Tag Archives: middle-east
Private rented sector in UK seeing rapid growth, new tenant survey reveals
The private rented sector is continuing its rapid growth across the UK and is now well established as the second biggest form of tenure after home ownership, new research shows. It has overtaken the social rented sector and large scale investment into the private rented sector (PRS) by funds and other institutions is set to treble over the next five years boosting growth further, according to the new tenant survey from real estate firm Knight Frank. The Tenant Survey carried out by YouGov on behalf of Knight Frank estimating that total investment will rise to £50 billion over the next five years and large scale investors are operating an average gross to net yield of 26% for new Build to Rent developments. It also shows that some 53% of tenants favour a six month or one year tenancy for rented accommodation and 52% said living close to work or their place of study is a key priority while 30% said the main reason for moving between rented properties was to ‘upgrade’ to a nicer or larger property. The survey found that 38% of tenants have lived in five or more rental properties and while the majority of respondents had moved within a mile of their previous property, some 19% had moved more than 60 miles, indicating a relocation for work or study, highlighting the flexibility of PRS as a tenure. Some 24% of Londoners are prepared to pay 50% as a maximum amount of their gross annual income on rent, up from 22% last year and a quarter of those living in the PRS do not want to, or don’t know if they want to buy a home in the future. Of those that express a desire to eventually buy a home using a mortgage, less than half are currently saving towards a deposit. Also, a quarter of those living in the private rented sector live alone, while 34% live in a couple without children. Some 43% of 18 to 24 years olds share with other adults in a flat share. Grainne Gilmore, head of UK residential research at Knight Frank, pointed out that the private rented sector is continuing to grow in size, with around 5.4 million, or 20% of households now being let out to private tenants. ‘There has been a generational shift in the private rented sector. More households are now living in rented accommodation for longer, and while housing affordability is certainly a factor here, rented accommodation is also becoming an established flexible form of tenure, an attribute welcomed especially among younger workers,’ she explained. Indeed, this was confirmed in last year’s Tenant Survey, with 38% of under 35s saying they didn’t want a mortgage or that renting suited their lifestyle, rising to 49% for those aged under 25. The number of under 45s living in the sector has more than doubled, to nearly 3.1 million over the last decade, and those aged 25 to 34… Continue reading
Demand for property grows across the UK but not in London
National property demand in the UK has increased by 3% overall since the first quarter of the year but it is down by 2% in London, the latest hot spot index shows. Despite the initial artificial spike in demand ahead of April’s stamp duty deadline, the changes to tax brackets for second home and buy to let properties seems to have had a detrimental impact on London property demand, according to the index report from eMoov. Removing this decrease in the London market from the national picture sees the increase in demand for property elsewhere around the nation increase by 8% since the first quarter of 2016, taking it to 40% overall. Despite demand cooling across the capital, the London Borough of Bexley remains the hottest spot in the UK for property demand at 71 although it has cooled by 7% since the start of the year in line with the decrease felt across the capital as a whole. Bristol remains the hottest spot outside of the London bubble, with demand increased, albeit marginally, to 69% followed by Bedford at 67%, then Aylesbury and Medway both at 64%, then the London Borough of Sutton and Watford both at 61%. Both Cambridge at 21st and Milton Keynes at 15th are out of the top 10 and are replaced by Northampton and Coventry, where property demand is currently at 64% and 58% respectively. The Scottish capital continues to lead north of the border, with Edinburgh at 54% the 18th hottest spot ahead of Glasgow with 48% at 34th. This is also the case in Wales, where property demand in Cardiff is currently at 44% making it the 44th hottest spot in the UK, with Swansea trailing way down in 90th place at just 27%. Kingston Upon Thames at 59% and Southwark at 47% are two of only five boroughs to have seen a positive increase in property demand levels since the first quarter and are the first and second largest increases across the UK respectively. There has also been a resurgence for property demand across the North East after a tough year for home owners in the region. Stockton-on-Tees at 47%, North Tyneside at 46%, Gateshead at 42%, Durham at 37%, Newcastle at 32% and Sunderland at 23% have all recorded some of the biggest increases in property demand since the first quarter. At just 12% the London Borough of Westminster continues to prop up the table, joined by its prime central London neighbours Kensington and Chelsea also at 12% and Hammersmith and Fulham at 17%, as well as Camden at 20%, the coldest spots in the UK for property demand. Despite its slight revival in the first quarter demand for property in Aberdeen is also low at just 13%. ‘The changes to stamp duty tax brackets for those looking to secure a second home or buy-to-let property seem to have hit the London market harder than the rest of the UK,’ said Russell Quirk, chief executive… Continue reading
Asking prices down across England and Wales post Brexit vote
The price of property coming onto the market in England and Wales has fallen by 0.9% or £2,647 with momentum continuing due to a supply shortage, according to the latest asking price report. Activity is within usual expectations for the run-up to the summer holiday season and buyer demand in the two weeks since the European Union referendum result is consistent with 2014 although down on 2015. The monthly report from property portal Rightmove points out that the same period in 2015 benefitted substantially from a post general election boost so enquiries this year are down 16% compared to that period. It adds that as 2014 was not distorted by the election it is a better basis for comparison, and buyer enquiries are at the same level as the like for like two weeks in 2014. Since 2010 the month of July has recorded average price falls of 0.4%. The Rightmove data shows that new seller asking prices fell by 1.2% or £7,407 this month in Greater London while in inner London they fell by 2.3% or £19,051. The seven cheapest inner London boroughs all saw price of newly listed property falling while asking prices in outer London were unchanged. Asking prices fell by 0.7% month on month in the North East, taking the average to £147,251 but are still up 0.3% year on year. In the North West they fell by 0.5% month on month to £176,277 and are 3.6% higher than a year ago and in Yorkshire and Humber they were down 2.1% month on month to £172,412, and up 1.3% year on year. In the West Midlands month on month prices were down 1.6% to £200,129 and still up by 3.6% year on year while in the East Midlands they were down 0.2% month on month to £190,192 and are up 3.9% year on year. The East of England saw asking prices fall by 0.7% to £313,255 but they are 7.3% up compared to a year ago. In the South East they fell 0.6% to £386,988 and are up 6.7% year on year while in the South West they were down 0.4% to £286,155 and up 5.2% year on year. In Wales asking prices fell by 2.3% month on month, taking the average price of a newly listed home to £177,280 but prices are 2% up compared to July 2015. According to Rightmove, most agents report market momentum continuing due to shortage of suitable property for sale, buyers fearful of missing out on scarce choice, and affordability and availability of low mortgage rates. Sellers seem undeterred as compared to the same period last year, the two weeks pre-referendum saw the number of new properties coming to market down by 8%, and the two weeks post referendum saw them up by 6%. Overall the figures covering the last four weeks, two weeks before and two weeks after the referendum, give an early but reassuring view into the short term effect of the political turmoil… Continue reading
