Uk
UK landlords seeing rise in tenant demand, especially from families
Almost half of landlords in the UK are reporting an increased demand for rental properties which is expected to continue over the next 12 months. Some 43% have experienced a rise in tenant demand and it is being driven by young people and families, according to the latest research by specialist buy to let lender Paragon Mortgages. It also shows that 51% expect this level of growth to continue over the next 12 months with 47% renting to young couples, 43% to young singles and 42% to families with children. ‘It is no surprise that rental demand is steadily increasing. With continued stress on the housing stock driving prices up, tough affordability hurdles for would be buyers and a social rented sector under pressure as a result of renewed interest in right to buy, a steady increase in rental demand was practically inevitable,’ said John Heron, Managing Director of Paragon Mortgages. ‘It is important that landlords continue to expand the supply of rented property in order to maintain balance and so avoid unsustainable increases in rents. A healthy, competitive and innovative buy to let market is critical to this,’ he added. Meanwhile, separate research shows that more than half of tenants say they experienced problems with their rented homes over the past 12 months, ranging from poor maintenance to breaches of their contract. The biggest problem, for 15% of tenants, was their landlord’s failure to fix structural problems including damp, a leaking roof or rotten window frames, according to the research by mortgage and loans provider Ocean Finance. A further 13% of tenants suffered delays in repairing broken furniture, showers and washing machines. 14% of tenants faced unexpected increases in their rent, disputes over money deducted from their deposits and even early eviction when their landlord sold their property. Tenants in London, where more than 10 million people live in private rental accommodation, fared the worst, with 60% saying they experienced problems in the past 12 months. This was followed by those in the East Midlands and the rest of the South East region. Some 35% of tenants said even though they complained to the landlord or letting agent, the problems were not fixed. While 13% said they didn’t know who to turn to for advice, while 5% took matters into their own hands and refused to pay their rent until the landlord resolved the problem. ‘Landlords have an obligation to ensure that the properties they let are well maintained and safe for their tenants to live in. The research indicates that many tenants are renting sub-standard properties. It’s also concerning that people are facing mid-tenancy rent increases or have money unexpectedly taken from their deposits,’ said Gareth Shilton, a spokesman for Ocean Finance. ‘One of the problems may be a lack of clarity over whose responsibility it is to maintain different aspects of a property. Often the landlord believes the tenant is responsible for doing repairs that in fact they are obligated to make,’ he… Continue reading
Property prices near London’s Olympic park outperform rest of the country
Property prices in areas surrounding the Olympic Park in London have increased by £1,500 per month since London won the bid in July 2005, new research shows. This rise is more than twice as fast as seen in the rest of England and Wales and these areas have also outperformed the rest of London since September 2012, according to an analysis by Lloyds Bank. The average property price in the 14 postal districts in East London closest to the Olympic Park has grown from £206,191 in July 2005 when the Games were awarded, to £378,884 in March 2015, an increase of 84% or £172,693, which is equivalent to a monthly increase of £1,476. In comparison in the rest of England and Wales property values grew on average by 41% over the period from £185,672 in July 2005 to £261,962 in March 2015. The analysis report says that recent price performance in areas surrounding the Olympic Park also compares favourably with London as a whole. Since the end of the Games in September 2012 the average price in the 14 East London areas has outperformed London with an increase of 33% compared to 25% in the capital as a whole. Over the same period average property values in England and Wales grew by 12%. In the past year, house prices in the 14 areas closest to the Olympic Park rose by 13%, from £334,123 in March 2014 to £378,884 a year later, compared to 10% in London. Stratford, where the Olympic Park in located, recorded the largest price growth in the past year, at 22%, followed closely by Plaistow and Walthamstow both at 21%. ‘When London won the bid to host the 2012 Olympic Games many within the organising committee saw this as the perfect opportunity to regenerate the East London area. A decade on, the impact of major investment is there for all to see such as improved rail and tube networks, a high class retail environment and the gradual conversion of the Olympic sites into residential homes,’ said Andy Hulme, Lloyds Bank mortgages director. ‘The improved attractiveness of living is this area of London has resulted in rising property values. Since July 2005 average house price in the 14 areas closest to the Olympic Park has increased at more than twice the average rate in England and Wales. And, since the end of Games in September 2012 price growth in this area has outperformed London as a whole,’ he added. The research also shows that since July 2005 five of the 14 areas close to Olympic site have seen their average price rise by over £200,000. Dalston has recorded the largest increase at £285,800, followed by Shoreditch at £261,054, Clapton at £244,591, Bethnal Green at £233,076 and Homerton at £220,761. Six other areas recorded price increase of at least £100,000 including Walthamstow at £170,006, Leytonstone at £167.559 and Bow at £136,683. Eleven of these areas now have an average house price of over… Continue reading
UK first time buyers now buy almost half of all homes with a mortgage
First time buyers in the UK account for almost half of all homes bought with a mortgage, a rise of 38% since 2011, new research shows. They make up 47% and are having to find a 6% higher deposit than a year ago but save when it comes to Stamp Duty, especially when buying in London, the study from the Halifax shows. Overall there were an estimated 139,500 first time buyers in the first six months of 2015, a 7% fall compared with the same period in 2014 and although this is the first annual decrease on this basis since the first half of 2011, it is still the highest total for the first six months of the year since 2007 and was 92% higher than the market low recorded in the first half of 2009. And despite the decline in purchases by first time buyers this year as a proportion of all mortgage financed house purchasers the proportion remains steady. Indeed, the number of FTBs has increased more rapidly than the number of subsequent buyers over the past few years, from 38% in 2011 to 47% in 2015. The average first time deposit in May 2015 was £29,894, 6% higher than in May 2014 and the report explains that this largely reflects the increase in house prices over the past year. The average first time deposit is now 82% or £13,494 higher than in 2007. Recent changes to stamp duty have saved the average first time buyer £716, reducing the tax bill for someone buying the average priced of £178,370 from £1,783 to £1,067. Savings for the average first time in London are much bigger than this with a reduction in the stamp duty bill for the average first property in the capital of £3,154. ‘There was a modest decline in the number of first time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been in line with the general softening in market activity,’ said Craig McKinlay, Halifax mortgages director. ‘However, there are now signs of a pick-up in mortgage activity as the economy continues to recover and mortgage interest rates remain at very low levels. These factors could boost the number of first time buyers during the second half of the year,’ he added. The research also shows that the average price paid by first time buyers increased by 8% over the past year from £165,829 to £178,370, some 9% higher than in 2007 while in Greater London it is £342,313, more than £100,000 higher than the next most expensive region, the South East at £225,383. Northern Ireland is the least expensive region in the UK for a first time buyer with an average price of £104,240. The average deposit, as a proportion of the purchase price, has fallen from 20% in 2013 to 17% in 2015. It, nonetheless, remains significantly higher than in 2007 when it was 10%. First time… Continue reading
