Posts with tag: supply

Supply of rental stock rises – as do rents

Published On: July 7, 2017 at 10:59 am

Author:

Categories: Property News

Tags: ,,,,,

New research from online property portal Rightmove suggests that there are more properties available on the market in the UK rental sector. However, rents are continuing to increase.

Figures from the report suggest that supply outside of London rose by 7% during the second quarter of 2017, in comparison to the same period last year. In the capital supply actually increased by 8%.

Rental Rises

Despite the increased choice for would-be tenants, asking rents are continuing to increase – rising by 2.8% outside of London in comparison to the opening quarter of the year. Now, rents amount to £790 per month on average.

Inside of London, asking rents fell by 0.2% quarter-on-quarter, averaging at £1,934 per month. Rental prices here are now 3.2% lower than the peak of £2,020 per month at the same period on 2016.

Choices

Rightmove’s data suggests that regions such as Ascot, Bath, Leeds and Birmingham offer some of the largest concentrations of available properties for tenants in Britain.

These findings were based upon regions with the highest number of available rental properties, as a proportion of total housing stock in these regions.

The figures can be seen in the table below:

Rightmove

Best choice for renters by region (source: Rightmove)

 

An increase in choice has come as a slight surprise, given the recent tax changes set at deterring landlords from the sector.

Supply of rental stock rises - as do rents

Supply of rental stock rises – as do rents

Investment

Sam Mitchell, Head of Lettings at Rightmove, observed: ‘Many thought that rental supply would constrict this year, as landlords sold up and looked to invest their money elsewhere, but clearly this isn’t happening yet. Perhaps landlords are re-mortgaging their buy to let properties instead, as they still feel it’s a better investment than looking to other industries.’[1]

‘It could spell good news for tenants coming to the end of their lease as they might find there is slightly more choice than last year. Anyone hoping for a drop in prices due to the extra choice will be disappointed though as rents are following a very similar trend to previous years,’ she concluded.[1]

[1] http://www.propertywire.com/news/uk/supply-rental-properties-rises-uk-rents-still-going/

 

UK buyers are becoming more efficient

Published On: June 9, 2017 at 8:48 am

Author:

Categories: Property News

Tags: ,,,

UK property buyers are becoming more efficient, according to the most recent research from haart estate agents.

Buyers are allegedly looking at fewer properties before deciding to make an offer. However, it is still tough for first-time buyers, with the average deposit they are required to pay increasing by 7.7% in the last year.

Changing Market

This certainly suggests a changing housing market. Supply has risen by nearly 6% across the country and by 9% in London. Despite this rise, supply is still down by 20.8% in comparison to one year ago.

In addition, the data indicates that property prices in England and Wales slipped by 0.2% month-on-month and by 3.2% year-on-year. This took the average price of a property to £228,221.

The average price paid by a first-time buyer was £168,619.

Overall, new buyer demand rose by 0.2%, but has fallen by 29.7% year-on-year. Despite this, there are still 11 buyers after each property in England and Wales.

Tenant Falls

Analysis from the report also shows that the number of tenants coming onto the market fell in May by 8.3%. There was a more substantial decline of 34.7% year-on-year.

Rents rose by 1.6% month-on-month, taking the average rent to £1,268.

UK buyers are becoming more efficient

UK buyers are becoming more efficient

What’s more, the number of landlords registering to buy is also down, falling by 3.7% in England and Wales and by 9.6% in London. Worryingly, these figures rose to 35.3% 52.6% year-on-year respectively.

The number of buy-to-let sales dropped by 7% month-on-month and Wales and by 4.2% in London.

Improvement?

Paul Smith, haart chief executive officer, noted: ‘The UK property market is showing signs of improvement. Stock of new homes for sale has increased by almost 6% across the UK and by a huge 9% on the month in London. And although it remains a tough market for first time buyers who have seen their deposits rise again this month, we saw an 11% increase in new buyers looking to take their first step onto the ladder in May.’[1]

Smith is tipping a boost following the General Election, stating: ‘It is obvious that the desire for people to own their own home or move up the ladder is as strong as ever. We have every reason to be confident about the property market’s long term prospects but a greater emphasis from the next Government on helping aspiring home owners and increasing the amount of stock would certainly not go amiss.’[1]

[1] http://www.propertywire.com/news/uk/research-suggests-uk-buyers-becoming-efficient-discerning/

Rental growth was subdued in May

Published On: June 7, 2017 at 11:50 am

Author:

Categories: Property News

Tags: ,,,

The most recent report from Landbay has shown that UK rental growth rather flat-lined during May.

Rental growth increased by 0.02% over the month – the slowest pace in more than half a decade. In addition, this was a fraction of the five-year average growth total of 0.14%.

Slowdown

The capital continues to be the main region driving the slowdown. Rents in London dropped by -0.94% year-on-year to May, in comparison to growth of 1.62% for the rest of the UK.

Rents have now slipped for a whole year in London – a 12 month decline in demand but greater supply- with homeowners opting to rent out properties until the sales market picks up.

In fact, London was the only region to see rents fall in May, with seven of twelve regions ending the month with a slower rate of growth than in April.

Rental growth was subdued in May

Rental growth was subdued in May

Delays

John Goodall, CEO and founder of Landbay, observed: ‘The election is one of many external factors influencing activity in the buy to let market at the moment. Yes, uncertainty about the future of the UK will cause some people to delay a decision to move, but affordability pressures are also starting to pinch the pockets of renters across the country. Wage growth is now lagging behind inflation for the first time since mid-2014, and with less money to spend on such a major monthly outlay, renters will be factoring this into their tenancy decisions.’[1]

‘On the supply side, a wave of new rental properties caused by last spring’s hike to Stamp Duty, together with falling house prices, will no doubt both be playing a small part in the ongoing softening of rental growth. Nevertheless, barring a major surprise from either the election or the Brexit negotiations, long term population and construction trends suggest that rents will soon be growing faster than inflation again,’ Mr Goodall added.[1]

[1] http://www.propertyreporter.co.uk/landlords/rental-growth-flat-lines-in-may.html

 

UK property supply falls by 4% in April

Published On: May 12, 2017 at 8:49 am

Author:

Categories: Property News

Tags: ,,,,

The most recent UK Property Supply Index from HouseSimple.com suggests that property supply fell by 4% during April.

According to the report, a combination of poor weather and political uncertainty has put sellers off from marketing their accommodation over the last month.

Factors

Supply dropped by 4% at a time when one would expect the number of new listings to increase.

This could be due to a number of factors, such as the triggering of Article 50, the announcement of the General Election and the particularly cold weather.

The most prominent falls in supply were found in Runcorn, where levels were down by 33.9%. Doncaster also saw significant falls of 31.1%.

In order to compile its Property Supply Index, HouseSimple assessed data from over 500,000 listed properties to see the number of new properties on the market each month. This data looks at over 100 major towns and cities across the UK and across all London boroughs.

UK property supply falls by 4% in April

UK property supply falls by 4% in April

Capital Rises

In London, supply increased by 1.5% during April, though there were variances across boroughs. For example, Lewisham saw new listings rise by 76%, whereas Haringey saw supply slide by 21.2%.

Alex Gosling, CEO of online estate agents HouseSimple.com, noted: ‘The property market doesn’t like uncertainty and triggering Article 50 and announcing a snap General Election shortly after is a huge amount of uncertainty for sellers to digest. The good news for the property market is that this Election doesn’t appear to be a close-run affair so it’s likely that any negative impact on the property market will be short-lived.’[1]

‘If the market is a little slower up until the General Election on June 8, then it’s likely after the result is known, there will be a boost in supply, with sellers looking to find buyers before the summer kicks in and everyone heads off on holiday. But if sellers need to move then they shouldn’t hold off until after the Election hoping that market conditions will change radically after the result,’ Gosling added.[1]

[1] http://www.propertyreporter.co.uk/property/property-supply-fell-4-in-april.html