London
Homes in London, the south east and south west sell more often
Homes in London and the South East and South West of England change hands much more frequently than those in other parts of the country, according to a new analysis. Properties are held by their owners for an average of just 16 years in the South East and 17 years in London and the South West. By contrast, home owners in the North East are keeping their homes the longest, with property changing hands every 22 years on average, 36% longer between sales than the South East. The research report from mover conveyancing services firm My Home Move, says that a higher rate of property ‘turnover’ between owners is a sign of a healthy housing market as people move to new areas for work, upgrade to a larger home to accommodate a growing family or downsize when they no longer need the extra space. ‘Homes in healthy property markets change hands often, as people move up the housing ladder or move to new areas for jobs or a change of lifestyle. Our research reveals that the stronger job market and higher incomes in the South mean that people buy and sell homes more often than in the North,’ said the firm’s chief executive officer Doug Crawford. ‘Interestingly, it’s not just the South East that has a relatively healthy number of homes changing hands as the West Country is also thriving. Regional towns like Exeter, Bath and Bristol have vibrant housing markets and the region as a whole also benefits from people moving there from other parts of England for a slice of the good life,’ he added. The research also found that the amount of time between house sales has fallen dramatically over the last five years, down by 24% across England as a whole from once every 25 years to an average of every 19 years. The greatest improvement was seen in the Yorkshire and Humberside region which saw the time between sales fall from once every 28 years to once every 19 years. This was followed by the East Midlands, improving from once every 25 years to once every 18 years. Crawford believes that it is reassuring to see that homes are changing hands much more often than they were five years ago. ‘This has been a period of economic growth and the house market has been improving hand in hand with the economy. The combination of low inflation, reduced unemployment and improving wages means that people feel confident in their prospects and are more enthusiastic about moving to a new home,’ he explained. ‘At the same time, improving mortgage availability and low interest costs have made it easier for consumers to finance a home purchase. With interest rates set to stay low for longer, according to the latest Bank of England predictions, the next 12 months could see a further improvement in the housing market across the country,’ he added. Continue reading
Residential rents in Australian capital cities up 0.1% month on month
Residential rents across Australian capital cities were virtually unchanged in October, down by 0.1% over the previous month, according to the latest index data. Rents were lower in four of the eight capital cities covered by the CoreLogic RP Data rental review report and the annual rate of change increased slightly from 0.5% in September to 0.6% in October. There is an ongoing softening in the rental market, according to CoreLogic research analyst Cameron Kusher, who said that with just two months remaining to the end of the year it seems that rental growth will be very soft over 2015 as a whole. ‘The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth,’ he explained. He pointed out that Sydney, Melbourne and Brisbane have continued to record rental rises over the last year however, each city is seeing a slowing in the pace of rental growth relative to 12 months ago. 'Clearly, the increase in investment stock is providing landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher,’ Kusher said. A breakdown of the data shows that rental rates were $483 per week and they have increased by just 0.2% over the first 10 months of the year while they have risen by 0.6% over the past 12 months. Only Sydney and Melbourne have recorded rental increases greater than 2% over the year. Rents have fallen over the year in Perth and Darwin, while the remaining capitals have seen rents rise by less than 2% over the year. It is anticipated that the rate of rental growth will continue to slow over the coming months due to increased supply of housing and rental stock and slower migration rates. Looking across the individual capital cities, over the past year, Sydney and Melbourne have recorded the greatest increases in weekly rents. Over the past month, weekly rents have moved lower across every capital city except Sydney, Hobart and Canberra where they rose and in Melbourne where they were unchanged. Over the past three months rents are lower in all capital cities except for Sydney and Melbourne. Continue reading
UK govt to crackdown further on rogue landlords
A new £5 million fund for councils is being made available by the UK government to stop rogue landlords who let out substandard homes and make tenants’ lives a misery, it has been announced. The worst affected councils which have a large proportion of private rented stock in their areas and significant problems will be able to bid for a share of the fund to tackle irresponsible landlords who provide unsafe living conditions, exploit innocent tenants and blight communities. The fund will also target ‘beds in sheds’ which are often rented to vulnerable migrants by ruthless landlords who charge them extortionate rents to live in cramped conditions. Councils can use the money to increase inspections of property, carry out more raids, initiate more enforcement action and prosecutions, and demolish sheds and buildings that are prohibited. ‘We’re determined to keep the country building and increase the supply of good quality homes that families want, both to buy and for rent. Key to this is rooting out the minority of landlords in the private rented sector that let out poorly maintained and unsafe properties to vulnerable tenants, making their lives a misery,’ said Communities Secretary Greg Clark. ‘Council led efforts mean more than 3,000 landlords have faced enforcement action and even prosecution in the last two years. This £5 million funding, combined with the extra powers we’re bringing forward, will help them go even further,’ he added. Housing Minister Brandon Lewis pointed out that while the majority of tenants are happy with their home, the private rental sector is still afflicted by too many rogues who rent dangerous, dirty and overcrowded properties without a thought for the welfare of their tenants. ‘That’s why we are inviting the worst affected councils to come forward and apply for extra funding, so they can root out the cowboys and rogue operators. The government is determined to crack down on rogue landlords and this funding, alongside measures in the Housing and Planning Bill, will further strengthen councils’ powers to tackle poor quality privately rented homes in their area,’ he explained. There are more than 4.4 million households renting privately and since 2013 nearly 40,000 inspections have taken place in properties, with more than 3,000 landlords now facing further enforcement action or prosecution. ‘The measures will not hamper the vast majority of landlords who are diligent and responsible. They avoid strangling the industry in red tape which would deter investment, increase rent and reduce choice for tenants,’ added Lewis. Additional measures being taken forward in the Housing and Planning Bill include seeking banning orders for the most prolific and serious rogue landlords, issuing penalty notices of up to £5,000 for breaches, a new process for abandoned tenancies, which would allow a landlord to recover the home without the need to go to court and creating a database of rogue landlords and letting agents. According to Landlord Action, which has been part of Government think tank on buy to let legislation, is backing… Continue reading
