UK Property News Week 13

Welcome to NestInsights, where we delve into the currents shaping the UK property market. Our focus extends across a spectrum of issues and developments that are pivotal to understanding the dynamics at play within the property sector.

This week, we're diving deep into the latest developments shaking the UK's property scene. From the international expansion of Century 21's listing platform for UK estate agents to groundbreaking legislation proposals and award recognitions, we're covering the spectrum to keep you informed and ahead in the property game.

Our goal is to offer a comprehensive overview that informs and empowers our audience to make informed decisions in a dynamic market.

Table of Contents

• Century 21 Launches International Listing Platform for UK Real Estate Agents

• Unveiling the UK's Top Real Estate Agents: Award Winners Announced

• The Economic Shift: Renting Surpasses Buying in Affordability Across Most UK Regions

• Introduction of a Comprehensive Licensing Scheme for Landlords in Brent

• The Rising Preference for Two-Year Fixed Rate Mortgages

• Proposed Legislation to Prohibit Rent Increases in a Major Policy Overhaul by SNP

UK Property News Week 13

Century 21 Launches International Listing Platform for UK Real Estate Agents

Century 21 has officially opened its global listings site to UK estate agents. This strategic move is set to revolutionize how properties are marketed in the UK, offering unprecedented international exposure to listings.

The global platform, known for its extensive reach and reliability, allows UK agents to showcase properties to a wider audience than ever before. This comes at a pivotal time, as the UK property market sees an increasing interest from overseas buyers, partly due to a surge in immigration and the UK's enduring appeal as a place to live and study.

Nick Faulkner, who took over the Century 21 UK franchise in 2022, has been instrumental in bringing this initiative to life.

His vision of connecting UK property listings with international buyers is now a reality, thanks to the collaborative efforts of the Century 21 franchise teams worldwide. This initiative not only broadens the horizon for UK estate agents but also simplifies the buying process for international investors and residents looking to establish roots in the UK.

The benefits of listing on the Century 21 Global site include increased visibility, potentially higher property values due to widened buyer interest, and a streamlined process for attracting international buyers.

The platform is designed to facilitate connections between UK estate agents and the global market, ensuring listings are seen by a diverse group of potential buyers.

For a reasonable fee, UK estate agents can now enjoy the perks of global brand recognition. The platform offers a comprehensive marketing package, including social media and online banners co-branded with Century 21. This integration not only elevates the property's profile but also leverages Century 21's reputation for excellence in real estate.

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Unveiling the UK's Top Real Estate Agents: Award Winners Announced

The real estate industry in the UK is a competitive field, with countless agents striving to provide unparalleled service to their clients.

Recognizing the best of the best, the Guild Conference and Awards recently announced the winners of this year's top real estate agents across the UK. This accolade not only highlights the winners' commitment to excellence but also sets a benchmark for quality and professionalism in the industry.

Here's a look at the regional winners who have set themselves apart this year:

East Midlands:

• Gold: Bentons

• Silver: Sally Botham Estates

• Bronze: Fletcher & Company

East of England:

• Gold: Millbanks

• Silver (tie): Kingsleigh Residential and Mackay Property

• Bronze: Bradford & Howley

London:

• Gold: Benjamin Stevens

• Silver: Drivers & Norris

• Bronze: Bryan & Keegan

North East:

• Gold (tie): Kimmitt & Roberts Estate Agents and Andrew Coulson Property Sales & Lettings

• Silver: Roseberry Newhouse

• Bronze: Gilmore Estates

North West:

• Gold: Banner & Co

• Silver: Adams Estate Agents

• Bronze: David Davies Estate Agents

Northern Ireland:

• Gold: John Minnis Estate Agents

• Silver (tie): Hunter Campbell and Property People

• Bronze: Home Independent

South East:

• Gold (tie): Wood & Pilcher and M&M Estate and Lettings Agents

• Silver: Cairds the Estate Agents

• Bronze: Sawyer & Co Sales & Lettings

South West:

• Gold: Webbers

• Silver (tie): The Mather Partnership and Newquay Property Centre

• Bronze: Diamond Estate Agents

South Central:

• Gold: Rochills

• Silver: Belgarum

• Bronze (tie): Kingswood Property Services and Woolley and Wallis

Wales:

• Gold (tie): Taylor & Co and Morris Marshall & Poole

• Silver: Williams and Goodwin The Property People

• Bronze: Peter Morgan Estate Agents

West Midlands:

• Gold: James Du Pavey Estate Agents

• Silver: Dourish & Day

• Bronze (tie): Ferndown Estates and C Residential

Yorkshire & The Humber:

• Gold: Norman F Brown

• Silver: Emsleys Estate Agents

• Bronze: Harris Shields Collection

The Economic Shift: Renting Surpasses Buying in Affordability Across Most UK Regions

recent data reveals that renting has now become more affordable than buying a first home in nearly all regions across the UK. This trend, underscored by Halifax's latest Owning vs. Renting Review, marks a pivotal change in the economic landscape for prospective homeowners and renters alike.

According to the report, the average monthly cost of owning a home in the UK has risen to £1,231, which is £27 more expensive than renting an equivalent property.

This comparison is based on the housing costs associated with a mortgage on a three-bedroom home versus the average monthly rent for the same type of property. Over the past year, the monthly rental costs have surged by 24% to £1,258, while homeowning expenses increased by 27% to £1,231. This convergence highlights the shrinking gap between owning and renting, a trend not seen since 2019.

On a regional basis, the monthly cost of owning a first home compared to renting the equivalent was higher in nine out of 12 UK regions last year. This development has significant implications for first-time buyers, who may find the prospect of renting more economically viable than entering the property ladder under current conditions.

Kim Kinnaird, Director of Mortgages at Halifax, pointed out that "In nearly all regions across the UK, first-time buyers are now better off renting than owning a similar home."

This statement reflects a stark turnaround from the long-standing British dream of homeownership. The only regions where owning still remains marginally cheaper than renting are the South West, London, and Scotland.

This shift comes amidst a backdrop of elevated borrowing costs and a chronic shortage of available homes for purchase, pushing homeownership further out of reach for many. In response, Halifax and other financial institutions are focusing on supporting first-time buyers through government-backed schemes like shared ownership and mortgage guarantees.

Tom Bill, Head of UK Residential Research at Knight Frank, commented on the situation, stating,

"The prevalence of fixed-rate mortgages means any financial pain is entering the system in a staggered way."

He also noted that the strong labour market, while supporting buyer demand, contributes to the stubbornly high inflation, further complicating the affordability crisis for first-time buyers.

Introduction of a Comprehensive Licensing Scheme for Landlords in Brent

In a bold move aimed at improving living standards for private renters, Brent, a borough in northwest London, is set to introduce a comprehensive landlord licensing scheme. Starting from the beginning of April, this new regulation requires every privately rented property in Brent, with the exception of those in Wembley Park, to be licensed.

This initiative is designed to ensure that all rental properties meet specific safety and maintenance standards, thereby protecting tenants from substandard living conditions.

Cllr Promise Knight, the cabinet member for Housing, Homelessness, and Renters’ Security, highlighted the scheme's dual benefits: elevating living standards for renters, who make up half of Brent's residents, and providing landlords and agents with clear guidelines on their responsibilities.

The licensing scheme aims to offer renters peace of mind regarding the safety and security of their homes. By enforcing standards across the board, Brent Council is taking a significant step towards eradicating poor living conditions and ensuring that all rental properties in the borough are fit for habitation.

Landlords found to be in violation of the licensing requirements will face stringent enforcement actions. This robust approach underscores the council's commitment to clamping down on non-compliant landlords and ensuring that the rental market in Brent is fair, safe, and regulated.

For landlords, the introduction of the licensing scheme means that compliance with housing regulations is more crucial than ever. The council is working closely with property owners to assist them in meeting the new standards, offering guidance and support to ensure a smooth transition to the new regulatory framework.

The Rising Preference for Two-Year Fixed Rate Mortgages

In recent developments within the UK's mortgage market, there's a noticeable trend: the rising preference for two-year fixed rate mortgages. This shift is catching the attention of homeowners and potential buyers alike, as they navigate the complexities of the housing finance landscape.

The Bank of England's current stance and market indicators suggest that interest rates may be cut sooner than previously anticipated, sparking interest in short-term fixed-rate mortgage options. This move is partly fueled by the Bank's governor, Andrew Bailey, hinting at a potential rate cut in the coming months, thanks to a faster-than-expected fall in inflation last month.

With the main headline inflation reading coming in marginally lower at 3.4%, and the Bank of England holding the bank rate at 5.25%, homeowners and buyers are re-evaluating their mortgage strategies.

High mortgage rates and persistent inflation had previously led to a decrease in transactions and average prices dropping by 5% in the year to September. This backdrop has made the option of a two-year fixed rate mortgage increasingly attractive.

Simon Gammon, head of Knight Frank Finance, points out that a growing number of borrowers are favoring the stability and predictability of fixed rates, especially in a fluctuating economic environment.

"Two-year fixed mortgages have become the product of choice again,"

he states, highlighting the strategic shift among borrowers who aim to capitalize on potential rate reductions in the near term.

This preference is not without its reasoning. The gap between the interest rates for two-year and five-year fixed mortgages is not significant, leading many to choose the shorter duration. This decision allows borrowers the flexibility to reassess their mortgage options in a relatively short period, potentially benefiting from lower rates if the economic predictions come to fruition.

The attractiveness of two-year fixed rate mortgages is underscored by their offering of a balance between affordability and the opportunity to reassess financial strategies without committing to long-term interest rates. As borrowers navigate the uncertain economic waters, the option to lock in rates for a shorter period provides a cushion against immediate fluctuations while keeping future options open.

Proposed Legislation to Prohibit Rent Increases in a Major Policy Overhaul by SNP

In a significant policy shift aimed at transforming the rental market landscape, the Scottish National Party (SNP), in collaboration with the Green Party, has laid out proposals for legislation that could see a ban on rent increases for up to five years. This radical plan forms part of a broader strategy to implement long-term market controls, potentially reshaping the housing sector in Scotland.

Under the proposed Housing (Scotland) Bill, local authorities would be endowed with the power to establish rent caps, possibly as low as 0%. This move seeks to offer renters a level of financial stability unseen in recent times, amidst rising living costs and economic uncertainties.

Furthermore, the legislation aims to provide courts with the authority to delay evictions during the winter months or in situations causing high levels of stress, marking a significant shift towards tenant protections. Additional measures include restrictions on landlords "unreasonably refusing" pets or requests to decorate, which aims to give tenants more rights and freedoms in their rented homes.

This ambitious initiative is a product of the joint Bute House Agreement signed in 2021, reflecting the SNP-Green government's commitment to substantial housing reform. If passed by Members of the Scottish Parliament, the bill could herald a new era of rent control and tenant rights in Scotland.

The Scottish Government's push for long-term rent controls comes amidst warnings from industry experts about the potential repercussions on investment in the private rental sector. Critics argue that stringent controls could deter landlords from entering the market or prompt existing ones to exit, potentially exacerbating the housing shortage.

Despite these concerns, the government's stance is clear: the bill is poised to bring about a more equitable rental market, ensuring that the rights and securities of renters are at the forefront of housing policies. Paul McLennan, SNP's Housing Minister, alongside Patrick Harvie, one of the Green ministers in the government, have been vocal supporters of the legislation, underscoring its importance in preventing housing crises and supporting those facing homelessness.

Conclusion

Century 21 has launched a new international listing platform, revolutionizing the way UK real estate agents market properties. This development acknowledges the expertise and high quality of service provided by UK agents, aligning with the shifting trends in the property market.

With renting becoming an increasingly attractive option, areas like Brent are implementing thorough licensing schemes to maintain standards. Meanwhile, political moves like the SNP's rent cap reflect the evolving landscape.

The surge in two-year fixed-rate mortgages indicates how consumers and the market are adapting to economic shifts.These developments underscore the importance of staying informed and adaptable, highlighting the potential for growth and innovation within the UK's property sector.

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