London
UK residential rent growth slows to match pace of house price growth
Rent price rises in the UK have slowed to match the pace of house price growth in the country after nine months of sustained faster growth, the latest index figures show. It means that rent prices are now 8.5% higher than a year ago for the three months to September 2015 after six months of annual rises over 10%, according to the data from HomeLet. The average rent in the UK for new tenancies in the period was £995 per month but in Greater London it was £1,555 per month although rents dropped here on a month on month basis for the first time since February 2015. The index report suggests that deflation across the economy, and rising real incomes, mean the slowdown in rents could be temporary. A breakdown of the figures shows that nine out of 12 UK regions are still seeing rent prices rise on an annual basis, with the largest increases seen in Scotland at 8.4%, the East Midlands at 7.7% and Greater London at 6.6%. The figures also show three regions in negative annual price movement, with prices in the North West 4.6% lower than a year ago, 2.2% lower in East Anglia and 1.4% lower in Northern Ireland. Comparing September figures to the previous month, the index reveals that only three regions have seen rent prices rise since August. In the three months to September 2015 only Scotland, the East Midlands and West Midlands have seen prices rise by 1.2%, 1.4% and 1.4% respectively. Every other region of the UK has seen rent prices fall modestly in the three months to September 2015, with the largest price reductions seen in the South West, the North East and North West with a fall of 2.4%, 2.3% and 2.2% respectively. ‘The UK economy has dipped into negative inflation which is a boost to consumers' spending power and, ultimately, their real income. Affordability is an important factor in determining rents,’ said Martin Totty, chief executive of Barbon Insurance Group, owners of HomeLet. ‘Depending on what happens with inflation and real incomes over the coming months, could have a bearing on future rental price trends especially where, in certain areas of the country, the supply of rental properties is not keeping pace with demand from those wishing to be private sector renters,’ he added. Continue reading
Experts urge UK govt not to sacrifice quality for quantity in house building crusade
The UK’s oldest housing and planning charity has expressed its concern about the implications of the Government's announcement of further significant deregulation to planning. According to the Town and Country Planning Association (TCPA) the recent announcement from Prime Minister David Cameron that he wants to build a million new homes by 2020, many of them affordable and aimed at first time buyers, quality could be sacrificed for quantity. It will means the introduction of US style zonal planning for brownfield sites, and the removal of a range of controls that are vital to ensure that high quality homes are built, it says while fully supporting the initiative. The TCPA is concerned that local communities will have no control over the quality of many of the homes built in their areas and says that by allowing large numbers of new homes to be created without going through the usual planning processes, there is a clear risk that we will build poor quality developments which increase the pressure on community facilities such as roads, schools and doctors' surgeries. It also criticises the plant to make permanent the temporary changes to permitted development rules so that offices can be converted into homes without the need for planning permission. It says this risks creating poor quality housing with no space for children to play, no car parkin; and no consideration of the need for more local school places, GP surgeries and other community facilities and infrastructure. Granting outline planning permission for any housing built on brownfield land, in effect, represents the introduction of zonal planning, it says, a system that can work well if properly implemented with detailed procedures to ensure quality but represents a major change to English planning that the Government is introducing with no consultation, and no safeguards to safeguard quality. ‘The decision to extend permitted development from office to residential seriously undermines the ability to create decent homes in vibrant communities. The Government says it is committed to localism and that it wants planning to give power to local communities. However, the announcements mean that local communities will have even less say over how their neighbourhoods are developed,’ said Kate Henderson, TCPA chief executive. According to Hugh Ellis, head of policy at the TCPA, it is a major deregulation of local planning and the loss of community control over large parts of the urban environment.’ It is worrying that this has come at a time when we know we need smart green cities that can deal with climate change and provide healthy environments for ordinary people. These announcements are a missed opportunity to ensure we create high quality, successful and climate resilient places,’ he added. The TCPA is currently undertaking a major new project, Planning4People, which pushes for strong and democratic planning system which puts the needs of ordinary people at the heart of planning. ‘As we strive to address the housing crisis and build the homes that the nation… Continue reading
Rental growth is weak outside of Australian capital cities, new data shows
Residential rental market conditions outside of capital cities in Australia remained weak over the September 2015 quarter with prices falling or remaining flat. Weekly rents fell the most in regional Western Australia with a decrease of 2.6, they were down 2.1% in the Northern Territory and down 1.7% in Victoria. The remaining capital cities all recorded flat condition over the three months ending September 2015. Regional unit markets also showed weak rental conditions, with regional Tasmania the only area recording an increase in apartment rents over the quarter with growth of 2.2%. Unit rents were down over the quarter in regional Western Australia by 2.9%, in New South Wales by 1.5% and the remaining capital cities all showed flat rental conditions. According to CoreLogic RP Data head of research Tim Lawless there has been a significant slowdown in the rate of rental growth over the past couple of years due to new housing supply increasing and investor purchasing at record highs. He expects this trend to continue over the coming year. Annually, rents rose across some of the regional rental markets, however, Lawless noted that the performance as a whole remains relatively weak. Tasmania recorded the strongest rental growth across the country with a 2% increase for houses and 4.5% for units. He pointed out that on the other hand, the most substantial fall in rental rates, relative to September last year, were across regional Northern Territory where house rents are down 6% year on year and units down 6.5%. ‘Those regions with strong ties to the mining and resources sector are pulling regional rental lower as demand for housing continues to moderate. On the other hand, regional lifestyle and coastal markets are bucking the softening trend to some extent with showing year on year rises,’ Lawless concluded. Continue reading
