Posts with tag: Howsy

Howsy researches rent price shift since property market reopened in May

Published On: November 25, 2020 at 9:48 am

Tenants have seen an increase in rent prices of 0.6% across the UK, according to research from lettings management platform Howsy.

Looking at the current cost of renting across 20 major UK cities, Howsy has researched changes since the property market reopened for business in May.

Newport has seen rents jump by 13.4%, while Nottingham (11.4%), Swansea (11.2%), Newcastle (4.4%), Glasgow (3.15), Leeds (1.6%), Sheffield (1%), Bristol (1%), Plymouth (0.9%) and Birmingham (0.6%) have also seen an uplift since May.

The platform also notes that with tenant demand falling as working from home becomes the new norm, some cities have seen a drop in the average cost of renting.

Edinburgh has seen the largest decline, down 6% from £1,085 per month to £1,020 now. Cambridge has also seen a notable decline with rents falling 5.4% since May, while London has seen the third-largest decline at -4.8%.

Manchester, Oxford, Cardiff, Bournemouth and Liverpool also make the list in terms of rental cost declines across major UK cities.

Calum Brannan, Founder and CEO of Howsy, commented: “It’s clear that the current trend of working from home has had a notable impact on the rents secured by landlords in a number of major UK cities. However, it’s fair to say that this decline is prevalent across the board and some cities still present a strong buy-to-let market with high demand continuing to push rental prices up.

“The cities to be worst hit have largely been the least affordable, such as Edinburgh, Cambridge, London, Manchester and Oxford. With many now working from home, renting in these expensive cities doesn’t make much sense and so they’ve chosen to look further afield.

“However, in more affordable cities such as Newport, it makes little difference and so tenant demand remains strong whether they are working from home or not.”

Location	Av Rent pm – May 2020	Av Rent pm – Oct 2020	Change – May vs Oct 2020
Newport	£578	£655	13.4%
Nottingham	£724	£806	11.4%
Swansea	£639	£710	11.2%
Newcastle	£691	£722	4.4%
Glasgow	£746	£770	3.1%
Leeds	£767	£779	1.6%
Sheffield	£675	£682	1.0%
Bristol	£1,019	£1,029	1.0%
Plymouth	£668	£674	0.9%
Birmingham	£742	£747	0.6%
Leicester	£697	£697	0%
Southampton	£839	£839	0%
Liverpool	£645	£634	-1.7%
Bournemouth	£1,000	£981	-1.9%
Cardiff	£810	£791	-2.3%
Oxford	£1,320	£1,285	-2.6%
Manchester	£836	£807	-3.5%
London	£1,582	£1,505	-4.8%
Cambridge	£1,147	£1,085	-5.4%
Edinburgh	£1,085	£1,020	-6.0%
UK Overall	£887	£892	0.6%
Data sourced from PropertyData

Pandemic continues to drive rental trend for houses, but flats remain popular in some cities

Published On: October 20, 2020 at 8:13 am

Author: Em Morley

Categories: Lettings News

Tags: Howsy,property types

Student accommodation rent prices are up as much as 26% in parts of Britain

Lettings management platform Howsy has undertaken research that confirms houses are currently in higher demand than flats or apartments by tenants.

It looked at rental property data across 22 major cities in the UK. The analysis shows that demand for houses is currently at 29%, while demand for flats and apartments averages 26%.

Looking at the areas with the highest demand for houses, Belfast came top at 69%. Howsy points out this trend for more spacious accommodation is still being led by the current pandemic.

However, there are some cities where flats and apartments are the more popular option. Manchester is currently home to the highest demand for flats and apartments at 57%.

Calum Brannan, Founder and CEO of Howsy, commented: “There’s no denying that the current pandemic has caused a shift in tenant demand trends as many have looked for more space in the wake of initial lockdown restrictions.

“However, this trend hasn’t quite swept the nation completely and demand for flats and apartments remains robust in a number of major cities.

“As we slowly return to normality, we should see flats and apartments continue to increase in demand as our major cities reopen their doors both professionally and socially.

“This will be welcome news for landlords who have seen demand for flats fall and have had to slash rental prices to secure a tenant.”

Table shows tenant demand for houses, flats and overall across 23 major UK cities split by property preference and sorted by the highest demand to lowest.
City	Tenant Demand for Houses	Tenant Demand for Flats		Overall Tenant Demand
Manchester	44%	57%	Flat	24%
Liverpool	52%	53%	Flat	25%
Birmingham	37%	42%	Flat	22%
Nottingham	20%	35%	Flat	32%
Leeds	28%	33%	Flat	11%
Southampton	27%	32%	Flat	27%
Bournemouth	21%	30%	Flat	42%
Plymouth	19%	26%	Flat	33%
Bristol	19%	25%	Flat	56%
Swansea	21%	21%	Flat	28%
Newport	10%	15%	Flat	51%
Belfast	69%	0%	House	41%
Glasgow	59%	41%	House	42%
Portsmouth	49%	36%	House	41%
Sheffield	30%	20%	House	24%
Cardiff	27%	23%	House	26%
Oxford	27%	23%	House	27%
Newcastle	26%	20%	House	21%
Cambridge	24%	23%	House	26%
London	23%	19%	House	20%
Leicester	21%	19%	House	21%
Edinburgh	14%	8%	House	8%
Aberdeen	10%	5%	House	5%
Overall	29%	26%	House	28%
Data sourced from Rightmove and Zoopla. Demand is based on the proportion of homes already let as a percentage of total rental properties listed. E.g. if 100 rental properties are listed and 50 are already let agreed, demand is at 50%.

Student buy-to-let investments with the best rental yields in the UK

Published On: August 18, 2020 at 8:11 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,Howsy,property investment,rental yields,student landlords

Rental reform plans risk damaging access to higher education, says NRLA

Online property management platform Howsy has looked at rental yields nearby the top 50 universities across the UK to determine which areas provide the best buy-to-let opportunities for landlords.

This research looked at the average house prices and average rent prices per month in the outcodes of the top 50 universities to calculate rental yields.

On average, university rental yields sit at 4.4% across the UK, according to the results.

The top three best results can all be found in Scotland. The University of Dundee (DD1) came first, with an average rental yield of 7.2%. Second and third were the University of Aberdeen (AB24) and the University of Strathclyde (G1), with rental yields of 6.8% and 6.62% respectively.

The bottom three are all located in London. Imperial College London (SW7) is last, providing a 1.7% average rental yield. King’s College London and the London School of Economics and Political Science, both in WC2, came joint second to last, at 2.3%.

Founder and CEO of Howsy, Calum Brannan, commented: “Many students will be searching for accommodation now that they know where they stand with their results and this huge influx of demand is very positive news for buy-to-let landlords in uni towns across the UK.

“Of course, student tenants can have their downfalls, but so can any tenant in the rental space and the pros far outweigh the cons in terms of the carousel of consistent demand and income that they supply.

“With many of the top universities not only attracting the best students but also providing rental yields way above the UK average, a university buy-to-let could be the key to a profitable investment in what are otherwise tough times for landlords at present.”

University	Location	Top 50 Rank	Outcode	Average house price	Average Rent pm	Average Rental Yield (%)
University of Dundee	Dundee	31	DD1	£146,000	£876	7.2%
University of Aberdeen	Aberdeen	26	AB24	£101,035	£576	6.8%
University of Strathclyde	Glasgow	36	G1	£160,147	£883	6.62%
University of Leicester	Leicester	38	LE1	£121,517	£664	6.56%
Aston University, Birmingham	Birmingham	43	B4	£145,640	£793	6.5%
University of Leeds	Leeds	16	LS2	£138,775	£741	6.41%
Nottingham Trent University	Nottingham	46	NG1	£160,099	£852	6.39%
Newcastle University	Newcastle upon Tyne	23	NE1	£154,535	£816	6.3%
University of Liverpool	Liverpool	33	L3	£143,576	£730	6.1%
Cardiff University	Cardiff	30	CF10	£172,917	£843	5.9%
University of Southampton	Southampton	18	SO17	£222,839	£1,007	5.4%
Queen’s University Belfast	Belfast	27	BT7	£187,801	£825	5.3%
University of Nottingham	Nottingham	21	NG7	£166,848	£718	5.2%
University of Manchester	Manchester	17	M13	£212,944	£915	5.2%
University of Edinburgh	Edinburgh	15	EH8	£235,924	£994	5.1%
University of Warwick	Coventry	11	CV4	£257,287	£1,068	5.0%
Lancaster University	Lancaster	8	LA1	£160,721	£632	4.7%
University of Glasgow	Glasgow	19	G12	£287,762	£1,059	4.4%
University of Surrey	Guildford, Surrey	34	GU2	£452,347	£1,664	4.4%
University of Kent	Canterbury	47	CT2	£316,166	£1,163	4.4%
University of East Anglia UEA	Norwich	25	NR4	£314,704	£1,142	4.4%
University of Essex	Colchester	41	CO4	£280,313	£987	4.2%
University of Birmingham	Birmingham	13	B15	£242,675	£834	4.1%
University of Sheffield	Sheffield	28	S10	£253,392	£865	4.1%
University of St Andrews	St Andrews, Fife	3	KY16	£369,814	£1,248	4.0%
Heriot-Watt University	Edinburgh	29	EH14	£271,789	£891	3.9%
University of Stirling	Stirling	45	FK9	£276,179	£895	3.9%
University of Sussex	Brighton	40	BN1	£405,533	£1,305	3.9%
University of Cambridge	Cambridge	1	CB2	£483,588	£1,541	3.8%
Swansea University	Swansea	32	SA2	£231,500	£730	3.8%
University of Lincoln	Lincoln	50	LN6	£224,959	£689	3.7%
University of York	York	22	YO10	£280,366	£855	3.7%
Durham University	Durham	7	DH1	£224,494	£683	3.7%
Queen Mary University of London	Tower Hamlets (London Borough)	35	E1	£603,459	£1,829	3.6%
Arts University Bournemouth	Bournemouth	48	BH12	£292,209	£876	3.6%
University of Bath	Bath	9	BA2	£402,848	£1,188	3.5%
University of Oxford	Oxford	2	OX1	£486,921	£1,425	3.5%
University of Exeter	Exeter	12	EX4	£277,640	£800	3.5%
Royal Holloway, University of London	Egham	24	TW20	£469,326	£1,341	3.4%
Harper Adams University	Newport, Shropshire	42	TF10	£280,200	£787	3.4%
University of Reading	Reading	39	RG6	£387,577	£1,085	3.4%
Loughborough University	Loughborough	6	LE11	£231,276	£639	3.3%
Oxford Brookes University	Oxford	49	OX3	£443,918	£1,226	3.3%
University for the Creative Arts	Farnham	44	GU9	£463,014	£1,269	3.3%
University of Bristol	Bristol	14	BS8	£460,385	£1,136	3.0%
University College London	Camden (London Borough)	10	WC1	£900,673	£2,056	2.7%
SOAS University of London	Camden (London Borough)	37	WC1	£900,673	£2,056	2.7%
London School of Economics and Political Science	City of Westminster (London Borough)	4	WC2	£1,445,306	£2,782	2.3%
King’s College London, University of London	City of Westminster (London Borough)	20	WC2	£1,445,306	£2,782	2.3%
Imperial College London	City of Westminster (London Borough)	5	SW7	£2,002,729	£2,886	1.7%

Figures supplied by Howsy

Buy-to-let profit margins are down, despite stamp duty holiday, says Howsy

Published On: August 3, 2020 at 8:19 am

Author: Em Morley

Categories: Finance News

Tags: Howsy,property investment,Stamp Duty holiday

Despite the stamp duty holiday reducing the average of tax to be paid on a buy-to-let property, landlords have seen the profitability of their investments shrink by 17%.

This information comes from the latest research by Howsy, the lettings management platform. The results show that the actual cost of being a landlord still requires 65% of an average buy-to-let income. This takes into account void periods, mortgage interest, management fees, and maintenance.

Initial investment costs are down by 23%

Chancellor Rishi Sunak’s stamp duty holiday has meant that the initial cost of Stamp Duty Land Tax has fallen by 26%. This reduced cost of £4,957 combined with the average tenant finding fee of £827 results in the initial price of investing in buy-to-let dropping by 23% year on year.

Ongoing buy-to-let costs are down by 10%

Howsy has also reported a reduction in the ongoing costs of running a buy-to-let property by 10%.

The average landlord experiences 23.75 days of void periods each year, reducing rental income by £538 on an annual basis, Howsy reports. On top of this, agency management fees have increased by 2% since last year, now costing an average of £992 a year.

However, mortgage rates have been favourable in some places. Seeing the interest paid on money borrowed drop by 10% in the last year. Howsy says the 73% of landlords that buy with a mortgage are now paying out £6,232 in annual interest, compared to £6,921 a year ago.

The average annual maintenance and repair bill for a buy-to-let has also dropped 20% year on year, now at £1,652.

Looking at overall ongoing running costs, this figure averages £9,414. Howsy notes that this is a sizeable sum, but one that has decreased by as much as 10% when compared to last year.

Buy-to-let income is down by 13%

Although initial and ongoing costs have fallen, this is also the case for the profitability of buy-to-let investments.

Rental yields are now at an average of 5%, with landlords seeing a 2% increase in annual rental income. However, the average rate of bricks and mortar capital appreciation over the last ten years has decreased. It is now down from 4.70% during the previous year to 3.81%. This results in the value of buy-to-let properties only increasing an average of £6,296 in 2020, compared to £8,614 last year.

Taking into consideration capital appreciation and annual rental income, the average buy-to-let property is currently bringing an overall return of £14,564, which is a 13% decrease on last year’s £16,726.

The remaining profit

After deducting start-up costs, ongoing costs, and unforeseen events, such as the possibility of evicting a tenant, landlords are looking at an average profit of £5,150.

Howsy summarises that the ongoing costs account for 65% of their buy-to-let income, resulting in profitability falling 17% in the last year.

Founder and CEO of Howsy, Calum Brannan, commented: “It’s great to see that the government has finally provided landlords with a momentary financial reprieve in the form of a stamp duty reduction.

“However, our research shows that overall, buy-to-let profitability is still down year on year, and more must be done to help stimulate the backbone of the rental market.

“Of course, bricks and mortar remain a very sound investment, and in many pockets of the market, the return is far higher than that of the average landlord. But we need to do more to encourage landlords to return to the market at all tiers and in all areas to meet the massive demand from tenants for rental homes.

“Luckily today, the integration of technology into the lettings space means there are ways to increase profit margins. Online lettings platforms allow for a much more affordable management fee with greater accessibility.

“While additional products such as Howsy Protect not only provide a guaranteed source of rental income, but they also protect against unforeseen damages to your investment, as well as providing additional peace of mind with appliance cover, home emergency and boiler cover, plus much more.”

Best UK areas for house price growth and rental yields, according to Howsy

Published On: July 6, 2020 at 8:11 am

Author: Em Morley

Categories: Landlord News

Tags: house prices,Howsy,rental yields

Lettings management platform Howsy has looked at which areas in the UK have been most profitable for rental yields and house price increases over the last year.

The results show:

Across the UK, the research shows that house prices are up 2% annually, compared to rental yields at 5%.
London has seen an increase of 5% to property values and an average rental yield of 4%.
The North West and South West saw a house price increase of 3% and 4% respectively. Rental yields are at 5% and 4% respectively.
Scotland is the nation home to the highest average rental yield, at 6%.
Northern Ireland has the highest annual house price growth

The full results are in the below tables:

Primary level – nations

Secondary level – regions

Rankings – highest combination value

Founder and CEO of Howsy, Calum Brannan, commented: “As a landlord, it can be easy to get bogged down in the almost immediate financial viability of a buy-to-let investment. Understandable, given the unpredictability of house price growth in the long-term and so the rental yield available is often the only current data available during the decision-making process.

“However, there are plenty of areas across the UK that might not present the best yields nationally but have delivered a substantially larger return where house price growth is concerned.

As the figures show, this isn’t restricted to one area of the market, and this is certainly something to be considered when investing. For the majority of landlords, their portfolio is their pension pot and so while ongoing rental income is essential, keeping an eye on cashing out and the overall value of your portfolio when you do is also advised.”

One-beds offer the best rental yields, research from Howsy shows

Published On: June 29, 2020 at 8:29 am

Author: Em Morley

Categories: Lettings News

Tags: Buy-to-Let,Howsy,rental yields

One-bed properties are now providing the best financial investment when it comes to buy-to-let rental yields, according to lettings management platform Howsy.

Looking at figures for major cities across the UK, it found that one-beds now average a rental yield of 6.2%.

Previously, three-beds held the top spot, with a rental yield of 4.3%. Despite this increasing to 5% in this latest research, one-beds have rocketed ahead.

The highest performing areas for one-bed rental yields included in this analysis are:

Newcastle (7.9%)
Glasgow (7.7%)
Liverpool (7.1%)
Plymouth (7%)

The research also looked at two-bed buy-to-let investments, revealing that Newcastle, Glasgow and Belfast all have the highest average rental yields of 6.9%. This is followed by Sheffield (6.7%) and Leeds (6.4%).

The top of the table for three-bed rental yields is Glasgow again, at 6.9%.

Founder and CEO of Howsy, Calum Brannan, commented: “We’re seeing a lot of changes to traditional property trends across the sector and the latest seems to be the profitability of the three-bed buy-to-let.

While still a good investment, on the whole, tenants demand is growing for one and two-bed homes that provide them with a space of their own.

This growing demand is leading to one and two-bed properties climbing the ranks of profitability due to their lower investment price point and higher demand pushing up rental prices.

As the threat of the Coronavirus reduces, we will no doubt see this trend reverse as people begin to again feel comfortable about shared living and the better social lifestyle this brings.”

This latest research from Howsy is based on the average house price and rent for each location, as provided by Home.co.uk.

*Rental yields – 1-bed*
Location	1 Bedroom
Newcastle	7.9%
Glasgow	7.7%
Liverpool	7.1%
Plymouth	7.0%
Sheffield	6.7%
Leeds	6.6%
Leicester	6.6%
Nottingham	6.6%
Swansea	6.6%
Portsmouth	6.4%
Aberdeen	6.3%
Newport	6.2%
Manchester	6.0%
Cardiff	6.0%
Oxford	5.8%
Belfast	5.6%
Bournemouth	5.5%
Southampton	5.4%
Cambridge	5.4%
Birmingham	5.4%
Bristol	5.3%
Edinburgh	5.2%
London	4.7%

Average	6.2%
______________________

*Rental yields – 2-bed*
Location	2 Bedroom
Belfast	6.9%
Glasgow	6.9%
Newcastle	6.9%
Sheffield	6.7%
Leeds	6.4%
Liverpool	6.3%
Nottingham	6.0%
Swansea	5.9%
Portsmouth	5.8%
Aberdeen	5.5%
Manchester	5.5%
Birmingham	5.4%
Newport	5.4%
Leicester	5.3%
Cambridge	5.1%
Cardiff	5.1%
Plymouth	5.1%
Edinburgh	5.1%
Oxford	5.0%
Southampton	4.9%
Bristol	4.8%
London	4.2%
Bournemouth	4.0%

Average	5.6%
______________________

*Rental yields – 3-bed*
Location	3 Bedroom
Glasgow	6.9%
Newcastle	6.4%
Belfast	6.0%
Leeds	5.9%
Liverpool	5.7%
Aberdeen	5.6%
Manchester	5.5%
Swansea	5.3%
Edinburgh	5.0%
Nottingham	5.0%
Birmingham	5.0%
Sheffield	5.0%
Portsmouth	4.9%
Bristol	4.6%
Oxford	4.5%
Southampton	4.5%
Cardiff	4.5%
Newport	4.4%
Plymouth	4.3%
Leicester	4.1%
Cambridge	3.9%
London	3.9%
Bournemouth	3.0%

Average	5.0%
______________________

*Rental yields – 4-bed*
Location	4 Bedroom
Glasgow	6.9%
Edinburgh	6.4%
Leeds	4.8%
Newcastle	4.7%
Bristol	4.7%
Belfast	4.4%
Aberdeen	4.4%
Liverpool	4.4%
Birmingham	4.3%
Manchester	4.3%
Nottingham	4.0%
Southampton	3.9%
Portsmouth	3.9%
London	3.8%
Leicester	3.7%
Cardiff	3.7%
Sheffield	3.6%
Newport	3.6%
Oxford	3.5%
Cambridge	3.5%
Plymouth	3.4%
Swansea	2.9%
Bournemouth	1.8%

Average	4.1%
______________________

*Rental yields – 5-bed+*
Location	5 Bedroom
Glasgow	5.5%
Edinburgh	5.1%
Southampton	4.3%
Birmingham	4.2%
Nottingham	3.9%
Aberdeen	3.9%
Liverpool	3.8%
Manchester	3.5%
Bristol	3.4%
Newcastle	3.2%
Portsmouth	3.2%
Leeds	3.2%
Leicester	3.1%
Cambridge	3.1%
Sheffield	3.0%
Swansea	3.0%
Belfast	3.0%
Cardiff	3.0%
London	3.0%
Plymouth	2.6%
Newport	2.5%
Oxford	2.1%
Bournemouth	1.6%

Average	3.4%