Home Entrepreneur Rental home sales are boosting the UK's real estate market

Rental home sales are boosting the UK’s real estate market


Rental property sales are driving activity in these areas of the real estate market Q1 2021, hedge fund lettering, conferences and more. Driven by rental home sales from Warwick Estates revealed areas in the UK where rental sales are driving the real estate market, accounting for as much as 99%. […]

April 16, 2021

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This story originally appeared on ValueWalk

Rental property sales are boosting activity in these sectors real estate market

1st quarter of 2021 hedge fund letters, conferences, etc.

The UK’s real estate market is driven by Rental Sales

Word research Warwick Estates revealed areas in the UK where rental home sales are driving the real estate market, which accounts for 99% of transactions.

Warwick Estates analyzed property deals completed across the UK over the past year, highlighting which regions in the market have the highest number of rental homes as a percentage of all. deal.

While rental housing has been on fire in recent years, Previous research from Warwick Estates shows that they offer a foot on the ladder at a price that is one-third less than fixed assets. They also benefit from an easier approach to home ownership, with the owner free to be responsible for the maintenance of the building in common areas, as well as for the maintenance of the larger structure of the home. building and building insurance offers.

For some homebuyers or rental land there are complications, especially those who want to build a stronger foundation for the long term. You usually need the permission of the free owner to make any changes to the property, you may not be allowed to bring pets or sublease, and you also need to be aware of the remaining time. re-contract for many years because the renewal will incur a fee. .

Popularity at the regional level

However, rental housing is very popular in some parts of the real estate market. At the regional level, subleasing accounts for half (47%) of the total houses sold in London for the past 12 months.

The capital also accounts for the top 10 rental home rental hotspots, with the City of London seeing renters accounting for 99% of all homes sold last year.

Tower Hamlets (91%), Westminster (85%), Camden (80%), Hackney (80%), Islington (77%), Kensington and Chelsea (75%), Lambeth (72%), Hammersmith and Fulham (70 %) and Southwark (69%) also saw the highest rental sales as a percentage of all transactions.

But it’s not just London, where rental homes have become ubiquitous. Outside the capital, Oldham has seen 67% of all transactions come through the sale of homes to rent. Other regions ranked with high number of rental transactions include Bolton (65%), Hyndburn (62%), Bury and Burnley (61%).

Property to rent is not for everyone, but is preferred

COO’s Warwick EstatesEmma Power commented:

The choice between lease or free ownership will be part of a buyer’s designated criterion when searching for a market, like deciding to buy close to a good school or choose to buy one. Home page.

Rental properties are not for everyone due to their more complex nature. That said, our research shows that rentals have proven to be extremely popular in many sectors of the real estate market, accounting for half or more of all transactions in multiple field.

Rentals are definitely suited to a certain lifestyle, offering a less practical approach to home ownership With free owner responsible for the general maintenance of the building. We’ve also seen the community side associated with rental life increasingly popular due to lockout, allowing home buyers to stay at a certain level of normalcy and interactivity without breaking lock restrictions.

In many cases, they also offer much more affordable rates and so we expect rental properties to continue to provide a substantial level of housing to home buyers nationwide. “

Source: Land registry Price Paid real estate transaction records – Sales of single-family property excluding properties classified as ‘other’ (March 2020 to February year 2021 – latest available data)

Sale of houses for rent

Source: Land registrar Price Paid real estate transaction record – Sale of individual residential property excluding properties classified as ‘other’ (March 2020 to February 2021 – latest existing data)

House for rent

Source: Land registrar Price Paid real estate transaction record – Sale of individual residential property excluding properties classified as ‘other’ (March 2020 to February 2021 – latest existing data)

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