Posts with tag: inflation

UK rents rise but fail to keep pace with inflation between July and September

Published On: October 11, 2019 at 8:24 am

Average UK rents rose between July and September but failed to keep pace with inflation, according to new data from The Deposit Protection Service (DPS).

The latest edition of The DPS Rent Index has now been released, showing average monthly rents in the UK have increased by £7 (0.91%) to £778. It claims that this is less than half the rise in inflation (1.90%) during the period.

The report also shows:

Terraced and semi-detached properties in Q3 2019 experienced above-inflation (over 4%) average rent rises when compared with Q3 2018.
Rent increased for flats and detached properties were below inflation (1.36% and 0.80% respectively) during the same 12 months.
Yorkshire and The Humber saw the largest increase of £19 (3.60%) to £552 since the previous quarter.
The East Midlands and West Midlands experienced the only falls in England during Q3 2019. Average rents were down £13 (-2.17%) to £578 and £1 (-0.19%) to £620 respectively.
The North East was the cheapest place in the UK to rent (£526) during Q3 2019 with a modest £3 (0.65%) increase during the period.
London remains the most expensive rental region in the UK, with the largest year-on-year growth of £43 (3.34%) and an average rent of £1,333.
Scotland and Wales are the only regions to experience year-on-year as well as quarter-on-quarter rent decreased. Scotland’s rents fell by £6 (-1.02%) to £619 and Wales’ fell by £8 (-1.43%) to £578.
On average, people in the UK spend 32% of their wages on rent.

Matt Trevett, Managing Director of The DPS, said: “Two consecutive quarterly increases have seen rents reach the highest value since the Rent Index launched in 2017 following a period of decline during 2018.

“However, average rents in the third quarter of 2019 did not keep up with inflation, as they did in Q2 2019. This suggests rental values in the UK are regulating themselves against inflation.”

Region	Average rent in Q3 2019	Change since Q2 2019	% change since Q2 2019
London	£1,333	£14	1.03%
South East	£880	£2	0.23%
South West	£743	£12	1.58%
East	£820	£12	1.53%
East Midlands	£578	-£13	-2.17%
West Midlands	£620	-£1	-0.19%
Yorkshire	£552	£19	3.60%
North West	£596	£1	0.18%
North East	£526	£3	0.65%
Scotland	£619	-£6	-1.02%
Wales	£578	-£8	-1.43%
N.Ireland	£533	£11	2.18%
UK	£778	£7	0.91%

Is inflation a bigger threat than Brexit?

Published On: January 18, 2017 at 2:19 pm

Author: Em Morley

Categories: Finance News

Tags: Brexit,housing market,inflation,landlords,property

A leading estate agent has moved to express his view that inflation is a bigger threat to the confidence of the housing market than Brexit.

In a statement, former RICS residential chairman and London estate agent Jeremy Leaf, said: ‘If the cost of everything is going up, people feel poorer and less inclined to take on further debt. With the housing market it always comes down to confidence and if people see bad news, they tend to overreact, sit on their hands and do nothing.’[1

Announcement

The statement from Mr Leaf comes on the heels of an announcement that inflation has risen to 1.6%, the highest for 18 months. This increase was larger than expected and was attributed to the effects of the fall of Sterling since Britain decided to leave the EU.

Leaf’s comments also came after the ONS released its figures for house price rises over the year to November.

Is inflation a bigger threat than Brexit?

According to this report, prices increased by an average of 6.7%, up from 6.4% in October.

The average price of a property in the UK was £218,000, £14,000 greater than November 2015 and £2,000 more than in October. The average price of a property in England is now £234,000.

Wales saw prices increase by 4.1% in the same period to £147,000 and in Scotland, by 3.3% to hit £143,000.

‘The house price index findings are not too surprising because … they are a little bit historic. We expect to see some moderation in price growth in future as we have already seen on the ground in the past month or so. Shortage of stock and increased nervousness is showing itself in only slightly higher prices and lower activity,’ Leaf concluded.[2]

[1] https://www.estateagenttoday.co.uk/breaking-news/2017/1/inflation-bigger-problem-for-housing-market-than-brexit-claims-top-agent

How has Christmas Present Inflation Compared to House Price Growth?

Published On: December 15, 2016 at 11:47 am

Author: Em Morley

Categories: Finance News

Tags: Christmas,house price growth,house prices,inflation

While we all know that house price growth has spiralled over the last few decades, how have Christmas present prices compared?

Online estate agent eMoov.co.uk has analysed the average house prices of the last 30-odd years against the cost of the must-have Christmas presents over each period.

1980: The Rubik’s Cube

In 1980, the average house price in the UK was just £23,497. Since then, it has increased by an alarming 778%. The most popular gift of the year was the Rubik’s Cube, which cost just £2 at the time. Today, however, the game sells for as much as £13 – that’s a 713% rise, which only marginally trails house price growth.

1990: Nintendo

In the early 90s, Nintendo burst onto the scene with its Gameboy, one of the first handheld videogame devices. At £71, they weren’t the cheapest Christmas present, but the latest DS 3D today comes in at over £100 more (£175), up by 146%.

Unsurprisingly, house prices have managed to beat this growth, up by 276% from the average value at the time, of £54,919.

How has Christmas Present Inflation Compared to House Price Growth?

1998: Furby

The Furby craze swept the nation back in 1998. The average house price of the time, £66,313, has now risen by 211%, but how has the Furby fared? Originally costing just under £25, the latest edition sells for £76 – a 206% increase.

2010: The iPad

As technology started to advance like never before, more traditional toys were put on the back shelf. In 2010, Apple flooded the market with its iPad – the perfect gift for someone needing something bigger than a phone, but not as big as a computer.

The original price of £400 has now gone up to a huge £729 – an 82% hike in just six years. Shockingly, this is well ahead of house prices, which have risen by just 27% over the same period.

2013: The Xbox

When the original Xbox was released in 2001, the average house price was £92,533, while the must-have games console cost £240. 12 years later, the price of playing an Xbox had increased by 67%, with the Xbox One costing £400. Over the same period, house prices rose by 89%.

Unfortunately for those that bought the Xbox One on release, the product hasn’t retained the upward price trend – in the last three years, the price of an Xbox One has fallen by half, now costing around £200. For homeowners, prices haven’t followed suit, and are up by a further 18%.

2016: Nerf

One of the hottest Christmas gifts this year is the latest Nerf gun. They first became popular in 2012, when the average house price was £162,924 and a Nerf would cost around £30.

In the last four years, house prices have continued to rise, up by 27%, while the Nerf gun has increased by 47% to over £40.

The Founder and CEO of eMoov, Russell Quirk, comments on the findings: “It’s a well-known fact that Christmas is probably the most expensive time of year, with many stretching beyond their means to provide the latest gifts and gadgets for their families.

“Therefore, it is hardly surprising that the cost of the must-have items during the holidays have seen similar, if not larger, price hikes than the UK property market itself.

“When people talk about the struggles of obtaining homeownership, they rarely consider the many underlying factors that come with it and the affordability issues of modern day life itself.”

He adds: “If you would have told me back in the 80s to invest into Rubik’s Cubes, I would have thought you were mad, but this research shows it probably wasn’t such a bad idea after all.”