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: House price to income ratio eases from record high; Rocky housing market will pick up in Autumn; Surge in first-time buyers turning to ‘the bank of mum and dad’; Scottish Government confirms plans for rent controls; What to do if you can’t sell your home; How Much Deposit Do You Need for a Buy-to-Let?; Vast majority of landlords won’t buy a property below EPC level C… Happy reading and… renting!
Asking prices for UK homes drop sharply
Asking prices for homes in Britain fell sharply this month as rising mortgage costs caused sellers to lower their expectations of what they can get for their properties.
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House prices fall – but rising cost of borrowing makes buying more expensive
Falling house prices and record wage growth has meant houses have become more affordable on paper, but the rising cost of borrowing has cancelled out any benefit.
The cost of a typical UK home is 6.7 times average earnings…
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House price to income ratio eases from record high
The analysis, which was based on data from the Halifax House Price Index and compared typical house prices to average earnings across the UK, revealed that the ratio had fallen by 0.6 over 2023.
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Scots rental market in turmoil as housing shortfall widens
The future of Scotland’s rented housing market is at the centre of intense debate, with tenants’ groups and property firms at odds over how to solve a housing crisis that some are branding an emergency.
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London homeowners knock £23,000 from asking prices – but it’s not the area of UK that will be worst hit
Soaring interest rates have forced homeowners in London to slash an average of £23,000 from their asking price as the property market cools in the capital.
Sellers have reduced their advertised prices by 3.4 per cent since asking prices in London peaked in May.
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House prices need to plummet by 19.3% to reach pre-pandemic levels
British house prices would need to plummet by a staggering 19.3% to reach their pre-pandemic levels as fears rise over a cooling market.
The data shows the current average house price of £287,546 would need to fall by 19.3% to return to its pre-pandemic value of £231,940 in January 2020.
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Rocky housing market will pick up in Autumn
While it’s been a tough year for the property market, activity is likely to pick up in the coming Autumn months.
A study reveals mortgage approval rates have fallen dramatically but an ‘autumn boost’ is beginning to improve things.
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Britain’s biggest housebuilder warns it will take two years for property market to recover
The chief executive of Barratt Developments said the number of new builds constructed in Britain would fall for at least the next two years as high borrowing costs hammer sales.
Barratt warned it would build 3,000 fewer homes next year in response to falling demand and said it has stopped buying new land to build on.
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Former Conservative minister says ‘rental market is broken’
According to a study, rising mortgage rates have made renters feel vulnerable to their landlord’s personal financial situation, with 32% agreeing that their rent or tenancy had been affected.
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Record 88% of homeowner remortgage deals in April were with existing lender
Nearly nine in 10 (88%) residential remortgage deals in April were done with the borrower’s existing lender, marking a high in UK Finance’s records going back to the start of 2018.
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Surge in first-time buyers turning to ‘the bank of mum and dad’
First-time buyers are increasingly turning to “the bank of mum and dad” to secure a mortgage as a generation that has until recently only ever known rock-bottom interest rates attempts to secure a footing on the property ladder.
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Mortgage rates below 5% may return ‘in weeks’
The average two-year fixed mortgage rate is 6.24%, 4 basis points lower than last week.
While the average five-year fixed mortgage rate is 5.67%, a 2bps fall from a week ago.
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Landlords report strongest rising tenant demand in outer London and East Midlands
According to a survey of 983 landlords by mortgage lenders Paragon, Outer London and the East Midlands saw the highest rate of rising demand, with Wales coming next as approximately 82% of landlords reported growing tenant demand.
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Rented home supply in London begins to improve
The supply of homes to rent in London is improving, two leading firms in the sector say.
However, rents are continuing to rise though the number of room adverts grew by 20.8% last month.
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Scottish Government confirms plans for rent controls
Speaking in the Scottish Parliament on Tuesday, Humza Yousaf said his government would introduce a major new housing bill to introduce new regulations for landlords as well as cash for housebuilding.
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Tenants forced into signing ‘rent tracker’ contracts
Letting agents say they are being asked by landlords to offer tenants a ‘rent tracker’ agreement – which enables rent rises that follows a rise in the Bank of England base rate.
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172 tenants served with no fault evictions a day
Every eight minutes in England, a tenant is told to leave their home by their landlord.
The figures, from housing charity Shelter, says those who receive no fault eviction notices have only two months to move out of their home, and landlords do not have to give a reason for evicting them.
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UK rents to rise faster than house prices
Great Britain is set to see rents costing more than house prices by 25% over the next four years due to higher interest rates.
In London, rents are likely to rise faster than other regions across the country by 9% in 2023 and slowly see a decline at just 8% in 2024.
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Zoopla shows rent affordability worst for a decade
The company’s Rental Market Report shows that it now costs people, on average, 28.4% of their gross monthly earnings to cover their rent.
This is compared to an average of 27.2% over the last 10 years.
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The Benefits of Limited Liability Ownership Structure for UK Landlords
For landlords in the United Kingdom, choosing the right ownership structure for their property investments is a critical decision. Among the various options available, one that stands out for its advantages is the Limited Liability Ownership Structure.
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What to Consider When Purchasing Your First Commercial Property
When it comes to the world of property, diving into the commercial sector can be a lucrative investment of your capital. Like any investment though, there is an element of risk. Before signing contracts and putting your valuable resources on the line, it’s important to be diligent and to know exactly what you’re getting into.
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What to do if you can’t sell your home
Rising interest rates and a cost of living crisis have played havoc with the UK property market.
Price reductions are now at 36%, the highest level since January 2011, and many vendors are struggling to sell their homes, even after they’ve already dropped the price.
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How Much Deposit Do You Need for a Buy-to-Let?
The buy-to-let sector is one of the safest markets during times of economic uncertainty. In 2023, the property market managed to withstand huge inflation rates and the Bank of England’s rising base rates. Mortgage interest rates rose to keep up with these changes. However, those same rates have already started to come back down.
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Four landlords hit with fines totalling over £20,000 after failing to manage rented properties
The charges included letting unlicensed properties out to unauthorised tenants, and failing to ensure that fire safety measures at the property were maintained at an appropriate level. These houses went on to be assessed to have fire safety and electrical hazards.
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Government urged to introduce grants to help landlords improve EPCs
The introduction of Minimum Energy Efficiency Standards (MEES) in 2015, meant that from 1 April 2018 landlords could no longer rent their property, unless exempt, if it had an Energy Performance Certificate rating lower than an ‘E’.
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The cheapest cities to own a home in Britain
As property prices fall, you may be wondering where the cheapest place to buy in the UK is right now.
According to new research, Aberdeen is currently the cheapest city to own a home, followed by Dundee and Kingston Upon Hill.
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Glasgow landlord exposes ‘nightmare tenants’ living conditions
A Glasgow landlord has exposed “nightmare tenants” shocking living conditions.
The 70-year-old claims he has never seen damage and filth like it in his entire 20 year experience as a landlord, and says it will cost him £25k to repair.
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Fraudsters trying to take advantage over lack of supply in student accommodation
Fraudsters are placing fake listings adverts online in a bid to cash in on the lack of supply in student accommodation.
Figures from Action Fraud, reveal there were 5,751 reports of rental scams last year, a 23% rise compared to 2021.
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Landlords demand pet references with pictures and biography
Landlords in the UK are now requesting ‘pet references’ complete with photographs and biographies of dogs and cats, due to the increased popularity of pet ownership during and after the Covid-19 pandemic.
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Vast majority of landlords won’t buy a property below EPC level C
Asked to what extent the EPC rating of a property now impacted on their purchasing decision, the vast majority of respondents said they were increasingly unlikely to purchase a rental property if it wasn’t already at a C level – which is likely to be the future minimum standard.
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