Rightmove Property Blog » Consumer Confidence Survey

Rent growth set to ease as just one in four landlords intend to put their rents up in 2013

clairep — Mon, 03 Dec 2012 08:30:19 +0000

Rightmove’s latest Consumer Confidence Survey provides the strongest indication yet that landlords are tempering their rental expectations for 2013. Just one in four landlords (25%) indicated that they had already decided to increase their rents over the next year, with only around a third of these (35%) planning a rental increase of more than 5%.

Taking all landlord intentions into account the average rent looks set to change by about +2% next year. However, most tenants will hope their landlord is one of the more ‘benevolent’ majority (61%) who is planning to hold existing rents. 14% of landlords state they are still undecided, though with only 1% expecting to actually reduce rents, the majority of tenants can hope for standstill at best.

Miles Shipside, director and housing market analyst at Rightmove comments:
“The widening gap between tenant demand and rental property supply over the last few years has fuelled upwards pressure on rents. However, the majority of landlords now seem to be prepared to exercise constraint and are planning a ‘rent freeze’ for 2013. Lettings agents still report consistently high demand but more are warning landlords of the risks of squeezing tenants’ finances too hard. However, some tenants in rental hotspots like London and Manchester may bear the brunt of higher rises. This combination of apparent benevolence and bullish hotspots may give a less racy rent rise outlook overall, but does not mask the fact that some tenants are again in for a rent rise shock.”

Rightmove data shows that average rents have now increased by 13.64% between Q3 2009 and Q3 2012 as demand continues to outstrip supply. However, Rightmove also finds that, on average, existing tenants spend around 39% of their monthly take-home pay on rent and more than a fifth (22%) currently spend more than 50% of their monthly earnings (after mandatory deductions) on their rented-roof. With the private rented sector representing a secure place for investors, especially relative to other investment classes, landlords may now be considering that holding onto a long-term ‘good tenant’ is preferable to pushing rents even higher and running the risk of void periods.

Shipside comments:
“Landlords appear to be becoming increasingly aware of the need to strike a balance between long-term security and short-term gains. They need to weigh up whether it is better to ‘stick’ and hold rents for a model tenant or ‘twist’ and chance a rise and run the risk of ending up with a less desirable occupant, or even a void. Interestingly, around one in four landlords is an ‘accidental landlord’, and with 9% of landlords stating they are actually tenants themselves, perhaps this growing band of non-professional landlords is more sympathetic to tenants’ rental price concerns?”

Read the full report here.

Proportion of price optimists forecasting higher prices increases from 22% to 29%

clairep — Mon, 29 Oct 2012 15:39:37 +0000

Rightmove’s latest Consumer Confidence Survey of more than 33,000 home-movers finds that the proportion of respondents expecting average asking prices to be higher a year from now has risen to 29%, up by 7 percentage points on a year ago.

Read the full report.

Despite an increase in optimism on prices, overall opinion remains divided; while 26% expect average prices to be lower and 29% expect prices to be higher in a years’ time, 41% expect prices to be about the same. Many ‘price optimists’ – those anticipating higher prices – point to an improvement in the mortgage environment as grounds for their view of upwards price movement. Those anticipating an ‘improved mortgage market’ are up from 28% at the start of 2012 to 32% as we approach the end of the year.

Miles Shipside, director and housing market analyst at Rightmove, comments:
“Those predicting a pick-up over the next 12 months will no doubt have hopes that the Funding for Lending Government scheme will provide the seed-corn that will encourage more lenders to scatter more mortgage products onto the volume-barren housing landscape. The mixed bag of local market conditions however, coupled with this patchy picture of sentiment, does nothing to suggest that an overall housing market recovery is looming on the horizon despite the wider economy officially emerging from the double-dip recession.”

For more information, click here to read the full report.

Growing market mismatch as two in five sellers state they are looking to trade down

clairep — Mon, 21 May 2012 13:31:51 +0000

Research by Rightmove reveals that two in five of those who intend to sell over the next 12 months are motivated by a desire to ‘trade down’. The statistics were gathered as part of Rightmove’s Consumer Confidence Survey and were reported in the Rightmove House Price Index for May.

Respondents who stated they intend to sell over the next 12 months were asked their main motivation for moving. Those ‘trading down’ include the traditional three Ds – Death, Debt and Divorce – as well as home-movers stating retirement, equity release and smaller property needs as their main motivation. This compares to only one in four who are looking to ‘trade up’, which groups growing family, more space and school requirements amongst people’s stated selling motivations.

Rightmove director Miles Shipside observes:
“We have an ageing population, with more old people at the top of the chain trying to downsize and fewer at the bottom trying or able to trade up. Some people may be facing redundancy and looking to reduce their outgoings, and others may be looking to supplement their underperforming pension pots. The borrowing difficulties now facing traditional trader-uppers is making the mismatch greater, while downsizers face fewer issues as they are looking to release capital rather than borrow more. As well as being a reflection of the current mortgage squeeze preventing more people from trading up, age demographics are also a major and growing factor, which will exacerbate the mismatch and lead to further market deadlock. The baby boomer generation, who have been considerable beneficiaries of housing equity growth, are now of an age where they are contemplating trading down. The number and financial ability of trader-uppers to balance the numbers of those who now wish and are able to trade down appears to be out of kilter.”

Trading down was the main motivation for moving in nine of the ten regions of the UK. Only in London does trading up come top of sellers’ requirements, providing further evidence of the two-speed housing market in the UK. London is generally more affluent and has a higher concentration of equity-rich homeowners with the means to move. Across the rest of the UK there is a greater level of activity from those looking to trade down. Two in five of those who intend to sell in the London area in the next 12 months is to ‘trade up’. Their motivation includes growing family and space requirements, including schooling. This compares to just less than a third who are looking to ‘trade down’.

Shipside adds:
“With more Londoners looking to trade up rather than down, there will be further upwards price pressure if the supply of suitable property for sale, both new build and resale, is not increased. With all other regions of the country having more down-traders than up-traders, this is further evidence of the two-speed housing market in the capital compared to the rest of the UK. The greater concentration of affluent equity-rich buyers in London means it is more likely they can afford to trade up in their quest for a larger home and the associated benefits.”

Home-movers believe prices are still above ‘fair and reasonable’ levels

clairep — Sun, 13 May 2012 10:58:19 +0000

Although the proportion of home-movers expecting house prices to increase is at its highest since autumn 2010, many feel property values in their local area are pricey.

Nearly half (46%) of those surveyed in Rightmove’s Q2 Consumer House Price Forecast stated they feel property prices in their local area are above fair and reasonable levels.

Miles Shipside comments:
“In spite nearly half of people stating they think property prices are top heavy in their local area, the overwhelming view is that property prices will be the same or higher in a years’ time. Those that are active in the market are perhaps looking in the better areas so their view is likely to be influenced by more buoyant conditions in cash rich locations. The less active deposit-poor areas will be those where prices will have to be dropped if a seller is keen to sell.”

View the full report here.

Suitable stock emerges as the major buyer concern

clairep — Sat, 12 May 2012 10:57:44 +0000

Half of those intending to buy in the next 12 months state that finding a suitable property to buy is their single biggest concern according to Rightmove’s Q2 Consumer House Price Forecast.

This figure has risen consistently from 36% two years ago and 44% a year ago to 50% now. Rightmove has previously reported that fresh property choice coming to market remains subdued at around 35% below 2007 pre-credit-crunch levels. The most active buyer markets tend to be those where the cash-rich wish to live, leading to suitable property shortages and rising prices.

Rightmove director Miles Shipside explains:
“Those looking to buy this year say their biggest concern is finding a suitable property to buy. This is leading a big chunk of those at the sharp-end of the property market to forecast higher prices as the lack of suitable choice will encourage them to pay a bit more to secure the right home when they find it. Those who can proceed will often be competing in the same locations as other deposit-rich buyers which could lead to increased rivalry for the most appealing properties.”

Click here to view the full report.

House price confidence is strongly influenced by mortgage-related factors

clairep — Fri, 11 May 2012 15:51:37 +0000

The extent to which the mortgage market can influence house-price confidence is highlighted in Rightmove’s Q2 Consumer House Price Forecast.

Rightmove found that 35% of home-movers expect prices to increase over the next 12 months and 20% expected prices to fall, however when the respondents were asked to explain the main reason for their price predictions both groups cited mortgage-related issues. Among the price-optimists, 35% report an improving mortgage market and a further 14% identify continued low interest rates as the main reason for their view that prices will be higher 12 months from now. Mortgage-related concerns are even more prevalent amongst price pessimists with nearly two-thirds (64%) collectively citing the following reasons for their negative price outlook: little or no improvement in mortgage availability (33%), high deposits required by lenders (16%) and fear of interest rates rising (15%).

Miles Shipside comments:
“The mortgage market continues to occupy home-movers’ thoughts and there is evidence here that house price confidence is steered by their interpretation of mortgage availability. How you read it, which probably depends on whether you are ‘included’ or ‘excluded’ as mortgage-worthy by the lenders, seems to determine what you think will happen to prices. Those with larger deposits will naturally have a more positive interpretation of access to finance and, therefore, prices.”

To view the full report click here.

It’s a buyers’ market, but especially in the north

clairep — Mon, 30 Jan 2012 12:37:26 +0000

Rightmove’s first Consumer Confidence Survey of 2012 was released today and finds that the public believes the property market balance of power currently lays firmly with buyers.

Over 60% of respondents are of the view that it is a ‘buyers’ market’ and just 13% a ‘sellers’ market’. There is also evidence of increased price confidence in the property market with the proportion of those forecasting prices to be the same or higher in 12 months’ time edging up to 66% from 62% a year ago. However, deeper analysis shows that both findings mask some significant regional and local variations which provide further evidence of an acute north-south divide and a property market pock-marked with localised micro-markets.

Shipside adds:
“On the surface it looks as though potential home movers are feeling a bit more positive about the outlook for property prices. However, hidden beneath is the real story that different market segments are performing very differently and that in all probability your price predictions will depend on your own local micro-market. While parts of the stock-starved south, and London in particular, are feeling relatively bullish about prices, the turmoil of the last few years has wreaked havoc in parts of the buyer-blocked north.”

It is worth considering the variations in national, regional and local price outlooks in the context of confidence. Rightmove’s survey asked respondents to indicate whether they believed that current market conditions favour buyers, sellers or whether the balance was about equal. 60% indicated that they felt that the ‘balance of power’ lay with buyers, and just 13% with sellers, giving a ‘market balance ratio’ of 5.4:1 – or 5.4 people who believe it is a buyers’ market for every one person who believes it is a sellers’ market.

Shipside comments:
“There is a clear north-south divide in both house price expectations and an even more acute contrast of opinion in where the balance of power lies. A shortage of stock and greater numbers of proceedable buyers lead those in the south to anticipate upwards pressure on prices and so a more tricky market for buyers to negotiate a price reduction in.”

To view the full report click here.

Rightmove Places – UK’s Top 10 places for Safety

clairep — Fri, 15 Jul 2011 11:59:32 +0000

This week sees the full launch of Rightmove Places, Rightmove’s new community website which gives you the chance to share and discover things about your place and get involved in the local community.

As part of sharing and discovering information about a place, Rightmove Places allows users to rate each location on a variety topics. Rightmove recently asked over 25,000 people to tell us how their local place rated on some these topics, and to celebrate the launch of Rightmove Places we’ll be revealing the results throughout this week.

Today we reveal the UK’s Top 10 places for Safety…

And the winner is... Exeter!

Residents of Exeter enjoy low crime levels where neighbourhoods and public spaces tend to be clean, safe and green, with minimal litter and graffiti. The design of buildings and public spaces in the historic city help to reduce crime and make people feel safer. Plymouth came in third place showing that Devon is commonly believed to be a safe place to live.

Who doesn’t like to feel safe in their local area? Check out this stunning family home in the heart of Exeter that is sure to make you feel safe and sound!

Disagree with the findings? Search and rate your local area now – www.rightmoveplaces.co.uk.

How did we compile the rankings?

As part of Rightmove’s quarterly Consumer Confidence Survey, we asked over 25,000 people rate their nearest town or city on a variety topics such as Parks & Outdoors, Character, Shopping, Nightlife and Safety. Ratings were given on a scale of 1-5 and we averaged out the ratings by number of respondents in each location (places with a sample size of less than 100 respondents were left out) to give a league table of scores for each category. To celebrate the launch of Rightmove Places we’ll be revealing the winning locations in some of these categories over the course of the week. Be sure to check out the previous entries to see how if your local area appears in any of our top 10 charts.

Don’t forget to check out Rightmove Places to get involved in your local community and tell people what you think about your place!

Rightmove Places – UK’s Top 10 places for Drinking & Nightlife

clairep — Thu, 14 Jul 2011 08:50:42 +0000

This week sees the full launch of Rightmove Places, Rightmove’s new community website which gives you the chance to share and discover things about your place and get involved in the local community.

Today we reveal the UK’s Top 10 places for Drinking & Nightlife…

And the winner is... London!

With its bustling bars, eclectic atmosphere and vast array of choice, it’s clear why London was chosen as your top spot for Drinking & Nightlife. Once again London takes up 4 spots in our top 10; the sheer size of the city means that it caters for everyone. Whether you fancy posh cocktails in Chelsea, a pint in Clapham or shots in Soho, London won’t disappoint.

If you like a tipple or two then check out this two-bedroom house in Battersea just a stone’s throw away from the action.

Do you think your local area is where it’s at when it comes to drinking and nightlife? Search and rate it now – www.rightmoveplaces.co.uk.

How did we compile the rankings?

As part of Rightmove’s quarterly Consumer Confidence Survey, we asked over 25,000 people rate their nearest town or city on a variety topics such as Parks & Outdoors, Character, Shopping, Nightlife and Safety. Ratings were given on a scale of 1-5 and we averaged out the ratings by number of respondents in each location (places with a sample size of less than 100 respondents were left out) to give a league table of scores for each category. To celebrate the launch of Rightmove Places we’ll be revealing the winning locations in some of these categories over the course of the week. Find out which location was rated number one for Safety in tomorrow’s blog.

Don’t forget to check out Rightmove Places to get involved in your local community and tell people what you think about your place!

Rightmove Places – UK’s Top 10 places for Shopping

clairep — Wed, 13 Jul 2011 16:18:58 +0000

This week sees the full launch of Rightmove Places, Rightmove’s new community website which gives you the chance to share and discover things about your place and get involved in the local community.

Today we reveal the UK’s Top 10 places for Shopping…

And the winner is... London!

It’s not surprising that when it comes to your first choice for shopping, London takes first place! Taking six spots on our top 10 list, the wide selection and diverse ranges that are found in London are clearly a fashion favourite! From the bustling (often ridiculously busy) vibe of Oxford Street, the luxurious stores in Knightsbridge and the kooky markets on Portobello Road, London proves why it is known as one of the fashion capitals of the world.

If you’re a bit of a shopaholic and want to take advantage of the endless array of boutiques and shops that London has to offer then you might fancy this bijoux apartment just off Oxford Street.

Do you agree with our findings when it comes to shopping or do you prefer somewhere to spend your cash elsewhere? Search for your own local area to rate it now – www.rightmoveplaces.co.uk.

How did we compile the rankings?

As part of Rightmove’s quarterly Consumer Confidence Survey, we asked over 25,000 people rate their nearest town or city on a variety topics such as Parks & Outdoors, Character, Shopping, Nightlife and Safety. Ratings were given on a scale of 1-5 and we averaged out the ratings by number of respondents in each location (places with a sample size of less than 100 respondents were left out) to give a league table of scores for each category. To celebrate the launch of Rightmove Places we’ll be revealing the winning locations in some of these categories over the course of the week. Find out which location was rated number one for Drinking & Nightlife in tomorrow’s blog.

Don’t forget to check out Rightmove Places to get involved in your local community and tell people what you think about your place!

Rightmove Places – UK’s Top 10 places for Character & Personality

clairep — Tue, 12 Jul 2011 15:35:35 +0000

This week sees the full launch of Rightmove Places, Rightmove’s new community website which gives you the chance to share and discover things about your place and get involved in the local community.

Today we reveal the UK’s Top 10 places for Character & Personality…

And the winner is... York!

York is packed full of Character & Personality and offers a wealth of historic attractions such as the York Minster, a world-famous gothic cathedral. The city is also enclosed within medieval walls, popular with walkers, and is likely to have helped York top the survey. Worcester (2^nd place for Parks & Outdoors) was also praised highly no doubt due to its picturesque cathedral and its position on the River Severn.

If you’re a home-hunter looking to take advantage of York’s character this 8 bedroom house with superb views may be of interest to you.

Do you have a different top spot for Character & Personality? Search for your own local area to rate it now – www.rightmoveplaces.co.uk.

How did we compile the rankings?

As part of Rightmove’s quarterly Consumer Confidence Survey, we asked over 25,000 people rate their nearest town or city on a variety topics such as Parks & Outdoors, Character, Shopping, Nightlife and Safety. Ratings were given on a scale of 1-5 and we averaged out the ratings by number of respondents in each location (places with a sample size of less than 100 respondents were left out) to give a league table of scores for each category. To celebrate the launch of Rightmove Places we’ll be revealing the winning locations in some of these categories over the course of the week. Find out which location was rated number one for Shopping in tomorrow’s blog.

Don’t forget to check out Rightmove Places to get involved in your local community and tell people what you think about your place!

Rightmove Places – UK’s Top 10 places for Parks & Outdoors

clairep — Mon, 11 Jul 2011 10:31:26 +0000

This week sees the full launch of Rightmove Places, Rightmove’s new community website which gives you the chance to share and discover things about your place and get involved in the local community.

Today we reveal the UK’s Top 10 places for Parks & Outdoors…

And the winner is… Bournemouth!

When it comes to Parks & Outdoors, Bournemouth has sandy beaches, proximity to the New Forest and large parks such as Dean Park and Meyrick Park, all of which no doubt helped the Dorset town come out on top in our survey. Bournemouth just pips Worcester to the number one spot, and was one of five south coast locations to make the top 10 alongside Exeter, Plymouth, Brighton and Portsmouth.

If you’re a home-hunter looking to take advantage of Bournemouth’s number of spot, you might like this
2 bedroom flat located in the heart of Talbot Woods or this
5 bedroom property with a huge garden on the edge of Queens Park

Agree or disagree with Bournemouth being the number one location in the UK for Parks & Outdoors? Why not tell people on www.rightmoveplaces.co.uk/bournemouth or search for your own local area and let people know how it rates – www.rightmoveplaces.co.uk.

How did we compile the rankings?

As part of Rightmove’s quarterly Consumer Confidence Survey, we asked over 25,000 people rate their nearest town or city on a variety topics such as Parks & Outdoors, Character, Shopping, Nightlife and Safety. Ratings were given on a scale of 1-5 and we averaged out the ratings by number of respondents in each location (places with a sample size of less than 100 respondents were left out) to give a league table of scores for each category. To celebrate the launch of Rightmove Places we’ll be revealing the winning locations in some of these categories over the course of the week. Find out which location was rated number one for Character in tomorrow’s blog.

Don’t forget to check out Rightmove Places to get involved in your local community and tell people what you think about your place!

Tenants expecting rents to increase

clairep — Tue, 31 May 2011 14:25:05 +0000

Rightmove’s latest Consumer Confidence Survey finds that nearly half (49%) of current tenants are of the opinion that average rents will be higher 12 months from now, providing more evidence of the continued strength of the rental sector. Whilst excellent news for landlords, the outlook for concerned tenants is darkened further by new analysis from Rightmove that confirms the continued supply and demand imbalance, with rental search activity up by two-thirds in the last two years whilst available stock is down by nearly a quarter over the same period.

Miles Shipside, director of Rightmove, comments: “Further rent rises appear to be looming for many, putting additional upwards pressure on the cost of living for tenants in these inflationary times. With such fierce competition for a dwindling stock of properties, those tenants that can play the trump cards of offering the highest rent and quality references will be best-placed to win the hand and secure the keys to the home they want.”

The proportion of tenants in this quarters’ survey predicting higher rents in 12 months’ time is 49%, with 15% of those anticipating rents to go up by 10% or more. Whilst marginally down on the 53% reported in the first quarter of this year, it continues the theme of increased landlord pricing power which tenants in our survey started to foresee two years ago. The cause of this upwards price pressure on rents, in terms of both tenant expectation and market reality, is most clearly demonstrated by a simple analysis of supply and demand over that period. Search requests for rental property are up by 64 percentage points compared with April 2009 whilst available rental property advertised on Rightmove has fallen by 23 percentage points over the same period. This imbalance between supply and demand has clearly not been helped by the on-going restrictions on mortgage lending which have decimated the number of buyers able to purchase, as well as hindering the ability of landlords to make investments. The result is that Rightmove’s Consumer Confidence Survey has recorded tenants forecasting higher rents nearly doubling from a base of 27% just two years ago.

Shipside comments: “Tenant competition in many locations is hot, partly as many tenants are staying in their current rented accommodation for longer, whilst less new stock becomes available. We see some new supply relief on the horizon in locations where capital values are low and rental yields are compelling enough to entice new landlords who are able to secure the necessary finance. However, this new supply to the market takes time to come through and is likely to be insufficient to meet demand.”

Prospective first-time buyer levels at their highest for 12 months in Wales

clairep — Mon, 23 May 2011 15:20:24 +0000

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that prospective first-time buyer levels are now at their highest for 12 months.

Each quarter Rightmove records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 survey found that 22.3% of people purchasing a home over the next 12 months in Wales will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. Although first-time buyers numbers remain down on traditional levels, the upturn offers an encouraging sign that things may be improving.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the figure hovering just above a quarter it means overall market volumes look set to remain muted. However, a jump of nearly 4 percentage points over the past quarter is a move in the right direction and a welcome sign that more first-time buyers in Wales feel the next 12 months will be the time for them to buy.”

The rise in the proportion of first-time buyers who look set to enter the property market in the next 12 months coincides with an increase in those expecting house prices to be higher over the same time period. Nationally, Rightmove’s Q1 2011 survey found that 21.9% of first-time buyers expected house prices to rise over the following year. This quarter the proportion of those expecting prices to be higher in 12 months’ time has jumped to 33.3%, indicating that many first-time buyers may be choosing to take the plunge and purchase their first home sooner rather than later before prices increase.

Shipside adds: “This quarter’s survey appears to indicate more first-time buyers are calling the bottom of the market. A significantly higher proportion of them now believe prices are set to increase over the next 12 months and so they are perhaps looking to enter the property market in greater numbers before their affordability deteriorates.”

For the second consecutive quarterly survey first-time buyers expressed that their single biggest concern in the property market is raising enough of a deposit to purchase. The proportion of those expressing this view remained the same as our Q1 survey at 44%, twice has high as the second highest concern which was finding a property to buy.

Shipside adds: “It is no surprise that raising enough of a deposit continues to be the major concern for first-time buyers, and more needs to be done to assist them on this front. Initiatives such as FirstBuy are a step in the right direction, although it is limited to just new build property which doesn’t assist the wider resale market. Encouragingly, our survey found that just under 40% of prospective first-time buyers stated they would be more likely to buy a new build property as a result of this scheme.

London first-time buyer levels remain high

clairep — Mon, 23 May 2011 15:17:02 +0000

Rightmove’s most recent Consumer Confidence Survey has revealed some encouraging news that first-time buyer levels in the capital remain are remaining high.

Each quarter Rightmove’s records the proportion of people who intend to buy over the next year who state they will be doing so for the first time. The Q2 Consumer Confidence Survey found that nationally 26.2% of buyers over the next 12 months will be first-time buyers, the highest level since the same period last year and an increase of almost 4% on Q1. In London the proportion was far higher with 42% of buyers stating they would be purchasing for the first time, an increase from 38.2% in Q1.

Rightmove director Miles Shipside comments: “The long term health of the housing market has depended on around 40% of purchasers being first-time buyers, so with the national figure hovering just above a quarter it means overall market volumes look set to remain muted. However, London first-time buyer levels are hitting the desired 40% mark thanks to greater wealth in the capital. This will greatly assist transaction numbers and lead to a far more active property market in London.”