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Average rent for newly let properties in England reach new record level
The average rent for a newly let property in England has increased by 3.8% in the last 12 months to £946 per calendar month, according to the latest index figures. In August the month on month average increase was 2.5% the data from one of the UK’s largest letting agents, Countrywide, shows and rent levels have reached their highest level since the index began. Annual growth in rent for new let properties was recorded in all regions except central London. The South West saw an increase of 7% and the Midlands and increase of 6.3%, the highest growth year on year. Overall some 45% of tenants renewing their tenancies had rent increases in August, the highest since the index began and in London and the South East more than half of tenants renewing faced higher rents, according to the analysis. The report explains that rents have been growing throughout 2015, driven by a lack of homes available to rent and high levels of tenant demand. The total number of homes advertised to let was down 8% in August compared to last year, whereas the number of registered applicants was up 4%. With fewer options available for tenants looking to move, those choosing to renew their tenancy are more likely to see their rent increase. However, they are still better off compared to those moving home. The average increase in rent of 2.5% for a renewing tenancy is still less than the annual increase in rent for newly let homes, the report points out. It also explained that rental growth remains well above CPI inflation, which slipped back to zero this month. The South West and Midlands saw rents rise faster than anywhere else in the country with growth of 7% and 6.3% respectively. Growth in newly let rents was seen in all regions except in Central London where rents decreased 1.4% year on year. Greater London, although still growing, has seen its rate of growth in rent halve since the start of the year. The South West has seen the highest rental growth in the UK since the start of the year. ‘Falling numbers of homes available to rent and increasing demand from tenants have been the defining features of rental market so far in 2015. Competition for rented homes has intensified and led to accelerating rent growth,’ said Johnny Morris, research director at Countrywide. Indeed, there are now nine tenants are registered for every home available to rent, up from 7.5 in August last year. ‘With pressure on rents and increased competition for homes on the market, the proportion of renewing tenancies seeing an increase in rent has grown. Faced with the choice of staying put or moving in a market with more competition and increasing rents, more tenants are choosing to accept a smaller increase in rent to extend their existing tenancy,’ Morris explained. ‘Rental price growth in the South of England, outside of London is being fuelled by an… Continue reading
UK home owners less optimistic about property prices, poll suggests
Optimism in the UK property market has slowed down, with fewer home owners anticipating an increase in the value of their home over the next 12 months, a new survey shows. Just under half, 49%, believe their home will increase in value over the next year compared to 54% in January and 55% a year ago. A further 49% anticipate that the value will stay the same whilst 2% believe it will decrease. The survey from Clydesdale and Yorkshire Banks also shows that Londoners are the most optimistic with 73% anticipating an increase in the value of their home, followed by 62% of those in the South East and 56% of those in the East. In sharp contrast 11% of those surveyed in the North East expect the value of their home to decrease, a view shared by 6% in the North West and Scotland. Those living in the South East and London are the most upbeat about rising property prices with 67% in the South East and 64% in London citing this as the main reason for anticipating an increase in the value of their home. In contrast only 37% of those in the North West share this view. The report suggests that the key factor for those who think their home will increase in price is rising property prices as well as the positive impact of the economic recovery. ‘It has been positive to see confidence returning to the property market however our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year,’ said Steve Fletcher, director of retail banking. ‘There are still a number of property hot spots, such as London and the South East, where property prices are rising and we anticipate that this will continue however this is not mirrored across the UK as a whole,’ he pointed out. He added that the Banks have a range of competitive mortgages including a two year fixed, fee offer product up to 75% LTV at 2.09% and a five year fixed, fee offer product up to 75% LTV at 2.89%, both for re-mortgage applications above £75,000. Continue reading
Seven out of 12 UK regions see rental growth, but not London
After a period of rent price rises in London outstripping the rest of the UK, the disparity between the growth rate of the London and nationwide rental markets is beginning to narrow, the latest index shows. The average rent in the UK is now £899, compared to £889 at the end of January 2015, and £873 in December 2014, according to the HomeLet rental index. It also shows that average rent prices in London have remained static in the three months to February 2015, versus the wider picture of predominantly rising prices. Indeed, seven out of 12 regions in the UK have seen rent prices rise in the three months to February 2015, with the North East and South West of England leading the way at 3.1% and 2.5% price growth respectively. There was also growth in East Anglia, the North West of England, Northern Ireland, the South East of England and Yorkshire and Humber while rental prices have not increased in Greater London and the West Midlands, and have fallen in Wales, the East Midlands and Scotland. Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with Northern Ireland rising 7.2%, the North East of England 6.2%, the South West of England 4.5% and East Anglia 3.7%. In contrast, rents agreed on new tenancies in London in February 2015 have fallen by 2.5% compared to the previous month. Scotland, the East Midlands and Wales have also seen prices agreed on new tenancies fall in February 2015 compared to January 2015. ‘Last year saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad based with the strongest rent price growth occurring outside of the capital. Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow,’ said Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet. ‘The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available,’ he added. Continue reading
