Tag Archives: real estate
Rents down in all Australian cities apart from Melbourne and Hobart
Residential rents in Australia fell in all cities except for Melbourne and Hobart in July taking the combined capital city median weekly rent to $483 a week, the lowest since December 2015. Combined capital city rental rates are $485 a week for houses and $467 a week for units, according to the latest rent index from real estate firm CoreLogic. Overall the index fell by 0.3% over the month and is 0.6% lower than it was in July 2015 and it is anticipated that the rental market weakness will persist and that on an annual basis rents will continue to fall over the coming months. A breakdown of the figures shows that over the past 12 months rental rates have increased in Sydney by 0.4%, in Melbourne by 2%, in Hobart by 6.2% and in Canberra by 1.9%. Rents fell by 1% in Brisbane, by 0.5% in Adelaide, by 9.2% in Perth and by 15.7% in Darwin. CoreLogic research analyst Cameron Kusher pointed out that Hobart and Canberra are the only capital cities to have recorded stronger rental growth over the past year compared to the previous year. He explained that the market is currently seeing the softest wages growth on record and the declines are being cause by relatively high levels of housing investment following record highs recently and well as historically high levels of new dwelling construction as most of them are units which are more than twice as likely to be rented. He also pointed out that slowing population growth creates less overall demand for housing at a time when home commencements and the number of dwellings under construction were at historic high levels in March 2016. ‘The combination of all these factors means that landlords have little scope to increase rental rates in this current market. Potentially, the changing rental market conditions will have a flow on effect for older stock, particularly units given we’re seeing so much new unit supply being added to the rental market, much of which is located in inner city locations,’ he explained. He also said that while rental rates are falling and values continue to rise, gross rental yields remain at record low levels. ‘As a result of record low rental yields and the weakest rental market on record, those investors currently active are clearly focusing on capital growth potential,’ he added. Continue reading
Research suggests UK tenants worried about deposit protection
The majority of private sector tenants in the UK are worried that the deposits they pay for their rented home are not protected. Under the law a deposit, the money held as a fund for any damage caused during the tenancy, should be put into a deposit scheme and not held by a landlord or a lettings agency. But some 70% of tenants are concerned that their deposit has not been placed in a protection scheme and believe their landlord or letting agent has kept the deposit, according to new research. The study, conducted by online letting agent PropertyLetByUs, also shows that just 50% of tenants have ever received confirmation that their deposit is in a protection scheme and three quarters of tenants believe their landlord, or agent, will try and keep the deposit at the end of the tenancy. It is estimated that £3.2 billion deposits are being held in the deposit schemes, or by letting agents and landlords. The government intends to reform rental deposits and is looking at what it can do to make sure that people who rent have ‘proper consumer protection, including protection from landlords who withhold deposits unreasonably’. Tenant Deposit Protection was introduced in April 2007, as part of the Housing Act 2004 for all assured shorthold tenancies in England and Wales where a deposit was taken. It was identified as a way to raise standards in the lettings industry and ensure tenants are treated fairly at the end of the tenancy. ‘Tenants are right to be concerned. While deposit protection schemes protect tenants, there is little or no policing to ensure landlords and agents are compliant,’ said Jane Morris, managing director of PropertyLetByUs. ‘Our research shows that tenants simply don’t trust landlords and agents with their deposits, which is disappointing in light of the fact that the schemes have been around for many years. Agents and landlords have a legal obligation to put deposits in one of the three approved schemes within 30 days of receiving it,’ she explained. ‘There definitely needs to be reform and hopefully the Government will introduce new measures that will ensure that tenant deposits are fully protected,’ she added. Continue reading
House price sentiment increases in UK after Brexit low but still down on peak
Households across the UK believes that the value of their home rose in August but expectations remain muted following the decision to leave the European Union. Households in the East of England perceived the biggest price growth in August, followed by those in the South West and South East, according to the latest House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit. Respondents in six of the 11 regions covered by the index believe prices increased over the course of the month and the future HPSI picked up in August with households still confident that the value of their home will rise over the next 12 months, albeit at a slower pace than before the EU referendum. Households in the South of England are more confident about price rises than those in the North of England, Scotland or Wales and overall 15.2% of the households surveyed across the UK said that the value of their home had risen over the last month, while 12.4% said that prices had fallen. A breakdown of the figures shows that with those in the East of England reported the biggest rises at 58.5, followed by those in the South West t 55 and the South East at 54.5. Scotland and the North East were the only two regions where sentiment fell month on month from 49.3 and 45 to 45.6 and 44.3 respectively. This resulted in a HPSI reading of 51.4. Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling. August’s reading was an increase from the 48.3 recorded in July following the EU referendum and took the index back into 50 plus territory. However, it remains notably below the average HPSI reading for the first six months of the year before the vote which was 59.9. It is also significantly lower than the peak of 63.2 recorded in May 2014. The future HPSI, which measures what households think will happen to the value of their property over the next year, rose to 58.3 in August from 50.3 in July. While the sentiment index has risen month on month, it remains subdued on a longer term basis. The last time the future sentiment index was below 60 for two consecutive months was back in March 2013. This report says that this suggests that while households are still positive, they are expecting more modest growth in property prices over the next 12 months. There remain regional variations in future house price sentiment, mirroring trends in the wider housing market. Households in the East of England are the most confident that prices will rise over the next year at 68.3, followed by those in the South West at 64.7 and the South East 63. ‘The greater political confidence instilled after Brexit by the swift appointment of a new Prime Minister, coupled with the Bank of England’s base rate… Continue reading
