Written By Em

Em

Em Morley

Landlords Switching to Holiday Lets Could Cause Rental Crisis

Published On: January 31, 2020 at 10:11 am

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Categories: Landlord News

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Landlords Switching to Holiday Lets Could Cause Rental Crisis

An uptick in the number of buy-to-let landlords considering switching to short-term holiday lets is sparking concern in an industry where supply is already struggling to meet demand.

New research from ARLA Propertymark estimates that as many as 470,000 privately rented homes could soon be converted to short-term and holiday rentals, in part due to legislative and tax changes in the private rental sector (PRS).

ARLA Propertymark’s research, in conjunction with Capital Economics revealed that the number of active listings on Airbnb rose by 33% in the UK from 168,000 in 2017 to 223,000 in 2018, with London being the area of highest growth (almost four-fold between 2015 and 2019).

As the number of short-term lets increases, the brunt of the change is felt by residential tenants who find that they have less choice of long-term rental properties.

In the research, the landlords of 230,000 properties said that they were ‘very likely’ to make the move to offer short-term lets. A further 240,000 said that they were ‘fairly likely’, bringing the total to 470,000.

David Cox, ARLA Propertymark chief executive, commented: “The growth in short-term lets is particularly concerning for the traditional private rented sector. As landlords are continuously faced with increased levels of legislation, it’s no surprise they are considering short-term lets as a chance to escape this. 

“Unless the sector is made more attractive, landlords will continue to exit the market resulting in less available properties and increased rent costs.”

ARLA Propertymark has made the following recommendations to limit the impact of short-term lets on the private rental sector:

  • Carefully consider the impact of any future regulation that may incentivise landlords to start using their properties for short-term lets and thereby reduce housing supply for local people trying to find a home
  • Ensure a level regulatory playing field between short-term and long-term lets including protections for tenants and health and safety requirements
  • Ensure a level taxation playing field between short-term and long-term lets so there are no advantages for commercial landlords using their properties for short-term lets
  • Identify ways to improve enforcement of cases in which commercial landlords are not complying with local planning laws or the 90-day limit for short-term lets in London
  • Recognise that the impact of short-term lets on housing supply is not uniform across the country and ‘one size fits all’ regulations are unlikely to be optimal
  • Distinguish between using one’s primary residence for short term lets when the property is being under-utilised and commercial landlords renting out entire properties on a full-time basis
  • Monitor and track the number of entire properties on sharing platforms by hosts with multiple listings in different areas to inform future policy
  • Consider introducing limits on short term letting activities in areas in which there is a demonstrable impact on private rented housing supply.

‘Rumble with the Agents’ to raise funds for Inclusion Barnet

Published On: January 31, 2020 at 9:49 am

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Categories: Events,Landlord News,Lettings News

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Rumble with the Agents

Planning for this year’s Rumble with the Agents, a charity fundraiser hosted by Landlord Action and sponsored by Hamilton Fraser, is now underway.

The focus of this annual white-collar charity boxing event is to raise funds for Inclusion Barnet, a charity that provides vital support for those with a disability, including mental health issues and/or long-term health conditions.

Paul Shamplina, one of the key founders of Landlord Action, set the event up six years ago, running it alongside his wife Rita. He is now looking for ten individuals from the property sector to get involved and try their hand at boxing. Anyone interested should sign up by 7th February.

It’s free to take part and includes a fully structured and supervised boxing training program to ensure optimum physical fitness and teach participants the correct techniques will be provided by JA Boxing in north London.

Participants are not required to have any previous experience, just a desire to learn a new skill, get fit in three months and support an excellent local charity!

More information about Inclusion Barnet

Inclusion Barnet is a Deaf and Disabled People’s Organisation (DDPO), which means that their staff and trustees have lived experience of disability, including mental health issues and long-term conditions.  They use their lived experience to raise awareness and educate society about the barriers faced by disabled people and how people can work together to remove those barriers. 

Those living with a disability often find it very hard to access the services and resources they need to help them live the life they want to live, which is where Inclusion Barnet provides vital support.

Commenting on the upcoming event, Paul Shamplina says: “As many people know, I’ve been a keen boxer for many years. Boxing not only helps me keep fit, it’s a stress reliever, motivator, confidence builder and has taught me discipline. 

“I know an increasing number of boxing clubs are doing an outstanding job to ensure that the experiences they offer are fully inclusive, and that is why we feel that this year’s charity is a perfect fit for Rumble with the Agents 2020.”

Rumble with the Agents
‘Rumble with the Agents’ to raise funds for Inclusion Barnet

There will be five fights throughout the evening, which will each consist of three two-minute rounds. There will also be a three-course Neal, charity auction and raffle.

The event has raised a total of £93,000 to date for various charities. It’s open to agents, property professionals, suppliers and landlords and will take place on Thursday 21st May 2020. It will be held at Holiday Inn, Avenue Banqueting, 58 Regents Park Road, London, N3 3JN.

If you would like more information on how to volunteer to take part or donate something for the raffle/ auction you can email Rita Shamplina on info@rumblewiththeagents.co.uk or call 07790 569501.

Information about tickets can be found at www.rumblewiththeagents.co.uk.

Londoners Spend Less Time Living in One Place Than Any Other City

Published On: January 30, 2020 at 11:13 am

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Categories: Tenant News

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Unsurprisingly, Londoners Spend Less Time Living in One Place Than Any Other CIty

As part of a study into how happy British Homeowners and Renters are with their homes, the top cities where people don’t like to stay in the same house for too long were identified, and London came out on the top of the list.

More than 2,300 Brits took part in the survey, conducted by Duette which was aimed at homeowners and renters. When asked how long they typically rented a property for before moving on, the below cities in the UK were found to be the top movers who don’t like to stay in the same house for too long:

  1. London – 1 year (on average)
  2. Manchester – 1 year and 2 months
  3. Birmingham – 1 year and 6 months
  4. Nottingham – 1 year and 8 months
  5. Cambridge – 2 years
  6. Oxford – 2 years and 3 months
  7. Liverpool – 2 years and 5 months
  8. Newcastle – 2 years and 6 months
  9. Cardiff – 2 years and 10 months
  10. Bristol – 3 years

What’s more, almost two thirds of renters (63%) say they are satisfied with their current home, but almost a fifth (18%) are actively looking for a new place.

Affordability was found to be the top reason for wanting to move on (35%), while others say it was in order to move closer to work (28%) or for a better social life (17%). A lucky 10% move because they can afford to spend a little extra and live somewhere nicer. 

Almost a third say that the only thing keeping them in their current home is that they are tied in by contract, so can’t leave any earlier. 

Finally, nearly half (48%) of Britons who are currently renting are hoping to buy their own house in the near future, but 33% don’t believe they’ll ever be able to afford to buy their own home. 

Ashleigh Noon, spokesperson for Duette, commented:

“Renters are always going to move around more often than homeowners, purely because they have the luxury to be able to do so, whether that’s to move into a nicer home or to save money on what they’re already paying. While it’s great to hear that so many renters hope to own their own home one day, it’s a sad reality that one in three don’t believe they will ever have enough money to be able to buy – something that many Britons feel. Although, what’s interesting is that we are one of the few countries where buying a property is such an important life goal.”

Many renters unaware of the terms and conditions stated in their tenancy agreement

Published On: January 30, 2020 at 10:00 am

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Categories: Tenant News

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renters unaware

New research has highlighted that many renters are unaware of the exact rules laid out in their tenancy agreements. 

Hillarys, the interior specialists, surveyed 2,100 tenants to find 73% were not aware of what they had agreed to when signing the contract. 36% stated that they did not even know how to find a copy.

84% believe that they are currently breaking at least one or more of the rules determined by their landlord.

Being unfamiliar with the terms and conditions when it comes to the treatment of the property has led to the following statistics:

  • Hanging pictures/photos/art on the walls – 38%
  • Damaging or making alterations to the interior of the property without permission – 34%
  • Smoking inside of the property – 23%
  • Causing noise disruption to neighbours – 19%
  • Owning a pet – 14%

Tenants were also asked if they were aware of the current notice period stated within their tenancy agreement. 23% responded that they were unsure of how much time they would be given to move out if requested by their landlord. The same respondents also didn’t know how much notice they would have to give.

Lucy Askew, interiors specialist at Hillarys, said: “Thanks to rising house prices and the subsequent need for significantly large deposits, the reality of homeownership has become unachievable for a number of Britons, resulting in the need for rented accommodation. 

“Whilst it can be all too tempting to ignore the agreements made with a landlord in order to create a cosy atmosphere, rules are put in place for a reason, and failure to comply can put a tenancy at risk and could leave the tenant in question without a home.”

Landlords, how much time do you spend going through your tenancy agreements with new tenants? Do you ever find that they ask for more information on the terms stated to make sure they understand what they are agreeing to?

Hertsmere Borough Council launches FREE Central Heating Scheme 

Published On: January 29, 2020 at 11:03 am

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Hertsmere Borough Council launches FREE Central Heating Scheme

Residents in the Hertfordshire council district of Hertsmere could find themselves eligible for free central heating installation as part of the National Grid’s innovative Warm Homes Fund programme. 

Qualifying residents may be in receipt of certain state benefits (e.g. pension guarantee credit, income support, tax credits, etc.) or having a low household income (typically below £20,000 after rent or mortgage costs have been paid).

The programme is available to homeowners and renters that do not currently have radiators installed in their homes and extends beyond Hertsmere Borough Council to North Hertfordshire District Council; and East Hertfordshire District Council. 

Residents that currently rely on inefficient and costly room heaters, storage heaters or fires will be able to apply to connect their homes to a more cost-effective fuel and reap the benefits of an A-rated, energy-efficient heating system.

The scheme is also working alongside Cadent to install gas mains connections to qualifying residents. 

Emily Dillon, housing strategy manager, said: “We are delighted to offer Hertsmere residents the chance to keep warm for less. Improving their homes’ heating facilities is not only good for their finances but good for the environment too.

“The scheme will also improve the energy efficiency of properties in Hertsmere by installing modern mains gas central heating.

“Studies show gas central heating is three to four times less expensive than electric heating so this offer will help eligible residents lower their fuel bills.”

Hertsmere Borough Council, North Hertfordshire District Council and East Hertfordshire District Council have worked with Hertfordshire County Council and energy experts, YES Energy Solutions, to secure over £230,000 from the Warm Homes Fund.

Hertsmere Borough Council is providing matched funding to support installations in the area, whilst additional funding is being channelled through the Government’s Energy Company Obligation programme.
Householders interested in the opportunity are encouraged to contact YES Energy Solutions on 01422 880100 to see if they are eligible for support. Or get in touch via email at projects@yesenergysolutions.co.uk and go to www.yesenergysolutions.co.uk for more information on the scheme.

Number of tenants negotiating rent reductions reaches all time low

Published On: January 29, 2020 at 9:58 am

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Categories: Lettings News

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tenants negotiating rent reductions

A recent survey from ARLA Propertymark highlights that the number of tenants negotiating a rent reduction fell in December 2019.

It went from an already low 1.6% in November to 1.1%, making it the lowest figure since records began in January 2015.

It has also been noted that the number of agents witnessing rent increases remained at 32% in December. However, year-on-year results show that this is still a massive increase on December 2017 and 2018, as shown by this chart from ARLA:

Average number of tenants experiencing rent hikes in December year-on-year
Source: ARLA Propertymark

Demand from tenants

As well as a slight dip in negotiations, demand from prospective tenants fell last month. ARLA Propertymark recorded 56 prospective tenants registering per member branch in November, down from 67 in November.

Demand from prospective tenants has also fallen for member branches for the third consecutive month.

Supply of rental stock

Looking at available stock on the market, these results are more positive. The number of properties managed per branch rose last month from 203 to 206.

Year-on-year supply is also up from 200 in December 2017 and 193 in December 2018.

David Cox, ARLA Propertymark Chief Executive, has commented: “Since the tenant fees ban came into effect, our data shows that rents reached an all-time high last year.

“While we have seen a slight drop in the number of agents witnessing landlords increasing rents since then, overall rents remain high and now it seems that tenants are finding it harder than ever to negotiate a reduction in rent. 

“As rents continue to rise, tenants will find it even more difficult to find suitable accommodation. Now that we have a new government in place, it’s important that long-overdue legislative changes are implemented to make the market attractive again for both tenants and landlords.”