Findaproperty.com Rental Index
“Rental market strengthens further as stock levels plummet by 10%”
Some interesting news from Findaproperty.com again this month on the state of the rental market. Being found in sought after areas such as West Hampstead and Maida Vale, Greene and Co’s rental threshhold has held itself steady, but with properties flooding to the market more and more Landlords have had to accept lower rental offers. So, although the rental market remained fairly stable, prices dropped substantially just to secure a good tenant.
Director of Findaproperty.com Michael O Flynn comments: “The national rental market is looking much more healthy than it did six months ago. The clear out of stock is continuing in fairly dramatic fashion as the sales market improves and a seasonal surge in demand helps mop up excess supply, particularly at the lower end of the market.
“Consequently, rents are on a clear upward trend and long term buy-to-let landlords in London and the South East in particular have reason to feel optimistic that the market is making a sustained recovery.”
The stock of rental properties on the market dropped sharply in October (-10.2%) - the most significant monthly fall in the history of the index - bringing supply back to the level last seen almost a year ago.
Rents rose marginally (+0.1%) to £830 pcm in October - the sixth consecutive month of stable or rising prices - remaining 3.8% lower than a year ago.
Gross yields dip from 4.56% in October as rising house prices put pressure on rental returns
London and the South East lead the rental market recovery while the majority of regions suffer falling rental values
Could this be the start of some better news for landlords trying to rent their properties?
The FindaProperty.com house prices and affordability index
Some interesting news from FindaProperty.com’s October affordability index - house prices are rising, but affordability for first time buyers is deteriorating…
“It’s never easy to get on the housing ladder but until the summer we had been seeing a gradual narrowing of the affordability gap. This has led to a definite pick-up in first time buyer activity as people have taken advantage of improved affordability and the stamp duty exemption on properties priced under £175,000. With prices now rising and affordability tightening again it becomes even more important that the Government retain this beyond its end date of December 31st.” Michael Flynn, Director of FindaProperty.com offers his opinion on the findings.
To buy or not to buy…that is the question
It’s a hot topic right now, regardless of whether you’re looking to buy or not! All of a sudden everyone is fascinated about the housing market…maybe it’s all that media we’re getting. So, our esteemed MD Daivd Pollock, has put together some reasons for and against, read on and make your own mind up!
I’ve been asked time after time recently from friends, clients and applicants “Is now the time to buy or should I wait?” My answer is always the same… “It depends on your personal circumstances!”
How do you know when it’s the right time for you to buy a property? One day you think it’s a great opportunity to “bag a bargain”, the next day the press tell you that prices are set to continue dropping for another six months.
Of course, no one has a crystal ball when it comes to forecasting and we wouldn’t be so presumptuous as to suggest that this kind of economic climate is a great time for everyone to purchase… but we do have an opinion and we do see what is happening in the property sphere every day.
Reasons to buy…
- You are paying rent. It makes much more sense whilst the market is low, to be paying a mortgage (even if you club together with a mate).
- 75%-90% mortgages (subject to status) are available. If you don’t believe me, call Simon Redler, the MD of our Financial Services Company on 020 7328 3280.
- You are moving up price wise. It is the differential that counts. Say you are moving from a £200,000 home to a £300,000 home and the market has dropped 20%. Now, instead of having to find £100,000 to move up, now you only have to find £80,000.
- Remember, everyone speculates on the market conditions - nobody can ring a bell when the market is at the bottom.
- Property is in true terms, a minimum of 20% cheaper than a year ago. This is more than the papers tell us. Does it mean the market is closer to the bottom than people think?
- Our phones are starting to ring again with developers and investors looking to buy a bargain.
- Research says that we are far off target on the number of new homes needed in London. (See report in link here http://www.guardian.co.uk/politics/2008/nov/20/boris-london)
- More choice on products / homes as there are more available.
- Interest rates are low and therefore more affordable.
- Exchange rates are favourable to overseas investors looking to purchase again in the area, which could lead to higher demand and higher prices.
- It is time to bag a bargain.
- Properties are a home first, then an investment.
- Lack of competition for flats means you can buy at a more competitive level.
- Refurbishment costs are down as builders seek more work.
Reasons not to buy:
- You are moving side wards or down price-wise and are in no hurry.
- The market may drop further.
- You are not secure with your job or earnings and would therefore be foolish to take on a commitment.
- You only plan to be in your new home for a year or so. With the cost of stamp duty and the state of the market, you should stay where you are.
- There is so much supply of properties on for people looking to rent as well as sell, that rents could well drop further.
- Lack of sentiment.
Of course, the choice is yours as to whether you agree that now is a good time to buy. But if you want facts - current property prices in “true terms” then give us a call.
