UK rental market goes from strength to strength

More investors buying retail property

Borrow up to five times your salary

Agents concerned by prospect of a rate rise

UK population continues to rise through migration

Office rents set to surge by 30%

Land Registry launches house price index

UK rental market goes from strength to strength

The UK residential rental market remained strong during the third quarter of 2006, according to a new quarterly letting survey.

The National Association of Estate Agents (NAEA) reveal that increasing property prices combined with an influx of Eastern European immigrants has continued to fuel the rental market.

NAEA reports the time it takes to let a property has fallen over the last quarter to an average of 12.2 days, down from an average of 13.2 in the first quarter and 13 in the second.

The third quarter is traditionally the busiest time for lettings agents with many people aiming to occupy new homes before the start of the school year and many students returning to their studies. July and August were steady with the average reported at 12.6 days, pace increased in September with an average of 11.6 days.

The report also suggests that rents increased by an average of 1.45% per month in the third quarter.

Jan Bartlett, letting expert at the National Association of Estate Agents said: "The lettings market has seen many significant changes in the last twelve months. The introduction of licensing of houses of multiple occupation, tenancy deposit schemes and the housing health and safety rating system, have and will have significant impacts upon the market.

On the whole the sector is performing well with many agents reporting significant improvements in business. The mass influx of Eastern European immigrants has boosted the market and of course, the ever increasing average age of the first time buyer has assisted in an increase of buy to let investments."

More investors buying retail property

The number of investors buying retail property increased during the third quarter of 2006, the end of September, despite the fact that demand from retailers for new shop floor space fell for a ninth straight quarter, according to a new report.

The Royal Institute of Chartered Surveyors (RICS) reveal that 28% more surveyors reported a rise in retail property sales than a fall, up from 25% during the previous quarter. However, 9% more respondents reported a fall rather than a rise in demand for new retail space.

RICS economist Oliver Gilmartin said: "Buyers of shops are confident that interest rate rises will not dampen consumer spending, with some signs that the fall in retailer demand for shops has bottomed out."

Borrow up to five times your salary

UK borrowers can now take out a mortgage worth as much as five times their salary with Abbey, the UK’s second largest mortgage lender.

The mortgage will be available to individuals or couples with a 25% deposit for their home and an annual income of at least £50,000. While good credit ratings and low debt levels are necessity, said Abbey.

Agents concerned by prospect of a rate rise

The National Association of Estate Agents (NAEA) has issued a warning to the Bank of England (BOE) not to raise interest rates later this month (November).

The Bank's Monetary Policy Committee is expected to raise rates by a quarter per cent to 5%.

UK population continues to rise through migration

Over 1,500 immigrants arrived in Britain everyday during 2005, according to a recent report.

The Office for National Statistics reveals that 565,000 people legally came to live in the UK last year, while an estimated 380,000 people, half of which were Britain's, opted to move abroad. It means that Britain's net migration rose by 185,000 during the whole course of 2005.

The largest groups of foreigners came from India, Pakistan, Bangladesh and Sri Lanka, accounting for two-thirds of inward migrants.

The figures were obtained through an International Passenger Survey conducted at ports and airports.

Around half a million people from overseas are believed to be working in Britain illegally.

Office rents set to surge by 30%

Office rents in the City of London are set to soar by 30% over the next two to three years, according to Jones Lang LaSalle (JLL).

The research which is due to be published this week will show that rents per sq ft for grade-A City offices are forecast to rise to over £70, the highest level in almost two decades.

Neil Prime, Jones Lang Lasalle’s head of office agency, said: “Prices are being driven up by the return in demand by financial services firms across the board. It is simple economics of more demand and less supply.

“However, there will be a lag in new space becoming available. We look set to see selective shortages in some areas of the market, driving rents up sharply.”

Land Registry launches house price index

The Land Registry has launched its first official, independent House Price Index (HPI).

Using Land Registry's comprehensive property data, the new seasonally-adjusted index will appear monthly, making average house prices available at national, regional, county and London borough level.

Ted Beardsall, Land Registry deputy chief executive, said: "The Land Register provides the most complete set of house price data for England and Wales. We believe that our new House Price Index is more timely and will become the authoritative and most accurate reflection of average house price movements in the country."