Tag Archives: family
Private rents up an average of 1.7% in 2014 in Britain, official data shows
Private rental prices paid by tenants in Britain rose by 1.7% in the 12 months to December 2014, according to official figures from the Office of National Statistics. A breakdown of the figures show that private rental prices increased by 1.8% in England, 2% in Scotland and 0.2% in Wales in the 12 months to December 2014. Rental prices increased in all the English regions over the year to December 2014, with rental prices increasing the most in London at 2.4%, followed by the South East at 2.1%. A spokesman for the ONS pointed out that improved methodology means that the annual growth rate has been revised upwards considerably. ‘Improved methodology has been implemented leading to revisions to the full IPHRP time series. The latest data uses the new methodology,’ he explained. David Whittaker, managing director of Mortgages for Business, said it is no surprise as those in the industry have seen rents rising much faster than the ONS previously estimated. He pointed out that even a plain vanilla buy to let property now commands an average yield of 6.3%, according to our the firm’s latest Complex Buy to Let Index, while a larger, multi-unit freehold block can provide a landlord with a 9.3% rental yield. ‘But rents still aren’t rising much faster than inflation. We’re talking an average annual rent rise of 2.1% over the last couple of years instead of 1.2%. Affordability of renting, like the affordability of most things in an unprecedented economic slump, has been squeezed. But the culprit hasn’t been excessive rent rises,’ he explained. ‘That’s thanks to the vast investment that landlords are pouring into this industry, supported by a healthy buy to let mortgage market. More homes to let are keeping rents from rising at an unhealthy pace,’ he added. He also pointed out that the latest figures from the Bank of England showing approved mortgage increased in December 2014 for the first time since June, only goes to show the importance of investing in the private rented sector. ‘The mortgage market has continued on a mainly stable trajectory, going in the right direction but not taking off. Private renting will continue to dominate the housing market, and as an industry it needs all the investment and financial support it can get,’ he concluded. Continue reading
Irish property prices up over 16% year on year amid bubble concerns
Residential property prices in Ireland increased by 16.3% year on year in December 2014, up marginally on the 16.2% recorded in November, the latest index data shows. But it is a substantial increase on the 6.4% recorded in the 12 months to December 2013, according to the figures from the Central Statistics Office. So, at a national level the 0.4% rise in the month of December compares with an increase of 0.5% recorded in November and an increase of 0.3% recorded in December of last year. A breakdown of the data shows that in Dublin residential property prices rose by 0.2% in December and were 22.3% higher than a year ago. Also, Dublin house prices rose by 0.3% in the month and were 22.5% higher compared to a year earlier. Dublin apartment prices were 21% higher when compared with the same month of 2013. However, a CSA spokesman pointed out it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 0.7% in December compared with a rise of 0.1% in December of last year and prices were 10.2% higher than in December 2013. House prices in Dublin are still 35.6% lower than at their highest level in early2007 while apartments in Dublin are 44.9% lower than they were in February 2007. Residential property prices in Dublin are 37.7% lower than at their highest level in February 2007 and the price of residential properties in the rest of Ireland is 41.4% lower than their highest level in September 2007. Overall, the national index is 37.6% lower than its highest level in 2007 but there are still concerns about the annual rate of price growth and Ireland’s Central Bank is poised to introduce new mortgage rules, mainly aimed at raising deposit levels to try to ward off a bubble. According to the Society of Chartered Surveyors Ireland (SCSI), the rebound will moderate substantially this year as tighter lending rules exert a downward pressure on prices. It’s annual review and outlook report for 2015, which is based on a nationwide survey of members, predicts that the pace of property price inflation would moderate to 5% to 10% this year. However, the SCSI believes that a threshold of 20% deposits for residential buyers seeking a mortgage is too restrictive and members favour a 10% to 15% level. The SCSI report also suggests that property values rose by 14% nationally in 2014 and by 19.5% in Dublin. It also shows that rents increased by an average of 11% nationally and are now just 5% to 10% off peak levels in some prime Dublin locations. The society report also shows a 33% increase in housing completions last year, but said that this figure is still less than half of what is required annually. ‘The lack of supply of family type homes in the… Continue reading
UK regional prime property markets outperform London
For the first time since the credit crunch, the UK’s prime regional property markets marginally outperformed London in 2014 with growth averaging 3.2%, according to the latest analysis. The new rates of stamp duty introduced by the Chancellor in his Autumn Statement in December 2014 brought mixed blessings for different parts of the market, the analysis report from real estate firm Savills shows. ‘For all buyers below £937,500, stamp duty rates have fallen and this is reflected in levels of annual price growth. Above this margin, the increased rates of stamp duty resulted in an adjustment in values at the top end of the market in the final quarter, most notably in the higher value extended commuter belt of London,’ said Lucian Cook, director residential research Savills. He also pointed out that given a strong performance earlier in the year, these commuter markets showed the highest level of annual growth. Prices rose by 4.6% in the London suburban markets such as Esher, Rickmansworth and Loughton and by 3.7% in the inner commuter zone in the likes of Sevenoaks, Guildford and Beaconsfield. While the markets within the commuter zone, up to an hour from London, are all now at or above their 2007 peak, the regions beyond these areas are some way below this level. Prices remain on average 10% below their 2007 peak across the remainder of the South of England and over 20% below across Scotland as an average. The markets of the Midlands and the North falls between the two with a decline of 14.8%. In the sub £1 million prime market that predominantly benefits from a cut in stamp duty, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. ‘These lower value prime markets, particularly those well connected to London, are forecast to see the strongest growth over the next year and into the midterm,’ explained Cook. Higher value homes in the £2 million plus range recorded marginal 0.8% falls over 2014, but values fell by 3.1% in the last three months of the year. The report also says that the other overriding feature of the regional market remains the stronger performance of properties in urban locations. Annual growth in prime cities across the UK, such as Oxford, Cambridge, Bath, York, Chester and Edinburgh, averaged 5.8% price growth over 2014 compared to an average increase of 3.1% in their surrounding villages and 0.9% in rural locations. Meanwhile, prime London house prices rose by an average of 2.6% in 2014. However, 2014 was a year of two halves with prices rising by 4.9% in the first half and falling by a net figure of 2.2% in the second half. Savills said this was predominantly due to the stamp duty changes introduced in the Autumn Statement which particularly impacted the higher value markets. The strongest performers in 2014 were the markets up to £1 million and in the £1 million to £2 million… Continue reading
