Archive for the ‘Residential lettings’ Category

It’s incredible how quickly things can change. In recent years in the U.K housing market, one of the most noticeable developments has been the increasing diffuculty for first time buyer to step onto the holy grail of investing: The Great Property Ladder.

It seems for the last few years, that’s all UK residents over 30 have been talking about.

The seemingly unstoppable rise of property prices in the last decade on U.K shores has pushed prices up higher than the vast majoirty of buyer can reach. The result? Nine out of ten 18-34 yr olds who don’t own their own homes, can’t afford to buy. The majority of those who have bought, have done so with financial aid from the parents.

Residential lettings continue to be buoyed by the public’s inability to buy and sell.

The situation is likely to continue for some time, due to the current lack of housebuilding in the U.K. Although there is a huge interest in the U.K to buy houses, the ability to get finance remains the problem. Homebuilders will not start to build until there is credit.

A difficult situation to remedy. There will of course be an upturn in the market at some point, as and when we enter into a new property cycle. As the U.K is an island with limited space, and there are currently not enough houses to supply the demand, laws of nature dictate that when the recession ends, there is going to be a collossal demand for new housing. When credit becomes available again, wait for the housing boom.

For the considerable future, renting property will continue to be the choice for many young people. For those landlors who are willing to supply the best properties in the best areas, will no doubt continue to find their properties being snapped up by keen young professionals.

Click here to see the list of residential properties in your area.

A new report from Australia reveals that rental values are increasing across the country. The data indicated that rentals are increasing on average $40 dollars a week - proving the rental market remains buoyant despite tough economic times. Darwin hits the top spot with the greatest increase for 2009, with greatest increase in rental value, and property price increase.

Sydney also gained in rental values, with a $70-a week increase.

Australia recently hit a 40 year high, and has now reached an impressive rate of population increase, growing by 1.8%, to 21.5 million over the last 12 months - the fastest pace in 4 decades. Nearly 240,000 people arrived on australian shores in the last 12 months - many of whom are looking for a place to live - and possibly rent.

As the population grows, this in turn allows the econony more room to expand, demand for retail goods grow, and consumer statistics compound. It’s also bodes well for the future of Australia, helping to bring down the country’s average age, and improving the ability of the economy to cater for itself.

Unlike the U.S . and the U.K., there remains in Australia a lack of supply for rental properties, as more and more people arrive. The influx of people into the country creates demand, and pushes up rental values. In the U.K especially, there is a glut of unwanted rental homes, as potential sellers were forced to give up finding buyers for their homes, and moved into the rental market, which has in turn forced down rents.  As the market in Australia remains tight, more investors will invest, putting further upward pressure on prices, until that demand has been satisfied.

Population figures are as follows: Western Australia is still popular with a 2.9% growth, Queensland 2.5%,  Northern Territory 2.2%, Victoria 1.8%, ACT 1.4%, New South Wales is at 1.3%, South Australia remains slow with a 1.1% and Tasmania has increased at 0.9%.

Western Australia continues to pull in migrants from other states: 22,500 in the last 12 months, and Queensland attracting 5,500. New South Wales lost the most, with 22,000 people moving on from that state.

To search for Rental properties in your chosen state, visit or page for rental properties page:
http://www.sell-my-house-quick.com/search/index/minrental/1

With interest rates falling, prices of property decreasing, and rents slowly rising, the Australian rental market is beginning to gain some momentum. Recent newspaper reports in Australia, buyers in syndey and melbourne can now purchase properties with better yields than 6 months ago, with improvements in rental yields now meaning that rents will cover mortgage payements - a sure sign that the market will continue it’s gentle increase in popularity. As reported earlier in the articles section, Australian rental properties and yields remain robust.

Small inner city apartments, and homes in cheaper suburbs are the most popular choices for landlords looking to make wise investments, and return on their intial layout costs. At the more affordable end of the market, rents are still allowing good returns, and vacancies are few and far between - it’s still a market that is offering shrewd investments choices, in Australia at least.

Those who wish to delve into the market should make sure they have plenty of equity to support their purchases though, as prices may still fluctuate for the next year or so, making re-financing difficult to obtain. Those investing should understand that investing in property right now, is very much a long term call.

Australia remains a popular country for immigration for europeans searching for sunnier climates, with Queensland being the favourite destination of choice.

New data and research appearing on the market recently is suggesting that 2009 could be a getting
better for landlords and letting agents.

Residents of the U.K. and Ireland are much more likely to be drawn towards rental accomodation during the economic downturn. This year is an excellent opportunity for landlords to take advantage of the current housing collapse, as most first time buyers are cautious of entering the market, and are waiting for the housing ‘bottom’ - expanding the need for rental properties.

Many potential house sellers have been unable to sell with the tightening of the credit market, and rental properties have increased in availability over the last year - so landlords need to be flexible to remain competitive. Recent figures reveal that in the last quarter of 2008, rents fell by 9%. Rent fell in December for the first time in five and a half years. Over supply from reluctant landlords entering the market is the reason that rents have dropped - there are now more options for people looking to rent accomodation than in recent years.

Good News for Landlords

There is also ggod news for the landlords and letting agents - rents appear to have stabilised over the last month, and looks to be on a possible upturn. There has been a new influx of graduates onto the market, which has also helped with the residential letting upturn - and an increasing optimism in the buying market has led more experienced investors to move quietly into the market. Many commentators believe that now is the time to be moving back into the market.

RICS (the Royal Institute of Chartered Sureveyors) has commented that with a general improvement in housing prices, and the market looking as though prices may be stabilising, this could in turn affect rental values, and a bottom of the buying and renting market.

To see what’s happening with Residential Lettings in your home town, click here: http://www.sell-my-house-quick.com/search/index/minrental/1

The U.K.’s largest property sellers are getting ready this year for an explosion in real estate for sale, via distressed sellers of Buy-to-let landlords, struggling with repayments. A wave of repossessions this year are expected, as more and more borrowers hit the wall after years of never-ending price increases in the U.K.’s housing market.

Seasoned auctioneers are claiming interest in their sales have been rising rapidly over the last few months, and many are expecting more to come. The Buy-to-let phenomenon of the 1990’s, has come to a crashing end since the beginning of the property slump, towrds the end of 2008. The end of 2009, and 2010 will prove to be a lucrative hunting ground for many bargain hunters in the U.K. commentators in the U.S. are already claiming that the ‘bottom’ of the housing has already been met, and now is the time to buy. http://www.cnbc.com/id/31388528

The Council of Mortgage Lenders revealed that in the first quarter of 2009 house repossessions rose to 12,800. The Bank of England now estimates that around 1 in 10 borrowers in the U.K are in negative equity - where the value of their loans exceed the current value of their homes. the situation in the U.S is far more severe, where 1 in 10 households are in a state of default on their mortgages - either late in payment or moving into foreclosure.

One of the U.K.’s leading auctioneers, said that out of 430 houses they were advertising, 300 were from distressed properties, and they are expecting more - the majority of these are from failed buy-to-let investments.

Lending Criteria

In the 1990’s, the buy-to-let bonanza took off, when affluent investors looked to supplement incomes with more investment properties, fuelled with added bonus of rising equity values. Re-financing was welcomed with opened arms from the banks, and easy cash made everyone happy. Prices soared, and confidence in the market boomed, creating the inevitable bubble, with banks offering incredible amounts of cash to buyers with little capital to back them up, when times got tough. As soon as re-financing dried up, around the start of 2009, the buy-to-let market collapsed, as many were simply re-financing to extract cash from their properties. Many buy-to-let landlords simply couldn’t make the repayments. As the recession worsens, in the U.K. and the U.S., many banks behind the scenes remain in extrordianry trouble, and desparately try and shore up the hige debt issues. In the U.S., banks have been allowed relaxed accounting rules to fudge thier figures and report extrordinary financial profits, on the back of losses that make the eyes water, running into trillions. The recession, believe it or not, has a long way to run. U.K. banks are currently picking investors to lend to who have immaculate lending records, and very large deposits. Any excuse they can give to avoid lending, they will pounce on - if you have an immaculate repayement record, but too many houses - you’re out. All of this doesn’t lay well at downing st., after their attempt to rejeuventate the lending market by helping the banks with financial stimulous, the banks still refuse to play ball.

Market Saturation

With the stagnant housing market, rental properties have begun to spring up all over the country, as sellers turn to renting as a way of reducing repayments. As the rental market has now become saturated, this has in turn driven down the amounts potential landlords can demand for the properties.

Britons now believe that buy-to-let is a financial breakeven stratgey, as interst rates are increasing, with unwelcome thought if inflation on the horizon. Many investors had been dazzled by high yields offered by 2nd and 3rd homes and rental values, but inevitably, there were many who didn’t consider the down side. As cash was cheap, and property priced were doubling every 10 years, it seemed inevitable that there was money to be made. Many expect this year to be an extrordianary one for investments. In the last two years, many people who have been sidelined as prices were reaching their peak levels, have now come to the fore and are looking to return to the market. Has the market reached it’s bottom? Have a look at the current houses for sale in your area: http://www.sell-my-house-quick.com/search