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Em

Em Morley

Most Properties Left in Poor State

Published On: September 12, 2012 at 2:34 pm

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Most Properties Left in Poor State

Most Properties Left in Poor State

Almost three-quarters, 73%, of landlords claim that their rental properties are returned back to them in an average or poor condition when the tenant vacates, a survey has revealed.1

The study, conducted by estate agent review website MeetMyAgent.co.uk, also found that just 5% of landlords say that their emptied properties are complete wrecks when the tenant has moved out.1

However, four in ten, 41% of landlords, say that on at least one occasion, their rental property has been returned in such a bad state that they have needed to complete a full refurbishment on the home.1

Just 27% of landlords have had their property left to them in a good condition.1

Over a quarter, 29%, states that they have spent at least £1,000 returning their property to the condition it was in at the beginning of the tenancy agreement. 10% claimed that their repair bill was £2,500 or more.1

1 http://www.landlordtoday.co.uk/news_features/Most-tenants-leave-properties-in-poor-state-say-landlords

 

 

Labour on the Needs of Old People

Published On: September 12, 2012 at 11:10 am

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The Labour Party has vowed to aid housing providers in providing more homes for older people, as they launch their latest housing policy.

Shadow housing minister Jack Dromey and shadow care minister Liz Kendall held a summit on housing for the elderly’s needs.

Most Properties Left in Poor State

Most Properties Left in Poor State

They have studied the opportunities that specialist housing providers will need to deliver new accommodation in large numbers, what can be done to raise housing options, and how health and social care groups can work alongside housing suppliers.

Dromey says: “Labour wants to help older people and those in need of care, to stay in their own homes as long as possible. Labour wants to support those who wish to downsize. And Labour wants to ensure that, if people need to go into residential accommodation, it is of a quality that one would expect for our mums and dads, and that the nation can be proud of.”1

The amount of people aged 65 and over in the UK is predicted to rise from 10 million in 2008, to almost 17 million in 2033. 60% of all new household expansion will be in over 65s.

Kendall says: “Meeting the care needs of our ageing population is one of the biggest challenges we face as society, and housing has a critical role to play in achieving this goal. Finding ways of joining health, social care, and housing support services will be at the heart of Labour’s policy review.”1

Dromey and Kendall joined a discussion hosted by McCarthy & Stone. Land & Planning Director of McCarthy & Stone, Gary Day, notes: “When older people look to downsize into accommodation that is better suited to their needs, many are forced to fight on in their existing property or move into residential care. This is no choice at all.”1

Separately, Peter Girling, of a specialist rental accommodation for older people provider, confronted the Government over not mentioning older people in any planning initiatives.

The Government is also considering a report from economist Andrew Dilnot that proposed restricting the amount people pay towards the cost of their care.

1 http://old.lettingagenttoday.co.uk/news_features/Labour-to-make-needs-of-old-people-part-of-housing-policy

 

 

 

 

Renters Think Inheritance is Only Way of Buying a House

Published On: September 11, 2012 at 4:41 pm

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Renters Think Inheritance is Only Way of Buying a House

Renters Think Inheritance is Only Way of Buying a House

 

A recent survey from YouGov has indicated a bleak mindset from a large number of private rental tenants regarding when they will be able to purchase their own property.

The findings of the report suggest around 40% of tenants think that coming into their inheritance is the most probable way of them getting onto the property ladder. On average, the deposit required by banks in order to secure a home is in excess of £50,000, making it extremely difficult or nigh on impossible for some tenants to buy a home.

Concern

Of the 2,000 people questioned, nearly half were of the opinion that they would never be able to buy their own property. With the percentage of people renting on the rise and with banks showing stubbornness towards changing lending criteria, it is likely that the make up of the housing market in Britain is altering.

In the last ten years, average wages have risen by less than one third. On the other hand, house prices have swelled to almost double. These figures make it little surprise that tenants have such a negative outlook on ever being able to have their own home. This of course is better news for landlords.

Changing dynamic

A growing number of people within the United Kingdom will seemingly have to come to terms with the fact that they will never own their own property. The changing face of the housing market means that renting is becoming more of a viable alternative than ever before.

 

 

 

 

Gap in the Market for Retirement Rental Property

Published On: September 11, 2012 at 2:31 pm

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Gap in the Market for Retirement Rental Property

Gap in the Market for Retirement Rental Property

The amount of people renting in the UK remains higher and higher, and the percentage of owner-occupiers is falling. This could mean there is a growing requirement for rental property aimed at over 65-year-olds.

In the past, it was common for people to have paid off their mortgage by the time they were retired, however, with the overall amount of renters increasing, it is expected that elderly people without their own home will also rise.

Retirement Rentals’ Peter Girling believes that there is a need for more rental accommodation aimed at older tenants.

He says: “The private rental industry has struggled to meet demand and there is a major shortage of quality private rental homes; this shortage is particularly acute in terms of housing for the elderly.”1

This shortfall could be a welcome opportunity for landlords who target older people. Properties with easy access and adaptations, such as handrails, will allow the elderly to live independently for longer.

Some older people, as well as renters who have never owned a house, can rent out their existing property and use the income to rent a smaller and cheaper retirement property.

Elderly people may benefit from living in retirement communities that are built specifically for them. Landlords could also adapt properties they already have to make them more appealing to older tenants.

Traditionally, private renting has been common amongst young people, but now, more and more families and older people are renting, and landlords should seek to target these potential tenants.

1 http://www.justlandlords.co.uk/news/Gap-in-the-Market-for-Retirement-Rentals-1407.html

 

 

Property Investment Appealing for Pension Schemes

Published On: September 7, 2012 at 2:23 pm

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Investment in residential property is being encouraged for pension schemes.

Property Investment Appealing for Pension Schemes

Property Investment Appealing for Pension Schemes

To meet the housing need of the UK, the Government requires institutional investment in property. Investment in long-lease property could be a stable way of making a secure, low-risk investment for pension schemes.

Previously, pension funds have leant towards commercial property over residential. Despite this, a report published last month by private equity specialist Sir Adrian Montague, advised pension funds to seek to invest in residential properties also.

The report continued to explain that within the UK, as there is no culture of institutional investment, it is rare. Just 1% of landlords have more than ten properties in their portfolio, whereas other parts of Europe see institutional investment as very common.1

Residential property investments can provide high returns, of up to 10% for institutional landlords. However, investment from pension schemes could present a challenge to individual landlords. Though it could professionalise the sector and enhance its reputation.

This could also benefit tenants, as it is more common for institutional landlords to provide longer leases, and therefore, more stability for tenants. This would satisfy the needs of renters in this sector.

As there is a shortage of rental accommodation, and high demand around the country, institutional investments could meet the housing needs.

1 http://www.justlandlords.co.uk/news/Pension-Schemes-Look-for-Property-Investment-1403.html

Overcharging by Letting Agents

Published On: September 5, 2012 at 4:20 pm

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Many tenants think that they have been overcharged by letting agents.

About a quarter of renters believe that they have been charged excessive fees when renting a property, says housing charity Shelter.

Overcharging by Letting Agents

Overcharging by Letting Agents

Letting agency fees include: administration, inventories, credit checks, and contract renewals. These fees have increased in the last few years, however there is no sign that letting agents are facing higher costs.

The research also revealed that the fees do not correspond to actual costs. For example, credit checks cost between £8-£25 to conduct, but tenants can be charged up to £150 for the service.

Jane Ingram, President of the Association of Residential Letting Agents (ARLA) commented on the findings, saying that there is a need to regulate letting agents and provide tenants with clarity over charges. She also stated that letting agents’ services cannot be conducted at no cost, and there will always be a need for charges.1

In Scotland, all letting agent charges, beside rent and deposits, have become illegal. However, letting agents are now saying that they will have to increase rents due to this. There are no plans to make these charges illegal in England.

Landlords also face high charges if they use a letting agent.

Letting agents who charge reasonable amounts to both tenants and landlords generally produce more stable, long-term tenancies. Agencies charging high renewal fees and annual credit checks can often drive tenants away, causing void periods for landlords.

1 http://www.justlandlords.co.uk/news/Overcharging-1400.html