Streetwise Property Alert 28th November 2013

Welcome to today’s email of news and views…

Property Selling Times – An Update

I’ve yet to meet a property owner who isn’t interested in how long it takes to sell a property lthough it is something of a ‘how long is a piece of string?’ topic. However, we note that new research from Post Office Mortgages reveals that the average selling time is now 58 days, down from 69 days this time last year.

‘Properties in Liverpool and Southend-on-Sea spend the least amount of time on the market, beating London, with Hull and Leicester being the slowest performers, according to the research by Post office Mortgages.’ So there you have it – food for thought anyway, if your property has been on the market for more than 58 days and, of course, if you are looking at a property that has been available for that length of time.

Savills – The Outlook

A new forecast from Savills makes interesting reading this week. The key points?

Property prices in the south-east are expected to lead the way over the next five years; up 32 per cent by 2018.

Expect London prices to rise by 24.4 per cent over the next five years.

The UK’s private rented sector is tipped to grow by a further one million households by 2018.

Expect rents to rise by 21 per cent over the next five years.

Bournemouth, Brighton and Windsor are tipped to see the biggest price rises, 32 per cent, by 2018.

Watch for the rollout! Savills state, ‘The capital has already been the strongest performing region of the UK since mid 2005, during which period prices have risen by 37 per cent, compared to just eight per cent across the country as a whole. As a consequence, the gap between London prices and the rest of the UK, including the south-east, is as wide as it has ever been. As confidence improves, buyers are likely to look to markets beyond London that offer better relative value, though it will be later in the cycle before the north feels this benefit.’

Rents – The Latest

According to the latest index from the Sequence Group, rents were up 1 per cent month-on-month, September to October, and 11 per cent annually to the end of October 2013. If you like averages, the average rent is now £785 per month and that represents 41 per cent of the average monthly wage of £1,937.

‘We have seen an unprecedented rise in rents over the last month, with tenants now giving up 41 per cent of their monthly pay packet in rent. The shortage of rental property is particularly acute in London with a record 11 per cent monthly decrease in supply coupled with a 2 per cent increase in rental applications. As a result, rents now represent 44 per cent of the average Londoners monthly salary, putting further pressure on the budgets of those in the capital.’

‘Across the board whether it is in the sales or rental market there is a universal need for more properties. Competition for houses will continue to impact on affordability and squeeze household budgets across the country for the foreseeable future.’

All for today, see you tomorrow.

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