Tag Archives: government
Average rents in the UK increased by almost 4% in 2015
Average UK rents increased by 3.8% in 2015 despite a small seasonal dip of 0.2% in December, according to the latest index to be published. Housing shortages across the country means that rental increases have outpaced wages in many parts and three bedroom properties have seen the fastest rent rises, according to the Landbay Rental Index. This takes the average rent to £1,280 per month, with the highest rents found in London at £2,047, followed by the South East at £1,019 and then a big drop to the East of England at £863. Every region has seen rents up year on year. This was led by Northern Ireland with rents up 6.7% compared to 2014, followed by the East of England up 5.6%, Scotland up 4.5%, the West Midlands up 4.4%, the South West up 4.1% and London up 4%. The South East saw annual growth of 3.7%, followed by the East Midlands and Wales, both at 3%, then Yorkshire and the Humber at 2.1%, the North East 1.8%, and the North West at 0.9%. Compared to 2014, three bedroom properties have seen the biggest increase in the average rental price, up 5.2% to £1,484 in 2015 suggesting that family homes and properties for sharers are in highest demand. The average rent for a one bedroom home has climbed 3.2% to £1,042, a two bedroom home by 3.9% to £1,243, and above three bedrooms by 1.5% to £2,166. Commuter hotspots surrounding London were amongst the country’s top risers in rental prices. Luton with a rise of 11.1%, Medway up 8.8% and Thurrock up 7.3 were in the top five for rent price increases during 2015 when comparing rents from December 2014 to December 2015, a sign that many working in the capital are priced out from living there. With counties to the North, East and South of London all showing higher than average increases in rent prices during 2015, an evident ripple effect is appearing in southern parts of England, the index report suggests. ‘Despite a small seasonal dip towards the end of the year, rents rose significantly ahead of wages in 2015,’ said John Goodall, chief executive officer of Landbay. ‘Rents often track wages as consumers with more pay compete for the most desirable rental properties, but the fact that rents are outpacing wages is a clear sign of the shortage in properties to rent as large parts of the UK face an acute housing shortage. This trend is clear in London and the South East, along with large parts of the East Midlands and East Anglia, and it is most evident for three bedroom properties,’ he explained. ‘Based on its recent policy changes for the private rental sector such as the new stamp duty surcharge and changes to tax relief on mortgage interest, the Government seems intent on weeding out amateurs from the ranks of new buy to let investors. If it is successful, our rental index suggests that… Continue reading
UK home owner lending down month on month which CML says is usual winter dip
Home owner house purchase lending totalled £10.7 billion in November, down 9% on October but up 18% on November 2014. The latest data from the Council of Mortgage Lenders also shows that first time buyers borrowed £4.2 billion, down 9% on October but up 14% on November last year. Home movers took out 32,300 loans, down 10% month on month and up 9% compared to November 2014. In total, this was £6.5 billion borrowed, down 10% on October but up 20% year on year. Home-owner remortgage activity was down 9% by volume and 14% by value compared to October. Compared to November 2014, remortgage lending was up 24% by volume and up 36% by value. Gross buy to let lending fell month on month, down 6% by volume and 8% by value, but the substantial growth year on year continued. ‘As expected, mortgage lending activity eased back as the normal dip in the winter months began,’ said Paul Smee, director general of the CML. ‘There was still growth across all lending types in November compared to the year earlier suggesting continued improvement. Our forecasts anticipate that gross lending will continue a slow but steady upward trajectory over the next two years,’ he added. A breakdown of the figures shows that house purchase lending in the UK in November saw a decrease month on month by volume and by value of mortgages advanced, but compared to November 2014 volumes and amount borrowed overall increased. As previously reported, UK gross lending overall in November totalled £20.5 billion, down 6% on October but up year on year by 27% compared to November 2014. This was the highest lending level in the month of November since 2007. First time buyer lending declined by volume and by value compared to October, but saw a year on year increase in loan numbers and amount borrowed. Competitive mortgage rates mean first time buyers continue to pay low levels of their monthly household income to service the capital and interest rate payments of their mortgage at 18.3% in November, joint lowest average percentage level since we began tracking this in 2005 alongside June and September 2015. Home movers borrowed £6.5 billion in November, this was down compared to October but was the highest November level since 2007. Home movers spent 18.2% of their monthly gross household income to pay capital and interest repayments, unchanged on October but a decrease compared to November 2014. Remortgage activity saw a decrease by volume and by value in November compared to October, but increased year on year to have the highest volume of remortgage loans in the month of November since 2011 and the most borrowed in the month of November since 2008. Gross buy to let lending decreased in November compared to October but was substantially up on last year. Buy to let remortgage continues to be the driver of… Continue reading
Only a few weeks until Right to Rent checks apply across England
Residential property landlords in England are being reminded that there is less than a month to go before right to rent rules come into force regarding checking the background of new tenants. The new law means that from 01 February landlords with property in England will have to carry out checks to ensure potential tenants have the right to rent property in the UK. Already they can start to carry out right to rent checks as these can be done from 28 days before the start of a tenancy agreement. ‘Many responsible landlords have already been undertaking similar checks and these are straightforward and do not require any specialist knowledge,’ said Immigration Minister James Brokenshire. He explained that the Right to Rent rule is part of the government’s wider reforms to the immigration system to make it stronger, fairer and more effective. ‘Those with a legitimate right to be here will be able to prove this easily and will not be adversely affected. The scheme is about deterring those without the right to live, work or study in the UK from staying here indefinitely,’ he pointed out. Right to Rent was first introduced in parts of the West Midlands in December 2014 and the extension to England is the next phase of a UK wide roll out. Landlords, and anyone who sublets or takes in lodgers, could face a financial penalty of up to £3,000 per tenant if they are found to be letting property to someone who has no right to stay in the UK. Stephen Gabriel, strategic manager for homes and communities from Sandwell Council, explained that research done as part of the pilot found that many landlords felt carrying out checks was good practice, and that the new system was simple and easy to follow. There is an online checking tool available on GOV.UK which landlords can use to guide them through the process, and also to request a check on anyone who has an outstanding case with the Home Office. Right to rent checks should be carried out on all adult tenants for new tenancy agreements in England from 01 February 2016. The scheme is backed up by codes of practice which include guidance on avoiding unlawful discrimination drawn up with the assistance of the Equality and Human Rights Commission. Continue reading
