Intu Properties Sees Signs of Recovery in UK

This article by eProp Commercial Property News on November 6th, 2013 tells us the signs of recovery Intu Properties see in the UK economy .

Intu Properties continues to see signs of recovery in the UK economy with a series of positive retail sales figures and improved consumer sentiment.

UK-based Intu Properties (ITU) continues to see signs of recovery in the UK economy with a series of positive retail sales figures and improved consumer sentiment‚ the JSE-listed property company said on Tuesday
Intu said in its interim management statement for the period from July 1 to November 5 that its occupancy rates for the quarter ended September remained unchanged at 95% by rent‚ including 1% of rent currently being traded by administrators.

Intu‚ which was formerly Capital Shopping Centres and which owns some of the UK’s largest malls‚ said there had been no significant tenant failures in the quarter ended September.

The company‚ which is also listed in London‚ recently introduced a nationwide consumer-facing shopping centre brand‚ also under the name Intu. It has also launched a single transactional website for its centres and is rolling out free Wi-Fi in its malls.

Intu said it signed 57 long-term leases in the quarter — in aggregate £11m of annual rent and 8% above previous passing rent. This brought the total for the year to date to 152 leases‚ producing £33m of new annual rent‚ 4% above previous passing rent. 

Five significant transactions were signed in the period to introduce flagship retailers with a view to improving the rental tone over the medium term. Excluding these strategic transactions‚ in aggregate new long-term leases were in line with valuation assumptions‚ it said.

The group said wide-ranging change in the company continued in the third quarter as it rolled out its new brand and progressed its active asset management and development pipeline.

CE David Fischel said the group continued to drive its £1bn development programme. In July it raised about £170m of new financing facilities to help fund the expenditure.

The UK retail environment had continued its gradual recovery‚ with statistics showing a 15-month unbroken trend of increasing like-for-like nonfood retail sales‚ Intu said.

It said 48 new shops had opened in its centres since June and 125 so far this year‚ which represented about 5% of its 2‚600 units. Thirty stores were undergoing shop fitting.
The 2% reduction in footfall it experienced this year was unchanged from June. 

The group was encouraged by the continuing signs of improvement in the UK consumer environment. 

“We are confident that the income forgone in the short term by our approach of holding units vacant or on flexible terms to enable a timely start on a number of projects within our £1bn development programme will be more than offset by the significant enhancement to the long-term total return of the business from these projects.”

Article Source: http://www.eprop.co.za/news/item/15811-intu-properties-sees-signs-of-recovery-in-uk.html

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The Cost of Renting in the UK is Nearly at a Record High

This article by the Landlord Expert on October 4th, 2013 tells us that private rents are just £1 short of record highs as an effect of rising house prices on rental market.

The lettings network LSL Property Services said rents had reached their second highest level since 2008 - largely because of a shortage of property to buy as Government schemes help people onto the ladder.

LSL, which owns the Your Move and Reeds Rains chains, reported that at £743 on average, monthly rents in August were just £1 less than the all-time high recorded in October 2012.

The pace of rent increases stepped up to 0.7% month-on-month in August.

It said rents were 1.3% higher across England and Wales than a year ago - less than half the rate of inflation - but London's rental market was soaring.

At £1,126 typically, rents in the capital have risen at a much faster rate than inflation and are up by 4.8% year-on-year.

Earlier this week, official figures showed that house prices in London were up by nearly 10% year-on-year , indicating the strength of demand.

Wales saw the second biggest annual increase in rents, with a 2.3% uplift taking average rents to £561.

The South East recorded the strongest month-on-month growth, with a 2% rise pushing monthly rents to £762.

By contrast, rents in Yorkshire and the Humber are 1.6% lower than last year, at £536 typically, followed closely by a 1.5% annual fall in the North West, taking average rents to £582.

The North East saw the biggest month-on-month drop in rents, with a 0.8% fall taking average rents to £523.

Across the country, rental inflation had been cooling off for much of this year following the launch of Government schemes to give people with low deposits a chance to buy.

First-time buyer numbers have reached their highest levels in more than five years following the initiatives such as Funding for Lending and Help to Buy, which have widened access to mortgages and allowed some people who were previously trapped in renting to break free.

But David Newnes, director of LSL Property Services, said that weak income growth, which has an impact on households' ability to borrow, and a lack of housing supply meant that the private rental sector was continuing to see strong demand from new tenants.

Mr Newnes said: "Better availability of finance has allowed some households to leave the rental market. And rents certainly felt the short-term impact of that.

"But releasing a blast of pent-up pressure to buy a home is unlikely to change the long-term trend in renting.

"Although Government schemes are helping, buying a first home is still extremely hard on the back of low salary growth."

 Article Source: http://www.landlordexpert.co.uk/index.php/news-centre/6222.html

Soaring Rents at 11-year High

This article of The Independent on September 23th, 2013 show that rents are at the highest levels for more than a decade according to new research.
Rents are at the highest level for more than a decade as house prices stretch beyond the means of would-be buyers, according to new research.

The findings from nationwide estate agency and lettings group Sequence show average rents hitting an 11-year high of £779 – a 4 per cent rise during August alone and an 11 per cent year on year increase.

The price hikes have been exacerbated by a shortage of supply and, in London, the problem is even more acute with rents up nearly double the national average to £1,465 and the average length of tenancy increased from 12 to 18 months as renters are priced out of the sales market, the report said. Head of lettings Stephen Nation warned: “If supply continues to be outstripped by demand, we will see further significant rent rises.”

The pressure on the rental market has also triggered a fresh surge in buy-to-let investing. The latest Council of Mortgage Lenders figures showed 15,200 buy-to-let loans worth £2bn advanced in July – up 11 per cent in a single month.

Article Source: http://www.independent.co.uk/property/house-and-home/property/soaring-rents-at-11year-high-8833192.html

UK House Rrices Recorded Their Fastest Rise

This recent news article by Reuters on September 10th, 2013 reveals the fastest rise of house prices ever recorded in almost seven years and sales volumes also jumped to a multi-year high.

(Reuters) - British house prices recorded their fastest rise in almost seven years last month and a measure of sales volumes also jumped to a multi-year high, a survey showed on Tuesday.

The Royal Institution of Chartered Surveyors' seasonally adjusted house price balance climbed to +40 from a slightly upwardly revised +37 in July, staying at its highest since November 2006.

The balance reflects the percentage of property professionals saying that prices rose minus those reporting falls.

Britain's housing market has shown signs of a revival this year, spurred by a healing economy and help from the government and the Bank of England to ease access to finance. But the scale of the recovery has raised concerns about a new property bubble.

The RICS survey found that a net balance of +45 of surveyors expect further price growth over the next three months. Over the coming year, house prices are forecast to rise by 2.2 percent.

"Momentum is increasingly broad-based across the country; this isn't just a London story," RICS said.

The average number of sold properties per surveyor rose to 17.9 over the last three months, the highest since January 2010.

The number of properties going on sale also increased markedly in August, with the relevant balance jumping to +26 from 16 in July.

"With positivity starting to return to areas right across the UK, it seems those who may have been waiting for the right time to sell are choosing now to do so," RICS said.

(Reporting by Olesya Dmitracova; editing by Ron Askew)

Article Source: http://uk.reuters.com/article/2013/09/09/uk-house-prices-rise-further-sales-jump-idUKBRE98817R20130909

Student Flatshare Rents 'up 8.5%'

According to a study, rents are higher in a third of university towns than students are willing to pay as revealed in this recent article by Express & Star on September 5th, 2013.

Research reveals that the cost of a room in a student flatshare has soared by 8.5% in the past year, to an average of £357 per month.

The research based an analysis of rents in 25 university towns and cities, and a survey of students, found that unsurprisingly, London is the most expensive place, with average monthly rents of £567, followed by Cambridge (£450) and Oxford (£398).

At the other end of the scale, Cardiff and Swansea are the cheapest, with landlords in these places asking for £255 and £260 a month respectively.

The research, conducted by flatsharing website easyroommate.co.uk, found that in eight of the areas examined, rents were higher than the maximum amount students were willing to pay.

The biggest discrepancy was in Exeter, where the average monthly student flatshare rent was £385, but students said they were only willing to pay out a maximum of £300.

Other places where rent exceeded expectations were Bournemouth, Hull, Leeds, Leicester, London, Manchester and Plymouth.

More than half (54%) of the 1,100 students surveyed said they had seen their rent rise in the last 12 months, the research found.

It claimed that the rate of growth in the cost of rents had been fuelled by higher numbers of people going to university.

Increasing rents had also forced students to change their lifestyle and accommodation, the study found.

Over a fifth of those questioned said they now shared a property with more people than last year to reduce their costs, while more than a quarter (28%) said they had less money to spend on their social life.

Around one in eight (12%) said they were able to save less money for after they graduate, while 7% had had to cut back spending on books and study materials.

Rishi Patel, manager of easyroommate.co.uk, said: "Student rents are once again on the march as student numbers begin to recover following the increase in tuition fees.

"Rents for student flatshares are now at their highest level in five years which is increasing the financial pressure being felt by many students across the country who also have to deal with higher fees and more expensive day-to-day living costs."

The survey questioned 1,122 students between August 16 and 27.

Article Source: http://www.expressandstar.com/business/uk-money/2013/09/04/student-flatshare-rents-up-8-5/

Private Rents Edge Up Slightly

This August 16, 2013 article by Express & Star reveals that private rents has only lifted a slight pace.

Private rents have edged up by just £1 on average over the last couple of months as more people find it easier to get on the property ladder, according to a major lettings network.

Rents saw a small 0.2% increase in July to reach £738 a month typically, following a flat month in June, according to LSL Property Services, which owns chains Your Move and Reeds Rains.

The findings mean that rents across England and Wales have risen by just £1 typically since May, LSL said.

Its report comes in the same week that the Council of Mortgage Lenders (CML) said that first-time buyer numbers have soared to their highest levels since 2007.

A range of Government schemes have made it easier for people with smaller deposits who may have found themselves previously "trapped" in the rental sector to get access to a mortgage.

London is the only area where rents have lifted at a faster pace than inflation over the last 12 months, with an annual increase of 5.7%. Rents in London rose by 0.3% month-on-month to reach a new high for the study of £1,118 typically.

Wales and the South East saw the strongest month-on-month increases in rents, both recording rises of 0.8%. By contrast, rents in the South West fell by 1.1% and the North East saw rents drop by 0.8% on a monthly basis.

Across England and Wales, rents are around 1.8% higher than they were a year ago, which is well below consumer price index (CPI) rate of inflation of 2.8% in July.

The easing pressure on rents led to an improvement in tenants' finances. Some 8.1% of rent across England and Wales was late or unpaid in July, edging down from 8.3% in June.

LSL said that in the medium-term it still expects rents to at least keep up with wider inflation as demand in the sector is still strong, despite the softening in demand due to people getting on the housing ladder.

David Newnes, director of LSL Property Services, said: "This summer, the house purchase market has jerked into motion. And everyone is feeling the impact of that sudden change of gear.

"Buying a first home might only be possible for those with a big enough deposit and sufficient earnings, but the effects are reverberating through the rental market too."

He added: "It's unlikely July will be typical after the initial change of pace in the purchase market, but a few months of more affordable rents are win-win for everyone."

The findings are based on rents achieved on 19,000 properties.

Article Source: http://www.expressandstar.com/business/uk-money/2013/08/15/private-rents-edge-up-slightly/