Like every month, Rentila offers you an overview of the main real estate news of interest to landlords and tenants. This month, we focus on: Steady rise in house prices points to growth in confidence; UK Build to Rent investment hits record high; ‘New normal’ will be mortgage rates between 3.5% and 4.5%; Government urged to fix renting crisis as rents rise by 35 per cent in Shropshire; Cheapest places to rent as Black Country named most affordable for housing; Renters reveal top ‘deal-breakers’ when looking for rental property… Happy reading and… renting!
UK house prices likely 1.5% higher by end of year
This is according to data from the latest Zoopla House Price Index. The report also reveals that homebuyers are largely shrugging off the election with new sales agreed 8% higher, with demand up 6% and 19% more homes for sale than a year ago.
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What happens to the UK housing market after a general election?
As the General Election inches closer, each party has published its manifesto and detailed its plans for parliament.
The housing market was a major focus for many. With the Bank of England holding the mortgage base rate at 5.25%, the general consensus at the moment is that many people are struggling to get on the property ladder…
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Property industry reacts to new UK house price data
UK house prices remained flat in June, with the average price of a residential property dipping by 0.2% on a monthly basis, according to the latest Halifax House Price Index.
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Steady rise in house prices points to growth in confidence – ONS
The average home rose in value by 2.2% in the 12 months to May, according to the latest government data from the Office for National Statistics.
On a monthly basis, prices were 1.2% higher in May compared to April, found the ONS which uses Land Registry data on sold properties.
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New study shows the UK’s least affordable places to buy a home
London’s streets are seemingly paved with gold, at least when it comes to property values. A recent study indicates that eight of the UK’s most expensive – and thus unaffordable – places to purchase a home are located in the capital.
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UK Build to Rent investment hits record high
Investment into the UK’s build to rent (BTR) sector topped £1.3bn in the second quarter of 2024, up 38% year-on-year, Knight Frank’s latest UK Build to Rent Market Update has revealed.
This brings the total investment for the first half of 2024 to just over £2.6bn…
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Bank of England holds interest rates at 5.25% again
Interest rates have been frozen at 5.25% for seven meetings in a row. Here is what it means for your money. Plus, when will interest rates finally be cut?
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First-time buyer mortgage payments up 61% since last election
Rightmove’s latest first-time buyer study, found over the past five years the average mortgage payment for a typical first-time buyer home has risen from £667 per month to £1,075 per month.
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‘New normal’ will be mortgage rates between 3.5% and 4.5%
“The expectation that markets have is that interest rates won’t get below 3.5% — and that means that the new normal for mortgages will be in that 3.5% and 4.5% range.”
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How 40-year mortgages put first-time buyers’ futures at risk – and will cost much more
The rise of 40-year mortgages is putting first-time buyers’ retirements at risk – and could cost some £100,000 more in interest.
Ultra-long mortgages will ‘come home to roost’ as households are left with less money towards retirement…
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Average five-year fix dips below 5% again
The average monthly mortgage payment on a first-time buyer type property which is currently £227,757, for someone taking out an average five-year fixed, 85% LTV mortgage, is now £1,131 per month if repaying over 25 years, compared with £1,203 per month a year ago…
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Tenants want the next government to control rent rises
Tenants in the private rented sector (PRS) want the next government to focus on controlling the pace of rent rises, a survey has found.
The research from Zoopla and Ipsos says this demand is closely followed by the need for increased home construction and enhanced rights and protections for renters.
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Labour wants to ban tenant bidding wars – it’s easier said than done though
One eye-catching policy currently being proposed by the Labour party is a ban on “bidding wars” in the private rented sector. In many high-pressure housing markets bidding by competing prospective tenants, instigated by the landlord or letting agent, results in tenants agreeing to pay a considerably higher rent than originally advertised.
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Student accommodation rents ‘continue to soar’
Glasgow students are facing an 18% hike on average for an ensuite room – from £200 to £235 a week. A student renting an ensuite room for 51 weeks in Glasgow would pay an average of £11,985. This leaves no money for food and other essentials, even for a student on the maximum loan and bursary package…
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Government urged to fix renting crisis as rents rise by 35 per cent in Shropshire
Campaign group Generation Rent said the next government must tackle the cost of rent by building more homes and stopping landlords from raising rent above wage growth or inflation.
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Rents continue rising as London breaks the £2,000 barrier
Rents in England have continued their upward trend in June – rising by 6.7% year-on-year.
The South West witnessed the biggest annual rise, with rents jumping 13% to £1,347.
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Rental turnover sits at 10% in some UK postcodes
Analysis of rental market turnover by postcode shows that on average, 78% of all UK rental market stock is currently let to the nation’s tenants.
However, while the market as a whole may be benefitting from a high level of tenant demand, this isn’t the case in every postcode.
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Majority of landlords plan to push ahead with rent rises
While nearly 85% of landlords made the admission, more than a third (36%) said they plan to raise rents by up to 5%. This is an increase from 27% in Landbay’s previous survey in 2023. Meanwhile, 37% intend to increase rents between 6 and 10%…
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Cheapest places to rent as Black Country named most affordable for housing
A recent report has ranked local authorities in the county based on their average prices to rent this year.
The chance for first time buyers to get an affordable mortgage moves ever further as house prices rocket and the cost of living crisis looms – leading many to turn to the rent market.
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Why now is the best time to buy a house
The past 18 months have been a turbulent time in the property market, buffeted by rising mortgage rates, a drop in transactions and a lack of homes coming up for sale.
Now, however, a sense of optimism is returning, due to cheaper mortgage rates, a more stable-looking economy and greater optimism from the public about their finances.
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How will the general election impact renters and buy-to-let landlords?
Around 35% of people in England live in rented accommodation, according to the latest English Housing Survey. Sixteen percent are in social housing, while 19% are in private rented accommodation.
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UK mortgage rates: are longer-term deals cheaper? How to lower your interest rate – pitfalls explained
Interest rates have rocketed over the last three months as a result of the climbing Bank of England base rate, market concerns that UK inflation is not dissipating quickly enough, and chaos in the swap rates market. Even though the latest set of inflation data was more positive – with the headline rate dropping from 8.7% to 7.9% – fixed-rate deals have continued to climb.
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Property transactions taking longer to complete – how to speed-up your home sale or purchase
It takes around 115 days for a property sale to reach exchange in England and Wales – a 25% increase from four years ago. We explain what is causing the backlog and how to clear it…
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Accidental landlords warned over selective licensing schemes
Amateur landlords are being warned about the dangers of new selective licensing schemes which could lead to hefty fines.
These schemes unfairly target ‘accidental landlords’ who might, for example, inherit a property or rent one out when moving in with a partner.
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Landlord groups call for ‘urgent’ return of the Renters (Reform) Bill
In the wake of the 4 July election, landlord groups say the next government must pass the Renters (Reform) Bill as a matter of ‘urgency’.
The plea is being made by the National Residential Landlords Association (NRLA), along with Leaders Romans Group, Grainger, and the British Property Federation (BPF).
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Managing properties full-time job for most landlords, survey reveals
Over half of landlords treat the management of their properties as a full-time job, a survey by buy-to-let lender Landbay has revealed. Only 19% of landlords said they relied on a property management company, with a quarter using an estate agent.
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Majority of landlords would install EV charge point in rental property
Research published last month by Direct Line has revealed an overwhelmingly positive attitude among landlords when it comes to electric vehicle (EV) charge points.
The survey found that the majority of freehold landlords (86%) with a suitable property would install EV charging facilities if their tenant requested it.
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Landlord returns down 45% since the pandemic – is buy-to-let still worth it?
Property investors have been hit with a 45% drop in annual returns since the pandemic as high mortgage rates and tax relief restrictions weigh on returns, new research suggests.
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Renters reveal top ‘deal-breakers’ when looking for rental property
Almost half of renters (46%) say that the presence of damp and mould is a ‘deal-breaker’, while a third consider access to a living room (34%) and outdoor space (32%) as necessities. One in three (32%) also feel that the property should have at least double-glazing on its windows, likely because double-glazed windows retain heat more easily…
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Section 21 ban could overwhelm courts
According to Propertymark, the abolition of Section 21 will be the ‘final nail in the coffin’ for many landlords due to costs and lengthy court delays.
The Labour government also plan to introduce Awaab’s Law to the private rented sector and make bidding wars illegal.
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