Posts with tag: average rents

Renting an Apartment in the Top Financial Centres of the World

Published On: March 16, 2017 at 9:44 am


Categories: Property News

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The findings of a new study conducted by apartment search platform RENTCafé expand the understanding of the rental housing markets in the world’s top financial centres.

The research explores the average monthly rent for one-bedroom apartments measuring between 55 and 85 square metres (600 and 999 square feet) in the 30 most powerful financial hubs in the world.

Renting an Apartment in the Top Financial Centres of the World

Renting an Apartment in the Top Financial Centres of the World

Among the most potent global financial centres – as ranked in Z/Yen Group‘s Global Financial Centres Index – New York City is home to the world’s highest rents, pegged at $3,680 per month for a one-bedroom apartment home.

Given the increasing global mobility of today’s workforce, the RENTCafé study aims to put rent prices in these cities in context for professionals working in the financial and economic sectors, and provide an overview of potential alternatives to the city they currently live and work in. While most of these urban business hubs have been well-known for asking high rents, the analysis reveals just how much a renter needs to shell out on housing every month and how these cities compare to each other when it comes to apartment rents.

Surprisingly enough, London – currently the leading financial centre of the world – is one of the least expensive cities for renters seeking the benefits associated with living in a thriving business hub. The British capital’s £1,351 average rent ($1,650 in US dollars) means it is only the 20th most expensive rental housing market among the world’s top financial centres.

New York City’s average $3,680 (£3,014) landed the home of Wall St. in 1st place, followed by two further US cities: San Francisco with $3,360 (£2,752) and Boston with $2,930 (£2,400).

Coincidentally, Hong Kong is in 4th place both when ranked by financial performance and average rent ($2,740 or £2,244). Other, financially lower-performing cities with higher rents than London include Geneva ($2,320 or £1,900), Zurich ($2,200 or £1,802), Singapore and Tokyo ($2,050 or £1,679), Sydney and Dubai ($2,040 or £1,671), Los Angeles ($2,030 or £1,663), Washington, DC ($1,940 or £1,589), Shanghai ($1,910 or £1,564), Beijing ($1,900 or £1,556) and Paris ($1,730 or £1,417).

The average rent for one-bedroom apartments in most of the top-performing financial markets is above the £1,000 mark ($1,221), but there are exceptions, like Toronto (£983 or $1,200), Munich (£909 or $1,100), Taipei (£745 or $910), Montreal (£696 or $850) and Casablanca (£674 or $820).

For the US cities analysed in the report, RENTCafé used average rent data provided by Yardi Matrix, the source for rents in Canadian cities was Point2Homes, and Global Property Guide provided the average rents for the remaining international markets, with the exception of London (GOV.UK), Tokyo and Osaka (Utinokati), Hong Kong (HK Rating and Valuation Department) and Dubai (Bayut).

Fastest rental rises in January seen in the East

Published On: February 24, 2017 at 9:47 am


Categories: Property News

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Another new piece of research has underlined the fact that the rental market in England and Wales has seen a strong start to 2017.

The latest Your Move England and Wales Buy to Let Index shows that rents rose in all but one of the right regions analysed in the year to January.

Eastern Rises

Rents rose fastest over the year in the East of England, where average rents now stand at an average of £870pcm-a rise of 6.9%. Rental price growth in the region was also the quickest month-on-month, with rents up by 0.7% in January.

Other regions experiencing strong growth were Wales and the East Midlands, with rents rising here by 6.5% and 4.5% respectively.

In Wales, the average rent stands at £586pcm, while in the East Midlands, this figure is £634pcm.

On the other hand, London saw rents fall most quickly in January, down by 0.4% month-on-month. The North West was the only other area to see prices fall, albeit by an average of just 0.1%.

Fastest rental rises in January seen in the East

Fastest rental rises in January seen in the East


Taking England and Wales as a whole, average rents stood at £798 in January 2017, up from £790 in the same month last year. This represents a fall from the £811 recorded in December 2016.

Valerie Bannister, letting director at Your Move, noted: ‘Rents in nearly every region surveyed have increased compared to the same point last year.’[1]

It comes as little surprise to learn that London was the region with the lowest rental yields. Homes in the capital returned 3.2% on their investment in the last month, down from the 3.3% recorded in December 2016.

By contrast, investors in the North East are enjoying the strongest yields. In this region, the typical property returned 5.3% in January.

In England and Wales as a whole, the typical rental return was 4.6%, below the 5.1% seen in January 2016.

Concluding, Bannister said: ‘Yields continue to be squeezed in most areas of England and Wales, with all regions recording lower returns than at the same point a year ago.’[1]




Rent Prices and Yields are Still Strong, According to Report

Published On: January 3, 2017 at 11:25 am


Categories: Landlord News

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Rent prices and yields for landlords are still strong, as the private rental sector proves resilient to pressures on the British economy, according to Adrian Gill, the Director of Your Move.

Rent Prices and Yields are Still Strong, According to Report

Rent Prices and Yields are Still Strong, According to Report

“Landlords are continuing to see strong yield levels and rents are increasing, even if growth is slower than it was previously,” he reports.

Gill’s comments follow the release of the latest Your Move index, which found that rent prices increased in England and Wales by 3.9% in the year to November 2016, taking the average rent to £830 per month.

Although the rental market is cooling in London, the capital remains the most expensive place to rent a home in the country, with rents hitting a record high of £1,295 a month.

On a regional basis, rent prices rose in nine out of ten regions, led by a 13.6% annual increase in the South East, where rents now stand at an average of £875 per month.

The South West was the only region to record a decrease in rents last year, albeit slight, to an average of £656 a month.

Gill believes: “Tenants are now in a much better financial position than earlier in the year. Fewer are struggling with rent payments and this is great news for tenants and landlords alike.

“There is now a great deal of stability in the rental market, and this means there is a solid platform for growth in future months.”

Gill’s observations arrive despite the onset of a year that may prove difficult for the private rental sector.

Not only will landlords see their tax relief on finance costs restricted from 6th April this year, the Government’s database of rogue landlords and letting agents will be introduced on 1st October, as confirmed by ministers.

The ban on letting agent fees for tenants will also be on everyone in the property industry’s lips this year, as landlords work out how they will accommodate extra costs if the fees are passed on to them.

Gill’s comments will provide some slight relief to investors, who may have feared that 2017 will be tough on their finances.

Rate of UK rental growth slows during 2016

Published On: December 16, 2016 at 11:20 am


Categories: Property News

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New data released by buy-to-let lender Landbay has revealed that the average rent paid for a property in Britain increased by 1.12% in 2016.

This represented a slowdown from the 2.34% in 2015, with falling rents in the capital dragging down the resilience in rental growth evident in the rest of the UK.

National rents

According to the report, the typical UK rent rose to hit a record £1,188 per month during this year, up from £1,177 at the end of 2015. These figures are inflated by London, where rents rose to a peak of £1,894 during April, before falling in every month since then to hit £1,883 by the end of November.

The negative growth in the capital (-0.31%) was different to the 2.46% increase seen in 2015. Taking London out of the equation, rents in Britain increased by 1.91% to hit £749 by the end of November.

The East Midlands (2.6%), North West (2.03%) and Yorkshire and Humberside (1.67%) have all seen rental growth rise at their quickest pace for five years.

John Goodall, CEO and co-founder of Landbay, noted: ‘When you look at the raft of regulatory, political and economic challenges coming to bear on the buy to let sector in 2016, it’s clear to see why rental growth has slowed this year, but the nation has not been equally affected. London has been something of a millstone for the rest of the UK, and tenants will no doubt be relieved that rental pressure has eased since the referendum, but the fall in rents is unlikely to last, and we expect the tide will turn in 2017.’[1]

‘A new stamp duty levy, tighter affordability controls from the PRA, and the removal of mortgage interest tax relief all look likely to restrict the supply of rental housing in 2017, and tenants will have little choice but to compete for what properties are on offer. As a result we expect rents to rise faster than the pace of inflation next year, with growth tripling to 3% by the end of 2017,’ he continued.[1]

Rate of UK rental growth slows during 2016

Rate of UK rental growth slows during 2016

Infrastructure Rises

Both the HS2 and Crossrail 2 projects have been announced in recent years, with Landbay’s report uncovering tenants close to the proposed routes are already seeing rental pressures.

All key stations on the HS2 routes north of London have seen rental growth above the national average of 8.8% during the last five years. Birmingham Curzon Street (23.7%), Birmingham (22.4%) and Leeds (15.3%) have seen significant rental growth over the period.

Mr Goodall concluded by saying: ‘Infrastructural investment featured highly in the Chancellor’s Autumn Statement, and it’s clear that the government is counting on HS2 and Crossrail 2 to deliver significant economic benefits to people living in the areas they connect. This may well be so, but it will all be for naught if a shortage of housing makes the areas unattractive to live in. Rapidly rising rents may offset some additional costs for landlords, but if the situation becomes unsustainable this is not good for the housing market as a whole. Housebuilding along the route needs to be spread across all tenures, so those in the rental market aren’t squeezed out by the impacts of the sudden arrival of new transport infrastructure.’[1]


Increased supply sees rents cool across Britain

Published On: September 13, 2016 at 1:54 pm


Categories: Property News

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New data suggests that the level of rents achieved across Britain fell over the last month in more than half of all regions.

The latest monthly letting index from Countrywide shows that rents fell year-on-year in five of the nine regions assessed during August. However, for Great Britain as a whole, average rents on new lets actually increased by 1.5% to £960 per month.

Rises in new rents were driven by growth in Greater London, the East and North of England and Scotland.

Ups and downs

While overall rents rose, the estate agency group also reports that rents dropped in central London, the South East, South West, Midlands and in Wales. This reflects a substantial rise in the supply of housing coming onto the private rental market.

Johnny Morris, research director at Countrywide, noted: ‘in London and the South East, recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth.’[1]

‘Overall slightly more tenants are offering above asking price than last year. The majority continue to pay asking prices. Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.’[1]

Above asking prices

The information shown below indicates the proportion of homes let above their asking price in different regions of the UK during August:

Region Aug-15 Aug-16 change
Greater London 17% 13% -3.7%
Central London 17% 8% -8.9%
East of England 13% 15% 2.3%
South East 14% 14% 0.1%
South West 12% 15% 3.1%
Midlands 10% 11% 0.9%
North 10% 10% -0.3%
Wales 11% 8% -2.7%

GB             12%     12%     0.2%


Increased supply sees rents cool across Britain

Increased supply sees rents cool across Britain

Rental prices (per month) for New Lets

Region Ave Rent Aug-16 Ave Rent Jul-16 Ave Rent Aug-15 August Rent YOY
Greater London £1,299 £1,280 £1,288 0.9%
Central London £2,434 £2,638 £2,484 -2.0%
East of England £977 £963 £912 7.1%
South East £1,188 £1,173 £1,205 -1.4%
South West £862 £856 £853 -1.1%
Midlands £705 £703 £708 -0.4%
North £697 £694 £676 3.1%
Scotland £726 £689 £696 4.3%
Wales £669 £671 £672 -0.4%
GB £960 £951 £946 1.5%



Rents Reach Highest Level Seen So Far This Year

Published On: May 24, 2016 at 8:47 am


Categories: Finance News

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Rents are continuing to climb upwards at the fastest rate since last autumn, reaching the highest level seen so far this year, according to the latest Buy-to-Let Index from estate agents Your Move and Reeds Rains.

The average rent price for a home in England and Wales was £793 per month in April.

On a monthly basis, rents have risen by 0.3% – the fastest month-on-month increase since September 2015.

The average rent now stands at 2.4% higher than in April last year, or an extra £19 a month for the typical tenant.

This strong acceleration in rent prices arrives after a fairly subdued month, when rents remained steady between February and March 2016.

The Director of Your Move and Reeds Rains, Adrian Gill, comments: “Anyone looking for a home to rent may now find the better deals of the winter months are over. Landlords are seeing renewed interest and competition between potential tenants, as the spring rental market accelerates.

“Some of the reasons for rent rises are extremely encouraging. Tenants looking to find a property to rent are more likely to be in work, getting pay rises and feeling able to pay their other bills. These wider economic fundamentals are shifting on the side of healthier household finances.”

However, he adds: “But very little has changed in terms of the supply of homes to let. So for many tenants, it’s likely that a large proportion of any earnings growth is swallowed up by higher rents. And the Government hasn’t helped by imposing an extra bill that someone will have to pay on top of this – in the form of the recent Stamp Duty surcharge. To a large extent, it’s likely that penalty will be shouldered by those tenants looking for homes to rent, due only to the fundamentals of supply and demand in the British housing market.”

Rents Reach Highest Level Seen So Far This Year

Rents Reach Highest Level Seen So Far This Year

Record high rents

Rent prices in the East Midlands, West Midlands and East of England have now reached record highs, claims the report.

The greatest annual rent price rises in England and Wales were seen in the East Midlands, where prices grew by 8.5% over the past 12 months to reach £616 per month in April.

In second place is the West Midlands, where prices are up by 6.2% since last year, pushing rents through the £600 barrier. Behind only London in terms of absolute rent price is the East of England, which has recorded an annual rent increase of 4.8% to hit £848 a month.

In monthly terms, the fastest growth was seen jointly in the East of England and the South East, which both experienced rent rises of 1% between March and April.

The North East follows, with rents now 0.8% higher than in the previous month.

Landlord returns and yields

Considering both rental income and capital growth, but before taking costs such as maintenance into account, the average landlord in England and Wales has seen total returns of 10.7% over the past 12 months.

Although this is slightly lower than the 11.4% seen in the previous month, it is higher than the 9.8% returns recorded in April last year.

In absolute terms, this means that the typical landlord has enjoyed a return of £19,538 over the year to April, before any deductions such as property maintenance and mortgage payments are taken into account.

Of this sum, the average capital gain contributed £10,815, while rental income made up £8,723.

Although a recent surge in capital values has boosted total returns for landlords, the same trend has suppressed rental yields slightly for those hoping to become landlords, or those looking to expand their portfolios. As rents rise alongside house prices, rental yields are proving reasonably resistant to increasing purchase prices.

However, the gross yield on an average property in England and Wales is now 4.9%, compared to 5.1% in April last year.

Gill explains: “Yields and returns have been remarkably steady in the face of an onslaught of hostile rhetoric and regulatory hoops. And all else being the same, there is a chance gross yields could rise marginally, to take account of any extra costs and complexities associated with being a landlord – such as the Stamp Duty surcharge.

“More chance is on the way, and landlords will need to take appropriate financial advice on how changes to the tax system could affect them – as well as ensuring that their properties and tenancy agreements comply with every single rule and requirement.

“But this latest imposition is actually not a tax on existing or accidental landlords. Actually, the Stamp Duty surcharge is a barrier to entry. The danger for tenants is that this new rule will prevent new houses and flats to rent coming onto the market. The advantage for landlords in some areas could be less competition. But anyone trying to grow their rental portfolio will now need to spend even more time making the right decision – and as of last month, more money too.”

Decrease in rent arrears

Positively, tenants in England and Wales are now finding it easier to pay their rent on time. As of April, 8.1% of all rent due was in arrears, down from 9.1% in March. However, this still represents a more challenging situation that in April last year, when just 7% of all rent was in arrears.

Over the long term, however, the latest improvement is extremely encouraging. In February 2010, an all-time high of 14.6% of all rent due was recorded.

Gill concludes: “All the signs are right for a strong improvement in tenant finances. Wages are finally showing a bit of exuberance and employment has never been higher. But rents haven’t ever been higher either in much of the country. There is a powerful trend underpinning the affordability of renting for a large majority of Britain’s tenants, but there are also serious shortages of homes to let in all the same places that people want to live.

“Rental arrears reflect this mismatch between supply and demand. Waves of interest from the bulk of financially healthy tenants are capable of pushing up rents across the market. But unless landlords are allowed to respond by investing in new homes, then supply will not quite ever be able to keep up. This is the mechanism that very soon could demonstrate the misguided nature of the latest targeting of landlords from the UK authorities. Tenants will always lose out if the bottom line is a shortage of flats to rent or houses for rent in local markets.”