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Your Move Property Blog

Thoughts, Opinions & Analysis of the UK Property Market

October 2014 - Scottish Buy-to-Let Index

November 26, 2014 10:54 by Your Move Press Office

 

 SCOTTISH RENT RISES OUTPACE REST OF UK

· Scottish rents climb 2.2% in the past year, faster than 1.5% annual growth across England & Wales  

· Average residential rent in Scotland now stands at £537 per month, following 0.3% monthly uplift

· Edinburgh rents reach new record high of £615 in October, but rental prices drop in Glasgow

· Setback for tenant finances, with 6.5% of rent in arrears – up from 6.0% a year ago

· Cooling house price growth before referendum dampens down landlord returns

Overview:

Scotland is seeing stronger annual rent growth than England and Wales, according to the latest Scotland Buy-to-Let Index from Your Move, one of Scotland’s largest lettings agent networks.

As of October 2014, average residential rents across Scotland are now 2.2% (or £12) higher than twelve months ago, while across England and Wales monthly rents increased just 1.5% on average in the past year.  Scottish rents are currently rising faster on an annual basis than across seven other UK regions.

The average rent in Scotland now stands at £537 per month, back in line with the record set in August this year. Rents climbed a moderate 0.3% (equivalent to £1) in the month to October, recovering from a dip during September.

But taking a longer-term view, the rate of growth has cooled. Annual rent rises have eased from a 3.2% increase over the year to October 2013.

Commentary:

Christine Campbell, Regional Managing Director of Your Move, comments: “Average rents in Scotland have bounced back to peak level in October, and annually the pace of rent growth is exceeding that experienced across England and Wales. Snags in supply and concerns over potential rent caps are setting the stride in Scotland, but in the longer term, the march of private sector rents is easing back on an annual basis. After years of consistency and incremental adjustments, rent rises quickened rapidly after the changes to lettings legislation made tenancy fees illegal. Instead of facing a one-off payment, tenants saw their monthly rents rise at a much accelerated pace. This market is only just starting to self-correct and steady.

“The introduction of any further lettings controls or restrictions by the Scottish government could further disrupt what was a healthy and extremely gradual rhythm of rent growth – to the detriment of thousands of renters. Complicating legislation would ostracise existing landlords and discourage new investment in the private rented sector, squeezing the supply of homes to let and simply adding to the bottleneck of the current housing shortage.  The private rented sector is the lifeblood of the economy, allowing workers flexibility and accessibility to the jobs market. Tenant demand needs to be balanced by greater availability of homes to let, to protect against unnaturally bloated rent increases.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Read the full index

 

 




October 2014 Buy-to-Let Index

November 24, 2014 14:27 by Your Move Press Office

 

TENANT FINANCES ABSORB RECORD RENTS

· Rents across England  & Wales reach new record of £770 per month, up 1.5% over the last twelve months
· Tenant finances improve despite higher rents – with levels of late rent now just 0.3% above all-time lows
· Landlords’ gross returns reach 13.3% over last year, due to shorter void periods and rising house prices

Overview

Tenants have paid down rent arrears despite a new record for monthly rents in October, according to the latest Buy-to-Let Index from Your Move.
Residential rents across England and Wales now average £770 per month, or £12 more than October last year.
Annual rent rises were 1.5% in the twelve months to October 2014. This follows faster average rent rises of 1.9% in the previous twelve months ending October 2013, and rental growth of as much as 3.4% over the preceding year.
On a monthly basis, rents in October 2014 rose 0.3%, or just £2 compared to the previous month of September 2014.

Commentary

David Newnes, Director of estate agents Your Move, comments: “Rents have edged to a new record and the rental market is pulsing with new demand. Yet at the same time, tenants are getting on top of their finances – helped by a cooling pace of such rent rises.

“Better affordability is good for tenants in the longer run too – and for landlords who can rely on steady revenue to pay the bills. That helps to support a virtuous cycle of only gradual rent rises. Alongside slower overall inflation, a material boost to the supply of properties available to let has helped keep rents from rising as quickly as in previous years.”

Regional Overview

Rents in nine out of ten regions of England & Wales are higher than a year ago.  Leading all other regions, the East of England has seen rents rise by 4.9% in the last twelve months, followed by annual rises of 3.6% in the neighbouring East Midlands, and 3.1% in the North West. 

By contrast, London rents have grown the slowest, up just 0.5% compared to October 2013, while annual rent rises were 0.7% in the South West. However these regions have both seen more buoyant rises than the North East, with rents 0.5% lower than twelve months ago and the only region to see an annual fall. 

Read the full index




September 2014 Scottish House Price Index

November 24, 2014 14:05 by Your Move Press Office


HOME SALES RECOVER IN SEPTEMBER, BUT PRICES SLIP

· Annual sales growth jumps to 15% in September as vote ends independence uncertainty

· Average Scottish house prices fell 0.4% or £587 over the month, slowing annual change to just 5.1%

 · Prices drop at the top end of the market in Edinburgh and Aberdeenshire

Commentary:

Christine Campbell, Regional Managing Director of Your Move, comments: “Following almost a year of fair winds and steadfast price rises, this is the second month in succession to muddy the waters, with average property values in Scotland falling a further 0.4% in September. Two of the most expensive areas of the country saw the tide turn, with prices in Edinburgh dropping 1.3% during September, and Aberdeenshire seeing a slump of 1.2% over the month – reflecting the ripples in evidence in prime central areas of London, as the top tier of the housing market experiences the keenest downturn.

“While Scottish house prices have sailed up nearly £8,000 in the last twelve months overall, the rate of annual growth appears to have changed tack, easing back to 5.1% in September from 5.8% in August. Since June, the monthly pace of house price growth has ebbed away, as doubt raged over the future of Scotland within the United Kingdom, and touched the brakes on activity in the housing market.

“However, these shifts we’re seeing on the surface haven’t uprooted the solid foundations of the recovery, with average house prices across 81% of Scotland standing taller than a year previously." 

Read the full Index

 




Scotland House Price Index Infographic October 2014

November 20, 2014 08:17 by YOUR MOVE
Scotland House Price Index Infographic September 2014 - published November 2014

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England and Wales House Price Index Infographic - October 2014

November 14, 2014 02:00 by YOUR MOVE
House Price Index Infographic from Your Move - October 2014

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