Tag Archives: real estate
Monthly residential rents in Ireland up 7.1% quarter on quarter, latest index shows
Monthly rents for private sector accommodation across the Ireland increased by 7.1% in the second quarter of this year compared with the same period last year, the latest published data shows. Nationally, rents for houses were 6.4% higher, while apartment rents were 7.6% higher than in the second quarter of 2014, according to the data from the Private Rented Tenancies Board (PRTB) which is regarded as the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland. Annual growth in the Dublin market was stronger, up by 9.2%. Dublin house rents were up 8.8% and Dublin apartment rents were higher by 9.4%. However, annual growth in rents for the market outside Dublin remains more subdued, recording growth of 5.8% when compared to the second quarter of 2014. There is also a gap in the performance by property type. The rent for houses outside Dublin increased by 5.8%, while apartments outside Dublin experienced an increase of 5.9%, according to the data which is based on actual rents being paid rather than asking or advertised rents. The rent for private sector accommodation across the whole country in was €878, up from €820 in the second quarter of 2014. The rent for apartments nationally was €922 compared to €857 a year earlier and for a house it was €853 compared to €801 a year earlier. In Dublin, the rent was €1,387 for a house and €1,260 for an apartment compare to €1,275 and €1,152 respectively in the second quarter of 2014. This represents a monthly increase in Dublin rent of €112 for a house and €108 for an apartment over the course of the 12 month period. Outside Dublin, the rent was €677, with houses averaging €695 and apartments €660. A year earlier, these figures stood at €640, €656 and €623 respectively. This represents a monthly increase in rent outside of Dublin of €39 for a house and €37 for an apartment in the 12 month period. Looking at the quarter on quarter picture for 2015, nationally the rate of increase in monthly rent levels was 2.9% in the second quarter of this year compared to the first quarter of 2015. This compares to a national quarterly growth rate of 1.3% in the first quarter of 2015. Looking at trends in more detail, monthly rents for houses recorded quarter on quarter growth of 2.4% in the second quarter of the year, while rents for apartments grew by 3% when compared with the first quarter of 2015. The results show quarterly growth in rents outside Dublin of 2%, with rents in Dublin showing stronger growth of 4.2% in the quarter. Rents for houses in Dublin grew by 2.9% compared to the first quarter of 2015, while Dublin apartment rents were higher by 4% in the quarter The rent indices show, for properties outside Dublin, rents in the second quarter of 2015, when compared with the first quarter… Continue reading
Investment in student housing set to rise in the UK
London’s full time student population is expected to rise by 50% in the next 10 years while capital flows into student housing is expected to triple reaching £5.7 billion by the end of 2015, new research shows. Indeed, direct investment in the UK student housing market has surged over the past two years, rising from under £500 million in 2010 to £3.8 billion over the first half of 2015 and £1.5 billion in London, says the report by property firm JLL. Non-European Union students have been the fastest growing segment, with numbers increasing by 50% over 10 years and a recent study by London First shows that international students bring a net benefit of £2.3 billion per annum to London's economy supporting 60,000 jobs in the capital. The research further highlighted that rising house prices and constraints on mortgage lending have forced more people into rented accommodation. More students are also renting and 28% of London’s student population are living in Houses of Multiple Occupation (HMOs). The provision of university managed accommodation has not kept pace with the growth in student numbers and the increasing quality and quantity of PBSA stock has provided students with a welcome alternative to the rising rental costs of HMOs, the report points out. Additionally, two of the fastest growing segments of London’s student population are overseas and postgraduate students, who have occupied much of the PBSA (Purpose Built Student Accommodation). ‘We have seen extraordinary growth in UK student numbers over the past 20 years and while UK student numbers are now stabilised, international student numbers set to rise dramatically in the next decade,’ said Philip Hillman, chairman of JLL’s Alternative Division. ‘The provision of good quality student accommodation was traditionally the responsibility of the universities but in recent years, most new accommodation had been provided by private investors and developers,’ he explained. ‘The Gross Value Added supported by student spending throughout the UK is of the order of £25 billion per annum. This represents 1.03% of UK GDP. Put in perspective, this figure is equivalent to one third of the total contribution of the aviation sector to UK GDP,’ he added. According to Himanshu Wani, associate director of UK research at JLL, purpose built student accommodation in the UK has seen a significant rise in investment activity, with projected capital flows into the sector of £5.7 billion by the end of 2015, up from £1.7 billion in 2014. ‘This is especially pronounced in London, with one of the largest student populations globally, supporting strong demand for student housing. Indeed, with the London student population expected to rise by 50% by 2025, one of the main challenges will be developing sufficient supply,’ he said. The report points out that student housing is one of the largest sub-sectors within the ‘alternative’ property asset class. Alternatives comprise all of the real estate sectors beyond traditional office,… Continue reading
Over half of UK home borrowers will struggle if interest rates rise, says new poll
Some 52% of borrowers in the UK believe they will struggle or fall behind with mortgage repayments when interest rates rise, according to new research published by the Building Societies Association. The survey has revealed that one tenth would experience real financial problems. A further 14% said they would be able keep up with repayments, but it would be a constant struggle, while almost a quarter, 23%, said that they would experience difficulty from time to time. When questioned about the impact on their lifestyle, 18% of borrowers said they will have to cut back on essentials such as food or clothing in order to make their monthly repayments. A further 15% said they will have to work more hours in order to keep on top of their mortgage commitments. ‘Concern from borrowers is natural when it comes to interest rate rises. There are at least 1.85 million home owners that have never experienced a rate rise, we have a record low Bank Base Rate for so long, it is unsurprising that some people are concerned that a rise in rates will affect their lifestyles and ability to make mortgage repayments,’ said Paul Broadhead, head of mortgage policy at the BSA. ‘Clearly some of the actions borrowers say they would take may not be within their control, for example working additional hours. Our advice to those concerned about interest rate rises is to start thinking about how they will manage the increased costs. This could include creating a household budget, to taking a look at mortgage calculators and rescheduling unsecured loans such as credit cards. Free money advice is available for those that are concerned,’ he explained. ‘The good news is that the results of our survey show nearly a quarter of borrowers will not have to make any changes to their lifestyle when interest rates rise. With the economy more stable than it has been for years, this is a positive result,’ he pointed out. ‘That said, with inflation near zero and the Monetary Policy Committee voting by a majority of eight to one to maintain the Bank Rate at 0.5%, it is looking unlikely that things will change before well into 2016,’ he added. Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline, said that after years of low rates, borrowers’ minds are beginning to focus on the prospect of higher interest rates, and what this will mean for their finances. ‘Nevertheless, many mortgage payers are still in for a big financial shock when rates do start to climb and we remain concerned that many will fall into problem debt as a result. We must not forget that renters, too, are likely to be affected as extra mortgage costs are passed on by landlords,’ she explained. ‘Households now have a window of opportunity to re-assess their budgets, look again at their borrowing and think about how they will cope with higher interest rates. It is crucial… Continue reading
