Posts filed under ‘Property to rent’

More than a third of landlords increasing rents

The cost of renting a home in the private sector edged ahead by just 1 per cent during the past year, Government figures showed today.

Renting 3

The increase means someone who was paying £500 a month in rent in June 2013, would now be paying £505, according to the Office for National Statistics.

Tenants in London saw the biggest increase during the 12 months, with their rents rising by 1.4 per cent.

At the other end of the scale, the cost of renting in the private sector rose by only 0.2 per cent in Wales during the same period, while in the North East and North West rents edged ahead by 0.3 per cent.

The pace at which rents rose in all regions of Great Britain was significantly below the rate of inflation as measured by the Consumer Price Index, was stood at 1.9 per cent in June, meaning being a tenant is getting cheaper in real terms.

The low increase in the cost of renting a property is good news for potential first-time buyers saving for a deposit.

The small rise is also unlikely to bother many buy-to-let landlords, who are still benefitting from strong growth in property values and record low interest rates.

Recent research from lender BM Solutions showed that rental yields remained strong at an average of 6.2 per cent during the second quarter.

The highest yields were seen in the North West, North East, West Midlands and Wales, while the lowest were seen in Central London, where house prices are highest.

Around 35 per cent of landlords said they had increased their rents during the past year, with 26 per cent planning to hike them in the coming six months.

Meanwhile, financial information group Moneyfacts.co.uk said the number of different buy-to-let mortgages available had increased to a level not seen since 2008.

The group said landlords currently had a choice of 665 different products, 43 per cent more than were available in July last year.

The increased competition in the market has also driven the interest rates charged on the loans down to a record low.

The average cost of a fixed rate loan is now 4.17 per cent, while the typical rate charged on a variable mortgage is 4.03 per cent.

Sylvia Waycot, editor at Moneyfacts.co.uk, said:“Lender interest in the buy-to-let market may be fuelled by the knowledge that it falls outside of the recent Mortgage Market Review.

“This makes the process of granting any buy-to-let mortgage quicker and simpler as it is not subject to the new affordability criteria that is starting to clog up the mainstream mortgage market.”

July 25, 2014 at 11:28 AM Leave a comment

Exclusive: Pictures of Duffy’s flat before the fire

One of London’s most expensive penthouse apartments went up in smoke last night after a serious fire gutted the property, which earlier this year was up for sale at £8.75 million.

The apartment, which features a swimming pool, huge fish tank, private parking, four bedrooms, a cinema and two roof terraces, had been rented out to the ‘Rain on my parade’ singer Duffy while she records her new album in London. The Welsh warbler had, last night, been about to vacate the penthouse on the 10th floor of Abbot House off Kensington High Street when the blaze broke out.

Up in smoke: the gorgeous and celebrated interior of Duffy’s penthouse apartment before the blaze.

Duffy, along with around 20 other residents, had to evacuate the building late in the night as some sixty fire fighters tackled the blaze, which ripped through most of the penthouse before being doused in the early hours of the morning.

Two songs of Duffy’s point prophetically to the fire (well sort of) including ‘Smoke without fire’ and ‘Big flame’ but what many will lament are the penthouse’s now lost interiors, created by artist and architect Francis Machin who modelled many of London’s landmarks including Ransomes Dock on Battersea Embankment. His father, a designer, created the current Queen’s heads featured on UK postage stamps.

Lucky escape: singer Duffy had to flee her rented luxury apartment in Kensington, London as a fire ripped through the property.

While the blaze is a blow for design, luckily the apartment’s interiors were preserved within the property history section of Zoopla and after a bit of digging we found these. We can only hope they can be stored to such a wonderfully former glory (pictured above and below).

October 4, 2012 at 3:52 PM 2 comments

Top 10: Olympic rental properties

The market isn’t big but the large sums to be made from this summer’s Games most certainly are, if the properties available to rent near Stratford’s Olympic village are anything to go by.

Stratford in East London, which normally features an average rental price of £1,700 a month, has been flooded with properties being offered at up to £10,000 a week, prices you might normally expect to pay in Chelsea or Kensington.

The area offers 277 such short let Olympic properties at the moment for between £4,000 and £6,500 a week, as displayed by our Smart Maps tool below.

Top of the pile is a house that’s ten minutes on foot from Stratford (see below), available for £10,000 a week or £43,000 a month.  So what else remains to rent at the top of Stratford’s Olympic property market?

1. £10,000  a week
What:
 It might be sparsely furnished but it has seven bedrooms and therefore could sleep 14, making the rental price look more affordable per head.
Where: 
Ten minutes by foot east of Stratford Station in a quirky street of terraced mid-Victorian houses.


2. £6,500 a week

What: Three bedroom terraced mid-Victorian house that’s been expensively decorated throughout and includes an upmarket Italian kitchen. Comes with off-street parking, broadband and a twice-weekly cleaner.
Where: On a pretty and quiet street three miles south-west of the Olympic site. A bit out on a limb, but still just 20 minutes by public transport to Stratford station.

Olympic property


3. £5,000 a week

Where: A stone’s throw from the stadium overlooking both it and a canal.
What: Very large two-bedroom corner flat in a new-build block.


4. £5,000 a week
What: Three bedroom split level penthouse with three balconies, most offering excellent views of the Olympic site (pictured below).
Where: Five minutes by foot east of Stratford town centre and access to the Olympic village.

olympic property


5. £5,000 a week

What: A furnished three-bedroom 1970s terraced house with a garden and, most crucially, off street parking. Has been refurbished recently.
Where:  Just over the trainline from, and east of, the Olympic village. A five minute walk from Stratford rail and tube station too.

olympic property to rent


6. £5,000 a week

What: Noughties-built end of terrace family home in a residential-cum-industrial area. The attraction is its size – five bedrooms so will sleep ten people. Available only as a month-long let.
Where: Five minutes walk – and to the east of – Stratford town centre.

olympic property


7. £4,800 a week

What: Tastefully decorated late Victorian terraced house with five bedrooms and a Zen style garden.
Where: Near Bow Street railway station, which is two stops (or two miles) south of Stratford.


8. £4,000 a week

What: Sportingly funky three-bedroom split level apartment with balcony. Pictures were obviously taken in late December, as there’s a Xmas tree in the lounge.
Where: Overlooking the Olympic village on a road to the west of the village.


9. £4,000 a week
What: Two bedroom new-build flat.
Where: Overlooking main stadium and canal from the west on a perimeter road.


10. £4,000 a week
What: A classy apartment in a recently-built block with three double bedrooms.
Where: Near a Unversity of London faculty next to the Olympic site.

July 19, 2012 at 9:29 AM 2 comments

Adele quits her rented Sussex mansion

As Someone Like You singer Adele is named the sixth richest under 30-year-old in the world, it’s evident her new wealth is being ploughed into property as she casts around for a £10m London property and prepares to buy a £2.5m Brighton seafront house next door to Fat Boy Slim and Zoe Ball. Which means it’s curtains for the £15,000-a-month Sussex mansion she began renting in February this year.

But Lock House, which she was filmed walking around for a US television show recently, and which has now been put up for rent again on Zoopla.co.uk, has a fascinating history featuring the sort of heartache Adele loves to sing about. This includes links to a doomed land speed record holder, Turkish royalty, a troubled property tycoon and an order of nuns.

Lock House was built in 1900 but by the 1930s had become the home of Andrew Harvey, father of world speed record holder Donald Campbell’s wife Gina Harvey. Then, in 1971, the house became a nunnery belonging to the Roman Catholic Order of the Visitation, which in turn sold it on in 2003 for £2m to a Turkish princess, Ayse Gulnev Sutton, wife of high rolling London-based property developer Nick Sutton.

At the time of buying Lock House Nick Sutton had recently been voted Young Property Person of the Year and was riding high both as the founder of several successful businesses and as the ‘secret’ buyer of Craven Cottage, Fulham FC’s west London home ground – a deal which (happily for fans) fell through.

After this the couple, who cut dashing figures on the London social scene, then concentrated on their hotel development firm, which went on to build and operate famous name hotels including Brighton’s seafront Lansdowne Hotel.

While building a Radisson hotel in Cardiff, which is now the city’s tallest, their firm’s  operation in the city was reported to be in administration leaving behind unpaid bills of up to £3 million. It is now in the hands of a receiver, Deloitte. The couple have not lived in Lock House now for over a 18 months.

July 13, 2012 at 9:25 AM 1 comment

Buying now cheaper than renting across 90% of Britain

Average renter pays 13% more than an owner with a mortgage at 5% p.a

With house prices down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage. Couple this with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times.

Falling house prices and increasing rental demand has made it cheaper to buy a property than to rent one in 45 of the 50 largest towns across Britain. The cost of renting is now 13% higher on average than the cost of owning, according to our latest Rent v Buy Index.

We analysed the asking prices and rents for all two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% p.a (see methodolgy below).

Milton Keynes topped the list of locations where buying beats renting with current rents more than 39% higher than the cost of owning, leaving renters on average £2,544 per year worse off. At the other end of the scale, renting remains more cost-effective in Aberdeen, where it costs 9% more to own compared to rent, leaving owners on average £936 worse off.

In London, where the average asking price for 2-bedroom flats currently stands at £430,608, buying still beats renting by a significant margin. The average monthly rent in the capital today is 28% higher than the cost of ownership, leaving renters paying an extra £5,964 annually compared to owners.

Please note: the research looks at the asking prices of two-bedroom flats currently for sale and to rent in the 50 largest cities and towns around the country and mortgage payments are calculated assuming an interest-only mortgage at 5% p.a. to provide an effective comparison to renting.

Full list of the top 50  Zoopla.co.uk places to rent or buy

Top 5 locations where renting beats buying

Rank Location Avg. Monthly Rent* Avg. Asking Price* Rental Discount**
1 Aberdeen £809 £212,941 -8.8%
2 Swansea
£669 £167,234 -4.0%
3 Cambridge
£992 £246,551 -3.0%
4 Plymouth
£626 £155,353 -3.3%
5 Oldham £507 £125,012 -2.6%

Source: Zoopla.co.uk

* Based on 2 bedroom flats on the market in August 2011

** % variance between monthly rent and interest-only mortgage payment at 5% pa

Top 5 locations where buying beats renting

Rank Location Avg. Monthly Rent* Avg. Asking Price* Rental Premium**
1 Milton Keynes £760 £131,630 39%
2 Birmingham
£731 £131,118 34%
3 Northampton
£586 £105,996 33%
4 Warrington
£577 £104,996 32%
5 York
£871 £161,769 29%

Source: Zoopla.co.uk

* Based on 2 bedroom flats on the market in August 2011

** % variance between monthly rent and interest-only mortgage payment at 5% pa

As always, please feel free to share and use this information, all we ask is that you credit the source as Zoopla.co.uk and link to either Zoopla.co.uk/rentbuy or blog.zoopla.co.uk. Thank you.

Methodology

• Mortgage payments are calculated assuming a conservative mortgage rate of 5% p.a. to provide an effective comparison to renting.

• We use an interest-only mortgage rate in the comparison as the interest on a mortgage is the effective cost of financing living in that home.

• We assume a 100% LTV ratio to do a fair and simple comparison of the cost of financing versus the cost of rent.

September 28, 2011 at 10:56 AM 6 comments

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