This article by the Property Wire on September 26th, 2013 shows that
according to the new index from the Office of National Statistics
private residential rental prices paid by tenants in the UK rose by 1.2%
in the 12 months to August 2013.
Excluding London, were rents are higher than the rest of the country,
rental prices were up by 0.8% during the same period, the data also
shows.
There were also regional variations with rental prices up
by 1.3% in Scotland and Wales and by 1.1% in England. But within England
rental prices were up 1.9% in London and 1.1% in the South East of
England.
The Index of Private Housing Rental Prices (IPHRP) is a new
experimental index that measures the change in price of renting
residential property from private landlords and calculates changes in
the prices paid by tenants for renting private housing instead of
calculating changes in the latest agreed rental prices.
The
index examines how much tenants in privately rented accommodation pay in
a month compared to the same month in the previous year. ‘This is a new
official statistic undergoing evaluation and therefore it is
recommended that caution is exercised when drawing conclusions from the
published data as the index is likely to be further developed,’ said an
ONS spokesman.
The index report says that the large weight that
London has in the overall data reflects its high average rental prices
and its large volume of private rented property.
All the regions
in the UK have experienced rises in their private rental prices since
2011 and since January 2011 England rental prices have increased more
than those of Scotland and Wales.
Until April 2013, the annual
rate of change in the IPHRP had been higher in England than in Scotland
or Wales. However, the annual rate of change has been increasing in
Wales and Scotland since late 2012 and is, in August 2013, higher in
these countries than in England.
The IPHRP series for England starts in 2005. Private rental prices in
England show three distinct periods: rental price increases from January
2006 until November 2009, rental price decreases from December 2009 to
November 2010, and increasing rental prices from December 2010 onwards.
Of these three periods, 2008 showed the largest rental price increases.
Excluding London, England showed an increase of 0.7% for the same
period. From August 2012 to August 2013 private rental prices increased
in the nine English regions.
The data also shows that rental price
increases have been stronger in London and the South East than the rest
of England since January 2011.
The figures highlight the heat
building in the London market, according to Jonathan Hopper, managing
director of property finders, Garrington. ‘During the Autumn we are
expecting to see increasing pressure from those wanting to rent as
supply tightens leading to a further firming of rental prices,’ he said.
Article Source: http://www.propertywire.com/news/europe/uk-residential-private-rents-201309268283.html
Showing posts with label residential property. Show all posts
Showing posts with label residential property. Show all posts
Friday, 27 September 2013
Thursday, 18 July 2013
Five top tips for student landlords
In this July 17, 2013 article of Your Money by Simon Thompson, director of Accommodationforstudents.com, offers some essential advice.
Renting to students can be a profitable venture but it pays to be prepared.
1. Do your research first
Many prospective student landlords see the pound signs clocking up, but often fail to see the downsides of running a property business. A property business is just that - a business. All the general rules of running and marketing a business apply to student landlords as much as they do any other business. The key to a successful business is understanding your customers and providing them with the right products and services at a reasonable price. Student letting is about providing decent property in the right location at the right rent.Running a successful student letting business offers no easy way to riches. Student landlords work long hours sourcing, renovating and maintaining their property. After hours, someone needs to keep up with ever-changing letting laws and complete the accounts and tax returns.
Before buying a property, every prospective student landlord should sit down and make some tough decisions - the first two are where to invest and who will take on the day-to-day management of the rental business.
2. Pick the right property
Student lets is a growing market which has attracted many investors who have recognised it as an opportunity that can deliver yields of up to 10%, far greater than other property type. However, sourcing student property can go against the grain for property investors who do not realise the needs of their market. Students like to share in groups of generally three or more. The ideal student let sleeps at least three people, which puts many standard homes with three bedrooms in the frame. However, with the profitability of a student let determined by the number of bed spaces, larger Houses in Multiple Occupation (HMOs) which benefit from multiple rents, can often seem like the most attractive option.Property investors need to bear in mind financial considerations such as buying a property that will appreciate in value over time and that is the right type of home in the right location. Investors need to weigh up their options and calculate the potential rental yield, rent cover and loan-to-value to establish whether a property is worth pursuing.
3. Keep good financial records
A landlord also has a legal obligation to keep good financial records and to declare any profits to the tax man. Keeping good financial records from the start of a property business is vital. Failing to keep track of income and expenses is likely to lead to paperwork spiralling out of control. Landlords can also face unnecessary fines and penalties for failing to keep good business records and making mistakes on tax returns. Worst of all, poor records can lead to paying too little or too much tax.For individuals, the options are sole purchaser, buying as joint tenants or tenants in common. When considering the best tax-effective ownership for a property, always look at the bigger picture and how your decision will impact other tax issues.
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"There is no great love in investors' minds for Europe. However, we believe Europe will prove itself to investors again.
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
"Last year Europe faced existential currency and political risks, endless emergency summits, policy volte faces, and a general sense of teetering on the edge of an abyss.
"Since the low on June 1 last year, the MSCI Europe ex-UK index is up 43% in sterling terms. Yet the general feeling of mistrust lingers.
"Draghi's ECB is possibly the only European institution with market credibility. The market rally has climbed a wall of worry including the left-field results of the Italian election, and the farce that was the Cypriot bail-out. But climb it did. What is required to see markets climb further?
"The good news is that we don't need to love Europe in order to invest in it.
"At current levels valuations are so cheap on a cyclically adjusted basis that I believe the environment simply needs to be ‘less bad' for Europe to be an attractive case. We could point out that Europe is chock-full of world class companies, which have international exposure, and are (thankfully) run by first-class managers not politicians, but that has been the case for a while and it hasn't persuaded investors thus far.
"As investors we have one role - that is, to find under-valued assets, whatever those assets might be. Most appear to be persuaded that bonds are intrinsically over-valued. Equally, many seem persuaded that equities are, at this point, a cheap asset class.
"What fewer seem to accept is the fact that Europe today is the global value play, and within Europe itself, there are areas of the market which sit at generationally low valuation levels.
"On price/earnings adjusted on a 10-year through-cycle basis, Pan-Europe is 25% cheap, Economic Monetary Union block is 37% cheap, but Italy and Spain are currently sitting in the range of 50-60% below their long-term average Shiller PEs2. So, after 5 or so years of economic trauma, with car sales, TV advertising, and property markets falling in some cases 50% plus, these markets are trading at trough multiples on trough earnings.
"At Invesco Perpetual we are pragmatic and open-minded as to the sources of sustainable dividend income across Europe. Valuation, yield and dividend growth opportunities in Europe are in our view attractive, but not necessarily in the ‘traditional' income sector. Where we currently see most potential is financials, the periphery and selected cyclicals where dividend revisions are improving, and valuations and pay-out ratios are low.
"Crucially, expectations in some of the cheapest areas of the market are modest if not outright pessimistic. Positive momentum comes in two ways; good things getting better, and bad things getting less bad.
"Ultimately we believe Europe will prove itself to be loveable again." - See more at: http://www.investortoday.co.uk/news_features/investors-told3A-dont-write-off-europe#sthash.qumMNepN.dpuf
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