Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading


Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading


Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading


RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading


China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Categorized | Property

UK rents rise at fastest rate in 2 years

Posted on July 31, 2015

Magnolia buds sit on a tree opposite a row of coloured terraced houses in the Notting Hill district of Kensington and Chelsea in London, U.K., on Wednesday, April 1, 2015. Home prices in central London's wealthiest districts fell for a second quarter as buyers were deterred by higher taxes and uncertainty surrounding the U.K. general election on May 7. Photographer: Matthew Lloyd/Bloomberg©Bloomberg

The cost of renting a home is rising at the fastest rate for more than two years as Britain’s chronic housebuilding shortage pushes living costs up.

Private rents rose 2.5 per cent in the year to June, figures from the Office for National Statistics show — with rents in London up 3.8 per cent year on year.

    By contrast, rents in Wales grew at just 0.8 per cent, while rents in the north-east and north-west of England rose just 0.5 per cent.

    But even these small increases are ahead of the rate of inflation — the official consumer price index measure was zero during the same period.

    Rents are rising at a slower rate than property values, however: house prices across the UK rose 5.7 per cent in the year to May, separate figures from the ONS showed recently.

    Rents have been on an upward trajectory for more than four years. Since January 2011 — the start of the ONS’s data series — rents across Britain have increased 10.2 per cent, the figures show.

    A charity that works with people facing financial problems warned that the rising cost of rent was “a real concern”.

    Jane Tully, head of insight and engagement at the Money Advice Trust, which runs the National Debtline, said she fears that “rent arrears will continue to increase”.

    The National Debtline has seen the proportion of its clients who need help to deal with rent arrears double since the credit crunch, to nearly 13 per cent.

    “With interest rate rises possibly only a few months away, we expect to see additional pressure on private renters’ budgets as landlords pass on these extra costs to their tenants,” Ms Tully said. She urged renters to “review their household finances”.

    Steve Belton, founder of property investment adviser Platinum Property Partners, said that rents were being pushed up by “a shortage of suitable properties coupled with strong consumer demand”.

    In depth

    UK housing market

    For sale signs uk

    Price indices have presented wildly contrasting pictures of the health of the housing market – according to some the boom is back, while to others the slump staggers on

    Further reading

    Chancellor George Osborne’s recent crackdown on buy-to-let investors is likely to push renting costs up further as landlords seek to recoup the additional costs from their tenants, Mr Belton added.

    “This rise in rents isn’t likely to slow down any time soon,” he said.

    Tax relief on buy-to-let mortgage interest will be restricted to only cover the basic rate of income tax, Mr Osborne said in his Summer Budget. The relief for higher-rate taxpayers will be withdrawn gradually over a four-year period from 2017.

    Tax relief on the cost of maintaining a property’s furnishings will also be tightened, saving the Treasury £200m a year.

    At the time they were announced, Mr Osborne said the changes would create “a more level playing field” between landlords and homeowners.

    The ONS’s rental series is an experimental statistic — one that carries less weight than its collection of official data, which includes its house price index. Its methodology is still under evaluation and may change.