Tag Archives: real-estate
Rent rises in England and Wales slowing but reach record high
Residential rents have eased across England and Wales, slowly up to reach an all-time record high as the rental market approaches its autumn peak, according to the latest buy to let in The average residential rent across England and Wales is now £761 per month, some £3 higher than the previous record £758 set in October 2013, the data from lettings agent networks Your Move and Reeds Rains shows. On a monthly basis August rents are on average 1.1% higher than was seen in July, an increase of £8 which leaves monthly rents 2.4% higher than a year ago. In absolute terms this annual growth represents an increase of £15. ‘Autumn is when more people move to take up new opportunities, to build new careers and to start new chapters. That is what the rental market is all about for many people by providing flexibility and it’s what it does well at a cost that’s risen in line with inflation for at least half a decade,’ said David Brown, commercial director of LSL Property Services. ‘No year is the same, and already 2014 has been like no other. The reawakening of mortgage lending startled the property market into a new spring of life earlier in the year. The benefits have been felt across the board, not just for first-time buyers but for tenants too. Investment means rents are now only 1% higher in real terms than at the start of 2010,’ he explained. He pointed out that now that the independence vote is over in Scotland the main issue is over tenant fees. ‘Banning tenant fees in Scotland pushed up rents by £312 per year, or multiple times what a tenant would have paid at the start of a tenancy. Across every corner of Britain this should serve as a lesson in fully thought through policy making,’ said Brown. A breakdown of the data shows that rents in seven out of 10 regions of England and Wales are higher than a year ago. This is led by the South West, where rents are up 3.5% on an annual basis, followed by the South East at 3.4%, and the North West with a 3.3% annual rise. London was not in the top three, with annual rent rises of only 3% while rents in the North East are in fact 1.6% lower than a year ago, while the West Midlands and Wales experienced annual falls of 0.4% and 0.1% respectively. On a monthly basis rents in the North East have by contrast matched London, with both seeing a 1.5% increase in rents since July. Only rents in the South East and the South West of England grew faster on a monthly basis, up 1.7% from July. In total three regions are now seeing lower rents than in July. Alongside annual falls, rents in Wales and the West Midlands are lower… Continue reading
Referendum decision set to boost Scotland’s commercial property markets
The No vote in the Scottish referendum has lifted an uncertainty for commercial property markets for businesses on both sides of the border, according to real estate firms. However, according to Walter Boettcher, director of research and forecasting with global commercial real estate services firm Colliers International, while the No vote might suggest that little has changed, in reality it may be the beginnings of a fundamental shift UK wide between local governments and central government. He believes that the referendum has highlighted how a new balance of local and central powers and decision making must evolve to accommodate local aspirations and perceptions of economic opportunity. Regions must have the power to determine their own economic strategies and exploit what they see as their own competitive advantages. ‘Scotland will remain part of the United Kingdom, but it will be a Scotland that will join in unison with other UK regions who have also been seeking greater self-determination in regional policy making,’ he said. ‘From a narrow business perspective, economic and financial confidence has perhaps regained its balance and this will drive higher levels of activity as pent up demand and projects shelved temporarily will be dusted off and pushed through. Certainly property sector leasing and investment transactions both north and south of the border will see a decisive boost,’ he explained. ‘From a broader strategic business perspective, given international appetite for infrastructural development by sovereign wealth funds in a very low interest rate environment, the opportunity for commercial real estate investment and development is staggering and may sustain activity levels well beyond the normal limits of traditional property cycles,’ he added. Overall the result should provide a welcome boost to Scotland’s property market, according to Alasdair Humphery, lead director for JLL in Scotland. ‘Uncertainty surrounding the possible outcome of the referendum has undoubtedly been a factor in the decision making process for many potential occupiers and investors, although some will continue to hold back commitments until there is a clear indication of what that result means for Scotland and wider United Kingdom,’ he said. ‘Following the result, I am optimistic we’ll see more confidence returning to the market and an increase in activity from international occupiers, some of whom had previously been reluctant to progress expansion plans,’ he added. He pointed out that the constitutional and fiscal changes that will occur if Scotland is granted devo max are at this early stage an unknown quantity. ‘We will clearly be keeping a close eye on proposals for further devolution of powers, and what these might mean for our clients not only in Scotland but across the UK. However, the devil is in the detail, and much of this detail has yet to be worked out,’ he said. ‘We’ll be monitoring developments over the coming months to form a better sense of what the Scottish property market will look like for our clients and how we can best… Continue reading
Canadian prices expected to rise 5.9% this year but only 0.7% in 2015
The national average home price in Canada is now projected to rise by 5.9% to $405,000 in 2014 and a further 0.7% in 2015, according to the latest forecast. The Canadian Real Estate Association is also predicting similar price gains in British Columbia, Alberta, and Ontario while increases of just below 3% are forecast for Saskatchewan, Manitoba and Prince Edward Island. Newfoundland and Labrador is forecast to see average home price rise by about 1% this year, while Quebec is forecast to see an increase half that size. Prices are forecast to be flat in New Brunswick and fall by almost 2% in Nova Scotia. Alberta and Manitoba are forecast to post average price gains of almost 2% in 2015, followed closely followed by Ontario at 1.3%. Average prices in other provinces are forecast to remain stable, edging up by less than 1%. The CREA outlook report points out that an extraordinarily bleak winter delayed the start to the spring home buying season earlier this year. This deferral boosted activity in May and June as properties were snapped up after finally hitting the market, particularly in markets with a shortage of listings. Although this boost was and still is expected to be transitory, sales have yet to show signs of cooling as activity strengthened slightly further over the summer. The increase reflects continuing strength in home sales among large urban markets that initially drove the spring rebound together with gains in markets where activity had previously struggled to gain traction. Lowered mortgage interest rates supported this trend. Sales are now forecast to reach 475,000 units in 2014, representing an increase of 3.8% compared to 2013. This is upwardly revised from CREA’s forecast of 463,400 sales published in June, and reflects stronger than expected sales in recent months. Even so, sales activity is expected to peak in the third quarter as the impact of a deferred spring dissipates and continuing home price increases erode housing affordability. This would place activity in 2014 slightly above but still broadly in line with its 10 year average. Despite periods of monthly volatility since the recession of 2008/2009, annual activity has remained stable within a fairly narrow range around its 10 year average. This stability contrasts sharply to the rapid growth in sales in the early 2000s prior to the recession. British Columbia is forecast to post the largest year on year increase in activity at 11.9% followed closely by Alberta at 7.7%. Demand in both of these provinces is currently running at multi-year highs. Activity in Saskatchewan, Manitoba, Ontario, Quebec and New Brunswick is expected to come in roughly in line with 2013 levels, with sales increases ranging between 1% and 2% in the first three provinces and edging lower by about 1% lower sales in the latter two provinces. Continue reading
