Lett Let London Average Monthly Sale Price tral London Av rage Monthly Sale Price
Market Analysis Spring 2011 UK Rentals
£200k £250k £300k £350k £400k £450k
ndon - Sales Agreed an2009 = 100
London - Sales Agreed Jan2009 = 100
Prospective New Buyers Jan2009 = 100
spective New Buyers n2009 = 100
While constraints in mortgage lending have continued to compound the misery of many would-be buyers, there are signs that there may be light at the end of the tunnel. Encouraging signs of intent are being shown by some of the big lenders with the launch of new mortgage deals with LTVs of 90% and 95%. However, anyone hoping to take advantage of these deals still has to stump up a sizable deposit. Unfortunately, saving for a deposit of even 5% is being hampered by low interest rates and high inflation, both of which are effectively eroding people’s savings. As a result there has been growing demand for rental accommodation despite the introduction of more attractive products for first-time buyers or those with low amounts of equity. Overall there were 10% more tenant registrations in 2010 than there were in 2009.
Annual surge in demand
Despite the expected seasonal fall in demand over Christmas, overall demand between December and February 2011 was much higher year-on- year. The number of tenant registrations in December 2010 was much healthier than December 2009 with over half as many (54%) tenants registering interest in rental accommodation. Overall, the total number of tenant registrations among Winkworth branches between December and February has grown two fifths (40%) compared to the same period last year. In fact,
12 Market Analysis Spring 2011
£200k £250k £300k £350k £400k £450k
Monthly average sale price (£) Monthly average sale price (£)
100 120 140 160
the total number of tenant registrations recorded in January was only 12% below July’s summer peak in 2010. (Figure 20)
Small rise in stock levels not enough to appease demand
100 150 200 250 300 350
100 150 200 250 300 350
100 120 140 160
20 40 60 80
20 40 60 80
0 0
50 0 0
Rising rents, attractive prices, low interest rates and improving buy-to-let mortgage options have made the buy-to-let and property investment market a very tempting proposition over the last twelve months. This has led to a gradual rise in the number of lettings instructions
50
Figure 20 Tenants registered Jan 2009 = 100
100 120 140 160 180
100 120 140 160 180
20 40 60 80
20 40 60 80
Country -Sales Agreed Jan2009 = 100
Country -Sales Agreed Jan2009 = 100
Aver Ave
Overall demand between December and February 2011 was much higher year-on-year.
Tenants Registered Jan09=100
Tenants Registered Jan09=100
Average U Average
£1,800 £1,850 £1,900 £1,950 £2,000 £2,050 £2,100 £2,150
£1,800 £1,850 £1,900 £1,950 £2,000 £2,050 £2,100 £2,150
1 2 3 4 5
1 2 3 4 5
Figure 21 Lettings instructions Jan 2009 = 100
100 120 140 160
100 120 140 160
20 40 60 80
20 40 60 80
Lettings Instructions Jan09=100
Lettings Instructions Jan09=100
Jun-10 Jul-10
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Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Price (£) Price (£) Oct-10 Nov-10 Dec-10 Jan- 1 Feb- 1
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