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New research reveals what UK residential tenants want
Nearly half of tenants in the UK would be prepared to travel for between 15 and 30 minutes, or between 30 and 45 minutes door to door to reach their office or place of work each morning, according to a new survey. In Wales, some 44% of tenants would prefer to commute for less than half an hour, while in the North East, the proportion is 37%. But in London the majority of tenants, 43%, are happy to travel for between 45 minutes and an hour to the office each day. The survey by YouGov for real estate firm Knight Frank also shows that the majority of tenants outside London commute by car, while in the capital 52% use the London underground for part or all of their journey. Two fifths of respondents said that the ability to store their bike in their rental property was important to them, although this rises to 46% of those aged 35 to 44 across the country. A third of respondents said they would be willing to pay extra in rent to keep a pet in their property as sometimes landlords charge more to cover the cost of the extra refurbishment needed after a tenant who has had a cat or dog vacates the property. Indeed, 4% of those in the private rented sector already pay extra to have their pet live with them, and this rises to 7% for those aged over 55. The results of the Tenant Survey also show that, for the majority of respondents, their ideal length of tenure is up to one year, and this is particularly true of younger tenants, highlighting a preference for increased flexibility in the sector. breakdown of the figures shows that 69%) of tenants aged between 18 and 24 said they would prefer a tenancy agreement of up to a year, with 61% of 25 to 34 year olds saying the same. Respondents said that their preferred timeframe for a break clause, which would allow tenant or landlord to end the lease early, is six months. Some 38% of tenants have lived in five or more rental properties. While the majority of respondents had moved within a mile of their previous property, 19% had moved more than 60 miles, indicating a relocation for work or study, highlighting the flexibility of the private rented sector a tenure. The survey also found that 24% of Londoners are prepared to pay 50% as a maximum amount of their gross annual income on rent, up from 22% last year. A quarter of tenants 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. The research found that a quarter of those living in the private rented sector live alone, while 34% live as a couple without children. Some 43% of 18… Continue reading
New residential rents in UK flat or down slightly across the UK
Rents on new tenancies remained flat or fell slightly over the three months to November in 10 out of the 12 UK regions compared to the three months to October, the latest index data shows. Across the country as a whole, excluding London, the average rent on a tenancy signed during the three months to November was £743 a month, a slight 0.7% fall on the previous three month period. In Greater London the average rent was £1,544, down 1%. The HomeLet Rental Index also shows that just two regions saw rents on new tenancies rise over the period. In Yorkshire and Humberside rents on new tenancies were 0.8% up, averaging £626 a month, while in the East Midlands rents were 1.2% up at £635 a month. Year on year average rents on new tenancies outside of London were 3.8% higher at £743 a month while Greater London has seen even higher increases, up 7.5% compared to a year ago at an average of £1,436 per month. However, the annual growth in rental values in London has slowed from a peak of over 12% in January to 6% in September. In contrast, the rest of the UK saw a marked increase in average rents throughout the spring and summer months. The East Midlands has also seen higher rents year on year, up 6.2% over the last 12 months and rents in both Scotland and the South East of England were up by 6%. ‘We saw rents rise particularly quickly during the first half of the year, before the pace of acceleration slowed in most parts of the country over the autumn. There has been continuous growth in London on a month to month basis in 2015 with the exception of a slight drop in September and November, ending the year with rents in the capital now 108% higher than the rest of the UK,’ said Martin Totty, chief executive officer of HomeLet’s parent company the Barbon Insurance Group. HomeLet has also published new research into landlords’ views about the rental market and their expectations for the year ahead. It found that the vast majority, 91%, of landlords do not plan to increase the amount of rent they charge on their properties in the next six months. In the next year just 34% plant to do so. Totty said that the research suggests that most landlords have a strong relationship with their tenants and are keen to keep them. Indeed, just 4% said they were unhappy with their current tenants, while 18% said high tenant turnover was the most stressful part of being a landlord, more than cited on any other single issue. ‘Being a landlord is a long term investment and attrition of tenants is not something landlords desire; our own clients tell us they would rather retain a good tenant over the longer period than seek additional income,’ he added. Continue reading
Pending homes sales in the US up marginally after two months of declines
Pending home sales were mostly unchanged in the United States in October, but shifted marginally higher after two straight months of declines, according to the latest index data. The figures from the National Association of Realtors (NAR), show that gains in the Northeast and West were offset by declines in the Midwest and South. The Pending Home Sales Index, a forward looking indicator based on contract signings, inched 0.2% to 107.7 in October from an upwardly revised 107.5 in September and is now 3.9% above October 2014. The index has increased year on year for 14 months in a row. Lawrence Yun, NAR chief economist, explained that pending sales have plateaued as buyers struggle to overcome a scant number of available homes for sale and prices that are rising too fast in some markets. ‘Contract signings in October made the most strides in the Northeast, which hasn't seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country. In the most competitive metro areas, particularly those in the South and West, affordability concerns remain heightened as low inventory continues to drive up prices,’ he said. According to Yun, although contract activity has slightly trended downward since the spring, the ongoing strengthening of several local job markets continues to fuel the improved demand for buying that has now pushed existing sales above a five million sales pace for eight consecutive months. ‘Areas that are heavily reliant on oil related jobs are the exception and have already started to see some softness in sales because of declining energy prices,’ Yun added. With demand expected to remain stable through the final two months of the year, Yun forecasts existing home sales are set to finish 2015 at a pace of 5.30 million, the highest since 2006. He pointed out that although further expansion in existing sales is expected next year, ongoing inventory shortages and affordability pressures from rising prices and mortgage rates will likely temper sales growth to around 3% in 2016. Home prices are expected to slightly moderate from a 6% increase in 2015 to 5% next year. ‘Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,’ said Yun. A breakdown of the figures show that the index in the Northeast rose 4.5% in October, and is now 6.8% above a year ago. In the Midwest the index fell by 1% but remains 3.3% above October 2014. Pending home sales in the South decreased 1.7% in October and are now 0.3% below last October. The index in the West climbed 1.7% in October and is 10.4% above a year ago. Continue reading
