Menu
04/03/2011
Rents Rise Rapidly As Demand Grows
Strong tenant demand and falling supply pushes prices higher according to the latest RICS Residential Lettings Survey for November 2010 - January 2011.
Rents rose at a rapid pace in the three months to the end of January, as falling supply of rental properties and strong tenant demand continued to drive prices upwards.
40 per cent more chartered surveyors reported rents rose rather than fell in the three months to January - which is the highest positive reading in the survey’s history. As rents increased, gross rental yields have also risen sharply – they have now increased in each of the last four surveys.
Continued difficulty in securing mortgage finance and large deposits required by lenders remain a barrier to home ownership.
As result, many have turned to the rental market and tenant demand has grown rapidly since late 2009. In the latest survey, 32 per cent more surveyors reported seeing a rise rather than fall in demand, with houses more in demand than flats.
Perhaps unsurprisingly, as the recession bites more people are requiring social housing. The survey reveals that the proportion of social tenants has broadly doubled from six per cent before 2009 to 11 per cent now. Meanwhile, the proportion of student lettings fell, moving from nine per cent in the previous survey, to five per cent in the three months to January.
Supply of rental property to the market continued to decrease, with four per cent more surveyors reporting decreases, not increases, in the three months to January. Interestingly, the percentage of stock from private landlords has fallen from over 80 per cent before 2009 to around 70 per cent. This is indicative of the reduced role of the buy-to-let investor in the market over the past couple of years.
Looking ahead, surveyors remain positive that the market will remain buoyant, with 37 per cent more predicting rents will rise rather than fall over the three months to April 2011. All areas of the UK expect rents to increase, with relatively modest rises in the South West but much more notable increases in London.
"The current buoyant state of the rental market is likely to persist for some time to come, given the challenges facing the sales market. It is unlikely that finance for first-time buyers will become much more readily available, while uncertainty over the economy may also deter potential homebuyers.
"As a result, demand for property to rent will remain strong and in all probability will continue to outstrip supply. In this environment, rents will remain on an upward trajectory adding to the pressure on many households whose incomes are already being squeezed by rising inflation prices and the hike in VAT," said RICS spokesperson Jeremy Leaf .
(GK)
Rents rose at a rapid pace in the three months to the end of January, as falling supply of rental properties and strong tenant demand continued to drive prices upwards.
40 per cent more chartered surveyors reported rents rose rather than fell in the three months to January - which is the highest positive reading in the survey’s history. As rents increased, gross rental yields have also risen sharply – they have now increased in each of the last four surveys.
Continued difficulty in securing mortgage finance and large deposits required by lenders remain a barrier to home ownership.
As result, many have turned to the rental market and tenant demand has grown rapidly since late 2009. In the latest survey, 32 per cent more surveyors reported seeing a rise rather than fall in demand, with houses more in demand than flats.
Perhaps unsurprisingly, as the recession bites more people are requiring social housing. The survey reveals that the proportion of social tenants has broadly doubled from six per cent before 2009 to 11 per cent now. Meanwhile, the proportion of student lettings fell, moving from nine per cent in the previous survey, to five per cent in the three months to January.
Supply of rental property to the market continued to decrease, with four per cent more surveyors reporting decreases, not increases, in the three months to January. Interestingly, the percentage of stock from private landlords has fallen from over 80 per cent before 2009 to around 70 per cent. This is indicative of the reduced role of the buy-to-let investor in the market over the past couple of years.
Looking ahead, surveyors remain positive that the market will remain buoyant, with 37 per cent more predicting rents will rise rather than fall over the three months to April 2011. All areas of the UK expect rents to increase, with relatively modest rises in the South West but much more notable increases in London.
"The current buoyant state of the rental market is likely to persist for some time to come, given the challenges facing the sales market. It is unlikely that finance for first-time buyers will become much more readily available, while uncertainty over the economy may also deter potential homebuyers.
"As a result, demand for property to rent will remain strong and in all probability will continue to outstrip supply. In this environment, rents will remain on an upward trajectory adding to the pressure on many households whose incomes are already being squeezed by rising inflation prices and the hike in VAT," said RICS spokesperson Jeremy Leaf .
(GK)
Related UK National News Stories
Click here for the latest headlines.
12 December 2012
One In Three Year Six Children Overweight
One in three final year primary school children are overweight or obese. The percentage of final year – Year 6 - primary school children (generally aged ten to 11) who were overweight or obese increased to 33.9 per cent in 2011/12, up from 33.4 per cent in the previous year.
One In Three Year Six Children Overweight
One in three final year primary school children are overweight or obese. The percentage of final year – Year 6 - primary school children (generally aged ten to 11) who were overweight or obese increased to 33.9 per cent in 2011/12, up from 33.4 per cent in the previous year.
10 January 2012
Millions Of New Year Quit Attempts Doomed To Go Up In Smoke
Two thirds of UK smokers, the equivalent of six million people, will try and quit in January but half will have failed within just one week, according to new research among 6,300 current or former smokers. In addition, one in ten quit attempts will last less than 24 hours.
Millions Of New Year Quit Attempts Doomed To Go Up In Smoke
Two thirds of UK smokers, the equivalent of six million people, will try and quit in January but half will have failed within just one week, according to new research among 6,300 current or former smokers. In addition, one in ten quit attempts will last less than 24 hours.
29 March 2012
Economic Climate Puts Young Brits 'Life In Limbo'
A staggering two thirds of Brits (65 per cent) have been forced to put important life decisions on hold due to the current economic climate.
Economic Climate Puts Young Brits 'Life In Limbo'
A staggering two thirds of Brits (65 per cent) have been forced to put important life decisions on hold due to the current economic climate.
17 April 2012
UK House Prices Rise
In the year to February 2012, UK house prices increased by 0.3 per cent, according to the Office of National Statistics (ONS). The average UK mix-adjusted house price was £224,473. Average house prices increased in both England and Scotland by 0.4 per cent and 1.1 per cent respectively.
UK House Prices Rise
In the year to February 2012, UK house prices increased by 0.3 per cent, according to the Office of National Statistics (ONS). The average UK mix-adjusted house price was £224,473. Average house prices increased in both England and Scotland by 0.4 per cent and 1.1 per cent respectively.
26 April 2007
Robberies on the rise, crime survey reveals
Robberies in England and Wales rose by eight per cent in the last three months of 2006, according to the latest figures from the Home Office. The latest British Crime Survey revealed the eight per cent increase in robberies between October and December last year.
Robberies on the rise, crime survey reveals
Robberies in England and Wales rose by eight per cent in the last three months of 2006, according to the latest figures from the Home Office. The latest British Crime Survey revealed the eight per cent increase in robberies between October and December last year.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
