While London remains the least affordable city for renters, the capital has seen the largest improvement in rental market affordability over the past five years, Benham and Reeves analysis of ONS data shows.

In London tenants spend 35% of their income on rent, however the cost of renting in the capital has fallen from £1,495 in 2017 to £1,450 in 2022, while typical incomes have increased from £2,975 to £4,155 per month over the same timespan.

As a result the current level of income required to cover the cost of renting has fallen from 50% in 2017 to the 35% required today.

Marc von Grundherr, director of Benham and Reeves, said: “Rental market affordability has long been a problem for the nation’s renters and while the percentage of income required to cover the cost of renting may have fallen across a number of regions, it certainly won’t feel like the challenge of renting has become any more affordable.

“Yes, an increase in earnings may have helped to an extent, but there are many who simply won’t have benefited from this increase. At the same time, the cost of renting has climbed across every region but one, putting further pressure on tenant finances.

“With the government doing its best to deter landlords from the sector, a reduction in the level of available rental stock will have also helped to drive up the cost of renting and this is an issue that doesn’t look like it will be easing any time soon.”

Across England as a whole 26% of tenant income is spent on rent, a proportion that has stayed unchanged since 2017.

Improving affordability

It’s not just London that has seen a reduction in the level of income required to cover the average cost of renting.

In the East of England the proportion of income required to cover the average rent has reduced by -4%, as high incomes of £3,560 stood against typical rents of £865 per month.

Affordability also improved in Yorkshire and the Humber (-2%), the North West (-1%), South West (-1%), and East Midlands (-1%).

Worsening affordability

Tenant affordability has worsened in three regions, by 5% in the West Midlands, 4% in the South West, and 1% in the North West.

There’s likely been an influx of tenants moving to these regions in the past five years, shifting the balance of supply and demand.

It’s important to note that all these increases came from a low base.

Even after affordability became tougher for tenants, average incomes made up 29% of rents in the West Midlands, 29% in the South West and 26% in the North West – not far from the national average.

Source : PropertyWire

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The modular home estate being built for a Laois town, will be handed back for potential social housing in three years.

The open evening at Rathdowney library displayed images of the type of basic houses going into the field beside the town’s golf club. The long narrow 2 bedroom prefab flat roof homes, measure under 500 sq ft each.

They will come with fitted furniture, and have an open kitchen, dining, living area, a bathroom with shower and a single and a double bedroom.

The Government says that priority will be given to women and children who are already staying in Laois in emergency accommodation.

They are already on order with specialist manufacturers, confirms the Director of the Irish Refugee Protection Programme Eibhlin Byrne who was giving answers on the day.

She said that the houses are expected to be on site by April or May. Ukrainian refugees are expected to move in by July.

“They are here on emergency planning status. After three years, this land goes back to the local authority. We can’t stay after three years with the Ukrainian refugees.

Below: Eibhlin Byrne meeting Rathdowney residents at an information day on the Ukraine housing estate going into the town.

“The council have to decide whether to remove them or keep them as social housing. That will have to go out on public consultation,” Ms Byrne told the gathering.

“There is a big body of work to be done with schools and getting lots of different groups involved.

“But simply saying hello when meeting someone at a school, a warm hand of friendship, there is nothing more important.

“I think there is a positive welcome atmosphere here in Rathdowney, people are very open to welcoming people,” she said.

The houses have a lifespan of 60 years, according to a Goverment information leaflet. The homes are “well built, energy efficient and will enhance the local area on completion”. They say occupants will be mainly women and children.

Source: leinster express

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The UAE property market and particularly that in Dubai saw record-breaking transaction numbers over 2022, a trend experts are forecasting will continue into 2023.

Over 97,000 property transactions were recorded in Dubai in 2022 worth €67.38bn.

Despite the economic outlook globally, high-net-worth individuals have continued to invest in Dubai in the past 18 months, which boosted the luxury market.

Simon Baker, the Managing Director of real estate group Haus & Haus, told Euronews: “So we’ve seen huge sales growth last year, sales increase from 2021 to 2022, sales volume increased 76%.”

Real estate experts say a maturing market has driven demand inside the country from apartments to townhouse and villa communities with prices in 2023 expected to exceed pre-pandemic levels.

Cavendish Maxwell aggregates real estate data and market intelligence in the region and say the great performance is due to post-pandemic recovery.

Zhann Jochinke, Director of Market Intelligence & Research, Cavendish Maxwell, said: “The Market bottomed out at the end of November of 2020. Then we had the pandemic hit and the markets had to bounce up and it was driven by resales of villas and townhouses.”

Off-plan sales
He added that over the last 12 months, off-plan sales once again grew as a proportion of sales as many end users were priced out of the resale market.

Experts say there is a consensus as to why the city is outperforming international markets.

Simon Baker, Haus & Haus Managing Director, said: “We’ve had a lot more buyers from Europe, from the UK, from France, Switzerland, Germany, these countries. Again, politically, economically, in those places, their taxes are very high, huge inflation problems.”

Zhann Jochinke, Director of Market Intelligence & Research, Cavendish Maxwell, added that if you compare it to any of the major global markets, Europe, Hong Kong, Australia, and the U.S., all of those are more affected by their local market.

“They’re affected by their interest rates, their employment cycles. To buy in the UAE is very unique in the way we’re positioned with a large expatriate workforce. And in the real estate market, they’re building so much new product.”

Casual dining concept
Casual dining group Jones the Grocers started with humble beginnings in Australia over 25 years ago and has since expanded to 33 stores across the Middle East and Asia with a further 15 in the pipeline.

The company is due to launch its flagship store at London Heathrow. The CEO, Yunib Siddiqui, told Euronews that the specially developed concept site uses the best of what they have globally, plus adding a few components.

“Our strategy has been mixed. We’ve focussed both on franchise growth because we’ve invested a lot of money and resources in our training capacity, and in our brand compliance capacity, and we continue to do so. And the second part of our strategy is to grow company-owned stores, but very selectively.”

The company moved their global headquarters to Dubai after the stores in the region became the largest franchise segment.

“We put out seven stores in four years and our revenues were a significant big chunk of the global business,” Mr. Siddiqui said.

The CEO said there has been a big transformation in the casual dining scene over recent years, “First of all, the competition means that you’ve always got to be on your toes. Innovation, driving service excellence, food quality, and keeping in touch with global trends. This market moves very fast and we’ve got to move with it. You can’t rest on your laurels. You’ve got to keep on moving, keep on innovating,” he said.

Nuclear fusion project delays
A French-based project in nuclear fusion may be delayed for years as it seeks to repair construction faults, according to its boss.

The International Thermonuclear Experimental Reactor (Iter) project seeks to prove that fusion energy is scientifically and technically feasible.

The news that the Iter project has a further revised schedule comes just weeks after scientists in the United States announced an important technical breakthrough in their own research on nuclear fusion.

Iter was set up in 2007 – aimed at building the world’s biggest fusion machine creating carbon-free energy through a process similar to that of the Sun.

Fusion involves forcing together the nuclei of light atomic elements in a heated plasma held by powerful magnetic forces.

Iter’s goal was to create the necessary plasma by 2025, but bosses say that the deadline is being postponed after corrosion was found in some components.

Pietro Barabaschi, General Manager of Iter says, “I don’t like to give times, you know, without having a schedule from a contractor. We are speaking about something… the whole process here, it’s not a process that takes weeks, you know, it’s a process that takes many months and this could be, you know, a couple of years even.”

The delay comes as the US team working on a similar project had a breakthrough in December.

Mr. Barabaschi added that his team’s initial time frame was unrealistic, “It’s a matter of telling you that in essence, I know that it’s a substantial amount of time, but I don’t know precisely how much time. This is being analysed at this point in time, and until I have an analysis, you know I prefer not to pronounce myself.”

It’s hoped Iter will be able to make up for some of the delays as it prepares to enter the full phase, currently scheduled for 2035.

Source: euronews

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WASHINGTON–(BUSINESS WIRE)–Apartments.com – a CoStar Group company – today launched its official expansion into the Canadian market. The move marks a significant milestone for apartment searchers in Canada, providing them with a vast array of in-depth listings of rental properties across the country.

“Since 2014, Apartments.com has been a trusted, easy-to-use platform for in-depth information about rental properties and we’re excited to debut this digital platform in Canada”

This expansion of Apartments.com, the number one rental search platform in the United States, comes at a pivotal point in Canada’s multifamily property market. As the population continues to expand and tight market conditions drive rental increases, Apartments.com provides prospective tenants with the fastest way to research and contact properties. The upgraded renter experience will also help to support property management companies, as renters are given powerful new tools to make informed decisions on which property best meets their specific needs. This means leasing agents don’t waste time chasing poor quality leads or providing important information that could have been obtained much earlier in the search.

Apartments.com provides a new toolset to the Canadian real estate market, including immersive 3D tours of properties and units, comprehensive neighborhood profiles, building ratings and property reviews and architectural photography. Through this toolset, prospective renters can assess the walkability of neighborhoods, search nearby transit information, view listings in both French and English, and search neighboring restaurants, schools, and parks.

Apartments.com already features a large inventory of Canadian properties, and listings are expected to increase dramatically as more property managers are added to the platform. This listing inventory and the data associated with these properties is helping Apartments.com climb to the top of search engine results in key markets, supported by a strong paid search campaign that will also drive prospective renters to the site.

Apartments.com’s deep understanding of the market and in-depth analytics is backed by the industry’s largest professional research team, who shared top-line data about the Canadian market to best illustrate the current market conditions and why the Apartments.com expansion is needed:

Rental demand has increased forcefully due to surging population growth as the country re-opens its borders from the pandemic, but also rising mortgage rates that are making a new home purchase less appealing and financially viable.
New rental apartment construction is running at a historical high in Canada, with data showing more than 42,000 units under construction; In fact, Canada is building many more multifamily rentals than the US on a per capita basis.
A significant number of Canadians are looking for new alluring properties with the annual national rental growth reaching 8.3% in Q4 2022, especially in markets like Toronto and Vancouver.
“Since 2014, Apartments.com has been a trusted, easy-to-use platform for in-depth information about rental properties and we’re excited to debut this digital platform in Canada,” said Andy Florance, Founder and Chief Executive Officer of CoStar Group. “Canada is an important market and we’re excited at the prospect of providing millions of people with better listings, clear search results and a wealth of information to ensure a high-quality experience for all users.”

The launch is made possible through client partnerships with all the leading managers and owners in Canada. Apartments.com is committed to creating a completely national marketplace for renters in Canada and will continue making major marketing and technology investments throughout 2023, providing the most complete picture of available inventory across all types of properties, including multifamily and single-family homes, townhomes, and condos.

About CoStar Group, Inc.

CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X provides a leading platform for conducting commercial real estate online auctions and negotiated bids. LoopNet is the most heavily trafficked commercial real estate marketplace online. Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Westside Rentals, AFTER55.com, CorporateHousing.com, ForRentUniversity.com and Apartamentos.com form the premier online apartment resource for renters seeking great apartment homes and provide property managers and owners a proven platform for marketing their properties. Homesnap is an industry-leading online and mobile software platform that provides user-friendly applications to optimize residential real estate agent workflow and reinforce the agent-client relationship. Homes.com offers real estate professionals advertising and marketing services for residential properties. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. CoStar Group’s websites attract tens of millions of unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information.

About Apartments.com

Apartments.com is the leading online apartment listing website, offering renters access to information on more than 1,000,000 available units for rent. A CoStar Group company, Apartments.com network of sites include Apartments.com, ApartmentFinder.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, ForRent.com, ForRentUniversity.com, After55.com and CorporateHousing.com.

Apartments.com is supported by the industry’s largest professional research team, which has visited and photographed over 500,000 properties nationwide. The team makes over one million calls each month to apartment owners and property managers, collecting and verifying current availabilities, rental rates, pet policies, fees, leasing incentives, concessions, and more. Apartments.com offers more rental listings than any other apartments website, and innovative features including a drawing tool that allows users to define their own search areas on a map, and a “Travel Time” feature that lets users search for rentals in proximity to a specific address. Apartments.com creates easy access to its listings through a responsive website and iOS and Android apps and provides unmatched exposure for its advertisers through an intuitive name, strategic search engine placements and innovative emerging media.

The Apartments.com network reaches millions of renters nationwide, driving both qualified traffic and highly engaged renters to leasing offices.

This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar Group’s expectations, beliefs, intentions or strategies regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements, including the risk that Apartments.com is unable to attract as many additional property managers and listings in Canada to the platform as expected; and the risk that new rental construction, rental demand, or demand for the platform in Canada are not as expected. More information about potential factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, those stated in CoStar Group’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2021, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022, and September 30, 2022, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update such statements, whether as a result of new information, future events or otherwise.

Source: business wire

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One of Australia’s biggest finance experts has made three key predictions for interest rates and the housing market including a further 10 per cent fall in property prices.

Christopher Joye, co-founder of $7billion fund manager Coolabah Capital, accurately forecasted the Covid boom and subsequent fall in property prices.

But now he warns a string of interest hikes is still to come which will spark an economic crisis – and send house prices further downwards.

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Christopher Joye (pictured), who is the co-founder of Coolabah Capital, made three predictions about interest rate hikes and the fall in property prices

After nine consecutive hikes in interest rates, Mr Joye believes the Reserve Bank will hike rates three more times ‘before they pause and paddle’, he told The Barefoot Investor, Scott Pape.

Mr Joye says those interest rate rises will then have a significant effect on the economy which will be ‘widespread and painful’.

And for his third warning, he says that will trigger a fall in property prices of at least another 5 per cent to 10 per cent.

The latter prediction is in line with a previous forecast Coolabah Capital founder made.

‘Across the five capital cities, index prices are down 10 per cent right now, and they’re falling at more than 1 per cent a month. So we are one month away from the biggest losses on record in 40 years,’ he told Mr Pape.

Mr Joye claimed in October 2021 that property prices would drop between 15 to 25 per cent due to rate hikes from the central bank.

The pair were also critical of the Reserve Bank, with Pape saying the central bank had failed to ‘keep inflation from rising out of control’.

It comes as Aussie Home Loans founder John Symond predicts that house prices wouldn’t start rising again until 2024 – as he too blasted the RBA.

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Mr Joye claimed that property prices would fall another five to 10 per cent due to rate hikes (pictured, houses in Sydney)

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Mr Joye spoke with fellow finance manager Scott Pape (pictured), who is better known as the Barefoot Investor

Mr Symond, who founded Aussie in 1992, said the RBA would be forced to cut rates in 2024 to ward off a steep economic downturn, and that would cause house prices to rise again like they did in 2021 and early 2022.

‘I’m confident that this time next year, house prices will be stronger than they are now,’ he told Daily Mail Australia.

Mr Symond said the lead-up to rate cuts at the end of 2024 would be a signal to buyers to get back into the market.

‘Once they start coming off again, which probably will be towards the end of next year, mid to the end of next year and you see rates edging down by half a per cent, that will be a signal to home owners “we’ve got to have a hard look at this”,’ he said.

The Commonwealth Bank is expecting the RBA to cut rates by 0.5 percentage points in the December quarter of 2023, followed by two more rate cuts by the end of June 2024.

Mr Symond did not expect such a rapid reversal, and thought rate declines would not occur until late 2024 when the current rate squeeze would have caused a sharp drop in consumer spending, going close to triggering a recession.

‘If they continue going up over the next six months, they are taking that risk,’ he said.

‘I disagree with the governor when he said that interest rate rises aren’t felt straight away – Australia unlike Europe and the US, we’re a very, very, very housing-centric country and as soon as there’s an interest rate rise, it’s felt immediately.’

Just as rate rises hit Sydney and Melbourne first, Mr Symond said future rate reductions would also prompt a rapid re-investment in housing, with consequent price increases.

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Aussie Home Loans founder John Symond (pictured right with wife Amber) predicts house prices will recover again in 2024 when the Reserve Bank is forced to cut interest rates

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Mr Symond was scathing of Reserve Bank of Australia Governor Philip Lowe (pictured) for promising in 2021 rates would stay on hold until 2024 only to have since raised them nine times

Mr Symond predicted that when rates were cut in 2024, bank variable rates would drop by less than the RBA cash rate easing – as occurred in late 2008 during the Global Financial Crisis.

‘Interest rates, when they start dropping, you might find some of the banks might not drop the whole Reserve Bank amount,’ he said.

That’s because the banks and non-bank lenders source about 40 per cent of their funding from global money markets instead of from the Reserve Bank of Australia.

The banks’ global borrowing costs could mean they will likely be stingy in passing on the full rate reductions to mortgage holders.

But he said the banks would be unlikely to raise variable rates through 2023 in excess of RBA moves, regardless of what their borrowing costs might be.

‘In this environment when interest rates have gone up so sharply, in such a short period of time, the banks would not be game enough – they’d get slaughtered by both the media and customers,’ Mr Symond said.

When it came to the performance of the Reserve Bank, Mr Symond was scathing of Dr Lowe for promising in 2021 rates would stay on hold until 2024 only to have since raised them nine times.

‘The guy obviously knows his stuff but in this particular aspect of his job, it’s very unfortunate that this aspect is a very, very big and sensitive area of his role, he got it so wrong,’ he said.

‘On that, you’d have to mark him as a fail.’

Source: daily mail

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Despite the ‘new normal’ of higher interest rates, 2023 will continue to offer valuable opportunities to real estate investors who are strategic in their property selection.

Property markets in trade exposed capitals, such as Darwin (pictured), Perth and Brisbane are well poised to return to a growth phase.

Source: api magazine

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