Are UK House Prices set for a 15% fall?

At Rooms in Cardiff we aim to provide landlords, home owners and property investor’s detailed analysis of the property market in Cardiff, Wales and across the UK.

There has been a wealth of housing data released all hinting at which direction UK house prices are going over the next 12 months, but at Rooms in Cardiff we have been doing our own online research and wanted to share this with our readers.

 Net Mortgage Lending Growth

The Bank of England (BoE) provides monthly data on UK net mortgage lending growth (NMLG). Historically this has proved a handy guide to house prices.

September 2012 saw UK NMLG remain at 1.1%. That compares with annual growth of 1.9% two years ago, 5.7% in December 2008 and 11.1% in February 2007. Meanwhile, the October Nationwide UK house price index was down by 0.9% year-on-year.

What does this mean for UK house prices?

As you can see from the above graph, this long-term collapse in NMLG suggests UK house prices are standing at the cliff face. If they follow net lending trends, residential property values could slump by over 15%.

Rooms in Cardiff is a provider of landlord services across Cardiff and South Wales specialising in multi let property, Student housing, professional house share and house of multiple occupancy (HMO) and offer the following services:

Rooms to Rent in Cardiff  £120 Fixed Fee Tenant Finder (No Tenant No Fee)

Property Listing page to advertise your available rooms on Spareroom, EasyRoomMate, Gumtree and Zoopla until let for one Fixed Price.

HMO Rent Guarantee No Void Periods & No Fees

You can contact Rooms in Cardiff via email info@RoomsInCardiff.co.uk

Telephone 0845 496 0000

or by completing the form below to arrange a call from one of our team.

Welsh House Prices Set to fall in 2013

At Rooms in Cardiff we aim to provide landlords, home owners and property investor’s detailed analysis of the property market in Cardiff, Wales and across the UK.

The latest House Price report from Knight Frank bears grim reading for UK home owners and property investors in Wales and across the UK as Knight Frank predict house prices to fall across the UK with Welsh house prices predicted to fall a further 3.8%.

Key headlines of the Knight Frank report include:

  • UK house prices will not reach their 2007 peak until 2019: the longest housing market recovery on record, according to Knight Frank’s new forecast
  • UK housing transactions to rise 2% in 2013, but to remain well below peak levels for the rest of the decade
  • Tax changes forecast to weigh on prime central London prices, with no price movement expected in 2013.
  • 5 years since start financial crisis and UK housing market is not fully functional
  • Transaction levels 50% lower than in 2007 and 35% below 20 year average
  • House prices being supported by unusual economic conditions, ultra-low interest rates
  • Further correction in house prices is needed as relationship between average earnings and average house prices is well above long term average.

 

UK Regional Market House Price Growth

  20 Year Average to 2011 2007 2008 2009 2010 2011 2012 2013
East Anglia 5.8% 5.7% -16.6% 4.5% 3.4% 1.4% -2.4% -0.7%
East Midlands 5.5% 2.8% -14.2% -2.5% 1.7% 0.7% -1.6% -1.0%
London 7.4% 12.8% -15.1% 7.0% 2.5% 5.4% -0.2% -0.6%
North East 4.9% 3.7% -11.0% -2.0% 0.6% -1.0% 0.5% -2.3%
North West 4.9% 3.5% -14.4% 2.7% -1.9% -1.1% -1.8% -2.6%
Scotland 5.3% 10.1% -8.1% 1.0% -2.1% -0.8% -3.6% -3.2%
South East 6.4% 7.9% -15.7% 6.0% 2.4% 1.6% -0.9% -1.1%
South West 6.3% 6.4% -14.9% 3.8% 2.1% 0.8% -1.0% -2.2%
Wales 5.6% 4.2% -12.1% -0.3% -1.9% 1.6% -3.6% -3.8%
West Midlands 5.2% 4.4% -14.0% 2.1% 0.6% 0.4% -1.3% -2.1%

Read the full Knight Frank report here

The figures above suggest home owners, landlords and property investors across Wales should expect further house price drops so what can you do to weather the storm and shelter yourself from falling house prices.

At Rooms in Cardiff we are able to provide financial security to those of you with negative equity or landlords with empty homes by providing a guaranteed rental income for period of 12 months or more.  Rooms in Cardiff guaranteed rental income scheme is a great solution to landlords and homeowners across Cardiff and South Wales as we can help lighten the financial burden by providing a rent guarantee ensuring a monthly payment with no void periods, no set up fees and often with no maintenance costs.

Rooms in Cardiff are a specialist multi let and House of Multiple Occupancy (HMO) landlord service provider and can provide a HMO Rent Guarantee as well as providing a guaranteed rental income for apartments, bungalows, flats and homes across Cardiff and South Wales.

To discuss how Rooms in Cardiff can help relieve the financial burden of a house in negative equity or a rental property that is left empty and provide a guaranteed rental income, why not email info@webletz.co.uk or call 0845 496 0000.

Landlords lure Students with iPads & More

Yesterday a post appeared on Property Tribes “London landlords lure students with iPads as university fees bite”.  The article was first published by Reuters news agency highlighting the incentives London landlords are offering to attract student tenants as student numbers are dropping in the capital due to introduction of university fees and tighter restrictions being imposed on the number of non-EU being able to obtain a Student Visa.

Student accommodation as always be looked upon as a safe property investment with excellent annual returns but is student housing reputation looking a lot more shaky?

The problem isn’t just affecting small landlords it’s proving problematic for corporate organisations too.  Irish owned O’Flynn Group, Carlyle Group’s Pure Student Living and Quintain Estates are among developers who have struggled to fill student rooms in London this year after the British government tripled maximum university fees to 9,000 pounds ($14,400), triggering a 12 per cent fall in numbers from Britain and the EU.

Investment in student housing has risen from 350 million pounds in 2009 to some two billion pounds in the first nine months of 2012, data from CBRE Group showed. Investors are attracted by high occupancy rates and stable income streams.

Read the full article from Reuters >>> here.

Back in September Rooms in Cardiff published a post titled “Cardiff Student Housing or Professional House Share?” which highlighted the fall in student numbers across the UK, Wales and Cardiff with the aim of providing an alternative use for large family houses, Multi Let property and House of Multiple Occupation (HMO) in the Welsh capital.

The aim of the post was to draw landlord’s attention to professional house share a real alternative to Cardiff Student housing.  There is huge demand for professional house share in Cardiff as well as fantastic annual returns as professional tenants require your House of Multiple Occupancy (HMO) 12 months of the year.

As a landlord and owner of a House of Multiple Occupancy (HMO) in Cardiff you are ideally placed to utilise your property more efficiently and take advantage of the growing professional house share market.  So if you are interested in moving away from Cardiff Student housing have Rooms to Rent in Cardiff why not contact Rooms in Cardiff to discuss how we can help you find professional tenants for your professional house share with our low cost, fixed price £120 tenant finder service.

We can also provide landlords with a complete HMO Rent Guarantee scheme taking the complete hassle out of HMO and Multi Let management, with no void periods, no set up fees and no maintenance costs; we can provide a guaranteed rental income for a 12 month plus period.

Contact Rooms in Cardiff on 0845 496 0000 or email info@webletz.coc.uk to discuss how you can diversify into the professional house share market in Cardiff and across South Wales.

Buy to Let Evictions Soar by 33%

Ministry of Justice figures analysed and presented by homeless charity, Crisis suggest the number of Court orders to evict tenants from the Private Rented Sector have dramatically increased by over one third in the last two years.

Ministry of Justice figures suggest Courts in England and Wales have granted 36,211 eviction orders against tenants renting from buy to let landlords and House in Multiple Occupation (HMO) an increase of 12% in the last year and a massive 33% increase over the last two years.

The research by the homeless charity Crisis has added weight by a survey conducted by the National landlord Association (NLA) whose figures suggest an equally bleak picture with 49% of landlords polled saying that their tenants had paid late or are in rental arrears over the last 12 months.

If you are a landlord with a buy to let property in Cardiff or across South wales our Rent Guarantee Scheme can protect your property investment for rental arrears, void periods and costly tenant eviction process.

Our Rent Guarantee Scheme provides landlords in Cardiff and across South Wales complete piece of mind as they are safe in the knowledge that their property is tenanted by  professional tenants and their rent will be paid into an nominated bank account on the same day of the month every month.

Our Rent Guarantee Scheme is suitable for buy to let property investments in Cardiff and throughout South Wales whether it be an apartment, bungalow, family home or flat and for property investors with a Student property, House of Multiple Occupation (HMO) or Multi Let we provide a specialist HMO Rent Guarantee.

For a no obligation Rent Guarantee appraisal you can email info@webletz.co.cuk to arrange a call from one of our team or telephone 0845 496 0000.

House Share in Cardiff and Beat Fuel Poverty

Figures released today highlight the extent of fuel poverty across the UK since 2010 In Scotland, 28% of the population were fuel poor, Wales was at 26%, and England stood at 16% as Gas and Electricity prices have continue to rise since 2010 then you can bet your bottom dollar fuel poverty has taken a wider grip on the UK population.

At Rooms in Cardiff we always advise tenants looking for a professional house share or Cardiff student housing in a HMO or multi let property to look for private landlord offering monthly rents including utility bills, this way you are sheltering yourself from further utility price rises as well as ensuring you are able to meet you monthly rental obligation and not find any financial surprises at the end of the month.

Rooms in Cardiff is the place to go for those looking to house share in Cardiff and further afield in South Wales.  Whether you are looking for Cardiff student housing or a professional house share, Rooms in Cardiff is your number one resource for private landlord lettings, house of multiple occupation (HMO), multi let property and to find your next housemate.

You can contact Rooms in Cardiff via email info@webletz.co.uk

Telephone 0845 496 0000 or via the contact form below