen the largest falls in unemployment since 2006 recorded an average price increase of £200,155 or 76% to £464,373. Nine of these local authorities are in London, with Haringey, Hackney, Southwark and Waltham Forest seeing average home values almost doubling in the past decade. Over the same period these 10 areas recorded an average decline in unemployment claimants of 2.4% from 4.7% to 2.3%, four times the national decline of 0.6% from 2.5% to 1.9%.This is in marked contrast to the 10 areas with the poorest unemployment performance where unemployment claimants increased by an average of 0.5% since 2006, with average house prices growing by only £24,587 or 18%. Seven of these 10 areas are in the North West. In the UK as a whole over the past 10 years, average house prices grew by 34% or £61,575, whilst the average unemployment rate was 3%. Excluding London, the average price growth for Great Britain fell to £47,920 or 29%. The Lloyds Bank report also reveals that: The 10 areas with the lowest unemployment rates show an average house price rise of £107,000 or 36% since 2006. The four areas with the lowest average unemployment rate of 1% over the decade, Hart, West Oxfordshire, Mole Valley and North Dorset, recorded house price gains of between 33% and 44%… Continue reading
