BREAKING PROPERTY NEWS – 24/08/2022
Daily bite-sized proptech and property news in partnership with Proptech-X.
New research by Help me Fix has revealed the current cost of maintaining a property, shining a light on the proportion of rental income needed to keep a property fit for purpose.
The maintenance platform, helmed by Ettan Bazil, has stated that the average annual cost of maintaining a property in the UK is now £2,864. Its research shows that this is a 4.7% increase since the start of 2022. Contributing factors are increasing material and service costs.
Perhaps unsurprisingly, London has the highest maintenance cost, at £5,379 per year.
In the East Midlands, the cost has increased by 6% since the start of the year, the highest percentage increase across the UK.
The average rent in the UK is between £13,000 and £14,000, so using Help me Fix’s numbers, 21.2% of rental income is required to maintain a rental property. In the East of England, maintenance costs total 27.3% of the average annual rental income, closely followed by the South East (27%)
Ettan Bazil, CEO and founder of Help me Fix: “With inflation currently at a forty year high, the cost of maintaining a rental property has climbed by quite some margin since the start of the year alone. However, for many landlords and professional rental management firms, the escalating cost of materials has long been an issue.
“At the same time, the pandemic restrictions imposed during the numerous lockdowns have really shone a light on tenant welfare when it comes to the quality of accommodation. With the likes of the build to rent sector also driving standards upwards in this respect, it’s no longer acceptable to subject a tenant to subpar living conditions.
“So while maintenance costs are now swallowing a considerable chunk of a rental property’s earning potential, it’s a necessity that simply can’t be ignored.”
Estate Agent Networking partners with Property Tech Show
The ultimate property tech show is coming to London in February 2023 and Estate Agent Networking have been chosen as a media partner. The importance and the increase in interest of the subject #PropTech remains strong in 2022 and industry experts expect this trend to continue through 2023 and beyond. 15 – 16 Feb 2023 sees the Business Design Centre, London, UK hosting what will be one of the property industry’s highlight events of the year with both exhibition and conference dedicated to the subject of property technology.
“The surge in disruptive technologies in the past few years has led to the transformation of the real estate market, the industry is now seen as a tech-driven sector with significant developments taking place in areas such as construction, logistics, payment technologies, rentals, workspaces etc and most importantly the changes required to meet the sustainability pledges are hugely contributing to the technology transformation of the industry. In terms of investments, the PropTech segment currently is coming out to be the most sought after segment within the real estate sector and is growing at a rapid pace with a record-breaking increase in investments YoY.”
Watch out for regular updates from Estate Agent Networking regarding the show. To find out more about tickets and to register your interest in the show visit their website here today.
Altus Recognized as “Overall Real Estate Data Solution Provider of the Year” by PropTech Breakthrough
PRESS RELEASE: Altus Group Limited (ʺAltus” or “the Company”) (TSX: AIF), a market leading Intelligence as a Service provider to the global commercial real estate industry, is pleased to announce it was recognized as the “Overall Real Estate Data Solution Provider of the Year” by PropTech Breakthrough’s 2022 Awards program.
Altus Group offers solutions for complex challenges across the CRE lifecycle, combining deep industry expertise with advanced analytics and trusted technology. Altus Group’s data-driven intelligence solutions bridge the gap between now and next, equipping CRE professionals with the most relevant and timely insights available to improve performance and better manage risk of their assets. The Company’s data solutions leverage machine learning, automation, and predictive analytics to extract insights from data, enabling faster and more accurate decision making and amplify the ability to forecast and nowcast. Bottom line: this offers CRE leaders the ability to act quickly and astutely with rapidly changing markets.
“As one of the most established and trusted PropTech companies in the sector, Altus is deeply invested in driving CRE industry innovation. It’s an honour for Altus to be recognized in this year’s PropTech Breakthrough Awards, particularly in the data solutions category as that’s at the heart of our innovation,” said Jorge Blanco, Chief Commercial Officer at Altus. “The commercial real estate industry is at an inflection point and Altus is fortunate to be at the centre of it leading the charge in moving CRE intelligence from hindsight to foresight.”
The mission of the annual PropTech Breakthrough Awards program is to conduct the industry’s most comprehensive analysis and evaluation of the top technology companies, solutions and products in the real estate technology industry today. This year’s program attracted more than 1,500 nominations from over 12 different countries throughout the world. All award nominations were assessed by an independent, expert panel of judges, representing a mix of technical, business, academic and marketing expertise within the industry. The evaluation criteria for the PropTech Breakthrough Awards program were focused around the concept of innovation and nominees were also judged on performance, functionality, value and impact.
About Altus Group
Altus Group provides the global commercial real estate industry with vital actionable intelligence solutions driven by our de facto standard ARGUS technology, unparalleled asset level data, and market leading expertise. A market leader in providing Intelligence as a Service, Altus Group empowers CRE professionals to make well-informed decisions with greater speed and scale to maximize returns and reduce risk. Trusted by most of the world’s largest CRE leaders, our solutions for the valuation, performance, and risk management of CRE assets are integrated into workflows critical to success across the CRE value chain. Founded in 2005, Altus Group is a global company with approximately 2,650 employees across North America, EMEA and Asia Pacific. For more information about Altus (TSX: AIF) please visit altusgroup.com.
Rightmove News
Coastal areas see biggest affordability decline during pandemic
- Coastal local authorities have seen the biggest decline in first-time buyer affordability over the past three years, as house prices have outpaced average local salaries:
- Adur in West Sussex tops the list, where the average first-time buyer asking price is now 11.6 times the average local salary, up from 8.7 times before the pandemic
- Hertsmere is second, up from 9.6 times to 11.8 times the average local salary, and Richmondshire is third, up from 6.0 times to 8.2 times
- The majority of areas where first-time buyer affordability has improved are in London or commuter belt areas, due to lower house price growth and local salaries increasing over the past three years
- Across Great Britain the average first-time buyer type home has risen slightly from 6.9 times the average salary in 2019 to 7.2 times, though the average deposit needed has increased by 17%
- Demand for first-time buyer type properties is still up 32% versus 2019 despite affordability challenges and rising mortgage payments
Bills included becomes most searched for term and renters double search areas
- ‘Bills included’ has become the most popular renter search term, overtaking pets and gardens as a must-have for the first time, to help people have more certainty in their outgoings as the cost of living continues to rise
- The average size of area that people are looking in to find a new place to rent has almost doubled in size compared with four years ago, as a lack of homes and record rents mean they need to cast their net wider:
- In July 2018 the average search area was 70km2, and that has now jumped to 137km2
- The number of new rental properties coming to market continues to improve, up by 3% in July versus June, but the number of available properties is still currently 25% lower than this time last year
- The average asking rent outside London is 19% higher than two years ago, up from £949 per calendar month (pcm) to a record of £1,126 pcm
- With no signs of easing Rightmove is forecasting that nationally rents will end the year 8% higher than last year.
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