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: Number of landlords selling up rises by nearly 13% in four months; The property market in 2023; 10 areas in UK where house prices are predicted to fall the most; UK mortgage sector going strong despite interest rate hikes; Minister confirms government will not consider rent controls in England; Landlords must ensure homes meet energy standard to keep tenants warm; Housing minister accepts there are fewer homes to rent… Happy reading and… renting!
House prices expected to fall by 9% over next two years
House prices are expected to fall by nearly 10% over the next couple of years, largely driven by higher mortgage rates and the wider economic downturn.
The Office for Budget Responsibility (OBR) said house prices are forecast to drop by 9% between the fourth quarter of 2022 and the third quarter of 2024.
Continue reading
Number of landlords selling up rises by nearly 13% in four months
The number of landlords selling up has risen by nearly 13% in four months.
In basic terms, if the landlord exodus continues, we could end up with a housing crisis on our hands.
Continue reading
Higher mortgages stalling property market
Growth in the UK’s construction sector slowed more than expected in November as higher mortgage rates and the gloomy economic outlook crippled the sector.
Continue reading
UK housing market not facing ‘Armageddon’
UK housing market conditions have undoubtedly been “very challenging” in recent months amid higher mortgage borrowing costs and falling property prices, but this could be a short-term response to the disastrous ‘mini budget’ in September.
Continue reading
UK sees widespread house price falls
The UK saw the most widespread residential property price falls since May 2020 last month, as demand from buyers and sales activity slowed in the face of higher borrowing costs.
Continue reading
Higher rents and less competition tempt landlords back to buy-to-let
An estimated 12.2% of homes bought in Britain have been snapped up by an investor.
This is up from a share of 11.7% last year but below 2015’s peak of 15.5%, the year before the 3% stamp duty surcharge was brought in.
Continue reading
The property market in 2023
After the chaos reaped on the markets in 2020 and 2021, we may have been forgiven for thinking 2022 might be more typical in terms of the UK property market. However, it is fair to say 2022 has been an unusual year too.
Continue reading
10 areas in UK where house prices are predicted to fall the most
UK house prices are widely predicted to take a tumble in the face of spiralling mortgage rates and rising rental prices, but new research shows the fall is likely to be sharper in some areas more than others.
Continue reading
Britain’s Nationwide says savings could limit mortgage downturn
Nationwide, Britain’s second biggest mortgage lender, said bad loans are likely to rise and the mortgage market dwindle as an economic slowdown bites, although household savings could cushion the blow.
Continue reading
Do we need to get over our fixation with fixed rate mortgages?
As interest rates rise, is it time to look at other types of mortgages?
It’s estimated that nearly 75% of mortgages in the UK are on fixed rates. This is hardly surprising following a historically low Bank of England base rate…
Continue reading
More than half of people in 30s and 40s worried about interest rates
More than half (53%) of people in their 30s and 40s are worried about higher UK mortgage rates.
According to the Office for National Statistics (ONS) on Friday, 81% of people in those age groups are worried about the cost of living, compared with 76% overall.
Continue reading
UK mortgage approvals hits lowest since June 2020 as property demand cools
UK mortgage approvals fell by 10% last month, from 66,000 in September to just under 59,000, after Kwasi Kwarteng’s mini-budget sparked chaos.
According to the latest data from the Bank of England (BoE), this was the lowest number of approved mortgages by UK lenders since June 2020.
Continue reading
Bank of England widely expected to raise interest rates to 3.5%
The days of cheap mortgage rates appear to be over for homebuyers, as markets expect interest rates to climb by 0.5 percentage points.
Financial markets have priced in a 78% chance that Threadneedle Street will raise rates to 3.5%, and a 22% chance of a rise to 3.75%.
Continue reading
Half of UK FTBs taking out 30-year mortgages
Half of all first-time buyers (FTBs) in the UK and over a quarter of home movers who took out a mortgage in the third quarter of this year opted for a term of more than 30 years.
Continue reading
Banks set to ease mortgage lending rules as part of major overhaul
The government is widely expected to announce a major overhaul of financial controls, including easing of restrictions on banks introduced after the financial crisis in 2008 when many banks faced collapse.
Continue reading
UK mortgage sector going strong despite interest rate hikes
The UK mortgage sector remained robust during the third quarter of the year despite volatility caused by Kwasi Kwarteng’s mini-budget and interest rate hikes.
According to the Bank of England’s (BoE) quarterly update on the mortgage market, gross advances reached £85.9bn during the period.
Continue reading
Minister confirms government will not consider rent controls in England
The mayor of London has this week reiterated calls for an immediate rent freeze in the capital as average rental prices in the city are more than double that in other UK areas, while Scotland has already frozen rents.
Continue reading
New rent cap announced to protect tenants from rising cost of living
Minister Julie James confirmed the cap for social rents for the next financial year along with a package of support for tenants, including no evictions for cash-strapped renters who talk to their landlords.
Continue reading
Londoners facing squeeze as rental prices surge by 22%: ‘It is alarming’
Londoners trying to find a rental property in the capital are now facing record average prices of £571 a week, new research has shown.
Rents in the first nine months of the year have risen by 22 per cent since 2021.
Continue reading
‘Need for long-term rent controls’ highlighted by latest rent rise stats
Figures published by the Scottish Government, in the year up to the end of September, showed that average rents rose in 17 out of 18 regions, with South Lanarkshire seeing the highest rise of 10.3%.
Continue reading
New renting laws in Wales are a ‘disaster’ for landlords
Landlords in Wales are worried about eviction notices being extended from two months to six months – and that the court process will make this longer.
Continue reading
New data reveals ‘rapid growth’ in UK rent prices
The average rent in the UK has reached £1,175 per calendar month, up 0.3% from last month, the latest rental index figures from HomeLet show.
When London is excluded, the average rent in the UK is now £977pcm, up 0.1% month-on-month.
Continue reading
Londoners face unprecedented rent increases as mortgage rates for landlords skyrocket
Tenants are struggling this Christmas. Along with the rest of the nation, they’re dealing with a cost of living crisis, driven by rising energy prices, and adding to this pressure is the rising price of rent.
Continue reading
Is it a good time for landlords?
The UK’s continued housing crisis has made it difficult for landlords to function well. According to the English Housing Survey the number of private landlords increased from 3.1million in 2008 to 4.4million in 2020. This is equivalent to one fifth of all homes.
Continue reading
How To Invest In Property
It’s been a tough year for stocks and shares investors. Steadily rising interest rates, soaring inflation and an unexpected dose of political unrest conspired to produce turbulence on the markets – throwing the financial planning arrangements of many into uncertainty.
Continue reading
Landlords must ensure homes meet energy standard to keep tenants warm
Under the regulations it is an offence for landlords of domestic properties to grant a new tenancy or continue to let any property with an Energy Performance Certificate rating below E, unless the landlord has registered a valid exemption on the Government’s Private Rented Sector Exemptions Register.
Continue reading
How Many Rental Properties Do You Need To Retire Early?
It’s easy to understand why so many people dream of retiring with rental properties in their portfolios. The tenants pay the expenses and the retiree keeps the profits. Considering how many people have built generational wealth through real estate, it’s a worthy aspiration for anyone who dreams of financial security.
Continue reading
Now just might be the right time to buy property
We are still seeing stock coming to market and prices in excess of home report valuations – good news for sellers – but buyers generally are not having to stretch to the 20 per cent plus offers over valuation to secure their new homes that we were seeing a few months ago.
Continue reading
Five things you can do to save energy if you rent your home
For environmentally conscious tenants, renting can be a particular challenge. Restricted in how far we can change our properties, tenants have less freedom to undertake energy-saving home improvements.
Continue reading
Independent inventories are key to trouble-free tenancies, agents told
The Association of Independent Inventory Clerks (AIIC) emphasised that bitter court action arising from disputes between landlords and tenants can be easily avoided through a “thorough, professional” independent inventory.
Continue reading
UK buy-to-let statistics 2022
Recent buy-to-let statistics show that £8.5 billion worth of properties were bought by UK landlords in the first quarter of 2022 alone.
Buying a property to rent out can prove to be a good source of income, and millions of people are choosing this as an investment opportunity.
Continue reading
Property demand shifts from buying to renting amid financial uncertainty
The UK property sector has seen a shift in demand for homes to rent amid soaring inflation and a sharp cost of living crisis.
Potential homeowners are now putting their plans to buy on hold with mortgage rates near records of 6% on the back of rising interest rates.
Continue reading
Home sellers slash prices to find a buyer
Since September, 10% of homes for sale have had a price reduction of 5%, as buyer demand slumps by 44%.
Nearly a third of homes in the South East and East of England – outside of London – have seen asking prices being reduced to attract more demand.
Continue reading
Tenants prepared to pay more for energy efficient homes
Tenants are willing to pay a 13% premium for an energy efficient home as low carbon homes with sustainable features become more important than the size of the property, research reveals.
Continue reading
What is fractional ownership? And is it the new buy to let?
Fractional ownership, where you split the costs of an asset, is gaining traction in the UK.
“[It’s] a way of investing in real estate which involves buying a percentage share of a property, resulting in investors owning a small part of that property along with other investors,”…
Continue reading
Housing minister accepts there are fewer homes to rent
Housing minister Felicity Buchan has written to MPs expressing concern at the chronic shortage of homes to rent in the private rented sector amid an ever widening supply-demand imbalance in the market.
Continue reading
Tenants going to extremes to secure property
Desperate renters are offering landlords years of rent in advance in order to secure a tenancy.
“It’s pretty sad times out there at the moment where tenants are having to go above and beyond to try and secure a rental property,”…
Continue reading
Just 20% of people behind on their mortgages have an agreement in place with their lenders – a 15-year low
The percentage of people in the UK behind on their mortgages who have a ‘forbearance’ agreement in place with their lenders has reached a 15-year low says Mazars, the international audit, tax and advisory firm. Just 20% of the 44,393 mortgages currently in arrears are subject to agreements…
Continue reading
Protect the environment. Reduce paper consumption and help save the trees as well as save money at the same time. 
