Each quarter,Young Index research gauges market sentiment within the residential property sector, polling Young Group's client base of around 500 active landlords who hold UK property assets.The latest Young Index report of Private Rented Sector sentiment shows that 19.1% of landlords added additional residential property assets to their portfolios during 2011.
The activity was driven by strong positive expectations for both capital growth and income returns for the year ahead.
London clearly leads the way with 85.1% of respondents expecting rents in the capital to continue to rise throughout 2012 and a full 100% of landlords predict that property values in London will be at current levels or higher by the end of the year.
Interest rates are widely expected to remain low. 58.3% of landlords expect the Bank of England base rate to remain static throughout 2012.
Of those who do see a rise on the horizon, their average prediction for Q4 2012 is less than half a percentage point higher than the current all time low of 0.5%, at 0.78%.
Undoubtedly, current low costs of finance represent a short term fillip but landlords clearly see the Private Rented Sector as a long term investment class.
Data from Young Index Q4 2011 show that 36.9% of landlords intend to hold their property until 2031. The average future hold period across all respondents was 15.4 years.
Neil Young, CEO of Private Rented Sector specialists, Young Group, who carry out the quarterly research comments:
"Without a doubt, the appetite from private investors in the PRS for additional investments is extremely strong.
"The London rental market is particularly strong and demand from tenants seeking quality PRS accommodation shows no sign of abating, buoyed by a population that is spending longer than ever living in rented homes and increasingly living in solo households."
Friday, 27 January 2012
Tuesday, 10 January 2012
Landlord Health and Safety In the Winter Months
Landlords have been urged to make managing their properties a key health and safety priority over the winter months.
The Association of Residential Letting Agents (ARLA) said burst pipes and damage to property can cause misery to both tenants and landlords, making preparation essential.
It has been unseasonably warm in recent months but the past few days have seen adverse weather sweep across the UK with storms and heavy rain causing property damage.
Temperatures could also drop, raising the risk of pipes bursting and wreaking havoc.
According to ARLA, simple steps such as lagging exposed pipes could prevent the escape of water and the damage and misery that can cause.
Before high winds and stormy weather hits, ARLA recommends:
Checking the condition of roofs, in particular garage shed and flat roofs for signs of wear and tear
Keeping gutters, gullies and drains clear so they can carry water away quickly and efficiently
Ensuring drainpipes do not get blocked with trapped rainwater as this may cause them to crack or shatter in freezing conditions
Consider cutting back low-hanging tree branches, which could cause damage in high winds
Landlord Health and Safety News
The Association of Residential Letting Agents (ARLA) said burst pipes and damage to property can cause misery to both tenants and landlords, making preparation essential.
It has been unseasonably warm in recent months but the past few days have seen adverse weather sweep across the UK with storms and heavy rain causing property damage.
Temperatures could also drop, raising the risk of pipes bursting and wreaking havoc.
According to ARLA, simple steps such as lagging exposed pipes could prevent the escape of water and the damage and misery that can cause.
Before high winds and stormy weather hits, ARLA recommends:
Checking the condition of roofs, in particular garage shed and flat roofs for signs of wear and tear
Keeping gutters, gullies and drains clear so they can carry water away quickly and efficiently
Ensuring drainpipes do not get blocked with trapped rainwater as this may cause them to crack or shatter in freezing conditions
Consider cutting back low-hanging tree branches, which could cause damage in high winds
Landlord Health and Safety News
Tuesday, 13 December 2011
London Property Market News: Property demand rises but RICS not getting excited
Demand for property rose yet again in November according to the latest UK Housing Market survey from the Royal Institution of Chartered Surveyors (RICS).
But the body warned that economic uncertainty is still holding the housing sector back from really flourishing.
Some seven per cent of surveyors said that they had seen a increase in the number of new buyer enquires last month, meaning that demand has continued to rise steadily for each of the past three months.
On top of this, newly agreed sales increased by 14 per cent and the average number of sales dealt with per surveyor or branch climbed by 15.4 per cent.
However, RICS warned that the market is still very subdued in many regions and, while the figures are certainly encouraging, they are still far short of those posted in the years prior to the start of the credit crunch.
RICS housing spokesperson, Alan Collett, said:"It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets. However, a meaningful recovery still seems some way off.”
Despite these comments, e-surv revealed this week that mortgage approvals last month reached their highest levels in two years.
London Property Market News
But the body warned that economic uncertainty is still holding the housing sector back from really flourishing.
Some seven per cent of surveyors said that they had seen a increase in the number of new buyer enquires last month, meaning that demand has continued to rise steadily for each of the past three months.
On top of this, newly agreed sales increased by 14 per cent and the average number of sales dealt with per surveyor or branch climbed by 15.4 per cent.
However, RICS warned that the market is still very subdued in many regions and, while the figures are certainly encouraging, they are still far short of those posted in the years prior to the start of the credit crunch.
RICS housing spokesperson, Alan Collett, said:"It is encouraging that buyer interest has edged upwards in the face of the endless diet of negative news from Europe and the turmoil in financial markets. However, a meaningful recovery still seems some way off.”
Despite these comments, e-surv revealed this week that mortgage approvals last month reached their highest levels in two years.
London Property Market News
Monday, 28 November 2011
First Time Buyers Stamp Duty Exemption Tax Extension
The Council of Mortgage Lenders (CML) is jumping to support first time property buyers and calling on the government to extend the existing exemptions for stamp duty.
At present the scheme means that those who have not owned a property previously do not have to pay the land tax to the government, but the scheme will come to an end in March.
The CML believes that getting rid of this incentive will lead to fall in the number of people looking to buy a home, but would not massively increase the government’s coffers.
“The housing market can act as a force for growth in the economy, but if this is to happen then buyers, lenders and builders alike all need a clear message that the government sees them less as part of the economic problem, than as part of the economic solution,” said CML director general Paul Smee.
At present all first time buyers are exempt from paying stamp duty up to £250,000. For everyone else, the tax starts at one per cent on properties between £125,000 and £250,000, three per cent between £250,001 and £500,000, four per cent between £500,001 and £1 million and five per cent over that figure.
First Time Property Buyers News
At present the scheme means that those who have not owned a property previously do not have to pay the land tax to the government, but the scheme will come to an end in March.
The CML believes that getting rid of this incentive will lead to fall in the number of people looking to buy a home, but would not massively increase the government’s coffers.
“The housing market can act as a force for growth in the economy, but if this is to happen then buyers, lenders and builders alike all need a clear message that the government sees them less as part of the economic problem, than as part of the economic solution,” said CML director general Paul Smee.
At present all first time buyers are exempt from paying stamp duty up to £250,000. For everyone else, the tax starts at one per cent on properties between £125,000 and £250,000, three per cent between £250,001 and £500,000, four per cent between £500,001 and £1 million and five per cent over that figure.
First Time Property Buyers News
Sunday, 27 November 2011
UK Property Market 5 Year Forecast
UK house prices are set to fall for another 11% in the next 5 years, according to property experts.
British broker firms believe that house prices in the UK will fall by more than 10% in the next 5 years back to the level seen a decade ago.
In the opinion of property experts, those are not only difficulties accessing mortgage finance and weak economic growth that will keep house prices down. Increased cost of living, especially in big cities like London will also negatively affect house prices growth.
According to brokers' estimates, house prices will fall to 170,000 in 2016, down from 184,000 in 2007.
Meanwhile, rent rates are expected to rise dramatically as many Brits will be unable to buy a property of their own.
British broker firms believe that house prices in the UK will fall by more than 10% in the next 5 years back to the level seen a decade ago.
In the opinion of property experts, those are not only difficulties accessing mortgage finance and weak economic growth that will keep house prices down. Increased cost of living, especially in big cities like London will also negatively affect house prices growth.
According to brokers' estimates, house prices will fall to 170,000 in 2016, down from 184,000 in 2007.
Meanwhile, rent rates are expected to rise dramatically as many Brits will be unable to buy a property of their own.
Tuesday, 22 November 2011
Landlords and Tenants Should Prepare for Winter
Landlords are being reminded to make sure their properties and tenants are ready for the winter weather.
Burst pipes are a common problem, according to the National landlords Association (NLA), as tenants sometimes do not know how to shut off the heating system if leaving the home empty during the festive period.
The NLA says landlords should make sure tenants are shown how to shut off water to the property or how to set the heating system thermostat to prevent pipes from freezing.
Then tenants should be shown how central heating systems work and where the gas boiler is located, along with where the emergency gas shut off valve is located.
The NLA is also encouraging landlords to make energy improvements to their properties.
Tips include:
Burst pipes are a common problem, according to the National landlords Association (NLA), as tenants sometimes do not know how to shut off the heating system if leaving the home empty during the festive period.
The NLA says landlords should make sure tenants are shown how to shut off water to the property or how to set the heating system thermostat to prevent pipes from freezing.
Then tenants should be shown how central heating systems work and where the gas boiler is located, along with where the emergency gas shut off valve is located.
The NLA is also encouraging landlords to make energy improvements to their properties.
Tips include:
- The loft insulation should be a minimum depth of 270mm to stop heat loss through the ceiling.
- Install cavity wall and floor insulation to stop heat escaping where possible.
- Fit lagging to hot water pipes and tanks to reduce heat loss and stop pipes from freezing.
- Draft-proof the property by filling gaps between floorboards and skirting boards.
Monday, 7 November 2011
Halifax House Price Index Reports Further Rise
The average house price across the UK rose by 1.2 per cent between September and October, in a further sign of the high degree of resilience that has been shown by housing market over the past 12 months in the face of challenging economic conditions, according to Halifax.
Data from the latest Halifax monthly house price index showed that the average house price rose by 1.2 per cent between September and October, but is down over the past quarter by 0.3 per cent and on an annual basis by 1.8 per cent.
Martin Ellis, housing economist at Halifax, said that while the monthly picture in terms of house prices had been mixed for some time, the market was proving ‘highly resilient’ in spite of a weak economic recovery.
He said: “Whilst there have been five monthly price rises, four falls and one month of no change, there has been little change in prices during 2011 overall.
“The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies.”
Mr Ellis claimed that despite these developments, house sales and the supply of properties for sale have remained very stable since late 2010.
Data from the latest Halifax monthly house price index showed that the average house price rose by 1.2 per cent between September and October, but is down over the past quarter by 0.3 per cent and on an annual basis by 1.8 per cent.
Martin Ellis, housing economist at Halifax, said that while the monthly picture in terms of house prices had been mixed for some time, the market was proving ‘highly resilient’ in spite of a weak economic recovery.
He said: “Whilst there have been five monthly price rises, four falls and one month of no change, there has been little change in prices during 2011 overall.
“The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies.”
Mr Ellis claimed that despite these developments, house sales and the supply of properties for sale have remained very stable since late 2010.
Subscribe to:
Posts (Atom)
