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Northern Ireland set to see strongest house prices growth in UK in 2015
Northern Ireland is forecast to see the highest house price growth in the UK this year, with the latest report predicting an 11% rise in house values. The region is likely to see ongoing increases in prices according to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) and Ulster Bank. This is based on a comparative analysis between our price indicator and data from the Office for National Statistics (ONS) while for the UK as a whole the survey predicts that house prices will rise by 6%. The survey reports a net balance of 72% of Northern Ireland surveyors saying that prices increased in August, a higher net balance than all other UK region’s apart from East Anglia. Northern Ireland surveyors remain positive about the outlook too, with three month price expectations also amongst the highest in the UK. When it comes to sales, Northern Ireland surveyors are confident that increases seen in August will continue, with a net balance of 40% of respondents expecting sales levels to be higher in three months’ time. ‘A shortage of new instructions has characterised the Northern Ireland property market this year, with buyer enquiries outstripping the rate at which properties have been coming to the market,’ said RICS Northern Ireland residential property spokesman, Samuel Dickey. ‘As we move into the autumn, we should see more instructions, helping address this imbalance and ease upward pressure on prices. On the whole, RICS forecasts that average prices in Northern Ireland will have risen by 11% between the fourth quarter of 2014 and the fourth quarter of 2015,’ he explained. ‘This represents robust growth, but we should remember that this is from a low base, with average prices still someway from their 2007 peak,’ he added. The data also shows that in terms of prices, a net balance of 72% of Northern Ireland surveyors said that prices rose in the past three months. A net balance of 46% said that they expect prices to continue rising in the three months ahead. Continue reading
Three bed homes in UK see fastest rent rises, new index shows
UK rents are rising fastest for three bedroom homes with 4.6% year on year growth in August compared to a rise of 3.3% for all UK properties, according to a new index. The new index from Landbay Rental is the first to track rental trends to the county and London borough level in combination with the number of bedrooms. Areas where three bed rental growth is highest are mainly located within commutable distance of London, such as Windsor and Maidenhead up 22% to £1,936, Southend on Sea up 20% to £1,121 and Swindon up 13% to £813. The data shows that across the UK as a whole, rents climbed by 3.3% in the last year to £1,281 and this is well ahead of inflation but while rents continue to climb year on year, the rate at which they are growing has eased from a high of 4.9% in February. It also points out that average UK rents fell between May and July 2015, with August seeing the first monthly rise in rents since March. Across all property sizes, the top rental rises outside of London were Southend on Sea up 12.6%, York up 12.1% and Wrexham up 11.1%. At the other end the biggest fall was in Cheshire were rents were down 6.9%, Aberdeen City down 5.7% and Buckinghamshire down 3.5%. ‘At the national level, rents performed very strongly in 2014 after a dip in 2013. This year has seen rents continue to grow, but at a slower rate. The macro trends at the national level aren’t uniform when you drill into the local level and look at different types of property, which is why we want to establish a rental index that gives landlords, tenants and others interested in the private rented sector access to a more granular level of insight,’ said John Goodall, chief executive officer of Landbay. ‘For investors in the private rental sector, our data makes family homes in the south east look like an attractive proposition. As well as performing well now, rents for three bedroom homes saw the smallest falls when rents dipped in 2013. The challenge for investors looking to benefit is finding suitable properties for professionals at a cost that produces a good yield,’ he added. Continue reading
Most UK landlords won’t use pension freedoms to invest in property
The majority of landlords in the UK don’t plan to take advantage of pension freedoms to invest in property, according to new research. Of those with a pension in place, just 5% are planning on withdrawing a lump sum to invest or expand their portfolio, the research from the National Landlords Association (NLA) shows. It also found that 14% of landlords would consider using a lump sum to invest in further properties, while 11% said they didn’t have enough of a pension to withdraw a lump sum at all, 7% already had other plans for withdrawing a lump sum and 19% were undecided. The research from the NLA, which asked landlords about their plans at retirement, also found that 3% plan to sell up completely, 19% have no retirement provisions in place and 25% plan to sell at least some properties. On top of this some 61% plan to live off portfolio income at retirement and 34% are undecided and will assess the market when they reach retirement age. ‘There has been a lot of talk around pensions being used to invest in buy to let since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into buy to let, it’s clearly not that popular an option for landlords,’ said Carolyn Uphill, chairman of the NLA. ‘Those currently in the market already have an asset to use if they want to expand, their property, and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to withdraw it at all,’ she explained. ‘The NLA offers invaluable advice, guidance and support for both existing and new landlords to help ensure the smooth and successful running of a letting business. It would be advisable for anyone considering or already planning on using a lump sum from their pension for investment in buy to let to look into how the NLA can help,’ she added. Continue reading
