Rental property demand has increased by 13%

In this month's edition, we look at the news that rental property demand has seen a year-on-year increase of 13%.

We've got plenty of tips to help you save money around your home, we answer why buyers are taking longer when it comes to deciding on a home and we reveal the top 10 home improvement projects.

Rental property demand has increased by 13%

 

Due to rising house prices renting instead of owning continues to become more of the norm, especially for upcoming generations.

It is not a surprise that demand for rental properties has grown, but what is surprising is that the number of properties up for rent has taken a fall.

The Association of Residential Lettings Agents (ARLA) has released its latest report on the Private Rented Sector and it has been revealed that year on year comparisons show a 13% increase in the demand for rental properties.

Across the same period of time, the number of properties up for rent has dropped by 4%, creating an opportunity for current and prospective property investors.

This report collected data on both demand, supply and average prices from the ARLA’s 191 members, to gain insight into changes within the market.

It was found that during the month of July 2018 there were 79 new prospective tenants registered per letting agent branch. Not only was this figure up from June (71), but it's also the highest level of demand seen since September 2017.

In terms of properties available for rent, this figure stood at 191 per letting branch in June, but fell to 184 in July as four landlords per branch took their buy-to-let properties off the market. At the same time, almost 1 in 5 stated that they intend to remain active in the sector indefinitely.

Increased demand creates competition and the market responds as expected with prices seeing a rise. According to the report, during months of the June and July 2018, 31% and 35% of tenants saw an increase in rent, respectively. There have been many property experts claiming that this trend will continue for the foreseeable future, with recent reports forecasting a 15% rise in rental rates over the next 5 years.

Read our tips to help you save money around your home

 

There are a few changes that you can make around the house that could save you hundreds of pounds a month! Some of them are as simple as clicking a button or turning a dial.

Switch your utility supplier
Your first port of call should be your utility bills. A recent study by Energyhelpline found that the average household can save over &600 a year by switching suppliers. You should consider changing the supplier of your television package, broadband and energy to a competitor who might offer you a better deal.

Consider your energy set-up and habits
Switching supplier is a good start, but your next job is to take a closer look at your energy habits. This can be as basic as turning your thermostat down by a few degrees or making use of the timer control on your boiler. Clothes horses can be utilised to dry your laundry, meaning you don’t need to have the heating on for longer than required.

If you want to make more of an impact on your energy bill, you could also consider your property’s energy efficiency. To combat wasting energy, you could deploy draught excluders around the house to trap heat or hire a professional to examine the insulation in your walls and roof.

Turn electrical appliances off when not in use
The Energy Saving Trust recently revealed that across the UK, households were spending between &50-86 a year on gadgets in a ‘non-active’ or standby state, equivalent to 9-16% of the average electricity bill.

Set your washing machine to a lower temperature
Washing at 15 or 30 degrees rather than 40 degrees can save you a third of the cost to run the cycle. Think about how much that could be saving you on the day you decide to tackle the overflowing laundry basket!

Switch to a cheaper mortgage deal
Mortgage repayments are often the biggest monthly expense a household will have, so it could be worth checking if switching to a new deal can help you save.

For example, if you have a &180,000 20-year mortgage, a deal that charges 4% would cost your household &1,091 a month. Remortgaging to a 2% rate could save you &180 a month (&2,160 a year).

 

 

Buyers are taking longer to decide when purchasing a home

 

Buying a home is arguably the biggest purchase you will ever make so it is understandable that many of us like to take our time on such an important decision.

It’s common knowledge to be as thorough as possible when viewing a home to make sure that it’s right for you, but how long does it take on average for a buyer to make a decision?

New data from eMoov has looked into the average number of viewings and viewing time and discovered that buyers are actually taking 23% longer to make a decision than they were two years ago.

According to research conducted in 2016, it took buyers 53 minutes on average during the viewing process to come to a decision and just over half (53%) came to this decision after an average of two viewings.

In comparison, the same research conducted in 2018 revealed that this process has increased to 65 minutes and 2.4 viewings on average.

There are a number of factors that could play into this, but one of the strongest theories from property experts is that it is Brexit related.

When looking into individual regions it appears that Northern Ireland requires the most time to decide on a home at an average of 78 minutes, which was closely followed by the region of the North West at 77 minutes and East Anglia at 70 minutes.

On the other end of the scale, the region that is the quickest to buy a home is Scotland, only needing 55 minutes to make a decision and the only area taking less than one hour.

In terms of viewings, 56% of buyers only need to view a home twice, 27% required three viewings, 8% needed to see the property four times and 1% even wanted to see a home five times or more. The research also revealed a brave 7% that were happy to submit an offer after just one viewing.

So, what does this mean if you’re selling your home? Well, it appears that buyers are taking their time to scrutinise each property in more detail. While it is common sense to present your home in its best light at all times, it may be worth putting in a little extra work to ensure your home is in tip-top shape.

The top 10 home improvement projects revealed

 

DIY, decoration and renovation comes hand in hand with owning a home, for some it’s a joy, for others it’s a hassle, but home upgrades are inevitable.

There are many ways to improve a home, from the simple task of changing a room’s colour scheme to fitting an entirely new kitchen, but which improvements are the most popular?

A recent survey looked into the work carried out by UK homeowners across the last 5 years and revealed which projects are the most common.

According to GoCompare Home Insurance, the majority of work carried out in UK homes are cosmetic upgrades (68%) while just over a third of work carried out on a home (38%) falls into the category of essential maintenance.

Following this, it is no surprise that the number one job that has been undertaken by 50% of homeowners across the last 5 years is interior decoration and it’s clear that a new lick of paint can go a long way.

Taking 2nd place in the top 10 with 31% is the task of replacing the flooring with new carpet or hard wood flooring. An upgrade that is somewhat expected as another survey recently revealed that worn flooring can be one of the biggest put-offs for a buyer when viewing a property.

The 3rd most common improvement is arguably the most expensive of the bunch, with 29% choosing to install a new bathroom.
Other upgrades that were quite popular included tasks such as a garden makeover, fitting a new kitchen and installing a new boiler or central heating system, all of which were chosen by 25% of survey participants.

Moving towards the bottom of the table and chosen by 21% of homeowners was new windows/double glazing, an upgrade that not only improves the aesthetics of a home, but also can help with energy efficiency.

The final 3 to make the list were installing a new shed or garden building (16%), Exterior redecoration (13%) and Improving the insulation (13%).

So, what does this top 10 list reveal? Well, it shows a clear desire for both style and efficiency, while most upgrades are down to homeowners wanting to add their own personal flair to a home, there is a good number of upgrades that ensure the property isn’t wasteful when it comes to heating.

This survey also shows that as a nation we aren’t afraid to get stuck into the bigger projects and renovate a property to make feel more like a home.