Uk
UK rental market sees sharp rise in demand for one bed flats
Rent rises for one bedroom flats in the UK accelerated sharply in September, sparked by high demand from recent graduates renting to live near their first job, new research has found. Rents for one beds saw an annual rise of 3.9%, from 2.9% in August, reaching an average of £1,054 according to the monthly Landbay Rental Index. The new index, which launched last month, is the first to track rental trends to the county and London borough level in combination with the number of bedrooms. Edinburgh with a rise of 12%, Swindon up 11% and Southend on Sea also up 11%, saw the biggest rises in rents for one bed flats, albeit from lower average rents than some of the other areas to see big year on year increases. The index also shows that rents for three bed properties are seeing the biggest overall rental rises, up 4.8% year on year to £1,489 in September. Across all properties, UK rents rose by 3.7% in the last year to an average £1,288. This was the first increase in annual growth since February, when the average monthly rented price was £1,277. ‘The upward trend in UK rents can simply be explained with one word, jobs. The UK’s job market is going from strength to strength and the rental market is staying hot on its heels,’ said John Goodall, chief executive officer of Landbay. ‘The sharp seasonal jump in rental growth for one beds reflects a buoyant graduate job market as people move to their first job. Flexibility and freedom is the order of the day for first jobbers, and one bedroom flats offer the perfect springboard to take the plunge into full-time working life. One bed flats are also popular for couples and young professionals who don’t want to flat share,’ he explained. ‘Higher housing costs can be a nightmare for tenants when other costs are rising and their wages are stagnating. Fortunately these rent increases come at a time of growing wages and falling costs, according to the latest inflation figures, so while they may not be welcome they don’t leave the same dent in consumers’ pockets,’ he pointed out. ‘For potential investors, these rental figures show how resilient residential property is as an asset class, even when you have unusual economic forces combining like the current mix of low inflation, low interest rate, and high wages,’ he added. Across all property sizes, the top rental risers outside of London were in the southeast, with all but two of the top 10 rental risers of Swindon and Edinburgh, clustered around London. By contrast only one of the top 10 rental fallers, Buckinghamshire, was located in the southeast. According to Joe Macklin, director of index compilers MIAC, there is likely to be a small decline in data volume in the run up to… Continue reading
Demand from overseas buyers in the Alps rising, says latest index report
Demand for Alpine property is rising, spurred on by a more resilient Eurozone, greater clarity over tax and the second home cap in Switzerland, as well as a weaker euro, the latest index report says. Val d’Isere and Meribel in France have seen the biggest annual growth in property prices with a rise of 5.8% and 4.5% respectively, according to the 2015 Ski Property Index from international real estate firm Knight Frank. The index, which tracks the price performance of prime ski chalets across 15 key resorts in the French and Swiss Alps, indicates that prime sales activity in the French Alps is focussed between €1.5 and €2.5 million with resorts such as Chamonix and Courchevel 1550 increasingly popular. It also shows that the number of sales completed in Megeve in the first half of 2015 was double the number of sales agreed during the whole of 2014 and adds that previous uncertainty in the Swiss market is giving way to renewed optimism as clarity emerges surrounding taxation and the second home cap. Overall it says that the market is broadly stable with only 13% percentage points separating the strongest and weakest performer and currency movements have played a pivotal role in determining demand across the region. French resorts occupy the top five rankings this year as uncertainty surrounding Lex Weber in Switzerland dampened sales, and as a result price growth. In the past year ski homes in Europe’s top resorts have continued on the same trajectory that they have been following since 2008; no radical acceleration or deceleration just small single digit shifts year on year. Overall, the index proved largely static with only a marginal 1% fall recorded in the year to June 2015 and explains that in the case of a resort like Val d’Isere, for example, the length of its ski season explains its long standing appeal, particularly with British buyers. Few other Alpine resorts can guarantee sufficient snow to ski during both the Christmas and Easter holiday periods, it continues and in Meribel’s case, a combination of its location in the heart of The Three Valleys and its pricing explains its annual growth. Meribel provides better value than Courchevel 1850, but can compete with 1550 and 1650 in terms of facilities. Investment in the form of new residential developments such as Olympe in Les Allues and Point de Vue in Meribel Village has also helped to build confidence amongst buyers. In real price terms, the exclusive resorts of Courchevel 1850 and Gstaad come out on top, with prime prices typically around €25,000 and CHF30,000 per square meter respectively. A prime ski chalet in Gstaad is, on this basis, four times the price of an equivalent property in the French resort of St Gervais. The report also shows that in the French Alps, the focus of sales activity in the last 12 months has been within the €1.5 million and €2.5 million price bracket. The super prime market at… Continue reading
Docklands and surrounding area in London seeing mini property boom
London’s soaring technology, creative and financial industries are fuelling a mini property boom in locations such as Canary Wharf, Docklands, Greenwich and Blackheath, it is claimed. Property prices rising in some parts such as Blackheath increasing more than 50% faster than during the downturn, according to a new report from lettings and estate agents Chestertons. Prices rose in the first half of the year by 2.6% in Greenwich, 3.4% in Canary Wharf and Docklands 14.4% in Blackheath, according to Land Registry data, while Canary Wharf sales din the first nine months of 2015 were 7% higher than in the corresponding period of 2014. Meanwhile, development is soaring, buy to let investment is booming and many landlords are capitalising on the fierce demand for corporate lets, which can typically realise up to 50% more rental income than standard tenancies. ‘Sustained price growth makes Docklands and slightly adjacent areas such as Greenwich and Blackheath an ideal investment. London has now overtaken New York as the world’s undisputed finance capital, fuelling a jobs boom and a vigorous corporate rental market,’ said Cory Askew, area Director for Chestertons in North and East London. ‘Developers are piling in and the banks continue to provide favourable buy to let finance. With all of these components are in perfect harmony, the residential market here is thriving. We have seen a marked increase in buy to let investor registrations this year. It’s not hard to see why, as surely no other asset class can offer anywhere near these returns,’ added Skew. According to Bradley Bartlett, head of corporate and relocation services at Chestertons, the rising demand for residential property in these areas is being powered by London’s reinvigorated financial sector. ‘Areas such as Greenwich and Blackheath, with plenty of outdoor space and good transport links, are becoming hotspots for workers looking for a comfortable commute to the City or Canary Wharf. And with the current jobs boom, demand for corporate-standard property has never been higher. Our department has seen demand rise by almost a quarter year-on-year, and there’s no sign of the frenzy abating,’ he explained. ‘With a significant number of development sites between Greenwich and Canary Wharf currently under construction, we wait to see what the longer term effects are on the rental sector. There’s no supply crunch at present, but if this surge in demand continues in the coming parts of London’s east end will be set to rival Silicon Valley. In the mid to long term this will surely push rents upwards,’ he added. Continue reading
