Tag Archives: real estate
Scottish rents 1.6% higher than a year ago, latest data shows
Rents in Scotland have increased 1.6% compared to last April, marking a step up in annual rent growth after a period of cooler price rises, according to the latest index. This is the fastest year on year increase in rents for five months, according to the Scotland buy to let index from Your Move, one of Scotland’s largest lettings agent networks. Coming back from a winter dip, the pace of rent growth has increased solidly from a 1.3% annual rise in March 2015, and 1.1% in February. As of April 2015, the average residential rent across Scotland stands at a record £539 per month, matching the peak set in November 2014. While rent growth is quickening on an annual basis, in the month to April, average Scottish rents rose just 0.1%, the data also shows. ‘Scottish rents have peaked at a new apex, as lethargic supply of rental homes fails to match up to towering demand for homes to let. After rental prices plateaued over the winter months, we’re seeing annual rent rises start to ascend again,’ said Brian Moran, area lettings director at Your Move. ‘Affordability in the private rented sector now rests on new housing becoming available to let, and more choice for tenants, to keep rents competitive and rent rises in check. Solid rent rises offer clear encouragement for those contemplating buy to let investment, but fears of prohibitive rent controls and additional tenancy legislation in Scotland may be off putting, which could choke off new supply of rented homes, and drive up prices for tenants,’ he explained. Compared to last year, rents are now higher in three of five regions of Scotland. Rents in Glasgow and Clyde have experienced the greatest year on year increase, with typical rents up 5% since April 2014. The East saw the second biggest annual rise in rental prices at 1.7%, setting a new record for the area in April 2015, with the average monthly rent now £531. In the South of Scotland, rents have climbed a more modest 0.7% in the past 12 months. In two regions of Scotland, rents are now cheaper than they were a year previously. Edinburgh and the Lothians has witnessed the biggest fall in rent prices year on year, down 0.8% in the 12 months to April 2015. In the Highlands and Islands, rents are now 0.6% lower than in April 2014. On a monthly basis, rents have risen across three of five regions in Scotland. In Glasgow and Clyde, the average rent has climbed 0.8% in the past month, to £563. In both the East and the Highlands and Islands, rents have risen 0.3% since March. Rents in the South of Scotland have remained static month on month, staying at £498, the lowest average rent price across the whole of Scotland while Edinburgh and the Lothians is only region in Scotland to witness… Continue reading
Scotland sees boost in interest from buyers at home and abroad
There has been a clear increase in interest and property viewings across Scotland from local, national and international buyers, according to an independent consultancy. The traditionally busy spring period has been followed by even stronger growth in the first few weeks of summer with property valued up to £500,000 selling especially well, says CKD Galbraith which has offices across the country. However, homes valued above the £500,000 level are still tending to stay on the market for longer and overall the market has experienced the natural peaks and troughs in activity in the run up to events such as elections, referendums and holiday periods. But overall CKD Galbraith said its offices have witnessed a considerable increase in buyer activity recently with many sales resulting in competitive bidding and closing dates. ‘We have seen an especially strong surge in activity across the country recently and believe this is due to a number of factors. Political uncertainty has eased and potential buyers and sellers have a renewed confidence in the property markets from the south of England to the north of Scotland,’ said John Bound, partner at CKD Galbraith. ‘There has been increased activity right across Scotland and in Edinburgh demand for high end city centre property continues to rise. The Inverness office is experiencing some extremely positive movements. We were instructed on 26 new properties in the past three weeks and we are being invited to pitch for more on a daily basis. There have been over 50 viewings in a fortnight with prime property on the west coast continuing to do very well indeed,’ he pointed out. The Edinburgh property market made an extremely strong and promising start to 2015 and shows no signs of slowing down, despite any uncertainty which surrounded the general election, according to Lorna Donaldson from CKD Galbraith’s Edinburgh office. ‘During the first three months of 2015 the Edinburgh residential team sold over 40% of its city centre offerings to cash buyers, with just under half of all city sales going to closing date, and with properties achieving up to 14% over the home report valuation,’ she said. ‘May has definitely marked a return of confidence and increase in interest from buyers who are ready and able to act fast and pay a premium for the right property in their preferred location,’ she added. The firm’s Perth office has also reported a notable boost in activity with three properties having gone under offer in the last week alone and rising viewing figures for properties sensitively priced across all price brackets. The team in Perth is also preparing to launch a further 16 properties to the market and expect interest from buyers both locally and national, as well as the international buyer. The Castle Douglas office has seen a good level of new property coming to the market in Dumfries and Galloway. ‘Accurate and sensitive pricing remains key to buying and selling property in the region,’ said David Corrie. Continue reading
Charity claims rogue landlords are responsible for 740,000 unsafe homes in England
Rogue landlords in England are raking in £5.6 billion a year for 740,000 unsafe rented homes that fail to meet legal standards, a new study has found. These privately rented homes present a severe threat to tenants' health, according to the report from the Citizens Advice Bureau (CAB) with a host of dangers such as severe damp, rat infestations and the risk of explosions. Overall the study reports that 16% of privately rented homes are physically unsafe, far higher than the 6% in the social rented market, some 8% of privately rented homes have serious damp, 10% pose a risk of a dangerous fall and 6% are excessively cold. ‘Rogue landlords are putting profits before safety. With a growing private rental sector, increasing numbers of people are falling prey to landlords who fail to meet decent standards,’ said Gillian Guy, CAB chief executive. ‘The Government has rightly said it wants to tackle the country’s housing crisis and it must make targeting dodgy landlords, giving tenants better rights and driving up standards a major part of that effort,’ she added. With the cost of buying property rising steeply in many parts of the country, couples with children are now the most common household type in the private rental market and CAB says private renters are woefully under protected and have to navigate through numerous pieces of complex legislation to seek legal redress from landlords. It says that taking court action against a landlord can be long, complicated and expensive. This is compounded by the fact many complaints have to be made to local authorities, which often do not have the capacity to act quickly. The charity recommends that tenants should be entitled to rent refunds where properties are dangerous or not fit to live in and is calling for a national landlord register to be set up as this could help ensure landlords operating illegally cannot move to different areas to avoid legal action. It also says that councils should also set up local licensing to tackle specific issues in their private rental markets as this could help to ensure landlords are providing the quality of housing and service the area needs and ensure tenants know what they can expect from a good landlord. However, Richard Lambert, chief executive officer at the National Landlords Association, criticised the report as unfair to the vast majority of landlords. ‘We recognise that bad practice exists in private housing, that it can have a devastating effect on those it affects, and that it needs to be stamped out. But this report uses loose definitions to compound a perception that private housing is insecure and unsuitable across the board, and it ignores the weight of evidence to the contrary,’ he said. ‘The English Housing Survey finds that the average tenancy now lasts just shy of four years, and that only 7% of tenancies are ended by landlords. Our own research shows that 86% of families consider their properties as their home… Continue reading
