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: First-time buyers: UK’s most affordable places to buy a home; UK faces chronic shortage of rental homes, alarming new data shows; House prices stalled at the end of 2022; Rents rise again, with growth in London and Scotland outstripping inflation; We are all facing the prospect of rising mortgage rates; Tips on how to transform an inherited home into a successful rental property; Most London rental homes fail upcoming energy test… Happy reading and… renting!
Value of UK homes increased by an average of £19k last year
Despite the UK’s housing market seeing a ‘tumultuous’ end to the year, 92% of homeowners saw their property increase in value in 2022 by an average of £19,000…
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First-time buyers: UK’s most affordable places to buy a home
The average UK house price for first-time buyers jumped 13% to £302,010 last year, with more than six in 10 going joint to get on the property ladder.
The number of first-time buyers fell by 11% to 362,461 in 2022 compared to the year prior.
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Will there be a housing market crash in 2023?
There is widespread concern that recent economic struggles are destined to result in a housing market crash, resulting in homeowners seeing their investments depreciate in value and perhaps even forcing some into negative equity.
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House sales drop three per cent in a month as rising mortgage rates impact transactions
The number of UK house sales dipped by three per cent month-on-month in December, amid signs that rising mortgage rates are having an impact on transactions.
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UK faces chronic shortage of rental homes, alarming new data shows
According to the newly released End of Year 2022 Property & Homemovers Report, there are now more homes available to buy, but there are significantly fewer properties to let.
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Prime London sales market starts the year better than expected
The prime London sales market has made a strong start to 2023 following a spike in demand from buyers.
The number of new prospective buyers registering in the first three weeks of the year was 6% higher than in 2020…
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House prices stalled at the end of 2022
Many buyers delayed their plans in the aftermath of the mini-Budget, after which the Bank of England (BoE) began to aggressively increase interest rates.
Most house price indexes have pointed towards a slowdown in the property market.
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Average UK house price falls to £258,297
House prices fell for the fifth month in a row with the average sale price dropping to £258,297 in January as higher borrowing costs shun away prospective buyers.
Annual house price growth slowed to 1.1%, from 2.8% in December, and the typical property value is now 3.2% lower than its August peak…
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2023 could be the year of recovery for the UK
It might be a little too early to talk of spring buds, but the green shoots of recovery may not be too far away.
When winter began, talk in the mortgage market was concentrated on the impact Kwasi’s Kwarteng’s disastrous “mini”-Budget was having on the UK’s financial stability.
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Monthly mortgage payments could fall by 25%
Monthly mortgage payments for new homeowners are forecast to drop by 25 per cent by the end of this year, if house prices and interest rates dip as expected.
Homeowners who purchase their property towards the end of this year will be in a much better position than those who did so in the final quarter of 2022.
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We are all facing the prospect of rising mortgage rates
Just over a year ago, the Bank Base rate was 0.1%. Since then, there have been 9 consecutive increases with the rate now at 3.5%.
It is predicted that the rate will increase by a further 0.5% this coming Thursday, bringing the rate up to 4%.
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Bank of England increases base rate to 4% – what the rise means for your mortgage and savings
The hike follows a drop in the Consumer Prices Index measure of inflation to 10.5% in the 12 months to December 2022, down from 10.7% in November. The Bank of England currently predicts inflation will continue to fall gradually over the first half of 2023.
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HSBC launches 3.99% five-year mortgage rate
Some brokers had predicted the arrival of sub-4 per cent interest rates from next month, though some were wary the Bank of England’s recent base rate rise could stall falls in rates.
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Fixed rates continue to fall as mortgage choice recovers
The overall two- and five-year fixed mortgage rates fell for a third consecutive month, with the average five-year fixed resting at 0.24% below the average two-year equivalent.
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Landlords set to pass on mortgage rate hikes to tenants
The cost of remortgaging has soared in recent months, with many landlords looking at rates starting from around 5%, leaving them with little alternative but to increase rents to satisfy the lender’s mortgage borrowing conditions, and ensure they they are able to afford the monthly payments.
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Rent Rises Are Being Capped In Scotland To Protect Tenants
Rent increases in Scotland are to be capped at 3% in a further effort to protect tenants during the cost-of-living crisis.
In October, the Scottish government passed an emergency bill to freeze rents completely and ban evictions except in very limited circumstances.
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This English city wants to bring in rent controls – could London be next?
The rental situation in the UK at the mo feels like the worst it’s been in years. Not only are rents high – with the nationwide average now a whopping £991 per month – but rooms and flats in certain cities are very, very hard to find indeed.
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Rents rise again, with growth in London and Scotland outstripping inflation
The protector of deposits’ quarterly Rent Index reveals how average rents in Q4 2022 were £903 per calendar month (pcm): an increase of 1.57% (£14) since the previous quarter and 8.27% (£69) since the last quarter of 2021.
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New Scottish rents rise to records levels following existing tenancy freeze
Landlords in Scotland are currently prohibited from raising rents until the end of March but it was announced last week that they will have flexibility to raise by 3% from April. Further leeway for landlords to raise by up to 6% will also be provided for under prescribed grounds.
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Rent freeze U-turn leaves investors with more questions than answers
Private landlords would have breathed a sigh of relief after the most recent changes to the Scottish Government’s emergency rent freeze legislation announced at Holyrood.
Yet, while it is clearly a step in the right direction, only time will tell if goes far enough to undo the damage and encourage investor confidence to return.
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Nearly two in three student tenants struggling with rent, survey suggests
More than two in five (41%) of students surveyed said they have thought about dropping out of university because of either rent or bills.
Students are receiving less money from their parents for rent than in previous years…
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January rents lift 8.3%, pandemic recovery hits London tenants
UK rents showed “no sign of slackening” in January, with average letting prices up 8.3% on a year ago, while 40% of tenants who moved home in London last year chose to leave the capital…
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Tips on how to transform an inherited home into a successful rental property
You may be settled, own your own property, and not feel like moving into a home you’ve just inherited. So, inheriting a property from a family member or friend could mean that you become an ‘accidental landlord’ overnight.
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Top 10 up and coming property areas in the UK
New research shows rural areas make for the best investment, while London boroughs dominated the bottom 10…
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Affording Your Own Home: You May Be More Capable Than You Think
If you want to buy your own home, you may be able to much sooner than you think. Yes, even though the housing market has reached an all-time high, you’ve still got a chance to get on the property ladder and call yourself a homeowner.
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Is it time to give up on buy-to-let?
Buy-to-let investors are fleeing the market as higher mortgage costs eat into rental income. So, is it time to give up?…
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More than six in 10 first-time buyers go joint to get on housing ladder
However, first-time buyer levels remained higher than pre-pandemic, with the number getting on the housing ladder in 2022 higher than any previous year, other than in 2006 and 2021’s record spike.
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Tenant demand in central London bounces back
Landlords with properties in central London have reported the highest levels of tenant demand across England and Wales.
A research found that more than nine in 10 landlords (94%) with properties in central London reported strong levels of tenant demand…
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Removing small landlords isn’t the answer to the issues in the rental market
Rightly or wrongly landlords have a pretty bad reputation, and from a tenant’s point of view, it is understandable…
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Landlords subject to strict time limits to fix damp under Awaab’s Law
Landlords will have to investigate and fix damp and mould in social housing within strict time limits under a proposed new law named after a toddler who died having been exposed to such conditions at home.
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Most London rental homes fail upcoming energy test
Six in ten private rental properties in London are not yet compliant with the new energy efficiency rules set to come into force in 2025.
By 2025, all newly rented properties must have an Energy Performance Certificate – which grades homes on energy efficiency – of C or above.
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Over two-thirds of landlords unlikely to purchase a non-EPC compliant property
Of those specifically looking to buy in the next 12 months, almost two-thirds (59%) said they would be looking to buy a property rated C or above, while 29% said they would be buying those rated D through to E.
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Where in the UK is home to highest number of BTL landlords?
To reveal the areas home to the most landlords in the nation, a lettings and estate agent analysed the latest figures on the estimated number of individuals with property income excluding furnished holiday lets across the UK…
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