Tag Archives: news
Home Counties prime property rents down month on month and year on year
Prime rents across the English Home Counties, locations that are popular with people who commute to work in London, fell by 0.6% between April and June, according to the latest index. The Knight Frank rental index also shows that on an annual basis rents were 0.8% lower than a year previously and adds that the fall in quarterly and annual rental growth has been driven by higher stock levels and a desire from landlords to remain competitive and keep void periods to a minimum in what is increasingly a tenant’s market. However, the index report points out that underlying demand for rental property remains strong, with the number of new prospective tenants registering in the second quarter some 6% higher than the same period in 2015 and the number of viewings up by 12% year on year. The data also shows that the number of new tenancies agreed between April and June was almost identical to the same period in 2015 and 28% higher than in 2014. However, despite robust activity levels, agents note that any upwards pressure on rents has been countered by rising stock, especially at the top end of the market. ‘In the wake of the European Union referendum, there is already anecdotal evidence that some vendors are deciding to let their property until more clarity emerges, and this could further weigh on rental values in the medium term,’ said Knight Frank associate Oliver Knight. The index reveals that the market continued to attract international tenants in the second quarter. Indeed, some 38% of new renters across the prime Home Counties market were non-UK nationals between April and June in Ascot, Cobham and Esher, where corporate tenancies tend to be more prevalent this rose to 47%, although some of these tenants will already be domiciled in the UK. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor, the report explains. Corporate enquiries were more than double the level in June and 19% higher than in February, the second busiest month of the year to date. Executives being relocated by their companies for work, both from London and internationally, have historically formed a large part of demand within the Home Counties lettings market. ‘As such, any rise in economic and business uncertainty as a result of the vote to leave the EU has the potential to weigh on demand for rental property as companies take stock of the new environment or look to make budget cuts,’ Oliver explained. ‘However, while our figures show a notable slowdown in the number of enquiries from relocation agents in the immediate run-up to the referendum, the number of enquiries in July was at the highest level all year, suggesting a degree of pent-up demand in spite of the UK’s vote to leave the EU,’ he added. The report also points out that the prime rental market in… Continue reading
Research shows just 18% of UK mortgage holders overpay to reduce their loan
Mortgage holders in the UK could save over £1,800 in interest alone through regular overpayments, according to new research. Some 18% overpay on their mortgage every time a payment is due and 11% have even delayed buying a new car to make the extra payment, however 58% never overpay. Overall UK mortgage holders could save over £14 billion over the next two decades by regularly overpaying, the research from Comparethemarket shows. Overpaying each month by as little as £59, or around 10% of an average monthly payment, means mortgage holders could reduce their mortgage term by approximately one year and four months and possibly save £1,842 on interest alone. For first time buyers the potential savings are even greater. Mortgage holders between 25 and 34 years old could reduce their mortgage term by approximately two years and eight months and save roughly £6,553 on interest by overpaying by 10%. Many home owners are already aware of the benefits of overpayment. The survey found that 52% said that contributing more towards their mortgage each month would make them feel more financially secure, with 19% agreeing that it would make them feel much more secure. Those who do regularly contribute extra to their mortgage overpay by an average of 4.7%. Nearly a fifth said that they overpay every time a payment is due and 15% admitted to overpaying by more than 10% in the last 12 months. Many mortgage holders are willing to give up day to day luxuries in order to afford overpayments. To pay off more of their mortgage, over one in ten people delayed buying a new car, 18% had not taken a holiday abroad and over a fifth put off buying a luxury item such as expensive clothes or a new gadget such as an iPad. However the majority of people still hesitate to put more money towards their mortgage every month, with 58% admitting to never overpaying. Of those who don’t overpay, a fifth think they have too many other outgoings such as household bills, and one in 10 were not aware they could overpay on their mortgage or thought it seemed too complicated. Of those who do not overpay, 44% thought they couldn’t afford the extra payments, yet respondents also said they spent on average £167 each month on non-necessity items, with nearly one in 10 admitting to more than £300. The research also shows that 25 to 34 year olds admitted to spending closer to £210 on luxuries such as going out for dinner or attending the theatre. ‘As a nation we are getting more proactive in searching for the best deals, whether on energy providers or insurance. Whilst committing more of your pay cheque towards your mortgage can seem financially daunting, making small contributions each month, or even a one-off lump sum overpayment, could save mortgage holders thousands of pounds in the long term,’ said Jody Baker, head of money at the comparison website. ‘Sacrificing one meal… Continue reading
Homes to buy are more affordable in many US metros than renters think, research suggests
Home ownership in the United States has slowly fallen in recent years to currently its lowest level since 1965 but new research from the National Association of Realtors suggests that could be halted. The research shows that there are many affordable metro areas and a large segment of current people who rent their home earn enough income to qualify to buy a property. NAR reviewed employment growth, household income and qualifying income levels in nearly100 of the largest metropolitan statistical areas across the country to determine which areas with employment gains above the recent national average also have the largest share of renters who can currently afford to buy a home. Of the top 10 metro areas with the highest share of renters who earn enough to buy, nine were either in the South or Midwest, including three cities in Ohio. Lawrence Yun, NAR chief economist, pointed out that there has been a significant increase in renter households both among young adults and those who lost their home since the economic downturn, especially in metro areas that have seen robust job creation and a resulting influx of new residents. ‘Even in a time of expanding home sales, steady job growth and historically low mortgage rates, the homeownership rate recently tumbled to its lowest level in over five decades as many renters struggle to juggle escalating rents without commensurate income gains,’ he said. ‘However, this new study reveals that there are several affordable, middle tier markets with solid job gains and a large segment of renters who earn enough to buy,’ he added. The top 10 metro areas highlighted in NAR’s study were all outside of the West Coast and each had a share of renters who qualify to buy that was well above the national level of 28%. Top is Toledo in Ohio and Little Rock in Arkansas both with 46%, followed by Dayton in Ohio at 44%, Lakeland in Florida, St. Louis in Missouri and Columbia in South Carolina all at 41%, Atlanta at 40% and then Columbus in Ohio, Tampa in Florida and Ogden in Utah all at 38%. According to Yun, it's no surprise that many of the markets with the most renters qualified to buy are in the Midwest and South. The median existing home sales price in these two regions continue to be lower than the Northeast and West, and while many of these areas were slower to recover from the recession, improvements in their local labour markets in the past year have pushed their hiring levels to at or above the national average growth rate. ‘Overall housing affordability and local job market strength play a pivotal role in a renter's decision on whether to buy a home or sign another lease. The good news is that other recent NAR survey data shows that those residing in the two regions were the most likely to say that now is a good time… Continue reading
