Tag Archives: Property Market News

Seven Tenants Chasing Each Home for Rent Latest Articles, Property Market News

tenant panel

"7 tenants are after each property according to Countrywide"

Up to seven new tenants are competing to rent each home- and the gap between available properties and the number of tenants who can’t find a home is widening.

The number of tenants seeking a home has jumped by 15% during the three months ending June 30 compared with the same period last year, according to Countrywide, the UK’s largest letting agent.

On average, rental properties are on the market for just 13.3 days before a tenant signs up.

Family homes with three or more bedrooms are growing in popularity with tenants and now account for four in every 10 rentals – up from around a third of all rentals last year.

Countrywide suggests this is due to homeowners who can’t sell are moving and renting while letting out the home they own behind them.

John Hards, co-managing director of Countrywide Residential Lettings said: “The latest findings are an interesting insight into recent changes across the lettings landscape where both demand and supply has been affected by a subdued sales market.

“Feedback from our branches shows a lot of unsuccessful sellers have chosen to ‘let-to-move’, tempted by the prospect of a quicker return on investment by letting out their property. Interestingly, some sellers may also be looking to ‘rent-to-move’ whilst they wait for both a realistic offer on their unsuitable property and their ideal home to come along at the right price.”

Around 40% of buy to let homes in London are two-bed properties letting in 12 days – four days quicker than the same time last year.

In the West Midlands, 7.2 tenants are chasing each property up for rent, while in the North West, the number of tenants seeking to rent is 3.9 per property.

In Scotland, 75% of homes for rent have one or two bedrooms, while at the opposite end of the scale in London, 40% are two bed homes.

London’s calling corporate investors in to buy to let Latest Articles, Property Sales & Sourcing

Tower bridge and City Hall, London

"London could become a property investor battleground"

London buy to let landlords may soon have to fight toe-to-toe with institutional investors for prime residential property.

Soaring rents and a shift from owning a home to renting a home for younger adults is triggering fresh interest in residential investment from pension funds and property companies ready to pour millions into housing in the capital.

A key indicator is a rekindling of interest in letting homes from British Land. The firm stepped out of the residential market in 2006, just before the property bubble burst.

Decreasing investment risk by partnering-in building houses with developers and the government, as well as rising rents, is making many institutions look again at putting money into homes.

The residential investment market has reversed from get-rich-quick aspirations based on soaring house prices to a more long-term view based on stable yields. The strategy is buy to rent, not buy to sell.

The residential property business model outside the UK has always favoured corporate rather than personal investors.

Successive governments have tried to spark institutional investment interest with REIT trusts without much response, but the hope is now that a changing market is making residential property investment more attractive for big funds.

The target is residential property within the M25 – the motorway effectively places a ring of confidence around the capital that is encouraging investors.

House price surveys, rental returns and professional opinion from august bodies like the Royal Institution of Chartered Surveyors all indicate a widening gulf between the London property market and that of the rest of the UK.

London & Stamford extended the firm’s residential portfolio to around £150 million with the recent acquisition of more than 100 homes in Islington, North London, for £50 million. The deal is reckoned to return a yield of 5.3% climbing to around 10% over three years on a purchase that was 20% below market value.

Chairman Raymond Mould said: “We can see strong rental growth in the Central London residential market not only due to the constrained development of new build but also because first time buyers continue to be kept out of the market by the need for higher mortgage deposits than was historically the case.”

Revealed – UK cities with the most overpriced homes House Prices, Latest Articles, Property Market News

House made from money

"House prices are too expensive"

Oxford homes are the most overpriced in the country, according to an online survey.

Two thirds of people think homes in the city are not worth the asking prices, research by online property portal Rightmove found.

Around 63% of people consider homes in Greater London are also too expensive, says the survey.

But homes in Glasgow are too cheap, said a third of those asked.

Miles Shipside, Rightmove commercial director, said: “Contrasting local opinions of the fair value of property illustrates how patchy activity can be within a mile or two in the same city. Whether you are on the wrong or right side of the tracks depends on whether your area attracts buyers who can raise the necessary deposit to get a mortgage.”

When asked about property price expectations, four out of 10 consider prices will stay the same for the next year.

Around 26% expect prices to be higher in a year, while roughly the same number expect prices to fall.

Rival online property portal Hometrack also forecasts a property price stalemate.

The firm’s July home price survey recorded a marginal 0.1% drop for the third month running.

Sellers can expect to have a property on the market for around 9.5 weeks and 92% achieve the asking price.

Richard Donnell, director of research at Hometrack said: “The survey shows a housing market in broad equilibrium with an increasing number of sales being agreed between more realistic sellers and a growing pool of buyers.

“Almost four years in to the downturn, the housing market is showing signs of adapting to a low turnover environment. London continues to provide a strong support to the national trends with prices up by 0.3% over the month.

“Despite a general improvement in the balance of supply and demand over recent months, headline prices remain on a downward trend and are likely to fall further over the coming months. Yet with sales volumes holding up there is no impetus for any material change in prices.”

More tenants in arrears as rents keep rising Latest Articles, Property Market News

houses on red soaked image

More tenants in arrears

Around 75,000 buy to let tenants are in rent arrears – a 13% increase on the same period last year, according to rent receivers appointed by mortgage lenders.

The number of tenants failing to pay rent went up from 71,483 in the first three months of 2011 to 74,492 in the second quarter – a 4% rise.

Tenants who do not pay their way are also finding landlords are taking a tougher approach to arrears as court orders for evictions has gone up 9% year-on-year.

Landlords are managing to handle the income deficit as mortgage lenders report loan arrears have dropped by 12% in the year. Continue reading More tenants in arrears as rents keep rising

One in three Brits predict house prices will rise in next year Latest Articles, Property Investment News, Property Market News

Rising stack of houses as a graphData from the recent Halifax Housing Market Confidence tracker reveals that a third of Britons expect house prices to rise over the next year, making this a good time to buy.

Despite house prices falling by 1.2% on a quarterly basis in April, one in three of survey respondents predicted that average UK house prices will rise rather than fall over the next twelve months, but 23% expect a fall in prices. Continue reading One in three Brits predict house prices will rise in next year

Crunch time for home hunters who can’t buy or rent Buy to Let News, Latest Articles, Property Investment News

House being painted on slateBritain is careering towards a housing crunch as an increasing number of home hunters cannot afford to rent or buy a property.

A shortage of homes to rent is pushing up rents at the same time as worsening finances create an underclass of consumers who do not have the cash to buy while their poor credit rating pushes them down the queue of renters. Continue reading Crunch time for home hunters who can’t buy or rent

The BPF calls for land to be sold to the right people Latest Articles, Property Development, Property Market News

British Property Federation LogoThe British Property Federation has issued a word of caution over the distribution of the land set to be sold off by the Government.

Housing minister Grant Shapps announced yesterday that thousands of acres of land will be sold off to create 100,000 new houses by 2015.

Liz Peace, BPF’s chief executive backs the plans but said “Government must give consideration to who has the resources available to get on and build these homes, particularly while banks are still nervous about lending.” Continue reading The BPF calls for land to be sold to the right people

Housing Association in talks to trade Latest Articles, Property Investment News, Property Market News

Red plastic house surrounded by white housesKnightstone, the south and west housing association, is looking to downsize its roster of properties they manage by trading with smaller regional associations.

They are in talks to trade their properties in Swindon and Wiltshire for Somerset based properties as well as passing on their Dorset and Hampshire properties. They hope to have the trade in Somerset completed by April 2012 and the rest by April 2013. Continue reading Housing Association in talks to trade

Court closures could have knock on effects for landlords Buy to Let News, Latest Articles, Property Investment News, Property Market News

Gavel on silk backgroundWith buy to let landlords experiencing total rent arrears of £284million from tenants not paying each month, the closure of 140 courts all over the country could see even more properties being repossessed by lenders.

The decision, aimed at saving £37million, has been met with dismay from landlords and eviction specialists. Despite the current court process already being laboured, landlords have still found success in evicting tenants, but many fear more repossessions could be on the way. Continue reading Court closures could have knock on effects for landlords

Buy to let landlords maintaining their portfolio size Buy to Let News, Latest Articles, Property Investment News, Property Market News

arrow up graph of stacking housesJust one in one hundred buy to let landlords think now is a good time to reduce their portfolios, according to a survey by LSL Property Services.

Instead, 49% think they should be investing in new property, up 2% on last year. In fact of the landlords questioned, a massive 86% have said they will be maintaining, or increasing the size of their current portfolio.

These latest figures show the market is continuing to benefit buy to let landlords. Continue reading Buy to let landlords maintaining their portfolio size

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