Tag Archives: finance-update
Fewer UK landlords putting up rents, latest monthly data shows
The number of letting agents in the UK reporting rent increases for tenants has fallen, with only 33% putting up rents, the lowest amount since April. For the first time this year, the number of lettings agents seeing rent hikes for tenants has decreased from the previous month, with just 33% of landlords putting up rents in August, according to the latest survey. Data from the monthly Private Rental Sector report from the Association of Residential Letting Agents (ARLA) shows that it has dropped from 37% in the previous month and is the lowest since April this year. But it is not a universal trend. Tenants in the South West are not benefiting with 42% of agents in the region continuing to see rent prices hiked, up 4% from the previous month. This is compared to only 12% of agents in the North West who have witnessed a rent increase. In Wales, tenants are worse off too. The number of landlords putting rents up for their tenants has increased threefold from July. This month 36% of letting agents in Wales saw increases, up 25% from July when just 11% agents reported rent hikes. The report also shows that after a spike in the number of houses available to rent last month, supply has fallen back down to levels seen in June 2015. ARLA letting agents managed an average 178 properties per branch in August, compared to 189 in July. The report found the number of house hunters in the rental sector increased marginally in August. Letting agents reported an average 36 prospective tenants registered per branch, compared to 35 in July. The number of properties available to rent in London continued to fall in August, pushing demand for housing even harder in the capital and putting further pressure on house hunters. With 110 properties registered per branch, compared to 117 in July, the task of finding a property in the capital’s rental sector is becoming increasingly difficult. ‘Our findings this month are good news for the majority of tenants, as less are experiencing rent hikes. However, a third of agents are still seeing landlords pushing rents up, which reflects the sorry state of affairs in the market,’ said David Cox, ARLA managing director. ‘With increasing pressure on the dwindling supply of housing, and the number of house hunters growing, rent increases are unfortunately very common as one in three tenants are experiencing. Despite the fact they have fallen this month, it’s likely they will go back up again over the next few months,’ he added. Continue reading
UK residential housing market sees highest activity for six months
UK housing market activity has climbed to its highest level in six months and the second highest monthly level on record, new data shows. September saw just 0.5% fewer valuations carried out than in March 2015 which was the highest on record, according to the latest research from Connells Survey & Valuation. On an annual basis, total valuation activity is up 29% compared to September 2014, after a 23% month on month rebound since August 2015. ‘Britain’s housing market is going from strength to strength. Against a brightening economic background, players in all parts of the market are feeling more confident about their prospects. Valuation activity is growing beyond the seasonal pick-up at the end of August, with year-on-year growth gathering momentum,’ said John Bagshaw, the firm’s corporate services director. The data also shows that the number of valuations carried out specifically for first time buyers rose by 25% in September compared to the previous month and an 18% increase compared to September 2014. Valuation activity among established home movers performed even better. The number of valuations carried out for those moving house rose 26% when compared to last month and 23% since September 2014. ‘First time buyers aren’t just feeling more confident, they are now following this up with real action and contributing a good portion of growth in the UK housing market. There are no signs yet that schemes such as Help to Buy are going to be phased out, helping to suppress the barriers to setting a first foot on the ladder,’ Bagshaw explained. 'Meanwhile, wages are growing faster than inflation and purchase prices have cooled a little in recent months, all contributing to an acceleration in numbers of first time buyers. Moreover, the latest focus from the government on starter homes is a promising sign there is at least a strong intention to maintain support at the bottom of the ladder,’ he pointed out. ‘Home movers have also been buoyed by the same trends. Rising real term wages combined with steadily increasing property values mean that many of those who are already fortunate enough to have a place of their own feel it’s a great time to buy,’ he added. The data also shows that remortgaging experienced another stand out month. The number of valuations for those thinking of taking a fresh mortgage out against the value of their current home rose 16% on August of this year and 49% since September 2014. Meanwhile the buy to let sector has seen steadier growth, with the number of valuations growing 13% since September last year. On a monthly basis, valuations activity carried out on behalf of buy to let investors grew by 21% compared to August. ‘The remortgaging sector is continuing to power ahead with plenty of people still opting to improve rather than move. High demand in this sector is still being driven by the large number of good mortgage deals out there, as homeowners rush to capitalise on the value of… Continue reading
UK property sales up to 16 month high, says RICS report
Property sales in the UK have picked up across the country, reaching a 16 month high, according to the latest index report from the Royal Institution of Chartered Surveyors (RICS). There were also further price increases nationwide in September, a modest improvement in mortgage availability but no improvement in the supply situation with new buyer demand continuing to outweigh instructions to sell. Across the UK, agreed sales rose at the quickest pace since May 2014, with 14% more chartered surveyors seeing a rise. This is a 16 month high and the fifth consecutive month that sales have increased. The North, East Anglia and Scotland posted the sharpest rises in activity over the month with the East Midlands the only region to see a material drop in sales albeit following an increase in the region in August. The report says that the stronger sales trend in the UK is broadly reflective of an upturn in demand which has been visible in the data since the early spring. Indeed, the number of new buyer enquiries rose for a sixth consecutive month across the country with 18% more chartered surveyors reporting a rise in demand. The pattern being seen by chartered surveyors echoes recent lending data including that highlighted by the Bank of England, showing mortgage approvals at an 18 month high and up 12% compared to a year ago. As the availability of mortgage finance appears to be improving, the average ‘perceived’ LTV ratio captured by respondents to our survey edged up to 79.3% with first time buyers seeing credit conditions relax most noticeably over the month, the report also reveals. Although activity is picking up, the ongoing lack of new instructions and the resulting limited stock on the market continue to be an issue for the sustainability of the market. The number of new instructions has fallen in 13 of the last 14 months. RICS says that it is significant that 40% of respondents feel the biggest factor behind the negative trend in new instructions is the lack of stock already for sale which is deterring would be movers as they struggle to find a suitable property to move on to. The next most cited influence was economic uncertainty, followed by stretched affordability. As a result of the persistent supply demand imbalance, the national house price indicator continues to rise strongly which is likely to be reflected in key house price indices over coming months and into the first half of 2016, according to the report. In the lettings market, tenant demand increased once more continuing the pattern seen by respondents since December 2014, and while new landlord instructions increased slightly for the third month in a row, they were still significantly outstripped by tenant demand. Indeed, over the next 12 months, chartered surveyors are forecasting rents to rise by 3% at the headline level. ‘Activity is now picking up which is encouraging, but unless the stock being sold is replenished… Continue reading
