Posts with tag: property

Rise in the number of retiree tenants recorded

Published On: July 4, 2017 at 8:47 am

Tags: property,renters,retiree renters,tenants

A new report from letting agency Countrywide has revealed that there has been a substantial rise in the number of retiree renters.

Data from the analysis shows that retirees have paid a total of £3.7bn in rent during the last year – a rise of 200% in comparison to the £1.2bn paid in 2007.

In addition, the research highlights that retired people now make up 8% of all private tenants, a rise of 5.2% in comparison to ten years ago.

Older Tenants

Households aged over 65 presently account for nearly 12% of all those living in the private rental sector, with this figure set to increase.

Girlings Retirement Rentals believe that this increase can be attributed to changing attitudes and perceptions to renting by the older generation. The firm has seen a steady growth in the number of enquiries received since 2002, with figures seen in 2015 and 2016 the highest on record.

The survey from Countrywide suggests that there are several reasons that the over 65s wish to downsize in their retirement. 34% of respondents said that they would move should they come to need more support, while 33% wanted lower property maintenance.

26% cited wanting fewer stairs for their reasons. Others highlighted wanting to live in a smaller house, reducing their outgoings and having a smaller garden to keep on top of.

Rise in the number of retiree tenants recorded

Pipe Dream

However, moving is but a pipe dream for many, with 42% believing there is a lack of suitable properties in the UK in which to move into.

Peter Girling, Chairman of Girlings Retirement Rentals, noted: ‘As people get older they want different things from a home and the option to downsize is something many would consider. Renting in a specialist retirement development is becoming a popular lifestyle choice. We offer properties on assured tenancies, so people have security of tenure which is very important for older people.’[1]

‘Renting enables people to step off the property ladder, sell their homes and release capital to help fund retirement. They can downsize to a more manageable sized property, with added support services included in the rent – and be free from the burden of property maintenance or upkeep,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/sharp-rise-in-number-of-older-tenants

UK auction market remains stable

Published On: June 27, 2017 at 1:38 pm

Author: Em Morley

Categories: Property News

Tags: auction,auction market,landlords,property,residential market

Investment in UK residential property at auction continues to perform well, despite the political uncertainty generated by the snap General Election.

That is the synopsis provided by the latest figures provided by the Essential Information Group.

Data from the report indicates that 2,422 lots were sold during the last month, up by 2% in comparison to May 2016. This represented a healthy sales rate of 75.7%.

Stable

Despite the result of the Election, EIG’s MD David Sandeman said that he was pleased to report on results that were, ‘largely strong and stable.’

Overall, the residential sector performed well during the last month, with lots offered up by almost 5% to stand at 2,560. Lots sold also rose by nearly 10% to stand at 1,945 lots.

Amounts realised from residential sales hit £338m, up by £27m, or 8.9% from the £311 seen in May 2016.

These rolling quarterly figures given by EIG, which had recorded double-digit declines in April, now show only small falls in lots both offered and sold.

UK auction market remains stable

Commercial Challenge

While demand for residential property increased during the month, the commercial sector faced a rather more challenging month. Lots offered and sold fell by 15% and 20% respectively, with the amount raised sliding by 16% to £179m.

The overall statistics for May were:

Overall Statistics May 2017

Auctions Held in the UK             130
Total Lots Offered                 3,199
Total Lots Sold                        2,422
Percent Sold                          75.7%
Total Realised           £517,003,228

Concluding, Mr Sandeman said: ‘One hopes that this was merely a blip in what has otherwise been a reasonably steady year to date for commercial auctions.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-property-auction-activity-is-strong-and-stable-despite-political-instability

Where are the most expensive National Parks for property?

Published On: June 26, 2017 at 10:27 am

Author: Em Morley

Categories: Property News

Tags: landlords,National Parks,property,property prices

An interesting new report from Knight Frank has revealed the most expensive National Parks in England and Wales in which to purchase a property.

The data looks at the average sold price for detached homes within the boundaries of National Parks in both England and Wales in the year to January 2017. Results show that the average price paid in the South Downs was just over 674,000 – almost double the £350,000 average price of a property in England and Wales.

Prices

The New Forest- only given National Park status in 2005-was the second most expensive area, with homes here selling for £620,000 on average.

In comparison, the average price paid for a detached property in the county of Hampshire over the same period was just over £444,000.

Figures from the report are shown in the table below:

Average price paid: 12 months to Jan 2017, detached property

National Park	Average price (detached)	County	Average price (detached)
South Downs	£674,268	West Sussex	£487,926
New Forest	£620,883	Hampshire	£444,287
Peak District	£417,878	Derbyshire	£244,222
Lake District	£416,970	Cumbria	£265,250
Dartmoor	£372,980	Devon	£326,261
Exmoor	£345,277	Somerset	£347,048
Yorkshire Dales	£344,397	North Yorkshire	£290,344
The Broads	£319,864	Norfolk	£280,652
North York Moors	£296,038	North Yorkshire	£290,344
Brecon Beacons	£281,774	Powys	£225,140
Pembrokeshire Coast	£261,589	Dyfed	£203,055
Northumberland	£242,327	Northumberland	£263,431
Snowdonia	£205,124	Gwynedd	£212,096

Where are the most expensive National Parks for property?

Quality of Life

Oliver Knight, Associate in Knight Frank’s Residential Research team, observed: ‘The high quality of life connected with living in some of the most distinctive landscapes in England and Wales is an obvious attraction for many home buyers, but this often comes with a premium. More restrictive planning regimes in place within National Parks and Areas of Outstanding Natural Beauty means supply can often fall short of demand and this – along with the nature of existing stock, which tend towards older, larger homes with land – has underpinned pricing.’[1]

‘Wider trends we’re experiencing in the housing market are also evident, not least the north-south divide in terms of pricing, with the South Downs and the New Forest topping the pricing charts. The London ripple effect is also evident within popular commuter location such as the Surrey Hills and the Chilterns,’ he continued.[1]

[1] http://www.propertyreporter.co.uk/property/where-are-the-top-performing-national-parks-in-terms-of-house-prices.html

Will UK sales drop due to political uncertainty?

Published On: June 22, 2017 at 1:31 pm

Author: Em Morley

Categories: Property News

Tags: Brexit,mortgages,property,property market

UK residential property transactions fell by 3.3% month-on-month, after two months of successive growth.

Now, experts are predicting that this may be a sign of things to come in the market, with many would-be buyers holding off from purchasing property until there is greater economic and political certainty.

Slowing

The figures have indicated that the UK housing market is slowing, with transactions falling to 100,170 on a seasonally adjusted basis. This is due to investors coming to terms with increased Stamp Duty costs and larger economic instability, as a result of the General Election and Brexit negotiations.

Rob McCoy, product manager of TMA Mortgage Club, noted: ‘Staying put is more attractive than ever for borrowers. In addition to the housing shortage, the latest fall in housing transactions is partly because most homeowners are taking advantage of the low interest rates by remortgaging rather than by moving.’[1]

‘The range of re-financing options currently available and rock bottom-rates, especially on five-year fixed terms, mean the remortgage market is booming,’ he continued.[1]

Will UK sales drop due to political uncertainty?

Pick-Up

After a period of decline, some experts are actually expecting property transactions to improve again during the coming months.

However, James Allen, head of Walker Crisps Alternative Investments, feels that there will be a considerable fall during the next quarter.

Mr Allen said: ‘Property transactions show a slight fall this month, but expect to see around three times the deterioration in completed transactions for the next few months.’

‘In May we had a huge lead for Theresa May in the opinion polls and we had a clear direction of travel on Brexit. Now we have a fatally weakened Prime Minister unable to pass the Queen’s Speech, and the prospect of a resurgence of UKIP in response to groundswell opposition to a perceived hard Brexit.

‘Any market abhors uncertainty and the current political instability was unexpected, leaving the latest data short of time to reflect the new situation.’

‘I had expected to see property transactions fall in May, reflecting a slight softening of the UK property market. I now expect transactions to fall by 10% or more from the April figure as sellers will be slow to respond to the risk premium that buyers will now price in.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-home-sales-set-to-drop-significantly-amid-political-uncertainty

Ban on letting agent fees confirmed in Queen’s Speech

Published On: June 21, 2017 at 1:47 pm

Author: Em Morley

Categories: Property News,Tenant Fees Ban

Tags: landlords,property,property market,Queen's Speech

The Queen’s Speech has taken place today, with her Majesty seemingly confirming the pledge to introduce a ban on letting agents’ fees levied on tenants in England.

Outlining the Government’s proposals for the next two years, the Queen mentioned the fees ban- announced by Chancellor Phillip Hammond in November.

Consultation

A consultation on the proposed ban closed during the recent General Election campaign. However, there has been no news on the contents of any responses.

Some industry members hoped that the failure of Theresa May to secure a majority would mean the end for the proposals, but today’s announcement shows it remains firmly on the agenda.

The draft Tenants’ Fees Ban bill includes a reference that alludes to, ‘banning landlords and agents from requiring tenants to pay letting fees as a condition of their tenancy.’ It also says there may be – subject to approval from Parliament- a provision for tenants to be able to recover unlawfully charged fees.

Ban on letting agent fees confirmed in Queen’s Speech

There was also no specific reference to Tory manifesto pledges such as: ‘We will crack down on unfair practices in leasehold, such as escalating ground rents’ or: ‘encouraging landlords to offer longer tenancies as standard.’

The Queen did however announce a commitment from the Government to build more properties.

Is UK property price growth rising at an unattainable rate?

Published On: June 20, 2017 at 1:07 pm

Author: Em Morley

Categories: Property News

Tags: house price growth,investors,property,property prices

Yesterday saw Rightmove release data indicating that the average property price in the UK slipped by 0.4% in June, in comparison to the previous month.

However, would-be property investors should take these figures with a pinch of salt according to Jeremy Duncombe, director at Legal & General Mortgage Club.

Prices

Mr Duncombe, a mortgage expert, explains that despite the typical asking price this month dropping to £316,109, prices are still up by 1.8% on a yearly basis.

Despite this being the lowest rate of annual price growth seen since April 2013, residential property prices are still rising. However, there are concerns that in regions where affordability levels are stretched, less households are able to take part in the market.

Duncombe observed: ‘Although the data shows a minor decrease in monthly house price growth, on a year-on-year basis, house prices are still rising. Potential buyers are having to increase their borrowings, or depend on family members to help fund a deposit.’[1]

‘For many workers, price increases are occurring at an unattainable rate, with house prices now at a record 7.6 times earnings. For London, this is stretched to more than 10 ten times,’ he continued.[1]

Is UK property price growth rising at an unattainable rate?

Supply

A main cause for the increase in property prices is due to the fact that demand continues to outstrip supply in many regions of Britain. This once again underlines the need for new affordable housing to be developed.

Mr Duncombe went on to say: ‘Once the dust has settled in the newly-formed government, the task of building more affordable housing needs to become an urgent priority on the agenda. Building affordable housing in the right places will help first time buyers to take their first steps onto the property ladder.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-property-price-growth-is-occurring-at-an-unattainable-rate