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Em Morley

Rent Costs of Major Cities Near 20-Year Average of £79 Per Week

Published On: July 17, 2019 at 9:07 am

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According to data from Accommodation for Students (AFS), the average rent costs across many cities in the UK are close to the 20-year average of £79 per week.

AFS analysed the rent costs of student accommodation in 2019, looking specifically at shared student housing.

This means good news for students, as it indicates that prices are dropping overall, but for landlords this may mean that they have to work harder to secure student tenants.

The current average price for student accommodation is £86 per week. However, London’s buoyant market contributes an average room rent of £187 to this figure. If London is removed from the equation, the UK average does fall to £79.

This relatively small difference in price between the 20-year average and that of 2019 seems to reflect that the competitive nature of the student housing market has curbed rental increases. It is thought that the growth of the purpose-built student accommodation (PBSA) sector, particularly outside of the capital, has also contributed.

20-year average weekly rent costs of major UK cities 

Wolverhampton – £62

Bolton – £63

Hull – £65

Dundee – £66

Birmingham – £70

Newcastle – £74

Sheffield – £75

Brighton – £106

Guildford – £111

London – £115

Kingston – £117

AFS has highlighted that university cities such as Birmingham, Newcastle and Sheffield all offer great value for students.

Simon Thompson, Director of Accommodation for Students, comments: “AFS has been the home of student accommodation for 20 years, featuring 198,000 student houses across all major UK university towns and cities. Analysing rents over this period, demonstrates a vibrant market, where at one end of the spectrum there are properties on the market for £900 per week (Chapter Spitalfields) but students can also secure some very reasonably priced accommodation elsewhere. 

“As the market has become increasingly competitive for landlords, we have invested heavily in making improvements to the AFS site. As well as offering automated feeds, enabling letting agents to instantly upload multiple properties in any format in real time, we are currently finalising a new landlord account area making it easier for landlords to connect with the 3 million students that visit the AFS portal every year.”

UK Finance Mortgages Trends Data for May 2019 Released

Published On: July 17, 2019 at 8:36 am

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UK Finance’s latest Mortgages Trends data for May 2019 was released yesterday (16th July). The following are the highlights from the report:

  • 30,720 new first-time buyer mortgages were completed in May 2019. This is 0.5% more than in the same month in 2018.
  • 29,430 homemover mortgages were completed in May 2019. This is 1.2% less than in the same month the previous year.
  • There were 21,370 new remortgages with additional borrowing in May 2019. This is a 19.8% increase on the same month in 2018. The average additional amount borrowed in May for these remortgages was £52,000. 19,650 of these were pound-for-pound remortgages (with no additional borrowing) – 19.7% more than in May 2018.
  • May 2019 saw 5,500 new buy-to-let home purchase mortgages completed, the same number as this time last year.
  • The buy-to-let sector saw 15,000 remortgages, which is 2% more than this time last year.   

Shaun Church, Director at Private Finance, has commented on UK Finance’s Mortgages Trends: “Improving not moving seems to be the current mentality across the UK’s property market, as remortgages with additional borrowing have soared by 20% in the space of a year.  

“Homeowners are turning away from upsizing, taking out additional loans against their existing property to fund improvements that will make their home suitable for the years to come, saving thousands of pounds in stamp duty in the process.

“Stamp duty is paralysing the UK property market, meaning UK housing stock continues to be in short supply. In order to galvanise the property market, we call on the UK government to give serious consideration to the current property tax system.

“Minimising stamp duty liabilities will incentivise more people to move, freeing up housing stock and sparking a chain reaction of property transactions. Reigniting the market could in turn lead to a resurgence in stamp duty receipts for the government, making this a win win solution for homeowners and the treasury.”

Tim Waterlow, development director of lifetime mortgage provider Responsible Lending, has commented: “A race to the bottom in interest rates is keeping first-time buyers’ eyes firmly fixed on property, and they have not thrown their home-owning ambitions aside despite house prices rising in much of the country.

“They hold the golden ticket when it comes to incentives to buying a home, thanks to Help To Buy and the lack of stamp duty — and they are making the most of these opportunities while they can. 

“It is fair to say that the market needs them too, since transactions remain low and homemover mortgages have fallen 1.2% on last year. 

“The fact that Brexit still remains an open question is likely providing an added incentive to get ahead of the curve to buy a home while the market is relatively stable.”

Paul Stockwell, Chief Commercial Officer of Gatehouse Bank, has stated: “It will be a relief to lenders that first-time buyers have proven their commitment to the property market, as the drop in homemover mortgages suggests there will not be a resurgence in transaction volumes any time soon. 

“Already high property prices, which have continued to rise in a number of locations across the UK, have been a deterrent in recent times, but first-time buyers have not fled the scene. 

“Instead, low interest rates have held their attention, while the fact that lenders are offering higher Loan to Value is providing them with extra leverage, and they are greatly responsible for keeping the housing market ticking along.

“First-time buyers have been assisted by Government initiatives such as Help to Buy and the lack of stamp duty, and they could well be racing to the property market to ensure they make the most of all these offers while they are available.” 

You can read the full Mortgages Trends data here: https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends

Landlords Struggle after Nightmare Tenant Changes Locks

Published On: July 16, 2019 at 9:03 am

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The latest episode of Nightmare Tenants Slum Landlords aired last night (Monday 15th July), featuring a retired couple struggling with a tenant refusing to pay rent.

Unfortunately for Jackie and John, retirees from a seaside village in Norfolk, this tenant also lives in the same building as them.

Jackie and John live in a converted Victorian building, comprising of four flats. After a recommendation of someone in the village, they decided to let the flat above their own to a lady named Katey. As she was eager to find somewhere fast and the couples last tenants had just moved out, it seemed like a good solution.

However, Katey became late making rent payments, which led Jackie and John to reach out to her. She told them that she worked for herself, so money was a bit tight at that point in time. After asking if she could pay weekly, the landlords agreed. On top of that, the kind-natured couple helped their tenant find another job in the village and agreed that she could sub-let the spare room to help pay the rent. After meeting the sub-tenant, they were happy and allowed them to move in.

Despite all of this support, the tenant then stopped paying rent altogether. The couple didn’t see any money from herself or the sub-tenant. After returning from a week-long holiday, the landlords discovered that the tenants had changed the locks and refused to speak with them.

Unfortunately, it got worse from there. The tenant made accusations against them, claiming that they were letting themselves into the flat and threatening her. The police were involved, but even though the retired couple had clearly done nothing wrong, there was not much they were able to do to help. 

With both the emotional stress of having the nightmare tenant living right above them and the financial stress of struggling to pay their own bills without the additional income, they contacted Landlord Action.

Paul Shamplina, founder of Landlord Action, said: “Having dealt with this kind of tenant for many years, I had my suspicions that she had done this before, and would likely do it again. I was extremely concerned for Jackie and John’s health, who were both visibly distressed, so we took the decision to offer the tenant a sum of money to sign a deed of surrender and leave the property.”

Jackie commented: “We know we are kind people who went out of our way to help Katey. We have a good reputation locally as landlords so it was heart-breaking to be in this situation. She said we would never get her out of our flat and it drove me to the verge of a nervous breakdown. Katey’s behaviour had become so challenging and she was deliberately doing things to make our lives hell. Paul saved my sanity.”

Eventually the tenant did move out, but the property was left trashed and filthy. Items had also been stolen, such as security cameras, curtains and remote controls.

But Katey did not move far, it seems. Finding another landlord nearby, who let her move in, despite warnings from Jackie and John.

The second landlord, Lynsey, said: “I should’ve gone with my gut, but she sold me a good story. She moved in and paid the first month’s rent and then it stopped. Fortunately, I managed to convince her to leave and she vacated of her own accord after three months. I was still out of pocket by £1100 and the flat was trashed, but I know I got off lightly.”

Commenting on these cases, Paul said: “The problem is that the private rented sector is a very different market today and landlords need to take stock and understand it’s a lot more work intensive. Character references and affordability checks are vital. We really hope that when the government makes changes to Section 8 that any cases with a money order for rent arrears have a CCJ applied to them to help other landlords avoid taking on serial bad tenants.”

These are the Top Projects Currently on Brits’ DIY Lists

Published On: July 16, 2019 at 8:27 am

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Taking pride in our homes is something that a lot of Brits have in common, so we’re not surprised to hear from Anglian Home Improvements that young homeowners (18 to 34-year-olds) have gone DIY crazy.

Its latest research reveals that many are trying to tackle an ambitious average of seven DIY jobs at once. It found that despite 25 to 34-year-olds having several DIY jobs on at once, they struggle to get the small projects completed. 41% of those surveyed for the research responded that this was down to a lack of time. 36% put it down to a lack of enthusiasm and 29% said it’s due to a lack of money.

In contrast, those in older age groups prefer to undertake and focus on fewer tasks. 35 to 44-year-olds and 44 to 54-year-olds reportedly take on just three and four projects at once.

These are the top 15 jobs currently on Brits’ DIY lists:

  1. Marked walls 
  2. Stained carpet 
  3. Peeling paint 
  4. Un-hung picture 
  5. Worn away/missing grouting 
  6. Squeaky floorboards 
  7. Mould 
  8. Peeling wallpaper 
  9. Leaking/dripping taps 
  10. Blown light bulb 
  11. Cracked/missing tiles 
  12. Broken toilet flush 
  13. Hole in wall 
  14. Broken lock 
  15. Loose/exposed wires 

As well as undertaking more DIY tasks than those belonging to older age groups, younger homeowners have also spent over £200 more than the national average on home improvement projects in the last twelve months. They have spent £561.48, in comparison to the national average of £357.75.

Costas Kariolis, Head of Digital Marketing at Anglian Home Improvements, has said: “It’s really positive to see that so many homeowners are currently improving their homes and undertaking smaller DIY projects.

“With the good weather and upcoming bank holiday next month it’s an ideal time to be getting on top of the odd jobs around the home. Our advice for homeowners would be to not take on too much at once and try to focus on completing one project at a time.”

What Are the Unexpected Costs and Hoarding Struggles That Tenants Face During the Process of Moving?

Published On: July 15, 2019 at 9:14 am

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Tips from a removal specialist.

Moving Miscellaneous

Most companies we’ve worked with think that everything will be packed in moving boxes but this can’t happen, of course. Large furniture is always disassembled but wrapping each piece in bubble wrap takes lots of time and would only increase the time required for the job so the price goes up. Many moving companies use moving blankets to cover large pieces of furniture.

The more moving supplies such as blankets, boxes, bubble wrap etc. are needed for the job, the higher the expenses for the whole moving service.

Damaged Items From Improper Packing

Most men with van companies such as Fantastic Removals (London) offer full insurance if their professional removalist pack all your possessions prior to the move out process. If you decide to cut costs and skip booking a professional packing service, mind that the company might not take responsibility if something gets broken during transportation.

Well-trained and experienced movers drive really carefully. Most people who move have problems with their belongings but most of the time it is because they did not pack them good enough, for which moving companies do not take responsibility.

Changes in Insurance Coverage or Rates

Estimating your moving insurance costs in advance is inaccurate and leads to miscalculations. You can only get an average before actually booking the services with all the insurance that comes with it.

Insurance rates change dynamically all the time, it’s highly possible to end up with at least 10-20% increased costs for the removals insurance at the very last moment of the moving process. Have this in mind when calculating your overall removal costs as it may increase the total expenses for the service significantly.

Unpredicted Storage Costs

The cost of booking a storage service is not high if you use it for a week but the longer your office furniture remains there, the higher the more you will pay for the storage period. 

We always recommend business clients to carefully plan their move. If they need storage, the price for it should be taken into consideration before the move is completed.

Cleaning and Property Hygiene

In many occasions, the landlord or rental manager will hold the tenant responsible for cleaning the dirtiest places prior to leaving the property. Depending on how many rooms it has, the bill could swell to a few hundred in unexpected costs.  

What should people get rid of when they move?

#1 Тhings that pile at home and it’s hard to get rid of?

Hoarding is considered a mental disorder and an enemy of healthy ageing, often leading to vast amounts of clutter. Unfortunately, it often ends up rubbish. 

  • Gifts which we already possess in a similar form
    Anything from glassware and kitchenware to clothing you don’t wear or like at all. When someone receives a present like this they can’t just throw it away or give it to someone else, it’s a gift, after all.

    The impulsive solution is to stash it in a less visible space at home but in time things like this turn into a pile of useless stuff that turns into a burden that takes way too much free space. Donating these is one of your options.

  • Empty glass containers
    Jars, bottles and anything else you keep at home as a container for seeds or seasonings, as well as canned food, accumulate a lot of household waste. Many of us don’t throw it away because glass containers can be successfully upcycled into some astounding home decorations and may be used for a variety of DIY projects.

    Having not enough free time, though, only leaves you with tonnes of glass that will not be repurposed anytime soon, so we suggest throwing it away as soon as you empty it of its original content.

  • Non-functional household appliances
    When a home appliance stops working properly you either repair it or throw it away, but many do neither.

    There are many individuals who keep damaged or malfunctioning appliances at home even after they’ve bought a new one. They do this because they think the broken appliance can probably be repaired or given to someone in need who will repair it for themselves.

    Our advice in such case is to check out if the broken gadget can be repaired and if not, throw it away or give it for recycling ASAP.

    You don’t need a gadget that no one is using and probably never will unless you can use it for spare parts if you buy a new one of the exact same model.

#2. What Should People Get Rid of When They Move?

These three are the common things that most people forget about when moving out:

  • Curtains and blinds
    You won’t be needing these at the new address for several reasons:
    1. They probably won’t fit;
    2. The chances of having the same size of windows are close to 0%;
    3. Getting rid of them is a good start to change your interior design in the new home
  • Carpets
    For a similar reason, as with the curtains, a carpet that currently fits well into your room will probably have to be resized in order to fit into a new home. In case the rooms inside the new property have a larger floor surface, there will be too much free space left on the floor, which makes the old carpet not a good fit.
  • Cooker Hood Ducting
    It’s almost certain you will want to take your cooker hood with you after moving out (if moving out from an owned property).

    Help yourself by throwing the old ducting, you will need a new one because the distance from the hood to the ventilation pipe at the new building will most probably be different.

Will Tax Incentives Encourage Energy Improvements from Landlords?

Published On: July 15, 2019 at 8:35 am

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The Business, Energy and Industrial Strategy Select Committee has called for an increase in the financial contributions made by private landlords of the most energy inefficient properties to meeting the required standards.

David Smith, Policy Director for the Residential Landlords Association has said: “Whilst we believe rented homes should be as energy efficient as possible, this requires a tax system that properly supports and encourages investment in energy efficiency measures.

“It is disappointing that despite calls by the RLA and others the Committee has retreated to a call to raise costs for landlords without any support from Government.

“This stands in stark contrast to the £3.8 billion the Committee recommends the Government makes available to the social sector for such improvements.”

The Government’s Minimum Energy Efficiency Standards require landlords with properties in the lowest energy efficiency bands (F or G) to contribute up to £3,500 towards the cost of improving them. Legally, they must have an Energy Performance Certificate (EPC) rating of E or better. The Committee recommends that this contribution should be raised to £5,000.

According to Government data, between 2007 and 2017 the proportion of private rented homes with an EPC rating of F or G dropped from 22% to 6%.

It has been proposed by the RLA that any work done by a landlord on their property, as recommended on an EPC, should be tax deductible. Such an incentive should encourage landlords to continue making energy improvements, rather than just maintaining the minimum requirements.

The Committee’s inquiry saw widespread calls for tax reforms to support investment in energy efficiency measures.

Philip Sellwood, Chief Executive of the Energy Saving Trust, told the Committee: “There is no reason why we could not use the tax system to incentivise landlords through tax relief, so that they could claim all of that, rather than just £3,500, £5,000 or whatever.”

Lawrence Slade, Chief Executive of Energy UK supported the re-introduction of the Landlord Energy Savings Allowance (LESA) arguing that: “This would be a perfect example of carrot and stick: “Yes, you have to invest in the properties you own, but actually there is a tax-saving opportunity for you there. The Government have missed a trick in not looking at that again.”

Shirley Rodrigues, Deputy Mayor for Environment and Energy at the Greater London Authority, said: “We think incentives and tax allowances would really help to get landlords taking this up and addressing this really big problem.”