Landlord press review

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: Coronavirus has had less of an impact on UK property than you might think; UK house prices up 10.2% in year to October; Softer mortgage rules will not help London homebuyers; Essex town named one of UK’s most in-demand rural locations; Chelsea’s Tite Street named most expensive in UK… Happy reading and… renting!

The market

UK faces property crunch as demand for homes outstrips supply

New figures from the government have brought to light the stark lack of new homes being built in the UK, as data showed that stock shrank 11% in 2020-2021 from the previous year to 216,490.
Net additional dwellings is the primary and most comprehensive measure of housing supply in the UK.
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Coronavirus has had less of an impact on UK property than you might think

The UK property market looked to have been turned upside-down as people abandoned city flats to work from more spacious homes in the country, while offices and shops remained shut. But as it turned out, the change was less dramatic.
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House prices up by 10% annually in November

Annual house price growth hit 10% in November, according to an index.
The increase marked an acceleration from 9.9% growth in October, Nationwide Building Society said.
Prices rose by 0.9% month on month, taking the average UK property value to £252,687.
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Presenting a realistic view of house values

Tell most people you are involved in property, or the mortgage and housing markets, and you’re likely to get a number of stock questions thrown back at you.
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UK Finance: Property purchases down 26%

Overall, lending for house purchase in Q3 was strong, up 36% year-on-year for both first-time buyers and home movers. Barring a full reversal in Q4, purchase activity in 2021 is likely to reach the highest level since 2007.
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House prices rise for fifth month in a row, reports Halifax

In Wales specifically, yearly growth totalled 14.8%, leading to the average house price in the country pushing past £200,000 for the first time ever. And Scotland saw significant yearly growth, too.
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Scottish rental market needs modern translation

When short assured tenancies were introduced in 1989 the legislation applied throughout Great Britain, there being no Scottish Parliament or Welsh Senate at the time. However with housing a devolved matter, Holyrood voted to end short assured tenancies in Scotland from 1 January 2018.
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UK house prices up 10.2% in year to October

UK house prices increased by 10.2% in the year to October 2021 as the market cooled following the tapering of the Stamp Duty holiday.
However, figures also show that the average house prices in the UK decreased by 1.1% between September and October 2021…
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Mortgage

New later life mortgages drop 7%

There were 44,130 new later life mortgages in Q3 2021, with total lending reaching £6.46bn in the quarter. This represents a 7% decrease in mortgage volumes compared with Q2 2021, but a 6% increase compared with a year earlier.
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UK mortgage approvals drop off as market cools

New data has shown a further cooling of the UK housing market, as mortgage approvals dropped in October from the month before.
Mortgage approvals for house purchase fell to 67,200 in October from 71,900 in September, close to the 12-month average up to February 2020 of 66,700.
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Housing remains unaffordable despite low mortgage rates

Mortgage interest and capital repayments as a percentage of home buyer income were at a record low of 16.7% last year. However, despite record-low mortgage rates, the UK’s house price earnings ratio continues to grow.
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UK regulator says 47,000 ‘mortgage prisoners’ trapped on loans they can’t afford to leave

The report from the Financial Conduct Authority (FCA), has found there are 47,000 homeowners stuck on expensive home loans they cannot afford to get out of. However, more than 30,000 have been excluded from the watchdog’s calculations…
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Warnings housing market may ‘enter bubble territory’ if lending checks eased

The Bank of England is readying itself to relax mortgage lending rules despite fears it will trigger a housing bubble, it has been reported.
The Telegraph reported that policymakers are looking at relaxing affordability checks for borrowers. The rule changes are being mulled amid a review of market restrictions this will finish shortly.
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Mortgage criteria: softer mortgage rules will not help London homebuyers

Relaxing mortgage rules could “prop up already inflated house prices” in London and the south east, according to lending experts.
The Bank of England is understood to be considering relaxing lending rules for wannabe homeowners by softening affordability checks…
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UK mortgage lending surges to record high of £316bn for 2021

2021 was a record year for mortgage lending since the financial crisis amid the stamp duty holiday and people moving away from cities as remote working became the norm, new data revealed.
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Value of mortgage approvals up 26%

Prior to the pandemic, the average value of mortgage approvals was £12.6bn per month, with a total of £264.4bn worth of mortgages approved between May 2018 and Jan 2020.
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Rent

Generation rent: Most Brits believe housing crisis will not be resolved in their lifetime

Less than one in six UK adults believe the housing crisis will be resolved in their lifetime, with confidence in the Government equally low, while more than half of all Brits see the housing crisis as one of the country’s most pressing societal issues at present, according to new research.
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Rental prices stabilise

Excluding London, the average rent in the UK is now £889, up by 0.1% on last month and average rents in London were £1,757, a slight 0.1% decrease in price from October’s average.
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Tenants in arrears are falling further behind

Whilst the proportion of tenants who had built arrears since March last year that still needed to be paid off had almost halved to 3.7% (from seven per cent in May) this still amounts to over 430,000 private renters.
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Scots struggle as demand in flat shares in Glasgow and Edinburgh surge

A survey has found that 100% of those looking for a room in the country’s capital and 99% of those in Glasgow have recently found it difficult to find one.
In Glasgow, there is a 164% rise in demand vs supply in the third quarter of 2021 compared with the same period in 2020.
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BTL landlords could flee the market if rent controls are introduced

“Scotland already has the fairest eviction policy in the UK, with greater rights for tenants to ensure they feel secure in their tenancy, and with a tribunal system to ensure problems can be resolved to the satisfaction of all involved.”
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Arrears rising among tenants ‘as the pandemic rears its head once again’

There are growing signs that rental debt owed by tenants as a result of the pandemic is starting to rise once again following the emergence of the Omicron variant, which is having a negative impact on the UK economy.
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Advice

Top tips for buying a home

If affording your dream home feels like a bit of a stretch, it may be welcome news that a trickle of lenders are now agreeing to grant borrowers a mortgage of 5.5 times their income.
But before you get too excited about being able to get a whopping great home loan, it’s important to understand the terms and conditions, as these deals are being reserved for higher earners.
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Other

These Are The UK’s Happiest Places To Live (& What It Costs To Live There)

Hexham, which has a population of 12,000 and lies close to Hadrian’s Wall, around 20 miles from Newcastle, finishes top of Rightmove’s Happy at Home Index for the second time in three years.
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Average new-build sees price premium of 40%

At an average price of £351,002, new-builds in the UK were found to be 40.2% (£100,591) more expensive than the average existing property (£250,411).
A year ago, the average new-build price premium sat at 29.3%, meaning that the price gap between new homes and the existing market has grown by 10.8% in the last year alone.
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Essex town named one of UK’s most in-demand rural locations

Manningtree is set in the beautiful countryside of Dedham Vale in the north of Essex.
It’s been attracting lots of buyers moving out of cities, from London to Cambridge, especially those looking to commute instead.
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This Is The Average Annual Cost Of Student Accommodation In The UK

Students are paying 60% more to live in halls of residence than a decade ago, according to a new report.
The average annual cost of purpose-built student accommodation in the UK is £7,347, the report by the National University of Students (NUS) and housing charity Unipol found.
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Property is the new piggy bank: we’re raiding the equity in one home to buy another

“Property is the new piggy bank. Since August 2020, we’ve been withdrawing more and more equity when we remortgage, as rising property prices have given people the confidence to raid the equity in their home, and the stamp duty holiday persuaded them that this was the time to snap up a second property.”
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Sustainability and the mortgage market

The UK’s house builders are already stepping up to the challenge. With the backstop of the Future Homes Standard coming in during 2025, they are starting to positively embrace sustainability opportunities.
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Chelsea’s Tite Street named most expensive in UK

Tite Street in the London Borough of Chelsea and Kensington is the most expensive street in the UK, with an average house price £28.9m. Second on the list is Phillimore Gardens.
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