Uk
Scottish residential rents up 3.1% in a year
Year on year residential rents in Scotland increased by 3.1% in June, up from the 2.7% recorded in the previous month, the latest index data shows. This rise takes average rents to a new peak of £549 a month and June’s figure represents the fastest year on year rise since April 2014, according to the buy to let index from lettings agent Your Move. Rents also increased month on month, up 0.8%, which was a slight slowdown from the 1% recorded in May. But in the preceding six months rents were climbing at a rate of only 0.1% per month. The index shows that rents are hitting all-time local records in the parts of Scotland that have traditionally been more affordable to live, where rental prices are usually lower. On an annual basis, rents have risen across all five regions of Scotland and as rent growth accelerates across the country, new price records have been set in the East, Highlands and Islands and the South. Glasgow & Clyde have seen the biggest boost in rents year on year, with typical rental rises up 4.6% since June 2014. Rents in the Highlands and Islands have jumped 4.3% in the past twelve months, taking the average monthly rent to a record high of £563. Similarly, rents in the East and South of Scotland have both reached a new peak following annual rent rises of 4% and 2.1% respectively. In contrast, Edinburgh and the Lothian’s has experienced the smallest yearly increase of only 0.8% but this marks an improvement from negative growth in the year to May 2015. Rents in all five regions of Scotland are also higher month on month. The average monthly rent in the Highlands and Islands has risen at the quickest pace since May, increasing by 2.4%. Compared to the previous month, Edinburgh and the Lothian’s have seen a 1.7% rise in June. This brings the average rent in the area to £604 as it continues to be the most expensive location in Scotland to rent. In Glasgow and Clyde rents are 0.6% higher since May, and the South has witnessed a 0.5% monthly climb in rental prices. The East of Scotland has seen a more modest 0.2% uplift in the month to June 2015, a considerable slowdown. ‘It’s not just the big urban centres of Edinburgh and Glasgow which are coming up against an urgent shortfall of housing. There is strong demand for homes to let the length and breadth of the nation, and that is underpinning this build-up in rental prices,’ said Brian Moran Your Move lettings director. The index also shows that as of June 2015, the average gross yield on a rental property in Scotland stands at 3.8%, on par with the previous month, but down on a year ago when gross yields were 4% in June 2014. Taking into account property price growth and void periods between tenants,… Continue reading
Residential property sales up in UK after election slowdown
Residential property sales in the UK increased by 4.7% between May and June 2015 and the seasonally adjusted transaction figure was 3.2% higher compared with the same month last year. he official data from HMRC also shows a total of 104,590 residential and 10,460 non-residential transactions in June. The number of non-adjusted residential transactions was 15.7% higher compared with May 2015 and the number of non-adjusted residential transactions was 5.8% higher than in May 2014. It means that the UK property market is back on track after disruption caused by a wait and see attitude in the run up to May’s general elections, according to Peter Rollings, chief executive officer of Marsh & Parsons. He said that the jump in sales in June has started to make up for any shortfall in the months preceding the general election and the market is seeing growth on an annual basis once again. ‘In London, supply of properties for sale and buyer demand are head to head, squaring up for steady price growth over the rest of the summer. Confidence is returning to the capital once again, particularly in the sector £1 million,’ he explained. ‘Buyer registrations are building as aspiring home owners seize hold of low mortgage rates and other incentive schemes currently available to them,’ he added. Continue reading
Catchment areas of good schools in UK attracting higher property rent premium
Competition for school places in some of the UK’s best educational establishments is affecting the private rental market with more homes near them being rented to families, new research suggests. Some 28% of properties rented around schools with outstanding ratings from school inspectors OFSTED went to families with children, up from 26% in 2014 and 9% in 2008 In London competition for school places means that for the first time over half of properties rented around the best schools go to families with children, according to the latest quarterly lettings index from Countrywide plc. The firm suggests that while this is a product of the significant increase in competition for school places, the growing number of families living in the private rented sector means more of them move both for work and their children’s education. While the figures in London are most marked for schools rated outstanding, the pressure on school places in the capital means there has been uplift in families with children renting in the area surrounding most schools. Given it is the address from which the school application is made in January that the application is assessed against, the summer months are when most families think about moving. Over half of families with children in the private rented sector move during June, July, August or September in time for the forthcoming academic year. Households with children moving into the area close to an outstanding school don’t move far, an average of just half a mile. This confirms the fine margins involved getting into school catchment areas. This distance is considerably shorter than the three miles the average households in the private rented sector moves, the report explains. As with house prices, tenants pay a premium to live close to a high performing school. Given tenants move more often than home owners, this premium tends to be smaller. In 2015 the average tenant living within a kilometre of a school rated outstanding paid 14% more than someone living more than a kilometre away. While the premium attached to one and two bedroom flats is almost negligible, tenants living in three or four bedroom houses pay an average of 16% more. Where catchment areas are particularly tightly defined, a house on one side of the road can be let for 15% to 20% more than an identical house on the other side. ‘There are 1.6 million families with children living in the private rented sector, 20% more than last year, which means school catchment areas are becoming increasingly relevant to the rental market,’ said David Fell, research analyst at Countrywide. ‘Many of these families are choosing to rent close to the school gates and in some cases parents are taking advantage of the flexibility of renting to move from the fringes of their preferred school’s catchment area to ensure their child’s entry,’ he pointed out. ‘The flexibility of renting can… Continue reading
