Rent Guarantee | House prices to stay in doldrums for 2013, estate agents predict
http://bit.ly/VQ16KE
Rent Guarantee | House prices to stay in doldrums for 2013, estate agents predict With our guaranteed rent scheme our landlords benefit from a free property management service, where we vet all tenants and conduct regular free inspections. Britain's already-depressed housing market will stay firmly in the doldrums in 2013.That is the unanimous view of estate agents and property consultants. Most say prices will dip up to 4% in northern England, Scotland and Wales, while values will be roughly static in southern England and London. Even prime central London – where prices have risen an average 30% since 2007 thanks to an influx of affluent buyers from overseas – will tread water in the coming year. Martin Ellis, the Halifax house price index economist, says: "Conditions are likely to remain as they are. In 2013 prices are again likely to end the year at levels close to where they begin, with the market continuing to lack any genuine direction." Gráinne Gilmore of Knight Frank, a high-end estate agency, says: "Transaction levels have roughly halved since 2007 and are 35% below the 20-year average as first-time buyers and those further up the housing ladder struggle with tighter mortgage lending rules." Rent Guarantee The most worrying aspect for homeowners and those wishing to get on the ladder is the likelihood that the current market torpor will last well beyond next year. Savills, the estate agent, predicts that after a stagnant 2013 prices will begin to edge up – but that even over the following five years average UK values will increase by only 11.5%. After adjusting for inflation, that is a real-term fall of around 3%. Meanwhile, the number of new homes built in 2013 is also likely to be low. Housing experts say the UK needs 233,000 new homes annually to meet demand created by the predicted expansion in the number of households. Official figures released last month showed that in the year to October, the number of new homes completed in England rose by 6% to 117,190. But, critically, housing starts – the number of homes which should be completed in 2013 – fell 9% to fewer than 100,000. New-build homes traditionally carry hefty price premiums but often come with developers' deals on mortgages: some allow buyers to put down a deposit of 10% or even less. In the wider "pre-owned" housing market, however, lenders are not as generous, with most still requiring 25% deposits or even more. Hometrack, a housing consultancy, says it expects mortgage lending in 2013 will remain at current levels of £135bn to £140bn. It says the government's much-vaunted Funding For Lending initiative, a bid by the Bank of England and Treasury to get banks and building societies to lend more to households and businesses, will make no significant difference to mortgage lending. This combination of restricted mortgages, low transaction volumes, and few homes built – against a grim outlook for the wider economy – means 2013 will see still greater demand for homes to rent. Recently released data from the 2011 census shows that the number of people renting in the public and private sectors has risen from 31% to 36% in just 10 years. In parts of London, notably Westminster, the private rented sector accounts for almost 40% of the local housing stock. A survey by the online estate agent Rightmove shows that almost one in four tenants in the private rented sector already pays at least 50% of take-home pay on rent. This follows average rent rises of 13.6% since 2009, because demand has been outstripping supply. The survey warns that a quarter of existing landlords intend to increase rents further next year; a third of those say the rise will be 5% or more. "Some tenants are again in for a rent rise shock," says Rightmove housing market analyst Miles Shipside. Rent Guarantee However, there are a few glimmers of hope in 2013. Pundits say that areas of London benefitting from the arrival of Crossrail services in 2018 will see the first influx of buyers for homes near new stations. Other infrastructure improvements, such as the four-mile Kingsteignton bypass being built in Devon, will also produce property hotspots. But these will be rare exceptions in a difficult market. David Orr, chief executive of the National Housing Federation, says 2013 looks grim: "The market's at the point of no return, with millions of families struggling to afford their home. The future is looking even bleaker." Rent Guarantee BUT ARE FORECASTERS RIGHT? These 2013 forecasts may, of course, be completely wrong - when we revisited pundits' predictions for 2012, plenty were found to be off-course. The Halifax says prices have ended the year virtually unchanged from late-2011 at an average of £160,879, but several of our pundits had warned of sharp falls. Buying agent Henry Pryor, predicted a 10% drop in what he now admits was a "crap" forecast, but says by way of mitigation: "London and south-east England kept the average up and distorted the misery experienced by others." Knight Frank offers no explanation for its wrong prediction of a 5% fall in UK-wide prices, but says its other forecast of a 5% rise in central London in 2012 was nearer the mark. Tracy Kellett, of BDI Home Finders, a buying agency, predicted a 6% fall, but says: "Demand, particularly in job-rich and wealthy areas, remained high. This skewed UK-wide statistics and produced a more stable viewpoint than is the reality." Rightmove, Nationwide and the National Association of Estate Agents were all broadly accurate in suggesting prices would be static: all predict much the same for 2013. The same goes for the Halifax which played its cards close to its chest a year ago by forecasting prices would move within a range of plus or minus 2%. It has done the same for 2013. All this proves little except, perhaps, that "average" figures inevitably hide significant variations, in what has become a housing market characterised by north-south and have-and-have-not divisions. View the original article here Our rent guarantee scheme provides you with between 1 to 5 years worth of guaranteed rental income. What’s more, there’s no catch and no fees involved. Contact Guaranteed Rental today on 020 8694 8098 to find out more.
http://bit.ly/VQ16KE
Rent Guarantee | House prices to stay in doldrums for 2013, estate agents predict With our guaranteed rent scheme our landlords benefit from a free property management service, where we vet all tenants and conduct regular free inspections. Britain's already-depressed housing market will stay firmly in the doldrums in 2013.That is the unanimous view of estate agents and property consultants. Most say prices will dip up to 4% in northern England, Scotland and Wales, while values will be roughly static in southern England and London. Even prime central London – where prices have risen an average 30% since 2007 thanks to an influx of affluent buyers from overseas – will tread water in the coming year. Martin Ellis, the Halifax house price index economist, says: "Conditions are likely to remain as they are. In 2013 prices are again likely to end the year at levels close to where they begin, with the market continuing to lack any genuine direction." Gráinne Gilmore of Knight Frank, a high-end estate agency, says: "Transaction levels have roughly halved since 2007 and are 35% below the 20-year average as first-time buyers and those further up the housing ladder struggle with tighter mortgage lending rules." Rent Guarantee The most worrying aspect for homeowners and those wishing to get on the ladder is the likelihood that the current market torpor will last well beyond next year. Savills, the estate agent, predicts that after a stagnant 2013 prices will begin to edge up – but that even over the following five years average UK values will increase by only 11.5%. After adjusting for inflation, that is a real-term fall of around 3%. Meanwhile, the number of new homes built in 2013 is also likely to be low. Housing experts say the UK needs 233,000 new homes annually to meet demand created by the predicted expansion in the number of households. Official figures released last month showed that in the year to October, the number of new homes completed in England rose by 6% to 117,190. But, critically, housing starts – the number of homes which should be completed in 2013 – fell 9% to fewer than 100,000. New-build homes traditionally carry hefty price premiums but often come with developers' deals on mortgages: some allow buyers to put down a deposit of 10% or even less. In the wider "pre-owned" housing market, however, lenders are not as generous, with most still requiring 25% deposits or even more. Hometrack, a housing consultancy, says it expects mortgage lending in 2013 will remain at current levels of £135bn to £140bn. It says the government's much-vaunted Funding For Lending initiative, a bid by the Bank of England and Treasury to get banks and building societies to lend more to households and businesses, will make no significant difference to mortgage lending. This combination of restricted mortgages, low transaction volumes, and few homes built – against a grim outlook for the wider economy – means 2013 will see still greater demand for homes to rent. Recently released data from the 2011 census shows that the number of people renting in the public and private sectors has risen from 31% to 36% in just 10 years. In parts of London, notably Westminster, the private rented sector accounts for almost 40% of the local housing stock. A survey by the online estate agent Rightmove shows that almost one in four tenants in the private rented sector already pays at least 50% of take-home pay on rent. This follows average rent rises of 13.6% since 2009, because demand has been outstripping supply. The survey warns that a quarter of existing landlords intend to increase rents further next year; a third of those say the rise will be 5% or more. "Some tenants are again in for a rent rise shock," says Rightmove housing market analyst Miles Shipside. Rent Guarantee However, there are a few glimmers of hope in 2013. Pundits say that areas of London benefitting from the arrival of Crossrail services in 2018 will see the first influx of buyers for homes near new stations. Other infrastructure improvements, such as the four-mile Kingsteignton bypass being built in Devon, will also produce property hotspots. But these will be rare exceptions in a difficult market. David Orr, chief executive of the National Housing Federation, says 2013 looks grim: "The market's at the point of no return, with millions of families struggling to afford their home. The future is looking even bleaker." Rent Guarantee BUT ARE FORECASTERS RIGHT? These 2013 forecasts may, of course, be completely wrong - when we revisited pundits' predictions for 2012, plenty were found to be off-course. The Halifax says prices have ended the year virtually unchanged from late-2011 at an average of £160,879, but several of our pundits had warned of sharp falls. Buying agent Henry Pryor, predicted a 10% drop in what he now admits was a "crap" forecast, but says by way of mitigation: "London and south-east England kept the average up and distorted the misery experienced by others." Knight Frank offers no explanation for its wrong prediction of a 5% fall in UK-wide prices, but says its other forecast of a 5% rise in central London in 2012 was nearer the mark. Tracy Kellett, of BDI Home Finders, a buying agency, predicted a 6% fall, but says: "Demand, particularly in job-rich and wealthy areas, remained high. This skewed UK-wide statistics and produced a more stable viewpoint than is the reality." Rightmove, Nationwide and the National Association of Estate Agents were all broadly accurate in suggesting prices would be static: all predict much the same for 2013. The same goes for the Halifax which played its cards close to its chest a year ago by forecasting prices would move within a range of plus or minus 2%. It has done the same for 2013. All this proves little except, perhaps, that "average" figures inevitably hide significant variations, in what has become a housing market characterised by north-south and have-and-have-not divisions. View the original article here Our rent guarantee scheme provides you with between 1 to 5 years worth of guaranteed rental income. What’s more, there’s no catch and no fees involved. Contact Guaranteed Rental today on 020 8694 8098 to find out more.
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