TSI
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
UK housing supply crisis deepens as new stock falls to post economic downturn low
The total stock of property for sale in the UK has fallen to a new post economic crisis low with 45% fewer properties for sale than in November 2007, according to the latest index report. It also shows that average annual asking price growth in England and Wales increased further to 7.3%, driven by lack of supply with the shortage affecting all regions but particularly London, the South East and the East of England. Consequently, prices in these regions continue to rise at an alarming rate, well ahead of the national average. Over the last 12 months, asking prices in London, the East and South East of England have risen by 12.5%, 9.8% and 9.4% respectively. Meanwhile, the number of properties coming on to the market in the same regions is down by 15%, 13% and 10% respectively. However it is not a uniform picture, according to the asking price index from Home.co.uk. Prices have slid in the North East and Yorkshire during the last month. Asking prices were down 0.1% month on month in Yorkshire and Humberside and down 0.5% in the North East where prices are also stagnant compared to a year ago. Indeed, as a whole prices in the northern regions and Wales continue to stagnate. Annualised price changes for the North East, North West and Yorkshire of just 0.0%, 1.2% and 1.9% respectively indicate that demand levels remain depressed relative to the South. Welsh property has fared a little better with home prices rising by 2.7% over the last year, but still a long way behind the mix-adjusted average price rise for England and Wales of 7.3%. Overall, the current mix-adjusted average asking price for England and Wales is now 25.8% higher than it was in November 2010. Further upward pressure on this headline figure will come from London, the East and South East of England over the next year. North of the border, Scottish home prices are rising more quickly, up 4.7% over the last year and 6.4% since November 2010. Sellers there are obviously patient, as the typical time on market is 114 days, 16 days longer than the figure for England and Wales. The Aberdeen property market has been adversely affected by plunging oil and gas prices, and properties on the market there have been piling up. Meanwhile, the Edinburgh market is experiencing a boom, with prices driven up 13% over the last year and supply falling away. Further south, the northern English regions show relatively poor home price growth. Of those, the North East property market has suffered the most over the last five years. Prices are falling in many towns in the region, such as Billingham, mainly due to the downturn in the petrochemical industries. Crime and joblessness continue to adversely affect many of the larger urban areas. However, pockets of significant growth do exist, such as prosperous market towns like Yarm. The South East continues to show massive price growth and… Continue reading
