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: UK house price growth slows from 18-year high; No let up on the lack of new rental listings coming to the market; Average house prices breach £500k in one in six UK areas; Boris Johnson sounds alert over mortgage payment hikes as cost of living crisis grows; Property industry reacts to latest Bank of England interest rate hike; Rental affordabilty in England; Buying A Second Home – All You Need To Know; Cost-of-living crisis puts off first-time buyers from housing market… Happy reading and… renting!

The market

Transaction figures decreased 36.2% in March

The provisional non-seasonally adjusted estimate of UK residential transactions in March this year is 110,990 – 36.2% lower compared to March 2021 and 18.2% higher on a monthly basis.
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UK house price growth slows from 18-year high

Annual price growth slowed to 12.1% in April from March’s 18-year peak of 14.3%, after a 0.3% monthly increase which was the smallest since September and well below economists’ average forecast in a Reuters poll for a 0.8% rise.
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Rising rents lure buy-to-let landlords back into the housing market

The number of buy-to-let mortgages issued in the 12 months to February this year was the highest figure since 2016. The total was 275,600, which included 159,100 re-mortgages as landlords committed to a sector that many have left due to increased taxes and red tape in recent years.
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Are UK house prices heading for a fall?

UK house-price growth is slowing as interest rates rise. But interest rates aren’t all that matters for house prices.
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Scotland’s private rented sector ‘jeopardised’ by tenancy reforms

During the Covid-19 pandemic, all grounds for eviction of a tenant were temporarily made discretionary.
This Bill seeks to make this change permanent and a tribunal would be asked to rule on a landlord’s desire to remove a tenant and reclaim vacant possession.
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Buying a London property: the number of homes for sale now in every London borough

As London‘s housing market struggles with the ongoing supply crisis, exclusive data reveals Wandsworth has the most homes for sale with 5,178 on the market now.
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Edinburgh sees lowest rental demand in Scotland but remains the most expensive city for renters

Since March 2020, there has been a 39% increase in demand for places to rent in Edinburgh, according to new research. Renters are set back an average of £611 per month for a room, which has increased by £35 a month since March 2020.
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No let up on the lack of new rental listings coming to the market

The Housing Market readies itself for the latest economic measures to impact the UK housing market, as forward-looking metrics soften, but current activity is still buoyant and house prices are continuing to rise…
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Average house prices breach £500k in one in six UK areas

Average house prices breaching the half a million pound mark have increased from 874 wards in 2019 to 1,312 in 2021.
This means one in six areas now have average property values at or exceeding £500,000 – the first time it has surpassed 15%.
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Mortgage

Bank of England set to hike interest rates to 13-year high amid cost crunch

The Bank’s policymakers are predicted to increase rates from 0.75% to 1% – a level not seen since early 2009 – and ramp up its forecasts for inflation as the Ukraine war compounds a crippling cost-of-living crisis.
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Boris Johnson sounds alert over mortgage payment hikes as cost of living crisis grows

Millions of families have been warned that their mortgages could rise even further if Britain is hit by an inflationary spiral.
Boris Johnson issued the warning as he defended the government’s stance not to pump billions more into alleviating the cost of living crisis.
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UK mortgage borrowing hits £7bn as house prices surge

Mortgage lending rose in March to £7bn with 70,961 mortgage approvals as house prices continue to hit record highs.
Net borrowing of mortgage debt increased to £7bn in March, up from £4.6bn in February.
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Property industry reacts to latest Bank of England interest rate hike

Those who have variable mortgage rates can expect to pay more, with UK Finance, the trade body for UK banks and mortgage lenders, estimating that a borrower with between £100,000 and £200,000 outstanding on their mortgage will pay between £20 and £40 more a month.
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Average two-year mortgage rates move past 3%

Since December, the average two-year fix has risen by 0.69 per cent, amid the backdrop of a rising base rate and soaring inflation.
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Rent

Rent prices surge upwards in London’s prime locations

Rental prices in London’s prime locations have recorded significant growth due to increased demand from tenants returning to central London for both work and study, according to a new report.
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Renting in London: the number of homes available to rent in every borough charted amid historic supply squeeze

London’s rental market has descended into chaos as extreme property shortages leave tenants struggling to find somewhere to live.
The supply crisis means the number of rental properties available in the capital last month was down 44 per cent on 2021…
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Government fuelling rental demand and supply crisis

Since 2015 the Government has embarked on a deliberate effort to reduce investment in rental housing. This includes taxing the supply of new homes to rent through a three per cent stamp duty levy.
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Renters’ Reform Bill: what are ‘no fault’ Section 21 evictions and when will they be banned?

The Government will introduce legislation to strengthen the rights of tenants and ensure better quality, safer homes, Prince Charles said in the Queen’s Speech.
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Rental affordabilty in England – Average salary of £30,264 equated to 32.1% of average rent

The least affordable local authorities in which to rent a home were all found in London. In response to this, tenants in the capital often spread rental costs with others, resulting in London having the highest proportion of UK renters who share a property with people outside of their family.
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Rental growth hits 14-year high but current levels will soon ‘start to ease’

Average rents are up 11% year-on-year, but there are growing signs the market is nearing its peak, as the cost of living crisis continues to put increased pressure on renters.
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Advice

Buying A Second Home – All You Need To Know

If you need a mortgage to finance your second home, it could be one of three different types. And which type you require will depend on what you’re planning to use the property for.
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Tenants’ survival guide: can my landlord increase my rent, and what can I do about it?

London’s dysfunctional rental market continues to pile more misery on tenants as soaring rents, low supply and the cost of living crisis combine to create a perfect storm.
The capital’s rents hit a record high of £2,193 per month in the first quarter of 2022, a 14 per cent rise on last year.
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The 3 most important things landlords should do when selling rental properties

The current economic situation has landlords across the UK making the decision to sell their whole property portfolios, or at the very least, downsize. With property market risks, rising interest rates, Section 24 legislations and refurb costs overtaking rent, it seems that the golden era of buy-to-lets is well and truly over.
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Other

Proportion of landlords reporting increasing tenant demand hits all-time high

The proportion of landlords reporting increasing tenant demand hit an all-time high of 62% in Q1 2022, which is around double that of the corresponding period a year ago, and almost four times the level reported in Q1 2020.
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Tenants stay for longer in rented properties

Given the increase in rental prices and lack of stock available, more tenants are choosing to extend their current tenancy agreements beyond their initial term.
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Cost-of-living crisis puts off first-time buyers from housing market

The cost-of-living crisis has had an impact on potential first-time buyers in the housing market, with seven in 10 deciding to delay such a purchase as they’ve had less opportunity to save.
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Government urged to scrap stamp duty surcharge for landlords

The government should aim to boost the supply of much-needed housing stock in the private rented sector by scrapping the 3% stamp duty surcharge for buy-to-let landlords acquiring additional properties.
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Agents urged to prepare for changes in lettings legislation

Lettings agents across the UK have had to work hard to keep up with the legislative changes that both have been and are going to come into play within the sector. This is particularly the case in regions such as Wales that is perhaps seeing the most drastic changes.
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Cost of living forecast to impact house price growth significantly

The Monetary Policy Committee (MPC) projects inflation to rise to 9% in April this year before “averaging slightly over 10% at its peak in Q4 2022”, driven mainly by energy price increases.
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