Posts with tag: rent prices

House Prices to Rise by 10% Next Year

Published On: November 20, 2015 at 10:38 am

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Categories: Property News

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House Prices to Rise by 10% Next Year

House Prices to Rise by 10% Next Year

Annual house price growth is currently standing at 9.4% and is set to increase by a further 10% next year, according to Hometrack’s latest report.

The Hometrack City Index monitors house prices in 20 UK cities. It found that Glasgow, Manchester and Liverpool are currently experiencing their highest rates of annual house price inflation since 2007, at 8.3%, 7% and 5.1% respectively.

In Glasgow and Manchester, property values have been recovering in the last three years, while in Liverpool, prices continued falling until early 2012 and are still 13% below peak level.

However, these figures contrast greatly to London, where house prices have soared by 70% since 2009.

Hometrack revealed that the highest rate of annual growth was recorded in Oxford at 12.8%, followed by Cambridge at 10.7%.

The only city to see house prices fall is Aberdeen, where they dropped by 0.8% over the past year.

Another property market report, from Your Move and Reeds Rains, found that rents decreased in October to an average of £806 per month in England and Wales.

This is down from September’s record high of £816 a month.

However, annual rent price growth is still positive, at 4.7%.

A third report, focused on house building, revealed that 135,050 homes have been built over the last 12 months, a 17% rise on the previous year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents Continue to Rise, but Buying is Still Unaffordable for Renters

Published On: November 10, 2015 at 1:15 pm

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Categories: Finance News

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Newly agreed rent prices are continuing to increase, but at a slower rate, according to the latest data.

Rents Continue to Rise, but Buying is Still Unaffordable for Renters

Rents Continue to Rise, but Buying is Still Unaffordable for Renters

Additionally, two thirds of tenants have claimed that saving a deposit to buy a home is unaffordable.

Excluding London, the average new rent in the UK is now £749 per month, a 3.5% rise on last year’s £724 a month.

Although this is running at a higher pace than inflation, it is significantly lower than the 8.5% growth recorded earlier this year.

The average new rent in the capital is now 7.5% higher than last year, standing at £1,560 per month.

This means that rents in London are now over £800 more per month, or 108% higher, than the typical rent agreed in the rest of the UK.

Lettings specialist HomeLet has conducted a survey of 15,000 renters, which found that 64% expect to continue living in rental accommodation for the foreseeable future.

CEO of HomeLet’s parent firm, Barbon Insurance Group, Martin Totty, says: “Our survey showed that many tenants ultimately aspire to own their own home, but that just over half of them aren’t actively saving for a deposit; 66% of those questioned said that a deposit wasn’t affordable for them.

“However, the positive news is that almost nine out of ten tenants told us they were happy with the standard of their current rented property, and the majority told us they were happy with the service provided by their landlord or letting agent.”

He adds: “Whilst we are seeing upward pressure on the rental market, it’s important that the sector continues to drive professional standards forwards for mutual benefit of tenants, landlords and letting agents.”1

For the second consecutive month, HomeLet reports that rent prices are growing fastest in Scotland, where rents over the three months to October have risen by 9% compared with the same period in 2014.

Rent prices on new tenancies increased in nine out of 12 regions, the exceptions being the North West, East Anglia and Northern Ireland.

1 http://homelet.co.uk/news/article/tenants-look-to-prs-for-the-long-term

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One in Five Tenants Struggle to Pay the Rent

Published On: October 21, 2015 at 1:07 pm

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New research has revealed that millions of workers are struggling to cope with living costs due to spiralling rent prices.

According to the study by the New Policy Institute, one in five Britons live below the poverty line once housing costs are taken into account.

The issue is affecting Londoners the most, with one in four tenants in the capital hit by sky-high rents.

One in Five Tenants Struggle to Pay the Rent

One in Five Tenants Struggle to Pay the Rent

This includes 1.2m who live in working households, a huge rise over the last ten years.

One renter finding life in the capital too difficult is primary school teacher Anna Evans. The 25-year-old pays £720 per month for a house in Balham, south London, which she shares with five other tenants.

A graduate of law from the University of Birmingham, Anna says she may have to move out of London, as living costs are so high.

“I pay more than half my salary in rent,” she explains. “I just don’t have a chance to save any money.”1

Her flatmate, Joanne Wheildon is also 25 and a trainee trader. She adds: “I won’t be able to buy a house until someone I’m related to dies.”1

Rents around the UK have risen by 11% in the last five years, reaching an average of £770 a month, found the study funded by anti-poverty charity Trust For London.

Over the same period, wages have only increased by 4%. In the last decade, this has caused a 30% rise in the amount of working-age people in poverty.

In London, the average rent price has grown by 19% in the last five years, hitting £1,600 a month.

Around 860,000 private tenants in the capital are believed to be living in poverty, including 260,000 children – twice the number recorded ten years ago.

The amount of low-paid jobs has increased for the fifth consecutive year, with one in five members of staff earning less than the London living wage of £9.15 an hour.

Another worker hit by high rents is Marianna Long, an executive assistant earning £21,000 per year.

The 23-year-old pays £500 a month for a room she shares with her boyfriend in Brixton, south London.

She comments: “The rent means I absolutely cannot save. Everything goes on living expenses and paying off an overdraft from being at university in London.”1 

Chelsea Wood, a forensic scientist, also earns £21,000. She pays £700 in rent for a flatshare in Clapham, southwest London.

The 24-year-old says: “I spend so much on rent that I feel as if I am living in poverty. A lot of my friends feel the same.”1

The researchers define poverty as having a household income that is under 60% of the national median.

1 Radnedge, A. (2015) ‘Workers caught in poverty trap by soaring rent’, Metro, 21 October, p.1-6

 

Rent growth slows to pace of house price rises

Published On: October 19, 2015 at 1:01 pm

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Categories: Finance News

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This follows nine consecutive months of accelerated growth.

Increases

The report shows that rent prices are now 8.5% greater than one year ago for the three months to September 2015, following six months of annual growth over 10%.[1]

Average rent for new tenancies in Britain over the period was £995 per month. However in Greater London, this figure rose to £1,555 per months, despite monthly rents dropping for the first time since February 2015.

Data from the Index suggests that deflation across the economy, alongside rising incomes, means that the drop in rents could be a temporary occurrence.

Regional rises

Figures from the report show that nine out of twelve UK regions are experiencing rent price rises on an annual basis. The largest increases were seen in Scotland (8.4%), the East Midlands (7.7%) and Greater London (6.6%).[1]

Three regions are in negative annual price movement, with prices in the North West down by 4.6%, East Anglia 2.2% and Northern Ireland 1.4%.[1]

When comparing September’s figures to those in the previous month, the Index shows that just three regions have sent rental increases since August. In the three months to September, only Scotland (1.2%) and the East and West Midlands (1.4%) have seen price increases.[1]

Rent growth slows to pace of house price rises

Rent growth slows to pace of house price rises

Falls

All other regions saw a modest dip in rents in the same period. The largest falls were seen in South West (2.4%), the North East (2.3%) and the North West (2.2%) respectively.[1]

Martin Totty, chief executive of Barbon Insurance Group, owners of HomeLet, stated that, ‘the UK economy has dipped into negative inflation which is a boost to consumers’ spending power and ultimately, their real income. Affordability is an important factor in determining rents.’[1]

‘Depending on what happens with inflation and real incomes over the coming months, this could have a bearing on future rental price trends especially where, in certain areas of the country, the supply of rental properties is not keeping pace with demand from those wishing to be private sector renters,’ Totty concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-rental-prices-index-2015101911106.html

 

 

Landlord Licensing is Unnecessary, Says RLA

Published On: October 15, 2015 at 10:00 am

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Categories: Landlord News

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The Residential Landlords Association (RLA) is calling on local councils to drop landlord licensing schemes, after new legislation reveals that they are unnecessary.

Landlord Licensing is Unnecessary, Says RLA

Landlord Licensing is Unnecessary, Says RLA

Presented to the House of Commons on Tuesday (13th October 2015), measures in the new Housing and Planning Bill indicate that local authorities can use Council Tax registration forms to request details of a property’s tenure and its landlord from the tenant. The RLA campaigned for this rule.

The bill also gives local authorities power to use information held by Government-approved tenancy deposit schemes to enforce regulations affecting private rental housing.

The RLA is now urging councils to stop any licensing schemes in place, as the bill gives them the freedom to collect information without charging high costs to landlords, which then get passed onto tenants in higher rents.

Policy Director at the RLA, David Smith, comments: “The Housing Bill makes clear that landlord licensing schemes are not needed and serve only as a money raising exercise by councils.

“Local authorities now have serious questions to answer. Why are they charging good landlords when they can collect the information they need to drive out criminal landlords using Council Tax registration forms for free?

“It’s time for councils to think again and bring an end to the tenants’ tax once and for all.”1

Do you have to pay for a license in your area? And has this meant you’ve had to increase rent prices?

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/rla-landlord-licensing-not-needed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rent Prices Drop for First Time Since March

Published On: September 18, 2015 at 12:48 pm

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Categories: Landlord News

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Rent prices in England and Wales have dropped for the first time since March, according to the latest Buy-to-Let Index by Your Move and Reeds Rains.

Rent Prices Drop for First Time Since March

Rent Prices Drop for First Time Since March

The report states that rents decreased by 0.1% between July and August, standing at an average of £803 per month.

Rents are now 5.5% higher than they were in August 2014, a slowdown on July’s figure, when annual growth was a record high of 6.8%.

Although rent inflation in London and the South East began slowing, rises in the Midlands and the East of England reached all-time highs.

However, the index also reveals that despite slower rent rises, the proportion of rent in arrears has increased to 9.9%.

Director of Your Move and Reeds Rains, Adrian Gill, says: “August has witnessed a break in a series of blistering rent rises.

“Yet this mild correction comes on the back of a whole year of acceleration. Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants – and the peak lettings season is only just about to start this autumn.

“There is also no major change to the fundamentals of supply and demand. This means that in the longer term, faster rent rises may become a semi-permanent feature of the British property market.

“Alongside purchase prices, rents will continue to rise rapidly until something happens to address a drastic shortage of homes in the UK.”1

1 http://www.propertyindustryeye.com/rents-fall-for-first-time-since-march-last-year/