Tag Archives: south
Rents up 1.5% in UK, but growth is slowing across the country
Rents in London fell by 0.5% in July compared to the same month in 2015 as growth in the lettings market in the city stalled, but they increased across the UK by 1.5%, the latest index shows. However, a breakdown of the figures from the Countrywide Lettings Index shows that rental growth slowed across every region of the country and the drop in London was the first annual fall in rents for six years. In July the average rent in the UK was £951 a month, up 1.5% on last year, but rising half as fast as in July 2015. Rents fell by 2% in Wales, by 1% in Scotland and by 1.1% in the South East of England but in the North of England and the Midlands, the rate of rental growth hit the highest level for two years. The highest rents are in Central London at an average of £2,638, up 2.1% year on year, followed by Greater London at £1,280 and the South East at £1,173. In the East of England they are £963, up 3.8%, in the South West £856, up 3.3%, in the Midlands £703, up 4.8%, in the North of England £694, up 4.7%, in Scotland £689, down 1% and in Wales £671, down 2%%. The report points out that while tenant demand has increased nationally, the volume of homes coming onto the rental market has slowed or in some cases reversed rental growth. In July there were 23% more homes available to rent in the UK than at the same time last year, while the capital saw a rise of a third. Some of this increase has been driven by purchases rushed through to beat the stamp duty deadline, however the number of homes available to rent has continued to rise in recent months, particularly in London and the South East. An increase in the number of homes on the market has meant less deals are agreed above asking rents. In July 2015 16% of tenants paid over the asking rent to secure a home compared to 7% in July 2016. In London the fall was larger, 11% of homes let for more than the asking price in July, down from 32% in July 2015. ‘The large rise in numbers of homes available to rent has certainly slowed rental growth, even with tenant numbers increasing. Stock levels were already running higher than usual due to investors bringing forward purchases in the rush to beat the stamp duty deadline in April,’ said Johnny Morris, director of research at Countrywide. ‘Added to that, uncertainty in the sales market in the run up to, and after the European Union Referendum has caused more discretionary sellers to turn to the rental market. While rental price growth has slowed, current market dynamics are likely to accelerate the growth of renting. It seems that with more stock and demand from tenants we will… Continue reading
UK housing market sees marked drop in activity, particularly in the south
Uncertainty fuelled by the European Union referendum has resulted in a marked drop in activity in the UK housing market with new buyer enquiries down significantly across the country. In June some 36% more chartered surveyors nationally reporting a fall in interest, the lowest reading since the middle of 2008, according to the latest month residential market survey from the Royal Institution of Chartered Surveyors (RICS). The South of the UK has been the hardest hit, with anecdotal evidence suggesting both the EU result and the tax changes, which took effect at the beginning of April, as having an impact on sentiment. There was a further fall in the supply of properties coming available for sale across the UK in June, with the exception of Northern Ireland. This highlights the continuing challenge presented to the market by the lack of stock, according to Simon Rubinsohn, RICS chief economist. The report also shows that 45% more chartered surveyors saw a fall in new instructions in June from a net balance of -31% in May, the steepest fall on record and extends a trend that has been in place since 2014. The market has also seen further decline in sales this month with a third successive monthly drop in activity. Contributors expect this trend to continue with 26% more respondents anticipating a further drop in sales across the UK over the next three months. This is the most negative reading for near term expectations since 1998. House price growth saw a reduction in June and although prices are still rising, they are doing so at a more moderate pace with 16% more respondents reported having seen prices rise rather than fall across the UK. London remains the only region where respondents are seeing prices fall with a -46% net balance but this is largely being concentrated in the central zones. ‘That said, near term price expectations are now in negative territory across the whole of the UK with 27% more respondents across the UK expecting to see prices fall rather than rise over the next three months,’ Rubinsohn pointed out. He also pointed out that looking further ahead over the next 12 months, sales expectations have turned negative for the first time in four years with 12% more contributors expecting transactions to fall rather than rise. Significantly, over the next 12 months the dip in prices is only expected to persist in London and East Anglia with net balances of -39% and -34% respectively, and longer term, prices are still expected to rise, albeit a little less than previously anticipated, with a cumulative increase of 14% projected for the next five years. Rent expectations over the same time horizon remain more resilient and are still broadly consistent with an increase of just over 20%, the report also shows. ‘Big events such as elections typically do unsettle markets so it is no surprise that the EU referendum has been associated with a downturn in activity. However, even without… Continue reading
Home prices rising faster in East of England than anywhere else in UK
Asking prices in the East of England are rising faster than anywhere else in the UK, raising concerns about the sustainability of the region’s property market. Indeed, the region's average asking price has risen twice as fast as the rest of the country over the last 12 months, according to the June index from property search engine Home.co.uk. Year on year prices in the East of England increased by 13.9%, compared to an England and Wales average rise of 6.8% and a rise of 6.7% in Scotland over the same period. The data also shows that the East of England's rises far outstrip Greater London's 7% year on year rise and the South East's increase of 7.8%. Asking price figures for May and June 2016 provide further evidence of how the East of England has become the UK's hottest market. Over this period, the region's average asking price rose by 1.6%, while London's fell by 0.4% and prices in the South East only rose by 0.2%. Across England and Wales the latest monthly rise was 0.4%. Properties are also selling faster in the East of England than in any other region. The typical time on the market for homes in the East of England in June is 54 days, compared to 80 days across England and Wales and 62 days in London. Lack of supply is a key factor in these regional variations in asking price. There was an 8% fall in supply of property in the East of England between May 2015 and May 2016. Over the same period, the UK wide fall in supply was 7%. In contrast, between May 2015 and May 2016, the supply of property rose in Greater London by 2% and in the South East by 1%, a key indicator as to why asking prices in those two regions are now flagging compared to the East of England. Home.co.uk is predicting that the East and West Midlands are set to follow the East of England's rapid rate of asking price inflation, as the supply of property in each area has dropped by 13% and 14% respectively over the last year. These are the largest regional declines in property supply since May 2015. ‘A cooling London market has changed the dynamic of the UK property market and is now less of a focus for property investors,’ said Home.co.uk director Doug Shephard. ‘The new regional champion is by far the East of England where terrific price rises look set to rival even London in its heyday. But investors should be aware as if prices rise too far and too fast, a severe correction becomes a significant risk in the region,’ he added. Continue reading
