According to a new report from Rightmove one in five households could be in private rental accomodation by 2016.

Over the last decade the number of people renting homes in the private sector has nearly doubled, rising from 2.5 million in 2002 to 4.8 million today. To meet the demand in 2016 an additional 1.1 million rental homes is estimated to be required.

The trouble is that the buy-to-let funding simply isn’t available to meet all of that demand, and so a shortage of properties is predicted, which leads to rent inflation.

Rents already rose on average by 5.1% last year across Britain, leading to some areas becoming unaffordable for certain groups of tenants. Shelter, the homelessness charity reported this month that renting a two-bedroom home in London requires a minimum income of £52,000, far above the average income of £35,000.

For landlords with property the continuing rent increases can be good news, particularly while interest rates remain low.

However for those wanting to break into the market the competition for lettable properties is growing, as is the demand for still relativesly scarce buy-to-let funding.

Demand from prospective tenants in and around Beaconsfield is strong and continues to grow but as with the national picture, the level of properties available isn’t keeping pace. This means that if you’re considering renting your property, or investing in a buy-to-let, now is an excellent time.

Spring brings with it an uplift in demand so if you want to make the most of the demand in the lettings market get in touch with our dedicated lettings team on 01494 685518 and we can give you an idea of the market for your property and offer you a free lettings appraisal.

According to the experts property transactions throughout the UK in 2012 are likely to be flat with predictions ranging from a 2% increase to a 5% fall in property prices.

As in 2011 there will be hotspots of activity where property will be in demand. The ongoing economic uncertainty in the UK and destabilising effect of the eurozone crises will continue to dampen confidence in the market. Mortgage lending is also expected to remain flat this year as the banks have been ordered by the Governor of the Bank of England to beef up their reserves with money earmarked for lending.

The latest credit conditions survey from the Bank of England suggests that although lenders plan to introduce more deals to help those with small deposits over the next 3 months, credit scoring criteria will get tougher limiting the number of borrowers able to secure loans. This approach has been evidenced by a slight fall in fixed rates for those with a 10% deposit with more lenders entering this market.

It is not all doom and gloom as those potential borrowers with a healthy deposit or equity in their home and with a good credit history should be able to secure some extremely competitive deals. For example a number of lenders are offering 5 year fixes under 4%.

One area expected to continue to grow this year is the Buy to Let market with banks and building societies keen to exploit the boom in the rental market.

Rents which already stand at a record high in some locations are expected to rise by a further 5% this year. Tenants unable to secure a mortgage are having to compete for houses to let. With Buy to Let lending accounting for 10% of lending last year this figure is expected to increase this year with new entrants to the market.

After a 3 year absence Santander have re-entered the market which sends out a positive message to the sector. Both rates and arrangement fees are falling as lenders bring out new deals to attract business.

Other positive changes to the market have seen some lenders prepared to lend up to 80% loan to value which was unheard of two years ago. We have also seen a new two tier approach to products and prices for higher income earners earning over £50,000 a year looking to secure Buy to Let finance.

As always it pays to take advice for the most appropriate deal to fit your circumstances.

National housing overview

House prices fell by just over 1% in 2011 and are expected to remain relatively unchanged in 2012, according to the latest Halifax index.

The price of the average house in the UK is now just over £160,000, thanks to a 0.9% fall in prices in December 2011 and a 1.3% drop over the whole of the year.

The findings contrast with that of rival lender Nationwide released just a week ago, which showed that house prices rose by 1% last year. As ever, these indices only give us an overview.

The differences are usually due to variations in the methodology used to collect the data and the definition of the “average house” on which the data is based.

Martin Ellis, Halifax’s housing economist, said: “Whilst there was a modest fall overall in prices during 2011 with an annual decline of 1.3% in December, house prices held up well last year in the face of the difficult and deteriorating economic climate and substantial pressure on households’ finances.

“If the UK can avoid recession we expect broad stability in house prices in 2012. There is, however, considerable uncertainty regarding the prospects for the UK economy which will to a large extent depend on how events in the eurozone unfold.”

The number of completed house sales rose to its highest levels in October and November 2011, according to the Halifax, with the number of sales in November the highest since December 2009. Something also reflected in our local experience, below.

The Beaconsfield property market

As reported nationally, November and December were much busier than usual, with sales continuing strongly right up to the new year. That has meant things are a bit quieter than usual so far in January but the real challenge is a shortage of properties – a happy problem if you’re looking to sell. Demand is definitely outstripping supply again. At the very least this will lead to stable prices in the area, it may even buck the small drop expected nationally.

If you’re thinking about selling, try our free marketing appraisal. We will create a bespoke property marketing plan for you, with no obligation, just good advice on what we think your home can sell for and the best approach to selling it in the current market. Call us on 01494 680018 or just drop into our office.

For the third year running Beaconsfield estate agents, Ashington Page, have won one of the top prizes in the UK’s leading property awards. Taking the prize once again for the region’s best single office agency they have now become the only estate agents in the UK to have won gold for their region three years in a row.

The judges, chaired by the UK Property Ombudsmen, Christopher Hamer, had this to say about Ashington Page’s continued winning streak.

“Ashington Page are perpetually successful at these awards and the judges were pleased to see its exceedingly high standards have been maintained and improved over the past three years, since it first won gold. It offers a consistent combination of great service, technology and training whilst continuing to seek and produce new marketing initiatives. State of the art photography and web technology has been embraced with real results seen through growth in more niche markets. The directors believe that, “small is beautiful”, and this is certainly the case with Ashington Page. Outstanding.”

We’d just like to say a huge thank you to everyone for all their lovely feedback and appreciation which help us keep winning these awards. This industry has always struggled with its reputation, but we have the privilege of helping people through one of the most important, if challenging, times of their lives; and when you get it right it makes a huge difference.

If you’re in Beaconsfield on Wednesday for the Festival of Lights do please pop in and join us for a celebratory glass of bubbly!