LETTING & ESTATE AGENT

The Property Industry In a Nutshell - May 2016

The Property Industry In a Nutshell - May 2016

ONS: Buy-to-let landlords triple since 1980

Nearly 6pc of UK households receive an income from rental properties today, up from just 2pc in 1980.

The number of under 30s privately renting has also soared to over 50pc, up from 10pc in 1987.

The figures from the Office for National Statistics show how popular the private rented sector has become for both investors and tenants.

Most home owned outright (without any outstanding mortgage) is concentrated mainly towards the over 50s, while less than half of under 35s have a mortgage.

Martin & Co released a market intelligence report reflecting these stats, and found that the number of homes in the private rented sector today is 19pc of the UK total, up from 10pc in the 80s. 

Furthermore the number of 35-44yr olds privately renting has risen a staggering 346pc since the 80s, marking a significant increase in the popularity of private renting.

The Martin & Co market intelligence report is available to download for FREE here

Source: This is Money

Price Growth for Bigger Homes, but Smaller Properties Struggling

April's stamp duty rush drove up prices for bigger properties as landlords target the second-steppers and family homes.

Meanwhile, prices fell by 1.4pc for one-and-two bed properties, but rose 0.6pc (£1,500) between March and April 2016.

Rightmove's data suggests prices rose 1.3pc to an average of £307,033 this month, up 7.3pc from April 2016.

Rightmove director Miles Shipside said: "The figures indicate that many of those who sold during the buy-to-let rush were actually first-time sellers looking to trade up. They used heightened demand from investors competing fiercely with first-time buyers to springboard themselves onto the next rung of the housing ladder."

The buy-to-let sector is expected to cool in the lead up to the EU referendum in June.

Source: This is Money

EU Referendum to skew prices

Property Partner, a property crowdfunding platform, has researched the 1975 EU referendum as an indicator for June's upcoming vote.

They found that prices are 1,751pc higher than they were in 1975, and 3,200pc higher in London.

House price growth slowed from 18.2 in 1974 to just 8pc in 1975, when Harold Wilson called for an EU vote. House price growth had been 42pc in the latter half of 1972.

We can therefore assume, especially given April's stamp duty rush, that prices will at least slow in their growth or even decline in the lead up to the referendum and its immediate aftermath.

Also, since 1975, house prices have fallen in just 30 of 164 quarters, although there were 14 consecutive declines between Q2 1990 and Q3 1993.

Source: City AM

Under 40s Homeowners Drop by a Third

The Housing Minister, Brandon Lewis, has confirmed that the number of younger homeowners has dropped by a third in the last 20 years.

He said, "The proportion of under-40s who own their own home has gone from 61pc to just 38pc."

He also claimed that the house price to earnings ratio has surged from 2.7 in 1993 to 4.3 today.

Source: Property Industry Eye