Tag Archives: homes
Research reveals high number of UK tenants don’t have contents insurance
With both the cost of renting and the number of renters increasing in the UK new research has found that a third of tenants don’t have any form of home insurance to protect their contents. This proportion is almost six times larger than the comparative figure for those who own their own homes which is 6%, according to the research by Co-operative Insurance. The research reveals the most common reason that those renting have no contents cover is a belief that they can’t afford it with this affecting 44%. This is in spite of recent industry data, which reveals that the average home contents policy costs just £2.44 per week. Furthermore, the findings highlight that 29% of those without insurance feel that they don’t need contents cover as they don’t have expensive belongings whilst 26% believe they don’t need insurance as they rent rather than own a property and 16% are happy to take the risk of not insuring their contents. Some 7% said that they don’t have contents insurance as there are too many things excluded from the cover, 6% will just pay for damage from savings, 5% have not got round to it yet, 3% believe this is covered under landlords insurance, 2% think insurance is too complicated and 1% didn’t renew last time their policy finished. The research also revealed that the average value of contents estimated by renters is £16,644, for home owners this doubles to £31,651. Industry findings highlight that the average theft claim for contents now costs £1,700 whilst this rises to £11,000 in the event of a fire. The average claim for accidental damage is now £550. ‘This research uncovers a worrying insurance gap, amongst a growing proportion of the UK population,’ said Anthony Lewis, Head of Insurance for The Co-operative Insurance. ‘Prized possessions and home contents are worth protecting whether people own or rent their property, and our research suggests that many millions of people are taking a risk without any cover in place in the event of theft, or other perils such as flooding and fire,’ he added. The research also shows that 10% of those who rent, have stopped insuring their home over the last five years. This compares to just 6% of those who own their own homes. Overall the figures reveal the main factor behind people stopping insuring their homes, is a desire to save money with 47% saying so, while 20% say they have moved to an area with a lower crime rate, the same number have moved from owning a home into rented accommodation, 19% lost their job and 14% have installed extra security. Continue reading
House price recovery spreads out in UK, but growth is slowing, says Hometrack index
The top 20 cities in the UK are all registering annual house price growth of 5% or more for the first time in a decade, according to a new index. It is a sign that the housing recovery is spreading, however upward price momentum is slowing, Hometrack’s UK Cities House Price Index shows. It also points out that the annual house price growth is more than three times the current growth in average UK earnings which is 1.3% and explains that pent up demand has fed back into the market supported by low mortgage rates and a pick up in the economy. However, there is clear evidence that the upward pressure on house price is starting to slow on weaker demand for housing. In the last three months, average UK house prices have grown by 0.6% per month compared to 1.1% in the three months to May 2014. The majority of cities are now starting to show signs of a deceleration in the underlying rate of growth but cities with the lowest growth in Spring 2014 such as Glasgow, Edinburgh and Newcastle, have recorded an acceleration as house prices rise off a low base. This latest analysis shows that 11 cities have an average house price below that of the UK with Liverpool and Glasgow house prices 41% lower than the UK average. However, London bucks the trend with an average house price of more than double that of the UK at 117%, illustrating how the capital dominates the rest of the country and is distorting the national picture. The Cities Index also showed a post-referendum bounce in house prices in Edinburgh and Glasgow as confidence improves with average prices up 4.1% and 2.2% respectively in the last quarter. However the market in Aberdeen was down 2% in last quarter and the report says it is being impacted by a weak oil price with house prices declining off a high base. Oxford and Cambridge have seen average prices come off the boil quite sharply in the last three months with a fall of 1.2% and 2.3% respectively, with house prices starting to fall back after very strong gains of 42% and 52% in the last four years. The firm says that these smaller cities are seeing pricing levels respond more quickly to weaker demand. ‘The pick-up in house prices that started two years ago has spread across all UK cities with growth ranging from 5.5% in Liverpool and Glasgow to 18% in London. This latest analysis shows that momentum in house price increases is starting to slow with less pent up demand for housing than two years ago,’ said Richard Donnell, research director at Hometrack. ‘Whilst mortgage rates remain low, new mortgage affordability tests and loan to income caps are impacting on the ability of marginal buyers to access the market, especially in the higher value markets such as London. On top of this, concerns over… Continue reading
Residential rents in England and Wales reach new record
Rents across England and Wales have reached a new record of £770 per month, up 1.5% over the last 12 months, according to the latest buy to let index. Tenants have paid down rent arrears despite the new record for monthly rents in October, the index from the UK’s largest lettings agent networks, Your Move and Reeds Rains, also shows. On a monthly basis, rents in October 2014 rose 0.3% but the October rise follows faster average rent rises of 1.9% in the previous 12 months ending October 2013, and rental growth of as much as 3.4% over the preceding year. ‘Rents have edged to a new record and the rental market is pulsing with new demand. Yet at the same time, tenants are getting on top of their finances helped by a cooling pace of such rent rises,’ said David Newnes, director of estate agents Reeds Rains and Your Move. ‘Better affordability is good for tenants in the longer run too and for landlords who can rely on steady revenue to pay the bills. That helps to support a virtuous cycle of only gradual rent rises. Alongside slower overall inflation, a material boost to the supply of properties available to let has helped keep rents from rising as quickly as in previous years,’ he added. Overall tenant finances improved in October, with just 6.9% of all rent in arrears, down from 7.2% in September and 7.1% in October last year. Rent arrears are also just 0.3% above the record low 6.6% set in November 2013. In absolute terms this represents £244 million in late rent in October, down from £256 million in the previous month or a drop of £12 million since September. Levels of the most severe tenant arrears have also improved. Households facing rental arrears of more than two months now represent just 1.4% of all tenancies, compared to 1.6% in the third quarter of 2013, according to the latest quarterly Tenant Arrears Tracker from Your Move and Reeds Rains. ‘Tenants have battled a broadly stagnant jobs market for years. Recent progress on the unemployment rate has helped bring down the most serious cases of rent arrears. But for others consistently falling just a little behind on the rent, the trouble is more with incomes that just haven’t kept pace with the cost of living,’ said Newnes. ‘Instead of wage growth, a growing supply of homes to let and much slower rent rises have been far more useful in tackling the proportion of households falling behind. Looking ahead, if more homes to rent can coincide with a true renewal of real wages, this could prove a powerful combination and would take rent arrears even lower,’ he explained. A breakdown of the figures shows that rents in nine out of 10 regions of England and Wales are higher than a year ago. Leading all other… Continue reading
