Reeds Rains Property Blog

Property News from Reeds Rains

Reeds Rains announce Acomb Cricket Clubs player of the month

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Reeds Rains Branch Manager Andy Jacques with Matty Dale, Acomb Cricket Clubs player of the month.

Reeds Rains is delighted to announce Acomb Cricket Clubs player of the month for June. The Player of the Month Award recognises an individual player from the Acomb Cricket Club who has demonstrated outstanding performance for the club.

Congratulations to Matty Dale on successfully winning the award for June. Matty currently has made 311 runs for the club in his 9 games and he has shared recent victory with the team by beating Bridlington by 141 runs and Heworth by 7 wickets.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques is the Acomb branch manager for Reeds Rains who works alongside the club. He comments: “It’s great to sponsor the local cricket club and support the players. Matty is very talented and is a valued member of Acomb Cricket Club.  He is a well deserving winner. The sponsorship is part of the Reeds Rains drive to support the local community and create greater links with it.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.


(*)Calls may be recorded for training and/or monitoring purposes.

Buy-to-let index - July 2014

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Rent Growth Remains Stable as Tenant Finances Improve

  • Rent rises of 1.4% in last twelve months leave average residential rent at £747 per month
  • Tenant finances improve since last year with 7.8% of rent in arrears, down from 8.3% last June
  • Landlords see total returns reach the highest level since June 2010, at 11.8% per annum

Rents have risen at just 1.4% and tenant arrears have improved over the last 12 months, according to the latest Buy-to-Let Index from LSL Property Services plc, which owns the UK’s largest lettings agent network, including national chain Reeds Rains.

The average residential rent across England and Wales is now 1.4% higher than in June 2013. In absolute terms, this amounts to £747 per month, up from £737 per month in June 2013.

While the latest annual rental increase is below the rate of inflation (CPI of 1.9%) for the thirteenth month in a row, this means rent rises have doubled the pace of average pay growth.

By comparison, average earnings have risen by just 0.7% on an annual basis, according to the most up to date figures, released this week.

David Newnes, director of estate agent Reeds Rains, part of LSL Property Services, comments: “If rents had kept up with inflation for the last twelve months, this summer would have seen the average rent break through £750 per month.  And that hasn’t happened.

 “With housing costs making up such a big section of monthly budgets, it will be encouraging for many tenants that rents are going up more slowly than other household bills.  Thanks to extensive investment by landlords the supply of homes to rent has grown rapidly, and this has restrained rent rises.

“But while the private rented sector is becoming cheaper in real terms, the cost of living challenge continues.  And this is because wage growth has been constrained.”

Read the full buy-to-let index here.

Reeds Rains support home grown talent of Acomb Cricket Club

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Acomb Cricket Club

Reeds Rains estate agents is pleased to be supporting the home grown talent of the Acomb Cricket Club, near York,  by officially sponsoring their kit and supporting the annual local community music event the club hosts called Mothership.

The sponsorship is part of the Reeds Rains drive to support the local community and create greater links with it.

The Acomb Cricket Club, which is in division one of the local league, is a family orientated club with history dating back to 1925 with teams in the York & District Senior League, the York Vale League as well as the Pilmoor Evening League.

Andrew Jacques Acomb branch manager for Reeds Rains comments: “The Cricket Club is committed to Acomb and they do a lot for the community – which we also want to be seen to be doing. The Club hosts an annual summer outdoor concert called Mothership which welcomes performances by local musicians.  Once again the very popular York based band called The Supermodels attended and sounded fantastic. Along with the great music the guests also enjoyed a BBQ, bar and plenty of activities for the kids which was popular with the families.”

If you would like to find out how Reeds Rains can help you buy or sell your property then visit the Acomb branch at 1 Carr Lane, York, North Yorkshire, YO26 5HT or call 01904 782621(*) for more information.

Mothership music festival, Acomb, York.

(*)Calls may be recorded for training and/or monitoring purposes.

House Price Index - June 2014

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House prices see highest annual rise in four years, but rate of growth slowing

  • Average house prices climb £23,443 or 9.6% in the past year – 5.2% excluding London and South East
  • On a monthly basis, growth cools to 0.7% in June – dropping to 0.1% without London and South East
  • London house prices up 15.6% annually, but prices falling in Westminster and the City
  • First-time buyers strengthen recovery nationwide, with new peak prices set in South East and East Anglia
     

David Newnes, director of Reeds Rains estate agents, owned by LSL Property Services plc, comments:Average house prices in England and Wales have climbed 9.6% in the year to June, the highest annual rise in house prices experienced since July 2010. Twelve months of solid house price increases have driven up average property values by a total of £23,443, setting a new record high of £268,637. But if you exclude London and the South East from the picture, average house prices across England and Wales have risen a far more sustainable 5.2% over the last year. There are also new signs that growth is beginning to slow as we move into summer, and following the changes brought about by the Mortgage Market Review implemented at the end of April. The 0.7% monthly change witnessed in June – amounting to £1,900 – is below the average 0.8% increase per month recorded over the last year, as house price inflation starts to moderate. And if you remove London and the South East from the equation, house prices are up only 0.1% in the month to June.

“With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first-time buyer demand and fuelling activity outside of London. Flats, the typical property type of first-time buyers making their first step onto the property ladder, have seen the biggest boost in sales across the country. During March- May 2014, sales were up 37% on the same period last year. The Help to Buy scheme may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring homebuyers in parts of the country where prices are still regaining ground lost during the recession. Places like Lancashire and York are still experiencing annual growth below 1%.

“The housing market recovery continues to seep across the country beyond the capital. In fact, as Londoners migrate out of the city in search of more affordable homes in the surrounding regions, average prices in the South East and East Anglia have been pushed to new peaks in May. Consumer confidence is travelling further afield still, and house price records have also been set in Cambridgeshire, Northamptonshire and Bristol. Poole in the South West is striding ahead with the highest annual change experienced anywhere across the country, as house prices increase 23.3% in the last twelve months. But a balanced view has to be taken, as some regions of the country have seen very little house price growth.

“In London, where annual growth has reached 15.6%, prices have begun to fall at the upper end of the market, and the City of Westminster and the City of London have now seen house prices drop in the last twelve months. In four of the top five most expensive London boroughs, average house prices have dipped below their respective peak levels.”

Read the full House Price Index here

First Time-Buyer Tracker - June 2014

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First-time buyer deposits fall 10% in a year 

  • Average first-time buyer deposit of £24,637 in May, £2,700 less than 12 months ago but still 8 months’ salary needed
  • Deposits fall 11% as a proportion of income compared to May 2013
  • But first-time buyer sales slip 5% in May, as MMR holds back some higher LTV lending
  • First-time buyer mortgage rates also starting to climb – up 0.08% in last 3 months

First-time buyer deposits have fallen by £2,745 in the last twelve months, according to the latest First Time Buyer Tracker from Reeds Rains, part of LSL Property Services.

Data from estate agency chain Reeds Rains shows the average first-time buyer deposit fell 10% year-on-year from £27,382 twelve months ago to £24,637 in May 2014. It was the fourth consecutive month in which the average first-time buyer deposit was below £25,000.

One side-effect of falling deposits is that they are becoming cheaper as a proportion of wages. The average first-time buyer deposit represented 67% of a first-time buyer’s annual income in May, compared to 77% twelve months ago. But the average deposit is still equal to 8 months of the average first-time buyer salary (£37,000).

More lending to high LTV borrowers, supported by the Help to Buy scheme, has allowed the number of first-time buyers to grow over the last year. There were 23,400 first-time buyer sales in May 2014 – 3.5% higher than twelve months before.

The yearly improvement in first-time buyers came even as purchase prices increased. The average first-time buyer purchase price increased 7% year-on-year in May to £146,887, over £9,000 more than in May 2013, when the average purchase price stood at £137,561.

David Newnes, director of estate agent Reeds Rains, part of LSL Property Services group, said: “Help to Buy has helped support the first-time buyer market over the past year. It has encouraged banks to extend more loans to lower equity borrowers, relieving some of the burden of saving for a larger deposit often out of their reach. Average first-time buyer deposits have got cheaper by nearly £3,000 as a result.

“Savings rates have been stuck at rock bottom for over five years, wages are only just beginning to show signs of growth, and the cost of living has been mounting all the while. Without Help to Buy, these stumbling blocks may have been too large for some prospective home-owners to overcome.

“It is imperative to let the scheme run its course. The property market is already weighted in favour of home-owners, who have benefitted from bricks and mortar price-growth. Punishing first-time buyers by pre-maturely cutting back Help to Buy would do more damage than good. To keep price-rises in check we need to upscale housing development and build more new homes offering wider choice and supply to buyers which will dampen any danger of high price rises.”

Read the full First-Time Buyer tracker here

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