Housing market activity: sales, rentals, development & investment
HMRC data reveal that national residential house sales in February were marginally higher (+0.6%) than in January but were 7.6% lower than in February 2014.
New research from financial specialist Key Retirement Solutions says that the total property wealth of over 65s is now at its highest level since the firm started monitoring it five years ago. Retired homeowners in the UK now collectively own property worth £861 billion, with their total property wealth increasing by more than £33 billion in the past six months. The figures show almost a fifth of all pensioner property equity is owned by over-65s in London with total wealth of £167.7 billion.
New research from the National Landlords Association (NLA) indicates that tenants are securing a larger proportion of private rented homes in the UK at below advertised rents. The data shows that 16% of private rented homes are let to tenants at below advertised rents, with 8% of homes being let to tenants at above the asking price. 76% of private rented homes are let to tenants at the advertised rent.
The average annual void period for residential landlords in the UK has dropped to its lowest level since 2002, according to new research from Paragon Mortgages. The average void period in Q1 2015 was just 2.4 weeks. The survey also found that in the first quarter of 2015 some 42% of landlords said that in their view tenant demand was either growing or booming, while 54% felt demand was stable.
Residential Land has secured one of the largest refinancing deals ever seen in the UK prs sector. HSBC has backed Residential Land with a five year £320m facility at a loan-to-value of 55%. Residential Land has also entered into a new £650m joint venture fund with Ivanhoe Cambridge. The fund will invest in a wider area of prime London, including locations such as the South Bank, parts of north & east London and the Isle of Dogs.
Housing supply continues to lag behind demand. Last year around 214,000 new homes were built in England. This is 11% higher than the low point in 2010 but 25% lower than the five year average before the global recession, which in turn was already insufficient to match demand.