Tag Archives: government
England and Wales property prices up again, with average in London reaching half a million
Property prices in England and Wales increased by 1% in September, taking the average house price to £186,553, according to the latest Land Registry data. Year on year prices have increased by 5.3% but in London it is much higher at 9.6% year on year and 1.8% month on month and the average price in the capital city is now a record £499,997. The North East saw the only annual price decrease of 0.3% and also saw the only monthly price decrease with a fall of 0.3% as well. But sales are down. From April 2014 to July 2014 there was an average of 78,330 sales per month but in the same months a year later, the figure was 71,766. The data also shows that the number of properties sold in England and Wales for over £1 million in July 2015 was down 9% year on year and in London it was down 16%. Jonathan Hopper, managing director of the buying agents Garrington Property Finders, said it was inevitable that the average property price in London would reach half a million pounds. ‘Prices in the capital have been marching relentlessly upward in all but the top tiers of the market, as strong demand collides with a sustained shortage of supply. But the average London property price won't stay at £500,000 for long. Bullish sentiment has driven annual price inflation in the capital close to double digits again, and the half million mark could soon be forgotten,’ he explained. He pointed out that the price gains are steadily rippling outwards from London, with both the South East and East of England posting annual rates of growth of over 8%, but England's North-South divide remains as strong as ever. ‘Even though the North West has reversed the sudden month on month drop in prices it saw in August, prices in the North East of England have slipped back into negative territory. By contrast much of the South and East looks like one giant hotspot, as the national picture returns firmly to type,’ he said, But he believes that rising prices should not be confused with sound health in the property market. ‘The shortage of supply is endemic in several areas, and the current rate of demand can never be completely met. Yet for all the competition among buyers, most remain astute in their offering behaviour and sellers shouldn't be tempted into thinking it's an exclusively sellers' market,’ he added. A sense of balance is appearing in the market, according to Nicholas Leeming, chairman of high end national estate agents Jackson-Stops & Staff. ‘London continues to drive forward but we’re now seeing emerging boroughs such as Newham and Hounslow enjoy strong growth, while traditional performers such as Hammersmith and Fulham begin to wane,’ he said. ‘There still remains a stand-off between buyers and sellers at the top end of the market, with neither party prepared to accept the higher cost of stamp duty. Outside of the capital, it… Continue reading
Tenant demand remains strong for UK residential landlords
Tenant demand in the UK’s private rented sector remains strong, with four in 10 landlords reporting an increase in the areas where they operate, new research shows. While one in five are uncertain about demand in the areas they own property, on average 40% of landlords have seen an increase, according to the latest monthly survey report from the National Landlords Association (NLA). The East of England saw the biggest net growth in tenant demand with a 48% increase. This was closely followed by the South West at 45% and the South East and Outer London at 41% and 40% respectively. The research also found that on average just 6% of landlords reported a decrease in tenant demand in the last three months. Landlords in the North East reported the largest net decrease in tenant demand of all the regions with a 15% decline in demand, closely followed by 12% in Wales and Yorkshire and 11% in the North West. ‘These figures demonstrate just how important the private rented sector is in housing a growing number of people. Our research indicates that 5% of landlords will sell up following the Government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies,’ said Carolyn Uphill, NLA chairman. ‘The Government’s planned changes, which will be phased over a period of years, gives landlords effected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes,’ she added. Continue reading
Residential rents in Scotland up at less than a third in England and Wales
Scottish rents are rising at less than a third of the rate seen in the rest of Britain, amidst the controversy of the new Private Housing Bill, according to a new buy to let index report. Average Scottish rents have risen just 1.7% in the past year, less than a third of the rate currently being witnessed in England and Wales, according to the data from lettings agent network Your Move. Year on year the index show that while rents across England and Wales have increased by 6.3% in the past 12 months, annual rent growth in Scotland has plateaued after a summer uplift. The data also shows that rents in Scotland fell 0.3% from August to September 2015, the second consecutive monthly drop in Scottish rents, meaning that the typical rent in Scotland is now 0.8% lower than at its summer peak in July. The average monthly rent in Scotland was £545 in September 2015, compared to £549 in July 2015. However this is 33.3% cheaper than in England and Wales during September. ‘All eyes are on the proposed reforms to the private rented sector in Scotland, but there is a crucial element missing to the debate. Rents are not going up quickly enough to warrant the staggering rise in tenant arrears we’re seeing. Rather, tenant finances have much more to do with deeper rooted societal problems of salaries and employment levels,’ said Brian Moran, lettings director at Your Move Scotland. ‘Over the summer we witnessed a short term surge in rent prices, but this has been superseded more recently with a slower rate of rent growth, which doesn’t even come close to what we’re witnessing south of the border. Scottish rents have been falling for the past few months, and realigning to calmer levels for the autumn. This is even more extraordinary when you consider we’ve just weathered peak lettings season. It’s certainly not a sector spiralling out of control,’ he explained. ‘This auto-correction, and natural flow of the lettings market will be disrupted by artificial interventions from the Government. Private sector landlords could soon face a regulatory minefield, and this may dissuade future investment into buy-to-let at a time when we need to be the sector to grow, not contract. Ultimately, where the supply of rental properties uncouples from demand, rent growth will be massively thrown out of kilter, and tenants will find themselves even more exposed,’ he added. A breakdown of the data shows that all but one region of Scotland has seen rents increase over the past year. The strongest annual rent growth has been recorded in the Highlands and Islands, with rents up 6.4% since September 2014 to reach a new high of £572 per month. This represents the fifth consecutive month that annual rent growth has accelerated in this region, and the fastest year on year increase on record… Continue reading
