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Em

Em Morley

Quarterly rents up in Ireland

Published On: September 30, 2015 at 1:02 pm

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Categories: Finance News

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New data has shown that monthly rents for private rented sector accommodation in Ireland increased substantially in the second quarter of 2015, in comparison to the same period last year.

A report from the Private Rented Tenancies Board, regarded as the most accurate rent report on the sector in Ireland suggests that rents increased by 7.1% in the three-months between April-June of 2015.

Rises

Across the country, rents for houses were 6.4% higher than at the same time in 2014, with rents for apartments 7.6% larger. In Dublin, annual growth was stronger, with house rents up by 8.8% and apartments by 9.4%. However, annual rises in rents for the market outside of Dublin were slower, recording growth of 5.8% in comparison to the second quarter of 2014.[1]

Rents for private sector accommodation in Ireland rose to €878, up from €820 in the second quarter of last year. Apartment rents totalled €922 compared to €857, with house rents €853 up from €801.[1]

In the capital, the rent for a house was €1,387 for a house and €1,260 for an apartment, in comparison to €1,275 and €1,152 respectively during the second quarter of 2015.

Outside of Dublin, the rent was €677, with houses averaging €695 and apartments €660. One year previously, these figures stood at €640, €656 and €623 respectively. These figures show a monthly increase in rent of €39 for a house and €37 for a house during this 12 month period.[1]

Quarterly trends

Monthly rents for houses saw quarter-on-quarter growth of 2.4% during the second part of the year, with rents for apartments growing by 3% in comparison to the first quarter of the year.[1]

There was particularly strong growth in rents in Dublin, with rises of 4.2% over the period in comparison to 2% outside the capital. Rents for houses in Dublin were up by 2.9% in the second quarter, with apartment rents up by 4%.[1]

Quarterly rents up in Ireland

Quarterly rents up in Ireland

What’s more, in Ireland were found to have peaked during the fourth quarter of 2007 and reached their lowest levels, down by 24%, in the first period of 2012. In the second quarter of 2015, rents were 13.1% lower than their peak rate. However, rents in Dublin are just 3.5% lower than they were at their highest point. In contrast, the market outside of the capital saw more subdued growth, with rents 18% from their peak.[1]

Stalled

‘House prices in Dublin have stalled for now,’ observed John McCartney, Savills’ director of research. ‘However rising rents are now pushing up residential yields. This will attract buy to let investors who currently cannot get decent returns on deposit and bonds due to low interest rates,’ he continued.[1]

‘This investor activity will continue until house prices have been driven back up to a point where yields are no longer attractive,’ he added.[1]

[1] http://www.propertywire.com/news/europe/ireland-rental-prices-index-2015093011038.html

 

 

Number of Home Purchase Mortgage Approvals Grows

Published On: September 30, 2015 at 12:02 pm

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Categories: Finance News

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Number of Home Purchase Mortgage Approvals Grows

Number of Home Purchase Mortgage Approvals Grows

House prices increased in September, according to the latest Nationwide report.

The building society found that the average price of a home purchased with a mortgage was £195,585, up from £195,279 in the previous month.

The price of a typical property in London is now £443,399 – more than three and a half times the price of an average home in the North of England.

Furthermore, the Bank of England (BoE) has reported that the amount of mortgage approvals for home purchase rose for the third consecutive month in August.

Last month, 71,030 mortgages were approved, compared to the average of 65,594 for the previous six months and up from 69,010 in July.

Remortgaging levels are continued to increase, with the number standing at 40,931 in August, up from the average of 35,811 over the last six months.

Additionally, the Mortgage Advice Bureau (MAB) said that in August, the amount of mortgage products grew to over 15,000 for the first time since the recession. There were 15,838 mortgage products on offer last month, up by 10% on July and the highest number since 2008.

Estate agent haart has analysed figures from its own 200 branches, finding that the average UK sold subject to contract price in August was £219,315. The typical first time buyer paid £169,259 for a home.

Both prices are higher than the same time last year, up by 7.3% and 9.9% respectively.

haart’s average London price was £507,096 during August, and it states the ratio of buyer demand to housing supply is 12.4 to 1.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage products in 7 year high

Published On: September 30, 2015 at 11:39 am

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Categories: Finance News

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New data indicates that the total number of mortgage products has risen to their highest level for over seven years.

The Mortgage Advice Bureau has released figures indicating that the number of products has passed 15,000 for the first time since the recession.

Spoilt for choice

During August, there were 15,838 products on the market, representing a 10% increase from July and the largest monthly percentage rise since April 2011. This was driven by a 16% growth in broker products from July to August.[1]

Despite the jump in broker products, the number of direct-only products fell by 2% from 4,658 in July to 4,581 in August. As a result, brokers’ share of the total product range increased from 68% to 71%, with the direct-only share falling from 32% to 29%.[1]

The table below indicates the difference in the rise between broker products and direct products:

Broker products (average) Broker monthly change Direct products (average) Direct monthly change
Aug-14 8,576 10% 3,689 5%
Sep-14 8,542 0% 3,527 ¯ 4%
Oct-14 8,812 3% 3,663 4%
Nov-14 8,694 ¯ 1% 3,648 0%
Dec-14 8,560 ¯ 2% 4,365 20%
Jan-15 8,555 0% 4,217 ¯ 3%
Feb-15 8,768 2% 4,172 ¯ 1%
Mar-15 9,126 4% 4,199 1%
Apr-15 9,309 2% 4,230 1%
May-15 9,384 1% 4,594 9%
Jun-15 9,602 2% 4,631 1%
Jul-15 9,737 1% 4,658 1%
Aug-15 11,257 16% 4,581 ¯ 2%

[1]

Falls

With total product numbers at their best level since the financial crisis, average rents continued to drop to all-time lows in August. Lending competition and the record low base rate of 0.5% continue to push prices down.

Two-year fixed rates saw the largest annual fall to 2.68%, falling from 3.71% in 2014. Three and five-year fixes also fell to new lows. Additionally, two-year tracker rates slipped from 2.66% in August 2014 to 2.01% this month. This however was marginally higher than the low of 2.00% recorded in July.[1]

Mortgage products in 7 year high

Mortgage products in 7 year high

Brian Murphy, head of lending at the Mortgage Advice Bureau observed that there has been a, ‘seismic shift over the last year as brokers have become an even bigger gateway for customers hoping to secure a mortgage.’ He continued by saying that,’ the product range has never been bigger since the recovery began and no single lender can hope to rival the choice available via a whole-of-market adviser.’[1]

Better suited

Mr Murphy went on to say, ‘rather than being overwhelmed by options, customers are increasingly leaning on brokers to do the legwork for them. Taking this step avoids the risk of consumers picking what looks like the most attractive headline rate, going direct to that lender and missing out on a wider choice of products that may be better suited to their needs.’[1]

‘Fierce competition in the market is contributing to record low rates and a large volume of product launches. A base rate rise is still hovering in the background, but the second half of the year often sees lenders pricing with year-end targets in mind and looking to attract new business. Getting advice from a broker can help borrowers find the best solution from the thousands currently on offer.’[1]

[1] http://www.propertyreporter.co.uk/finance/mortgage-product-numbers-reach-7-year-high.html

 

 

 

Number of Tenants in Serious Rent Arrears Rises

Published On: September 30, 2015 at 11:02 am

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Categories: Landlord News

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Number of Tenants in Serious Rent Arrears Rises

Number of Tenants in Serious Rent Arrears Rises

The amount of tenants in serious rent arrears has grown to the highest number for two years, according to Your Move and Reeds Rains estate agents.

The chains estimate that there are now 74,000 renters owing more than two months rent, as of the second quarter (Q2) of this year.

If the calculations are correct, it means that 5,000 more households are in significant arrears than this time last year.

However, the agents report that the level of arrears is still fairly mild compared to Q3 2012, when 116,600 tenants owed more than two months in rent payments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shared Ownership Campaign Launches Next Week

Published On: September 30, 2015 at 9:59 am

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Categories: Landlord News

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A national campaign encouraging shared ownership schemes will launch next week.

Shared Ownership Campaign Launches Next Week

Shared Ownership Campaign Launches Next Week

Shared Ownership Week will offer information to first time buyers interested in how the schemes can help them part-buy and eventually outright buy their own home.

Around nine in ten people think it is getting harder for first time buyers in the UK to get onto the property ladder, according to an international survey by the ING Group.

For many prospective buyers, shared ownership is the only chance they have of owning, or at least part owning, their own property.

Many major housing associations will participate in the week, which runs from 5th-11th October, including Guinness, L&Q, Notting Hill, East Thames, Newlon, Southern, Viridian, Hyde and Circle.

The housing associations will provide details of new developments, share their knowledge with hopeful buyers and offer information on the schemes.

Olivia Scrimshaw, of L&Q, says: “The gap continues to rise between house prices and salaries so it is no wonder that first time buyers need all the help they can find when trying to get a foothold on the property ladder.

“For many buyers, the assistance offered through affordable homeownership schemes is the only way they can become a homeowner.

“However, there is still quite a lot of confusion about how shared ownership works and who is eligible, so we hope that through Shared Ownership Week we can spread the message about the benefits of the scheme and show more first time buyers how it can help them.”1

Those with household incomes of more than £60,000 do not qualify for the scheme. In London, this increases to £71,000 for a one or two-bedroom home and £85,000 for three or more bedrooms.

Find out more here: http://www.sharedownershipweek.co.uk

1 http://www.propertyindustryeye.com/campaign-promoting-shared-ownership-next-month/

Two Regions Surpass London’s House Price Growth

Published On: September 30, 2015 at 9:02 am

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Categories: Property News

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The East of England and the South East have surpassed London’s house price growth, according to new data from the Land Registry.

The East, ranging from Hertfordshire to Norfolk, experienced an average annual rise of 8.4%, almost 2% higher than the property price growth seen in the capital.

Two Regions Surpass London's House Price Growth

Two Regions Surpass London’s House Price Growth

In second place is the South East, encompassing popular commuter hotspots such as Buckinghamshire, Surrey and Hampshire. This region traditionally shadows London’s price rises.

However, the capital’s house prices are still significantly higher. The average value in London is close to £500,000, almost double that in the East, at £210,042, and South East, at £254,658.

Sophie Chick, part of the Savills residential research team, says: “Both regions are well positioned to benefit from buyers looking for more for their money outside the capital, but still within an easy commuting distance to central London.”1

Research by Savills indicates that prices in the top two regions could rise by a further 25% over the next four years, compared with 10% in the capital.

Director of Your Move and Reeds Rains estate agents, Adrian Gill, comments: “The market in London appears to have got the ball rolling again, as buyers get used to the heavier taxation, and prices in the capital and surrounding regions continue to travel at a much faster pace than up in the North West, North East and Yorkshire.”

Indeed, the North West, Yorkshire and the Humber, and the East Midlands all witnessed monthly price declines. Meanwhile, prices in the North East rose by a slight 0.5% and Wales has only just recovered from negative figures last month, to a 0.2% increase this month.

The South West, running from Gloucestershire to the Isles of Scilly, and the West Midlands, from Wolverhampton to Coventry, are two regions that are continuing to see steady growth.

Gill continues: “Sales activity may look slightly subdued on an annual basis, but property sales have actually been picking up speed solidly since the start of the year, and rose 4.4% between May and June.

“Most importantly, the gates are firmly propped open at the bottom of the market and our own research shows this has been the strongest summer for first time buyer sales since 2007.

“With an interest rate rise largely speculated to happen next year, the race will be on for many looking to move up the property ladder before borrowing becomes more expensive.”1 

1 http://www.homesandproperty.co.uk/property-news/news/uk-house-prices-london-now-third-fastest-growing-region