Tag Archives: real estate
UK Home Counties prime property rents see highest quarterly increase for four years
Prime residential rents in the UK’s Home Counties increased by 3.5% in the first quarter of this year, the highest quarterly growth in nearly four years, the latest index figures show. On an annual basis prime residential rents have increased by 4.7%, according to the Home Counties Rental Index from real estate firm Knight Frank which also shows that this strong growth in prime rents between January and March was underpinned by an increase in demand. The data also shows that in the three months to March 2015, the number of tenancies agreed across the Home Counties increased by 18% compared with the same period in 2014. Meanwhile, the number of viewings rose by 26%, property inspections increased 37% and the total number of prospective tenants registering grew by 25%. Over this period, demand was strongest for family homes offered for up to £5,000 per month while three to five bedroom properties accounted for 55% of all tenancies agreed between January and March, a similar level to the average for 2014. Tenants have favoured towns with access to good schools, such as Beaconsfield, Ascot, Cobham and Esher. Though not prevalent, there is evidence to suggest that some tenants are renting before making a decision about purchasing in the area, a sort of try before you buy, the index report also suggests. Meanwhile, corporate demand from those relocating to the Home Counties for work also picked up in the first quarter. Interest from corporate tenants is expected to continue to increase as the summer months begin and this is when demand tends to be highest. In terms of nationalities, some 70% of new tenants in the first three months of the year were from the UK, followed by tenants from North America and Asia. Continue reading
UK residential rents up by over 2% in last 12 months, latest data shows
Private residential rental prices paid by tenants in Great Britain rose by 2.1% in the 12 months to March 2015, the latest index shows. Rental prices grew by 2.1% in England, 2.1% in Scotland and 0.8% in Wales in the 12 months to March 2015, according to the data from the Office of National Statistics. Rental prices increased in all the English regions over the year to March 2015, with rental prices increasing the most in London at 3.2%, the data also shows. It's no surprise rents are rising, according to Matt Hutchinson, director of flat and house share site SpareRoom.co.uk. ‘We have a chronic shortage of housing in the areas where jobs are being created, so rents continue to rise as supply fails to meet demand. In some areas of London we're seeing up to 13 people compete for every room advertised during peak months,’ he explained. He believes that whoever forms the next government after next month’s general election will need to look at introducing policies aimed at making housing, of all tenures, genuinely affordable. ‘The upward pressure on rents is rapidly making the situation both unmanageable and unsustainable for tenants,’ he added. Steve Bolton, chairman of Platinum Property Partners, pointed out that the blame for rising rental prices is often attributed to landlords, but it is because there are simply not enough suitable rental properties coming on to the market. ‘Rental demand is growing as first time buyers struggle to access the housing market and the UK’s workforce becomes increasingly mobile. At the same time, the number of new rental properties is lagging behind, creating a dangerous imbalance between supply and demand that is pushing rental prices upwards,’ he said. ‘Buy to let investors need to consider how they can meet growing rental demand in a way that is affordable for consumers. Houses in Multiple Occupation (HMOs) are a great way of creating high quality rental accommodation by making the most of existing housing stock,’ he explained. ‘They are also far more affordable than renting a one bedroom flat, providing young professionals with high quality accommodation that also enables them to save for their long term financial goals,’ he added. Continue reading
Most tenants fail to get all of their deposit back, new survey finds
The majority of people who’ve rented a property in the UK in the past five years have failed to get their full deposit back after vacating, new research has found. Some 52% of deposits were fully or partially withheld over the past five years, equivalent to more than 400,000 deposits per year and overall 80% of tenants had some degree of trouble getting their deposit back. The survey by London removals company Kiwi Movers also found that cleaning and minor repairs are the most common reasons for withheld deposits, however, 28% of respondents said their landlord delayed returning their deposit despite not making any deductions. Of those who said they experienced difficulties with their landlord when it came to the return of the deposit, 6% lost their entire deposit, the equivalent to 252,000 deposits being fully withheld over the past five years, and 46% lost part of their deposit. Some 20% said they got their full deposit back without any problems while 28% said they managed to get their deposit back in full only after a dispute with the landlord or letting agency. London is the deposit dispute hotspot, with residents in the capital almost twice as likely (11%) as the survey average (6%) to lose their whole deposit, while tenants aged between 18 and 24 living with friends, as opposed to living with a partner or spouse, living alone or with people they didn’t know prior to moving in, are most likely to lose their full deposit. ‘We've seen an increase in customers hiring professional cleaners before checking out of a rented property. It seems to be the only way to counter what they see as the inevitable attempts to withhold part of their deposit,’ said Kiwi Movers director Regan McMillan. ‘Our customers tell us they feel vulnerable unless they have paperwork to prove that they left the property in an acceptable state. Moving is stressful enough without having to worry about having your deposit unfairly withheld,’ he added. Amy Williams, a digital producer from Southampton took her London landlord to court and won after he withheld her deposit. ‘It was only a six month contract and the landlord tried to make us pay for problems that were in the flat when we moved in,’ she explained. ‘The court said it was wear and tear, ordered the landlord to return our deposit and told him that wear and tear was something he’d have to get used to. The landlord also choose to hold the court session not in London but on the south coast. But luckily because we won he had to pay for our train tickets too,’ she added. Daniel Zambas, a Manchester based musician, also took successful legal action against a former landlord. ‘The agent told us the landlord wasn’t going to return our deposit. We successfully challenged this and once we’d had our money… Continue reading
