Tag Archives: london
Average rent for a two bed home in London set to surpass £2,000 a month
Average monthly rents for two bedroom homes are expected to reach £2,000 by the late summer of this year, according to new research. It currently stands at £1,867 per calendar month, up 2% already since the beginning of the year, according to the London Rental Market Report from estate agents Portico. Given that tenancies which begin in September are typically 11% higher than tenancies that begin in December, Portico is predicting that two bedroom rents will reach £2,008 per calendar month by September this year. And with two people sharing the cost of a two bedroom home, that is £1,004 per calendar month each, this shared rent figure will use 46% of the average London monthly net salary. The report shows that Ealing has seen the largest increase in rent at 6.9%, taking the rent for a two bedroom home to £1,825 per calendar month, followed by Richmond-upon-Thames at £1,934 for two bedrooms per calendar month, a rise of 6%, and Lambeth at £2,051, a rise of 5.8%. However, average rents have fallen for two bedroom homes across seven London boroughs, including Westminster and Kensington and Chelsea where they are down by 5.7% and 1.1% respectively. Bromley has recorded the greatest decline in monthly rents for all properties with a reduction of 6.3% over the first quarter of this year, followed by Hillingdon with a fall of 4.4% and Kingston-upon-Thames down 4.1%. ‘The majority of London boroughs are seeing rent increases anywhere from 1% to almost 7% so for landlords who may be feeling under particular pressure given recent government announcements, this may provide some welcome news,’ said Robert Nichols, Portico managing director. ‘But our latest report also shows some significant rent drops. Bromley is down over 6% with Kingston and Hillingdon also experiencing 4% falls. All in all, these declines won't prevent the average two bed rent tipping over the £2,000 mark later this year,’ he added. A breakdown of the figures show that the largest increase in rent for all home types was in Hammersmith and Fulham along with Lambeth with a rise of 4.7%, followed by Ealing at 4.6%, Westminster at 4.3% and Kensington and Chelsea at 4.2%. For two bedroom homes the largest rent increase was in Ealing at 6.9%, followed by Richmond-upon-Thames at 6%, Lambeth at 5.8%, Lewisham at 5.2% and Wandsworth at 5.1%. The largest decrease in rents for all home types was in Bromley with a fall of 6.3%, while rents were down by 4.4% in Hillingdon, by 4.1% in Kingston-upon-Thames, by 4% in Haringey and by 3.7% in Enfield. For two bedroom homes the largest fall in rents was in Westminster with a decline of 5.7%, followed by Harrow which fell 3%, Bromley down by 2.6%, Redbridge by 1.3% and Enfield by 1.3%. Continue reading
US existing home sales bounce back after unexpected decline
Sales of existing homes in the United States bounced back in March with big gains in the Northeast and Midwest, according to the latest index data to be published. Total existing sales, which are completed transactions that include single family homes, town homes, condominiums and co-ops, increased by 5.1% to a seasonally adjusted annual rate of 5.33 million in March from a downwardly revised 5.07 million in February. The data from the National Association of Realtors also shows that overall sales rose in all four major regions last month and were up 1.5% compared with March 2015. Lawrence Yun, NAR chief economist said the rebound was welcome after an uncharacteristically large decline in February. ‘Closings came back in force last month as a greater number of buyers, mostly in the Northeast and Midwest, overcame depressed inventory levels and steady price growth to close on a home,’ he explained. ‘Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures,’ he added. The index also shows that the median existing home price for all housing types in March was $222,700, up 5.7% from March 2015 when it was $210,700. March's price increase marks the 49th consecutive month of year on year gains. Total housing inventory at the end of March increased 5.9% to 1.98 million existing homes available for sale, but is still 1.5% lower than a year ago when it was 2.01 million. Unsold inventory is at a 4.5 month supply at the current sales pace, up from 4.4 months in February. ‘The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly,’ said Yun. ‘Additionally, a segment of would be buyers at the upper end of the market appear to have been spooked by January's stock market correction,’ he explained. Matching the lowest share since August 2015, properties typically stayed on the market for 47 days in March, a decrease from 59 days in February and below the 52 days in March 2015. Short sales were on the market the longest at a median of 120 days in March, while foreclosures sold in 50 days and non-distressed homes took 46 days. Some 42% of homes sold in March were on the market for less than a month, the highest since July 2015 when it was 43%. The data also shows that the share of first time buyers was 30% in March, unchanged both from February and a year ago. First time buyers in all of 2015 also represented an average of 30%. ‘With rents steadily rising and average fixed rates well below 4%, qualified first time buyers should be more active participants than what they are right now. Unfortunately,… Continue reading
Survey reveals many home owners support additional home stamp duty charge
Twice as many home owners in the UK support the new 3% stamp duty surcharge on additional homes as oppose it, despite loud opposition from landlord groups, new research shows. Some 47% support the extra charge which was introduced on second homes and buy to let properties on 01 April while 18% are against it and believe that it supports first time buyers. The results of the poll, conducted by YouGov for the HomeOwners Alliance and BLP Insurance shows that overall concerns about stamp duty have fallen dramatically since the reforms in 2014. In 2014, some 64% of UK adults believed that stamp duty was a serious problem but in 2016 that has fallen to 52%. Supporters of the stamp duty surcharge on second homes believe the measures are a good way to level the playing field between those buying a home to live in and those making an investment purchase. ‘The buy to let market is slowly destroying the overall housing market and making affordable properties less available for those wanting to own a home as their principal place of residence,’ said one survey respondent. The research also found that some feel there has been a shortage of homes available for first time buyers and this will make it harder for buy to let investors competing to purchase similar properties. Indeed it found that there are some anti buy to let feelings, a sense that buy to let may have been inflating house prices and pricing out local residents in some areas. Some also feel that those able to afford to buy a second home or to buy a property for the purpose of letting it out and making profit should be able to afford to pay higher stamp duty on their purchase. Those who oppose the stamp duty surcharge on second homes suggest the policy could have unintended consequences such as the surcharge being passed on to tenants in the form of higher rent. Comments also indicate that they feel the government is making another tax grab or that the policy is anti-enterprise. ‘I have been saving for five years to be able to afford to purchase an investment property. This change has now meant that it is not feasible for me to do so. It is unfair to penalise people who work hard and save,’ said another respondent. Paula Higgins, chief executive of the HomeOwners Alliance, thinks that the British public believe that homes are for living in and not speculating with. ‘The stamp duty surcharge might be bad for landlords but it will allow more young people to realise their dream of owning the roof over their head,’ she said. ‘This is why we initially called for the tax system to differentiate between aspiring homeowners and property investors. However, we must see the money raised ploughed back into building more affordable housing,’ she added. According to Kim Vernau, chief… Continue reading
