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Seven out of 12 UK regions see rental growth, but not London
After a period of rent price rises in London outstripping the rest of the UK, the disparity between the growth rate of the London and nationwide rental markets is beginning to narrow, the latest index shows. The average rent in the UK is now £899, compared to £889 at the end of January 2015, and £873 in December 2014, according to the HomeLet rental index. It also shows that average rent prices in London have remained static in the three months to February 2015, versus the wider picture of predominantly rising prices. Indeed, seven out of 12 regions in the UK have seen rent prices rise in the three months to February 2015, with the North East and South West of England leading the way at 3.1% and 2.5% price growth respectively. There was also growth in East Anglia, the North West of England, Northern Ireland, the South East of England and Yorkshire and Humber while rental prices have not increased in Greater London and the West Midlands, and have fallen in Wales, the East Midlands and Scotland. Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with Northern Ireland rising 7.2%, the North East of England 6.2%, the South West of England 4.5% and East Anglia 3.7%. In contrast, rents agreed on new tenancies in London in February 2015 have fallen by 2.5% compared to the previous month. Scotland, the East Midlands and Wales have also seen prices agreed on new tenancies fall in February 2015 compared to January 2015. ‘Last year saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad based with the strongest rent price growth occurring outside of the capital. Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow,’ said Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet. ‘The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available,’ he added. Continue reading
Survey reveals gifts landlords give to tenants
Bad news stories tend to dominate the headlines when it comes to relationships between tenants and landlords in the UK but new research reveals that the relationship is often much more convivial. Indeed, some 34% of landlords have given a welcome or farewell gift to a tenant and 30% of tenants have received an act of kindness, according to a survey from tenant insurance provider Endsleigh. It shows 54% of tenants received help with DIY and 29% a bottle of wine as a result 72% of tenants said such acts positively changed their perception of their landlord. A positive relationship seems to have an impact on the length of tenancy too with 70% of tenants who receive an act of kindness staying in their property for 24 months or more, compared to just 53% who didn’t receive an act of kindness. Landlords were most likely to give a gift of a bottle of wine with the survey finding that 59% did so, followed by 49% giving cards and 25% plants and flowers. However, qualitative data shows landlords have given everything from Christmas hampers, home grown vegetables and gifts for children through to rent free months during periods of unemployment and topped up gas and electricity meters. The survey also investigated what the ideal relationship should be between the two parties. Half of the landlords surveyed said a professional relationship with a tenant is preferable and 49% of tenants agreed. More than a third, 36%, of tenants wanted a friendly relationship with their landlord compared with just 21% of landlords. However, of the landlords and tenants that answered ‘other’ to this question, many said they would prefer both a professional and friendly relationship. ‘The easiest and most stress free lettings come when there’s a good working relationship between the landlord and the tenant. Our survey results show it’s important to remain professional as a landlord, but also that tenants appreciate help getting settled into a property,’ said Endsleigh's lettings and landlords manager Marcus Latchford. ‘Providing a welcome hamper when a new tenant moves into a property will go a long way to setting the relationship off on a good foot. However, the thoughtful, practical gifts and gestures like offering to hang pictures on the wall or letting the tenant select flooring when redecorating add the most value,’ he added. The survey is part of Endsleigh’s 2015 ‘Better Relations’ campaign, which aims to encourage stress free lettings for both tenants and landlords. Continue reading
Demand for property in City of London pushes up home prices
The City of London and its surrounds are now firmly part of the prime central London residential property market as increased job creation, coupled with strong buyer demand, has underpinned property price growth. In fact, a number of economic and cultural factors have transformed the areas surrounding the City of London into some of the capital’s most active prime residential areas, according to a new report from real estate firm Knight Frank. Its latest analysis shows that transaction levels in the area, which runs from Farringdon in the West to Whitechapel in the east, were 19% higher in 2014 compared to 2012, and 42% higher than in 2011. ‘Growing demand has underpinned price growth, which has outperformed prime central London over the last three years and demand for housing has also been spurred by the relative value that is on offer, in terms of price per square foot, compared to the more traditional prime areas,’ said Oliver Knight of the firm’s residential research team. The report points out that the area benefits from existing high quality property stock including Georgian terraces as well as period commercial buildings, some of which have already lent themselves to conversion into large scale, open plan residential buildings not dissimilar to Tribeca in New York. The northern central quarter encompasses City Road, Old Street and Shoreditch and to the south it runs through the City of London as far as Tower Bridge and the outskirts of Midtown. The area boasts a wide cultural offering which includes Smithfield Market, Columbia Road Flower Market, Whitechapel Art Gallery and Brick Lane. Proximity to these, as well as a host of other landmarks, has helped contribute to rising demand from buyers for property in the area. In addition, the report points out that the evolution of new commercial areas has bought many thousands of new workers to the area, acting as a further boost to demand. This has tempted developers to tap into a need for supply of new residential space. ‘The activity in the area, in economic terms as well as development, is also helping to feed the demand for property. The fact that the City and its surrounding areas will be served by three Crossrail stations at Farringdon, Liverpool Street and Whitechapel, with extra station entrances at Barbican and Moorgate, is only likely to add to its appeal to both commercial and residential occupiers,’ explained Knight. ‘We expect that the mix of development, job creation and regeneration in the area means that its draw to homebuyers and investors is likely to continue to grow in the coming years. Further improvements to infrastructure and continued re-generation of the area will result in new amenities being delivered, as well as improvements to the public realm. This is likely to increase buyer demand for residential property in the area and could underpin future price rises,’ he said. The report also explains that transport is a key factor as it not only strengthens… Continue reading
