Tag Archives: stumbleupon
UK lettings agents report fewer rent rises in October
Fewer tenants are experiencing rent increases in the UK with the number of letting agents reporting rent rises falling to a quarter, according to the Association of Residential Letting Agents (ARLA) latest report. This is down from 32% in September meaning that the number of rent hikes in October is the lowest reported this year, the data from the ARLA private rental sector report shows. The data also shows that demand for rental properties dropped in October, alongside supply of available housing, a trend typical of the time of year. ARLA agents registered 33 new tenants on average per branch this month, the lowest amount this year. However, the London rental market bucked this trend. The report found that demand for rental housing in London continued to increase in October with an average of 42 prospective tenants registered per branch, up from 39 in September, an 8% increase. Supply of rental accommodation decreased in line with demand, dropping from 182 properties on average per branch in September, to just 173 in October. However, prospective renters in the East of England and the South West will have better luck finding a property; agents in those regions managed more properties in October than September, with 199 and 184 properties managed respectively. ‘Fewer agents reporting rent increases should bring some relief to tenants before Christmas. It’s definitely a step in the right direction, however a quarter of tenants are unfortunately still seeing hikes,’ said David Cox, ARLA managing director. ‘Although it’s typical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we except to pick up again in January,’ he added. Looking ahead to next year, ARLA hopes to see the number of tenants experiencing rent hikes remain low with supply and demand levelling out. ‘However, a lot is resting on the economic and political agenda. We’re still waiting for new houses, promised by the Prime Minister to be built,’ said Cox. ‘Whilst this will take pressure off the rental prices as supply rises, the changes to landlord tax proposed under the Finance Bill is likely to discourage new landlords from entering the market,’ he pointed out. ‘Further, it’s been a waiting game all year to see if Bank of England governor Mark Carney will raise interest rates in the New Year and this will play a big part in determining whether renters looking to buy a home will be able to afford to,’ he explained. ‘And when interest rates do rise, the goal of home ownership will be pushed further out of reach for many and of course put further pressure on the private rental sector,’ he added. Continue reading
House prices growth in UK cities on track for 10% growth in 2015
City level house price inflation in the UK is on track for 10% growth in 2015 as price increases accelerates in large regional cities, according to a new index report. Cities have seen annual house price growth of 9.4% per annum and the large regional cities outside southern England are recording an acceleration in growth off a low base, says the Hometrack UK Cities House Price Index. In Glasgow prices are up 8.3%, in Manchester up 7% and in Liverpool up 5.1%, meaning that these cities are registering the highest rates of annual house price growth since 2007. Glasgow house prices currently average £110,000, less than half the £229,300 average price across all the 20 cities measured by the index. House prices in Glasgow stopped falling three years ago and have since risen by 13%. In the last 12 months they are up by 8.3%, the highest rate of growth since August 2007. Manchester house prices have been recovering since 2012 and average house prices have risen by 17% over this time to £141,200. In the last 12 months house prices across Manchester have grown by 7%, the highest rate of growth since July 2007. Liverpool has registered the weakest house price performance of all the British cities covered by the index. House prices declined between 2007 and early 2013 and have since increased by 10.5%. In the last 12 months the rate of growth has risen to 5.1%, the highest since August 2007. Despite this modest recovery, the average price of £109,800 is still 13% lower than the 2007 peak. The recovery emerging in large regional cities contrasts strongly with the rise of London’s house prices where average values are up by 70% since 2009 and by over 100% in the highest value markets in central London. The report says that it is these high value markets that are now recording some of the weakest levels of house price growth as tax and currency changes impact demand after a period of stellar price appreciation. Kensington and Chelsea has seen prices fall by 2.6% and in the City of Westminster they are up by only 1.3%. ‘Improving consumer confidence and low mortgage rates are boosting demand in cities where the recovery in house prices is in its infancy. While southern cities have been in recovery mode for over six years with price gains of up to 70%, the large regional cities have seen far more modest price rises over just the last three years,’ said Richard Donnell, director of research at Hometrack. ‘Further house price growth is likely to improve market confidence as it pushes down loan to values on mortgaged homes and creates capacity for households to access cheaper credit. Many corporate investors and developers are looking to the major regional cities in search of better value for money in new investments relative to London,’ he explained. ‘The outlook for the next 12 to 18 months… Continue reading
Gross mortgage lending in UK jumps 8% month on month
Gross mortgage lending in the UK reached £21.8 billion in October, some 8% higher than the previous month, according to the latest estimates from the Council of Mortgage Lenders. In addition to the month on month rise, lending rose 19% year on year, from £18.4 billion in October 2014, the highest monthly figure since gross lending reached £23.6 billion in July 2008. ‘As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved. This looks set to continue over the closing months of the year with the factors helping support this recovery continuing to be low inflation, strong wage growth, an improving labour market and competitive mortgage deals,’ said Bob Pannell, CML chief economist. ‘As a result lending this year is likely to exceed our forecast of £209 billion, though affordability pressures will limit business volumes for first-time buyers and movers meaning that we think the market has only modest further upside potential over the short term,’ he added. According to Peter Rollings, chief executive officer of Marsh & Parsons, lending levels are at an impressive seven year high. ‘We’re yet to clear the pre-crisis July 2008 benchmark but over the summer the mortgage market has really taken it up a notch, and month on month improvements are getting more cheerful as we approach the festive season,’ he said. He pointed out that London has seen a significant boost in mortgage buyers and first time buyers since June, as domestic activity intensifies in the housing market. Mortgage buyers accounted for 65% of London property purchases in the third quarter of 2015, a significant leap from 52% the previous quarter. In addition to this 26% of all third quarter sales were to first time buyers. ‘Overall competitive mortgage rates and low inflation have paved a smoother road for buyers, and this has shifted the dynamic in the capital towards British buyers, as key tax changes still act as a speed bump to some overseas buyers and investors,’ added Rollings. John Eastgate, sales and marketing director of OneSavings Bank, pointed out that a scarcity of supply of property remains an issue in a lending market that is still driven very much be refinancing activity. ‘Wages are still growing, while deflation is bolstering incomes in real terms, supporting borrower’s finances. Negative inflation is also kicking a rate rise into the long grass, which is enabling lenders to offer historically attractive rates,’ he added. Demand is being driven by continued interest from prospective house buyers and a surge in the remortgage market, and this is being matched by the availability of finance, according to Henry Woodcock, principal mortgage consultant at IRESS. ‘Eyes are now turning towards end of year targets, fuelling interest rate competition between lenders, further stimulating borrower demand. With interest rate hikes now unlikely until the first half of 2016 at the earliest, the cost of servicing a mortgage… Continue reading
