Archive for September, 2014
Another interesting article from Property Drum:
UK rental prices rose at a slower rate last month, with every region of the country witnessing smaller rises than in previous months, the latest index shows.
Fresh figures from the August HomeLet Rental Index reveal that the average rent in the UK now stands at £921 a month, compared to £851 a year ago.
The average monthly variation in rent across the UK was 2.3 per cent, led by the South East at 3 per cent and London at 2.4 per cent. The biggest drop in rental prices was recorded in the North West, down 3.5 per cent month-on-month.
Martin Totty (left), Chief Executive of the Barbon Insurance Group, which owns HomeLet, commented, “August can traditionally be a slower month for the rental market and similar dips have been seen in rental prices in previous years.”
“Nevertheless, the cooling in the rental sector may prove to represent the beginning of a trend towards a more settled market after several months of much more significant growth. A similar cooling has been seen in the wider housing market, with house price indices recording an easing of house price growth,” he added.
On an annualised basis rental growth remains firm, with only the North East and the East Midlands reporting lower rents for new tenancies in August than in the same month of last year.
Across the UK, the average private home rent increased by 8.2 per cent over the year to August 2014. In London, rents were up by 11.4 per cent on a year ago, while East Anglia saw annual growth of 8.4 pent cent and the South East 5.3 per cent.
Landlords in the UK are now estimated to be collectively earning more than £32 billion a year, or almost £2.7 billion per month, in rental income annually, according to new analysis by Direct Line for Business (DL4B).
Landlords in London collect the largest proportion of private rental income in England at £14 billion per year, more than the North East, East Midlands, West Midlands, Yorkshire and East Anglia combined.
In total, 44 per cent of the entire country’s rent is paid in London. Outside the capital, Leeds pays the greatest amount of any city, with annual private rent totalling £565 million, followed by Birmingham at £521 million and Manchester at £401 million.
“Buy to let is becoming an increasingly attractive option for people as property prices continue to soar,” said Jazz Gakhal head of DL4B.
With landlords now playing an increasingly important role in the private rented sector (PRS), the Government last week launched a new PRS code, designed to provide guidance for letting agents and landlords on how to achieve high standards.
Ian Fletcher, Director of Policy at the British Property Federation, one of 17 organisations that assisted with the code, said: “As the private rented sector grows, it is coming under more and more scrutiny, and it is important that good practice is constantly encouraged and promoted.”
Christopher Hamer (right), the Ombudsman, said, “The new Code is a milestone for the industry as it provides a set of principles for every landlord and letting agent in the private rented sector to follow, which TPO has championed the idea of for many years.
“The new Code will act as a complementary pathway to the more detailed standards in TPO’s Lettings Code of Practice that was established in 2006 and which forms the basis of the decisions I make when reviewing disputes between member letting agents and landlords or tenants.”
“The overarching principles outlined in the new Code will ensure agents, landlords and investors across the industry have a shared understanding of what levels of service to expect from agents letting and managing property in the private rented sector in England.”
More than 11,500 letting agents are already following TPO’s Code of Practice, which enables their landlords and tenants to access TPO’s free, fair and independent dispute resolution service.
TPO member agents will not be required to take any action following last week’s launch of the PRS Code, as their membership and commitment to follow TPO’s detailed Code of Practice means that they already meet the principles outlined in the new PRS Code.
Source: Property Drum – http://propertydrum.briefyourmarket.com/Newsletters/JUNGLEdrum—the-newsbeat-from-PROPERTYdrum124/Rent-increases-slow-down-as-new-PRS-Code-is-launched.aspx?utm_source=BriefYourMarket&utm_medium=Newsletter%2c+Email&utm_term=&utm_content=JUNGLEdrum+-+the+newsbeat+from+PROPERTYdrum&utm_campaign=Instance%3a+propertydrum.briefyourmarket.com+-+MessageId%3a+12270