Written By Em

Em

Em Morley

Where is the Best Place to Live in the UK and Why?

Published On: March 23, 2016 at 2:46 pm

Author:

Categories: Property News

Tags: ,,

A recent study by the Sunday Times has named Winchester as the best place to live in the UK.

The Hampshire city was praised for its “food, festivals and feel-good factor” and was described as “a tasty slide of authentic history”1.

For the last three years, Visit Winchester has been promoting the area as the perfect English city, thanks to its good schools, low crime rate and a range of tourist attractions.

The city’s population of 45,000 people may also find Winchester a desirable place to live as it is only an hour from London by train and has an unemployment rate of just 0.6%.

However, if you’re on a budget, moving to Winchester may not be the best idea, as some people are completely priced out of renting or buying there.

Where is the Best Place to Live in the UK and Why?

Where is the Best Place to Live in the UK and Why?

Zoopla reports that the average house price in the city is £520,314, while the rent on a typical one-bedroom home is £821 per month.

Over the past year, house prices in Winchester have increased by 10% and by a huge 30% in the last five years. Zoopla names Sleepers Hill as the city’s most expensive street, where the average home costs a whopping £1,530,938.

Sue McKenna, the General Manager of homelessness charity Trinity Winchester, says that rising house prices have caused problems for anyone on a low income looking to rent or buy in the city.

She believes that the city being named the best in Britain will not help her clients: “The people we work with are completely priced out of the market, even renting a private house is out of reach.

“For our clients, this is not going to help, it is going to make it much more difficult for them.”1

She insists that Winchester needs more social housing, as house prices and rents continue to soar.

The city dates back to 150BC and was chosen as England’s capital by King Alfred the Great. It is also suggested that it could have been the real site of King Arthur’s legendary Camelot.

Winchester is also home to the UK’s largest farmers’ market, one of Europe’s biggest cathedrals, the restored Edwardian Theatre Royal Winchester, and a stream of upmarket shops and restaurants.

The Mayor of Winchester, Angela Clear, says the city’s history and lively modern atmosphere make it special.

“It has so much tradition and that is what people love,” she claims. “We have the lovely cathedral and fantastic restaurants.”

She adds: “All the year round, there is something going on for people to take an interest in, with markets and festivals and all sorts of lovely things. And of course the people are so nice and friendly.”1

However, the city hasn’t always been regarded quite so highly – it made a surprise appearance in the first Crap Towns book in 2003, placing fifth behind Hythe and ahead of Liverpool.

1 http://www.bbc.co.uk/news/uk-england-35861938

Annual House Price Growth at 7.9%, According to ONS

Published On: March 23, 2016 at 12:30 pm

Author:

Categories: Property News

Tags: ,,,

UK house price growth rose to 7.9% in the year to January, up from 6.7% in the 12 months to December 2015, according to the latest house price index from the Office for National Statistics (ONS).

Annual house price inflation was 8.6% in England in January, -0.3% in Wales, 0.1% in Scotland and 0.8% in Northern Ireland.

The large increase in house prices in England was fuelled by an 11.7% rise in the South East and 10.8% growth in London, shows the data.

Excluding London and the South East, UK house prices rose by 5.1%.

On a seasonally adjusted basis, average house prices grew by 0.9% between December and January.

The average UK house price is now £292,000, according to the ONS. Earlier this week, Rightmove reported that the average property is now worth over £300,000.

Many industry experts have commented on the new figures:

Stephen Smith, the Director of Legal & General Housing Partnerships, says: “House prices continue their steady upwards march, as they are likely to do for some time, unless Britain can address the lack of housing supply in this country.

“With the cost of owning a home continuing to rise well above both earnings and inflation, the gap between supply and demand is pumping up prices and making affordability an impossible dream for many – especially in London and the South East.”1

More and more young people believe that they will never get on the property ladder, as it is believed that it takes the average single first time buyer 13-and-a-half years to save a deposit.

Annual House Price Growth at 7.9%, According to ONS

Annual House Price Growth at 7.9%, According to ONS

Worryingly, three quarters of young Britons expect to stay in the private rental sector forever.

The Sales Director at New Street Mortgages, Adrian Whittaker, continues: “The ONS figures show a market that’s continuing the strong annual growth that characterised much of 2015. Competition for property is still fierce, and in this sellers’ market, the speed at which a buyer can secure a mortgage can be the difference between first and last place in the race to buy property.”1

Mark Posniak, the Managing Director of Dragonfly Property Finance, adds: “This latest annual house price data once again throws into sharp relief the contrast between the housing markets of England, Wales, Scotland and Northern Ireland. They may be geographical neighbours but they could be thousands of miles apart in terms of house prices.

“For annual prices in the South East to have outperformed London underlines an ongoing shift in demand away from the capital as people look for more value elsewhere. London will remain a formidable bastion of the UK’s property market, but for many its prices are an insurmountable obstacle.

“However, the strength of demand in the months ahead may well be reduced by worries about the impact of a potential Brexit, causing many would-be buyers to sit on their hands.

“The Government’s move against landlords, which officially starts next month, is a fundamental shift and has the potential to reshape the property market in the years ahead.”1

From 1st April, landlords will face changes to their taxes, notably the 3% Stamp Duty surcharge, which was confirmed in last week’s Budget.

Finance expert Paul Mahoney of Nova Financial has explained how the Budget announcements will affect landlords: /budget-reasonably-positive-believes-finance-expert/

Jan Crosby, the Head of Housing at KPMG, explains the ONS data: “Today’s ONS figures show a record high, with England outpacing the other areas of the UK for house price growth. When you look further into the facts, the rise is driven by ever by the South East of England, London and the East of England, with the percentage increase in the capital over the past 12 months more than double the rest of England when London and the South East’s rises are excluded.

“Of course, this comes as no surprise, and highlights both the broken and atypical nature of the market in those areas. As ever, the issue is down to supply versus demand, and while last week’s Budget did have measures, such as the Lifetime ISA, which are in part designed to help buyers onto the property ladder, the record didn’t change when it came to generating supply, with announcements effectively repeating or slightly extending previous reforms.”

He adds: “However, one particular Budget announcement could have an underlying effect on house prices; it will be interesting in a year’s time to see how much prices in the north have inflated, specifically around areas like Manchester and Liverpool, which are set to benefit following the Chancellor’s renewed commitment to infrastructure projects, including HS3, the trans-Pennine tunnel and improvements to the M62.

“It is certainly likely that property investment, especially from abroad, will increase in the north, and this will include housing projects – while this might be good for the economy, it could be bad news for those hoping to buy a home.”1 

We continue to provide you with the latest landlord updates on all issues regarding the sector.

1 http://www.financialreporter.co.uk/finance-news/ons-annual-house-price-growth-rises-to-79.html

Annual Scottish rent rises slowest in Britain

Published On: March 23, 2016 at 12:10 pm

Author:

Categories: Property News

Tags: ,,,,,

Rents north of the border are increasing at only two-thirds the rate of those in England and Wales, according to latest figures.

Data released by Your Move shows that Scottish rents rose by just 2.1% year on year. This was in comparison to 3.3% in England and Wales.

In addition, the figures show that annual rental growth in Scotland has slowed from the 2.1% recorded in January, but has improved from the 1.1% increase shown in February 2015.

Irony

Brian Moran, lettings director at Your Move Scotland, believes it is ironic that Scotland is seeing one the largest Government interventions in the sector when rents are rising at the slowest rate in Britain.

‘Like in any market, affordability is a fundamental check on prices. Rental arrears are a great benchmark in the market and their frequency is falling,’ he noted.[1]

Moran went on to say that the Private Tenancies Bill signed last week indicates a paradigm shift in the sector in Scotland. He feels this will introduce a new artificial influence in the market, alongside territorial supply and demand.

‘Intervention in the market has had negative side effects in the past, noticeably the abolition of tenancy fees in 2012 and it will be interesting to see how landlords recuperate and recover from this regulatory blow,’ Moran continued. ‘Anything that makes buy-to-let investment slightly harder to swallow and managing property portfolios more of a painful process for landlords risks cutting off the inflow of investment. Tenants will ultimately be the ones who feel the effect on their bottom line, if the supply of properties to let dries up.’[1]

Annual Scottish rents rises slowest in Britain

Annual Scottish rents rises slowest in Britain

Regional rises

More figures from the report show that in the twelve months to February 2016, three out of the five regions in Scotland have seen positive yearly growth in rents. Edinburgh and the Lothians led the way, with growth of 7.7% recorded. This has taken typical rents to £644, up from £598 in February last year.

Rents in the South of the country currently stand at £515 per month, a rise from £498 twelve months ago. This 5.3% yearly rise is the second fastest increase seen in the year to February. In the Highlands and Islands, rents are 2.5% greater than one year ago, taking rents here to £554.

However, the East of Scotland has seen rents drop by 2% year-on-year. This is the fourth consecutive month of negative annual growth in the area and has taken rents to £520 per month. Glasgow and Clyde has also seen a drop in yearly rents, which have fallen by 0.8%.

[1] http://www.propertywire.com/news/europe/scotland-buy-let-index-2016032311706.html

 

Stamp Duty to drive rents and cut supply

Published On: March 23, 2016 at 10:52 am

Author:

Categories: Landlord News

Tags: ,,,,

New research from the Association of Residential Letting Agents (ARLA) has suggested that the stamp duty reforms for buy-to-let properties will push rental prices up for tenants. In turn, the firm warns this will lead to a further decline in available properties.

Rise and fall

Data in the report from ARLA shows that 52% of letting agents recorded an increase in buyers looking to beat the deadline and invest in buy-to-let property. This represented a 47% increase from data recorded in January.

However, 63% of agents feel that once the deadline has passed, the supply of property will fall as landlords are slowly forced out of the market.

57% of ARLA members believe rents will rise after the stamp duty reforms come into force, with landlords pushing their increased costs through to tenants.

Impact

David Cox, managing director of ARLA, noted, ‘the stamp duty changes are now imminent and as well as hitting small landlord’s, they will also impact institutional investors. Although members are reporting a rush from landlords trying to snap up their buy-to-let investments now, it’s likely that we’ll see the buy-to-let market drop like a stone come April and probably not pick up again until next year. This will most certainly cause rents to increase, with supply dropping, as competition for the limited availability of properties intensifies.’[1]

Demand for buy-to-let properties rose by 19% during February, with around 37 prospective tenants registered per member branch. Interestingly, the supply of rental properties on agents’ books actually increased to 176 in February, rising from 172 in January.

Stamp Duty to drive rents and cut supply

Stamp Duty to drive rents and cut supply

Intensifying

‘The demand for housing continues to intensify as supply remains an issue across most of the country,’ Cox continued. ‘We are concerned that the government rhetoric of wanting to help people onto the housing ladder does not tally with their action of continuing to target the rental market with additional costs. Some landlords will simply withdraw from the market whereas others who can take the hit of the extra stamp duty will simply raise rents to cover the extra costs.’[1]

‘The dream of home ownership will remain out of reach for many as we move closer towards becoming a nation of forever renters,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/arla-landlord-stamp-duty-will-see-btl-market-dr0p-like-a-stone.html

 

Letting Agent License Costs to Change Under Rent Smart Wales

Published On: March 23, 2016 at 9:35 am

Author:

Categories: Landlord News

Tags: ,,,

New license fees for letting and management agents in Wales have been revealed after many smaller agents and landlords urged for the costs to come down.

In Wales, all letting or management agents must be licensed by law under the Rent Smart Wales scheme.

Landlords must be registered and also licensed in most cases.

Backed by several membership bodies, the protestors campaigned against the huge £3,728 license fee, which was the same for small agents as for larger companies.

Under the new fee structure, license costs will now be based on the number of properties managed by each agent.

Smaller agents will now pay less – but still much more than in England under local authority licensing schemes – while larger agents will pay considerably more.

Letting Agent License Costs to Change Under Rent Smart Wales

Letting Agent License Costs to Change Under Rent Smart Wales

Costs will range from £1,890 to £6,600 for a five-year license.

The fee will also vary depending on whether the agent is a member of a recognised professional body, such as the Association of Residential Letting Agents (ARLA), the National Approved Letting Scheme (NALS) or the UK Association of Letting Agents (UKALA). Costs will also differ depending on whether the license application was made online or on paper.

Under the Rent Smart Wales scheme, landlords and agents who let and manage properties must obtain a license by making a declaration that they are a fit and proper person and by passing approved training.

Cardiff Council operates the scheme, which was implemented on 23rd November 2015. The new fee structure will be enforced from late next month.

The Cabinet Member for Environment at Cardiff Council, Councillor Bob Derbyshire, comments: “Since the launch of Rent Smart Wales in November, the broad consensus in relation to the cost of agent licenses has been that change is necessary.

“The city council has taken on the feedback and reviewed the fees to reflect comments received. The consensus was that the fee structure should reflect the size of the business.”

He continues: “Rent Smart Wales aims to professionalise the private rented sector by promoting the need for compliance with the law and providing good, safe housing for tenants.

“The costs of delivering the scheme have to be met, but this is a unique scheme in the UK and there will therefore be areas where we will be able to learn from experience.

“We are particularly grateful to the professional agent bodies who have contributed their views during this review process.”1

Landlords and agents are currently in a grace period. They have until 23rd November to comply with their new legal obligation. However, they are warned to plan early, as it will take time for license applications to be processed.

Isobel Thomson, of NALS, says: “We are delighted that Rent Smart Wales has recognised that agents who are part of regulatory organisations, such as NALS, are more likely to already have embraced the requirements of the licensing scheme and less likely to generate complaints or breaches of their license.

“We also believe that the new pricing structure, which takes into account the size of a firm’s portfolio, is a fairer method of calculating the registration fee rather than a one size fits all fee.”1

Landlords in Wales are also reminded that on Monday, Universal Credit rolled out to many parts of the country. You must be aware of any changes to your housing benefit tenants’ finances. 

1 http://www.propertyindustryeye.com/cost-of-compulsory-licensing-for-welsh-agents-to-change-after-protests/

Three Quarters of Young Brits Believe They’ll Live in the Private Rental Sector Forever

Published On: March 22, 2016 at 3:28 pm

Author:

Categories: Landlord News

Tags: ,,,

Around three quarters of young Britons believe that they will live in the private rental sector for the rest of their lives, as it is unlikely they will ever own their own home.

A study by Ipsos MORI, commissioned by Shelter and British Gas, revealed that it is much more difficult for young people today to buy a home than it was for their parents’ generation.

Three Quarters of Young Brits Believe They'll Live in the Private Rental Sector Forever

Three Quarters of Young Brits Believe They’ll Live in the Private Rental Sector Forever

Yesterday, we revealed that it takes a single person 13-and-a-half years to save a 15% deposit for a home, while Londoners face a whopping 46 years of saving.

Of 1,906 people aged between 25-34, a large majority wish to live in a home for the long-term, but realise that this is unlikely as they are renting. The average 25 to 34-year-old has moved more than twice as frequently per year as pensioners.

The Chief Executive of Shelter, Campbell Robb, comments on the findings: “The fact that vast numbers of people fear their grandchildren will never have a home to put down roots in highlights the sad truth that this country is once again at the mercy of a housing crisis.

“While we have made progress over the last 50 years, our current housing shortage means millions are facing a lifetime of instability and, understandably, people are giving up hope. But if our history tells us anything, it’s that together we can make things change.”

He adds: “You have graduates starting on £40,000 to £45,000 in London, and they don’t take the jobs because they can’t afford to live in London or can’t afford to buy because it is so expensive.

“We are seeing a generation of people now in their 50s or 60s who are looking at their children, and their children will be worse off than they are. That is the first generation since the Second World War that we seeing that happen to, and that is primarily because of the housing market.”1 

These statistics arrive as the cost of housing goes up even more; Rightmove recently reported that the average house price is now over £300,000, with house price inflation standing at 50% for the past ten years, while wages have only risen by 22%.

1 http://www.theguardian.com/society/2016/mar/21/majority-fears-future-generations-never-buy-home-uk-house-price