Written By Em

Em

Em Morley

New records for UK house prices continue in Rightmove’s latest House Price Index

Published On: May 20, 2021 at 8:00 am

Author:

Categories: Property News

Tags: ,,,,,

The commuter belt rental markets where tenants can reduce their rent by as much as half

The latest House Price Index from Rightmove reports Wales and the North of England have seen continued growth.

The highlights of the index include:

  • New records continue to be set as the average price of property coming to market this month jumps by 1.8% (+£5,767), to a third of a million pounds (£333,564)
  • Average London house prices are 2.9 times higher than prices in the northern areas of Great Britain, and although still large this is the smallest ratio recorded by Rightmove since 2013
  • While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives
  • Wales leads the way at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%)
  • The north sees greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

James Forrester, Managing Director of Barrows and Forrester, comments: “Asking prices continue to climb at an alarming rate and this upward pressure is being driven by a number of factors. 

“Buyer demand remains extremely high and an appetite for larger homes is driving market activity. However, a lack of suitable stock to satisfy this demand is causing many to dig deep in order to offer above the odds and secure their desired purchase. 

“At the same time, savvy sellers are realising that buyers are not only entering the market with a budget boosted by the stamp duty holiday, but they’re doing so amidst an air of panic with the deadline fast approaching. Therefore, many are pricing far higher than the market value of their home to take advantage of this desperation. While they will inevitably reduce this expectation during the offers stage, this additional wiggle room still enables them to secure a higher price than they may have otherwise.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “It’s clear that sellers are attempting to cash in on the stamp duty holiday themselves by reaching new highs where unrealistic asking price expectations are concerned. In doing so they’re also crushing the hopes and dreams of many would-be first-time buyers who will now find themselves well and truly priced out of the market.

“It certainly doesn’t help when this hysteria is being driven by the likes of Rightmove, who continue to pull ‘record’ market statistics out of their hat on a monthly basis, much like a cheap magician at a children’s party. 

“Those hard-pressed to reach the first rung of the housing ladder may well have the last laugh though, as an already weary market continues to overheat. When the end of the stamp duty holiday does come and causes buyer demand to evaporate, we’re likely to see property values fall at pace.”

Marc von Grundherr, Director of Benham and Reeves, comments: “With the London property market moving at a steadier pace than the rest of the UK, we’re simply not seeing a spike in asking prices driven by home seller greed. Instead, the market is moving at a far more sustainable pace and while activity is starting to build, transactions are being agreed in a more sensible manner. 

“With the cost of buying at its highest in the capital, those that are transacting are in a strong financial position and so they simply aren’t as motivated by the incentive of the stamp duty holiday. While it’s certainly a nice cherry on top, it isn’t going to make or break their aspirations of homeownership and this more natural return to form will ensure a greater degree of long-term market health.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “The Northern Powerhouse continues to drive overall market performance with the North West and Yorkshire, in particular, steaming ahead with some of the highest increases in property values. 

“The property market balance has well and truly tipped in favour of the North in recent months, driven by the fact that northern regions continue to offer a far more affordable foot on the ladder for homebuyers. 

“While the difference in property prices remains vast when compared to the likes of London, the north-south divide is certainly closing in terms of overall market pedigree.”

Read Rightmove’s full report here: https://www.rightmove.co.uk/press-centre/house-price-index/may-2021/

Survey reveals why landlords have recently decided to invest in buy-to-let

Published On: May 19, 2021 at 9:38 am

Author:

Categories: Landlord News

Tags: ,,,

Tenants in England paying council tax bills up to the equivalent of 37.5% of rent

More than a third (34%) of landlords have recently purchased another buy-to-let property (BTL) or intend to buy one within the next nine months, a survey by The Deposit Protection Service (The DPS) and Zephyr Homeloans suggests.

Their poll of over 300 landlords received results suggesting that the ‘opportunity to buy at a discount’ is the most common reason why they recently bought or intend to buy an additional rental property. Other key factors include long‑term investment (35%), Stamp Duty savings (34%) and diversification by either location (26%) or property type (23%).

Paul Fryers, Managing Director at Zephyr Homeloans, comments: “Understanding the purchasing motivations behind professional landlords is an essential factor for Zephyr and our mortgage broker clients.

“It’s equally important to recognise and appreciate some of the challenges landlords have been facing during the past year and how they will affect their current and future applications.

“During the pandemic we saw a significant rise in the use of limited companies to buy and manage property portfolios, and it seems a significant proportion of landlords have made the most of the opportunities provided by the buoyant market conditions we have experienced over the past six months.”

The poll also shows that 43% of landlords have temporarily lowered rent prices during the pandemic to help tenants. 22% said they had refinanced their mortgages since the arrival of coronavirus.

Matt Trevett, Managing Director at The DPS, comments: “Although the buy-to-let market has remained more buoyant than some predicted, the last year has not been without its challenges for many tenants and landlords.

“The survey suggests a large proportion of landlords have been acting to support their tenants, with a significant proportion saying they had temporarily lowered rents during the pandemic.

“A recent survey from The DPS also showed that the pandemic has triggered movement from cities to towns and the countryside, so landlords seeking to rebalance their portfolios may look to make purchases that reflect that trend.”

The survey results also suggested that:

  • Only 7% of landlords have taken a mortgage holiday 
  • 13% of landlords have sold a property during the pandemic 
  • Landlords who did not purchase additional BTL properties over the last year cited ‘declining rental yields’ (51%) and ‘concern about economic stability’ (42%) as their main reasons

Government announces £200m for next stage of Rough Sleeping Initiative

Published On: May 18, 2021 at 8:12 am

Author:

Categories: Property News,Tenant News

Tags: ,,

Risk of increase in people forced to sleep rough, as cost of living and rent prices rise

Housing Secretary Robert Jenrick MP announced on 15th May that an extra £203m funding will be made available for the Government’s Rough Sleeping Initiative.

The funding will be given to councils across England and will support projects such as shelters and specialist mental health or addiction services. It will be used by councils, charities and other local groups to fund up to 14,500 bed spaces.

The Ministry of Housing, Communities and Local Government (MHCLG) has also announced that an analysis of the Rough Sleeping Programme shows it has reduced rough sleeping by 32% since it launched in 2018.

Jon Sparkes, chief executive of homelessness charity Crisis, has commented: “Efforts over the last year to get people off our streets, into safe accommodation and connected to support have been vital. This funding to continue that work is welcome, ​and will help local authorities continue to make life changing interventions. 

​“But the number of people helped by this funding will only scratch the surface. For people with multiple support needs who require specialist programmes, like Housing First, to help them out of homelessness for good, this announcement falls short. Without such sustained support, those helped off the streets today risk returning to them tomorrow.

“It must also be acknowledged that getting people off the streets is just the beginning of the journey to leaving homelessness behind. To end rough sleeping in England for good, we urgently need long term solutions, where people are supported into safe and ​permanent homes. The UK Government must lay out a national strategy to provide ​the genuinely affordable housing we need and deliver Housing First programmes for those who need them.”

Government announces next steps for England eviction ban

Published On: May 13, 2021 at 8:31 am

Author:

Categories: Law News

Tags: ,,

Landlords welcome plans to tackle unruly tenants

The Government has announced that the ban on bailiffs enforcing evictions will be lifted from 1st June 2021.

A press release published 12th May 2021 from the Ministry of Housing, Communities & Local Government states that there will be four-month notice periods for most tenants until at least the end of September this year.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), comments: “Having operated under emergency conditions for over a year, today’s announcement from the Government is an important step in ensuring the sector’s recovery.

“It does nothing though to address the rent debt crisis. With the number of private tenants in arrears having increased threefold since lockdown measures started, more are at risk of losing their homes as restrictions ease. We want to see tenancies sustained wherever possible and call on the Chancellor to step in and provide affected tenants with the financial support they need to pay off rent arrears built as a result of the pandemic.”

Alicia Kennedy, Director of Generation Rent, comments: “When 353,000 private renters are in arrears, and the Government still has no plan to clear their debts, loosening the restrictions on evictions is reckless. Renters who have lost income as a result of the pandemic are already struggling to find a home they can afford – if the Government doesn’t intervene, thousands of homeless families could be turning to their council for help. We can’t build back better without financial support for the renters who have been hit hardest. 

“The Government must introduce a Covid Rent Debt Fund, allowing renters to clear their debts and landlords to claim for up to 80% of income lost.”

You can read the full Government press release here: Support for renters continues with longer notice periods – GOV.UK (www.gov.uk).

UK house prices continue to reach record high, Halifax House Price Index shows

Published On: May 11, 2021 at 11:03 am

Author:

Categories: Property News

Tags: ,,,,,,,

Average UK house price rises again, Halifax House Price Index reports

Halifax has released its April 2021 House Price Index, showing that house prices were 8.2% higher than the year before. The average UK house price is now £258,204.

The report findings also show:

  • House prices were 1.4% higher in April 2021 than in March 2021
  • House prices were 0.9% higher in the latest quarter (February to April) than in the quarter before (November to January)
  • House prices were 8.2% higher than in April 2020

Property industry reactions to Halifax House Price Index

Marc von Grundherr, Director of Benham and Reeves, comments: “Rishi’s rabbit out of the hat in the form of a stamp duty holiday really has been magic where the revival of the UK property market is concerned. House prices are booming, driven by a surge of buyers keen to save while also taking advantage of the continued low rate of borrowing.

“The question is, of course, whether this clever trick will help rejuvenate the market in the long term, once the curtain finally falls on Mr Sunak’s tax reprieve”

Ged McPartlin, Managing Director of Ascend Properties, comments: “Yet more mammoth rates of house price growth as the market continues to run red hot in the wake of the stamp duty holiday extension. While this has certainly been the touchpaper, we’re now seeing a number of other contributing factors helping to boost market activity. 

“The lifting of lockdown restrictions and the vaccine rollout has further buoyed market sentiment, causing more buyers and sellers to enter the fray with confidence. As we enter the busiest time of year for property sales, expect more of the same as transacting remains very much on the agenda for the UK.”

James Forrester, Managing Director of Barrows and Forrester, comments: “The UK property market is currently set to warp speed, make no mistake about it. We’re not just seeing a market recovering from last year’s pandemic paralysis, these current rates of house price growth are exceptional against any backdrop. 

“With the fuel tank full to the brim, it’s likely that any natural correction to this explosive rate of growth will come many, many months after the stamp duty holiday deadline and the likelihood is, this current rate of growth will remain throughout 2021.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “Yet further record rates of house price growth might seem like good news on the face of it, but this is far from the case. The UK property market is currently buckling under the pressure of yet another Government initiative to artificially fuel demand, without as much as a thought as to addressing supply.

“Not only this, but many sales are hanging in the balance due to a considerable market backlog which has added further uncertainty to an already archaic and unpredictable transaction process. 

“These aren’t the foundations of a strong and stable housing market and come the end of the stamp duty holiday, we can expect the gloss to come off quickly revealing what is likely to be a considerable mess.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “This market isn’t standing still for a second. The feeding frenzy for property was already feeling pretty ferocious but then along comes another big leap in the annual rate of growth. The new record high also leaves clear water behind it and the previous peak. 

“In a blazing hot seller’s market like this, most buyers don’t even compare prices locally to make their offer, they work out what can afford and they go for it. Timing is crucial and not wasting time is essential.

“At times like this, personality counts too. If a seller knows they’re going to get the price they need, then striking up a rapport with a vendor can really pay dividends. 

“First-time buyers are unfortunately seeing the market run away from them but, in their price bracket, the significant amount of accidental savings many will have accumulated over the past year will count for as much as the stamp duty relief, which has already been swallowed up by price increases since last summer.” 

Nicky Stevenson, Managing Director at national estate agent group Fine & Country, comments: “The air is thin up here and, even though all buyers know in their hearts that things will calm down and growth will slow later this year, they are still frantically bidding up prices. Buyers need to be incredibly determined to succeed in a market like this. 

“Growth over 8% on an annual basis is always a massive vote of confidence in the country, its economy, its ability to create and protect jobs and its housing market. 

“Incredibly, the stage is set for this rally to continue and the market may be about to get its own vaccine bounce, like the one delivered to Boris Johnson this week. That broader optimism is still being complemented by improving weather, the imminent loosening of Covid restrictions, low interest rates, a yearning for more space and the fact that many homeowners have saved thousands of pounds not being able to go anywhere. 

“This won’t be the last record high we’ll see this year by a long stretch, and the figures next month will start to compare more impressively with the lull in growth caused by the first lockdown.”

Over 3,000 people rough sleeping in London during third national lockdown

Published On: May 10, 2021 at 9:58 am

Author:

Categories: Tenant News

Tags: ,,

Crisis comments on 16% rise in rough sleeping across London

New figures from the Combined Homelessness and Information Network (CHAIN) reveal that from January to March 2021, 3,002 people slept rough across London.

This was down 9% on the previous quarter. 1,567 people also slept rough for the first time during this period.

The figures from this data also show: 

  • 33% of people rough sleeping had two or more support needs 
  • 1,587 people were placed in emergency accommodation, this is up 72% from the last quarter. This reflects the work of local authorities and the Greater London Authority to continue to accommodate people sleeping rough during the pandemic.  

Jon Sparkes, Chief Executive of Crisis, comments: “It’s deeply concerning that we entered the new year and a third national lockdown with over 3,000 people sleeping on our streets and 316 people forced to live this way day-after-day. Rough sleeping at any time is unacceptable, but we must remember this was when coronavirus cases were rapidly accelerating, and temperatures were freezing meaning this situation was all the more dangerous and deadly.    

“While fewer people were sleeping rough during this time due to councils going to great lengths to get everyone in, people did continue to fall through the cracks, largely because of their immigration status. The same issue persists today so we must stress that while the threat of the virus remains among us, we urge councils to continue to provide everyone with a safe place to stay in line with the recent High Court judgement. 

“But ultimately a hotel room is not a safe and secure home. We urgently need the Westminster government to set out a clear plan to end rough sleeping and homelessness by providing genuinely affordable housing. This must also include a new approach to how we treat people with interlocking problems such as mental health, trauma and drug and alcohol dependencies, which can only be achieved by making Housing First available to everyone who needs it. As we move out of the pandemic, a truly impactful and lasting recovery must have ending homelessness at its heart.”