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UK lettings agents report fewer rent rises and new homes on market also falls
The number of letting agents reporting rent increases for tenants has fallen month on month while the number of homes for rent is also down, according to the latest UK rental sector report. The analysis from the Association of Residential Letting Agents (ARLA) shows that for the first time this year, the number of ARLA agents seeing rent hikes for tenants has decreased from the previous month. The report reveals only three in 10, some 33%, of agents reported an increase in August, the lowest since April this year and a drop from 37% last month. Tenants in the South West however are not benefiting from this. Some 42% of agents in the region are continuing to see rent prices hiked, up four percentage points from last month. This is compared to only 12% of agents in the North West who have witnessed a rent increase. In Wales, tenants are worse off too. The number of landlords putting rents up for their tenants has increased threefold from July. This month 36% of letting agents in Wales saw increases, up 25% from July when just 11% agents reported rent hikes. The data in the report also shows that after a spike in the number of houses available to rent last month, supply has fallen back down to levels seen in June 2015. ARLA letting agents managed an average 178 properties per branch in August, compared to 189 in July. The report found that the number of house hunters in the rental sector increased marginally in August. Letting agents reported an average 36 prospective tenants registered per branch, compared to 35 in July. The number of properties available to rent in London continued to fall in August, pushing demand for housing even harder in the capital and putting further pressure on house hunters. With 110 properties registered per branch, compared to 117 in July, the task of finding a property in the capital’s rental sector is becoming increasingly difficult. ‘Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market,’ said David Cox, ARLA managing director. ‘With increasing pressure on the dwindling supply of housing, and the number of house hunters growing, rent increases are unfortunately very common as one in three tenants are experiencing,’ he pointed out. ‘Despite the fact they have fallen this month, it’s likely they will go back up again over the next few months,’ he added. Continue reading
Average property prices in Canada set to rise by 2% in 2015, says latest forecast
The national average property price in Canada is forecast to increase by 2% to $442,400 in 2016, according to the latest forecast from the Canadian Real Estate Association. But there is likely to be regional variation. For example, increases are forecast to be slightly larger but less than 3% in British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, and Prince Edward Island, with gains in some provinces reflecting an expected rebound from levels in 2015. Price growth in 2016 is forecast to be strongest in Ontario with growth of 2.8% due to an ongoing supply shortage of listings for low rise homes in and around the Greater Toronto Area, the CREA forecast report says. ‘Alberta and Quebec are forecast to see average home price growth of about 1.7% and 0.8% respectively in 2016, while Nova Scotia and Newfoundland and Labrador are forecast to edge slightly lower. The report explains that the national average price has run higher than expected since CREA’s last forecast, in part reflecting a jump in the proportion of higher priced home sales this spring and early summer in B.C.’s Lower Mainland, in and around the Greater Toronto Area (GTA) and Calgary. This trend now appears to be receding, causing the national average price to follow suit. However, recent trends in the Home Price Index, which is not affected by changes in the mix of sales activity the way that average price is, suggest that prices are still accelerating across much of B.C., in and around the GTA and Montreal. B.C. continues to see some of the strongest economic growth in the country, coupled with strong demographics. Home sales there have been drawing down inventories and boosting prices across the province. In Alberta, home sales have gone from setting records in 2014 to running at or below their 10 year average, as uncertainty surrounding the outlook for oil prices and employment continues to side line potential home buyers. In Ontario, the ongoing shortage of single family homes for sale in and around the GTA continues to drive very strong price gains. Record levels of activity in the province would likely be higher were it not for a shortage of low rise homes coming onto the market. In Saskatchewan, Manitoba, Quebec, and most of Eastern Canada, supply remains elevated. Home prices outside of B.C. and Ontario are forecast to keep pace with or lag inflation, as elevated supplies are drawn down by sales and return to better balance. The forecast for national sales in 2015 has been revised slightly higher, reflecting stronger than anticipated activity in B.C. and Ontario. National sales are now projected to rise by 3.3% to 495,800 units in 2015, marking the second strongest year on record for home sales in Canada. Across the country, British Columbia is projected to post the largest annual increase in activity in 2015 with growth of 18.1. Alberta, Saskatchewan, and Nova Scotia are expected to post the largest annual sales declines 21.6%, 12% and 12.1%… Continue reading
Report reveals skills shortage and planning are holding back UK house building
A severe shortage of skilled workers in the house building industry and the current planning system are combing to hinder efforts to tackle the UK’s housing crisis, according to new research. The report, which surveyed those within the housing supply chain, from SME contractors to major national developers, found real concern among these businesses on the effect of the sector’s skills shortage not only on individual firms, but also on national house building rates and the UK economy as a whole. However the research from Lloyds Bank Commercial Banking did find some approval for measures announced in the Summer Budget designed to tackle the current housing shortage, for example, plans to grant automatic planning permission for building projects on disused industrial sites. While the pace of house building is generally acknowledged to be improving, there remains much discussion about how it can be accelerated to match demand. According to the report, there are a number of key issues preventing the effective tackling of the housing shortage, including slow planning decisions, public opposition to development and lack of skilled workers. Some 24% of respondents said that the skills shortage is the biggest broader challenge currently facing their business while 35% believe there is a lack of suitable candidates to fill existing and new jobs. House builders said the skills shortage is most acute among electricians and site managers with project managers, quantity surveyors and architects following closely behind, reflecting the supply chain wide nature of the problem. But house builders appear to be taking steps to redress the balance with 31% prioritising investment in recruiting apprentices in an effort to increase the pipeline of talent coming into the industry. When asked what one change house builders would advocate for the alleviation of the housing shortage some 23% said greater local authority support to promote and fund building projects, while the same figure sought additional government support. Existing government schemes such as Stamp Duty reform and the Help to Buy equity scheme were flagged by 73% and 63% respectively as having a positive impact on the housing crisis. And despite the challenges cited in the report, house builders seem to be optimistic about the future, with respondents giving an average score of seven out of 10 when asked to rate their confidence in the success of the UK house building industry in the future. The research also found that 87% of respondents want to create new jobs in the next 12 months, and if replicated across the industry, this could mean the creation of more than 100,000 new house building roles. As an indication of future house pricing the first index to be based exclusively on house builder feedback predicted house prices will reach £232,826 by 2020, up 17% from £198,883 today. Some 84% said that rising house price increases were not affecting demand for new homes, and… Continue reading
