Leeds saw the greatest increase in room rents of all UK cities in both the year to the first quarter (Q1) of 2019 and since the previous quarter, according to the latest Room Rental Index from ideal flatmate.
While London – unsurprisingly – remained the most expensive UK city to rent a room, with the average price rising to £745 per month, Leeds recorded the greatest increase in room rents.
ideal flatmate’s index looks at the cost of renting a room across the UK’s major cities. It found that Leeds recorded the highest growth in average room rents both year-on-year and on the previous quarter.
The firm analysed the cost of thousands of spare rooms listed on its platform, looking at the differing cost of renting across each major UK city and London borough, and how this has changed on an annual and quarterly basis.
The Room Rental Index for Q1 found that the average room rent price in the UK was £535 per month, which is up by 11% on Q1 2018.
Following London, Glasgow was the second most expensive UK city to rent a room, at an average price of £588 a month. Bournemouth (£575), Cambridge (£562) and Leeds (£548) were close behind.
While only ranking as the fifth most expensive room rents, Leeds tops the table for both quarterly and yearly growth, with prices up by an average of 32% and 50% respectively.
Tom Gatzen, the Co-Founder of ideal flatmate, comments: “A new year, but a similar story where the UK rental market is concerned, with the cost of renting continuing to climb as a result of the imbalance between high demand and insufficient stock levels.
“This trend is almost certain to persist over the coming year, and the impending tenant fee bancould see this growth spike further, as rental costs are used to recoup lost revenue.”
As the private rental sector continues to grow, the Government has issued guidance for tenants on their rights and responsibilities.
The Ministry for Housing, Communities and Local Government (MHCLG) has put together a document, Landlord and tenant rights and responsibilities in the private rented sector, to support all of those operating within the market, in order to set and maintain high standards of private rental housing.
Within the introduction to the document, the Minister for Housing and Homelessness, Heather Wheeler MP, commits to making sure that “everyone who rents can have a safe, secure, warm and dry place they call home”.
The private rental sector now accounts for 4.5m homes in England, representing around 19% of all housing. For many tenants, renting from a private landlord provides a range of benefits, including flexibility and choice.
The relationship between landlords and tenants, however, is essential in making this work to renters’ advantage. The Government’s guide aims to ensure that both landlords and tenants understand their rights and responsibilities, to promote a professional and positive landlord-tenant relationship.
The guidance for tenants should ensure that any issues that arise during a tenancy are dealt with quickly and properly. Although the vast majority of tenancies work well, a small minority of rogue landlords still operate in the sector. At the same time, some tenants don’t uphold their side of the contract.
Government Issues Guidance for Tenants on their Rights and Responsibilities
In situations where things go wrong, this guidance for tenants points you to the laws that apply to you and helps you find further information on how to deal with the issue. It also aims to help you avoid those situations in the first place, by making sure that you’re aware of your responsibilities.
The Government’s How to Rent guide, for instance, is a great place to start.
However, the latest guidance for tenants aims to make sure that you can benefit from being part of a flourishing private rental sector.
The tenant part of the guide applies to both existing and prospective tenants on Assured Shorthold Tenancies(ASTs). Most of the guidance also applies if you are living in a shared property, although sometimes your rights and responsibilities will be different.
The guidance for tenants does not cover lodgers, or those living in a property that is not their main residence.
When entering an AST – the most common type of tenancy in England – you are entering into a contractual arrangement, which gives you some important rights, but also creates obligations. The guide helps you to understand what questions to ask, what your rights are and the responsibilities that you have. It also directs you to relevant sources of support and advice.
If you would like to read the Government’s guidance for tenants, simply click here.
The guidance for tenants in this document sets out:
What to consider when finding a new home to rent
Your responsibilities as a tenant
Your rights as a tenant
What you can do if things go wrong during your tenancy
Useful contacts
We hope that this information is useful for all new and existing tenants!
Property market activity slowed across the UK in April, according to the latest Property Activity Index from Agency Express.
Nationally, the number of new property listings dropped by 4.6% in the month from March to April, while the amount of properties sold was down by 6.7%.
Over a three-month rolling period, figures show more stability in property market activity, with new listings up by 2.9% and the number of properties sold up by a robust 7.8%.
Looking at the individual regions included in the index, all except two recorded declines in both new property listings and the amount of properties sold.
The strongest levels of property market activity in April were recorded in the West Midlands, with a slight uptick in new listings (0.1%) and a 6.6% rise in the number of properties sold. While these increases were small, they marked the region’s first growth in property market activity for the month of April since 2016.
The South East also recorded a rise in new listings, of 1.0%. However, looking back at Agency Express’ historical data, property market activity has declined since April 2018, when new listings were up by 6.3%.
The regions to record the smallest declines in April’s index included:
New property listings
East Anglia: -0.8%
North West: -1.9%
South West: -4.9%
East Midlands: -5.6%
Central England: -6.3%
Properties sold
East Anglia: -4.7%
Central England: -5.0%
South West: -5.9%
East Midlands: -6.7%
North West: -7.4%
The greatest decreases in April’s index were recorded in the North East. Month-on-month, the number of new property listings dropped by 14.1%, while the amount of properties sold fell by 32.2%. Again, looking back at Agency Express’ historical records, we can see that yearly figures for new listings have remained on trend, but the number of properties sold has come down.
Stephen Watson, the Managing Director of Agency Express, says: “It is not uncommon for us to see a seasonal dip in activity throughout April, but this year’s data shows a greater month-on-month decline compared to 12 months previous.
“Based on the trends of the last two years, we would now expect a pick-up in activity during May and a further increase in June. As we move into these months, it will be interesting for us to see how the year-on-year comparisons fare.”
To mark National Gardening Week, research from Post Office Money has found that property owners who have improved their homes with garden landscaping enter the market at a significantly higher value than other, similar properties.
Landlords, if you’re looking to add value to a property that you’re thinking of selling, then garden landscaping could boost your asking price by up to 77%!
Analysis based upon the median asking price of a three-bedroom, semi-detached house in the UK (£286,000) found that garden landscaping added the most value to a home, at 77% more than the local median asking price.
This compares to other home improvements, such as an extension, new kitchen and conservatory, which add less value to a property.
One in five (18%) homeowners have landscaped their gardens in the past five years, Post Office Money found, costing an average of £2,750.
One in four (28%) did so because they thought that it would be a good investment and would add value to their properties, but the most popular reason for making home improvements was to improve the look of a home (cited by 59% of respondents).
In order to fund their home improvements, three in four (74%) property owners used their savings, one in six (16%) used a personal loan or credit card, while one in sixteen (6%) used equity release or mortgages.
Post Office Money’s Chrysanthy Pispinis says: “Over the past few years, house price growth has slowed, so homeowners have turned to other options to add value to their homes – with improvements being a clear opportunity.
“Making the right changes to your home can increase its market value significantly – with garden landscaping coming out on top for the most value added. However, home improvements are not all about making changes which add value for re-sale; 63% of the homeowners we polled had no plans to move. Renovations allow homeowners to create homes that reflect their needs and tastes, with the potential added benefit of adding value in the long-term.”
Letting agents in England are using potentially unfair terms and conditions, and could be breaching consumer law by demanding deposits before allowing prospective tenants to even see a contract, a new investigation by Which? reveals.
The consumer champion visited 20 letting agents across England, posing as potential tenants looking for a rental home.
Which?’s mystery shoppers asked to see a copy of the terms and conditions that they would be signing up to, but one in four agents failed to produce a contract.
Five letting agents, including a branch of Connells, which has almost 200 offices nationwide, required a commitment or a holding deposit before tenants could view a sample tenancy agreement. Connells informed Which? that tenancy agreements should be freely available upon request.
In some cases, the letting agent also required a reference check to be paid for and completed before tenants saw the terms of the contract.
Letting agents have a duty by law to provide prospective tenants with the key information that they need to make an informed decision about the property. Which? believes that demanding a financial commitment before tenants can view the terms and conditions could fall foul of consumer law, by trapping renters into contracts that they haven’t had an opportunity to review.
Worryingly, three of the letting agents that required a commitment or deposit before tenants could view a contract are members of ARLA Propertymark (the Association of Residential Letting Agents) – a leading membership body for letting agents.
One agent in Leeds requested that the tenant visit its office to read the tenancy agreement. While the contract was accessible in this case, Which? fears that this practice could deter or place undue pressure on the tenant to read the contract quickly.
A report published last year by Which? found that only two-thirds (65%) of tenants read their tenancy agreement in full before signing it. Meanwhile, almost two-thirds (64%) of tenants who used an agent during their property search experienced problems, such as having to make decisions without enough information.
Letting Agents may be Breaching Consumer Law, Which? Investigation Reveals
In 13 tenancy agreements collated and inspected from other letting agents, Which? found evidence of potentially unfair terms and clauses that could breach the Consumer Rights Act.
In seven of the analysed documents, tenants were required to seek permission to notify their landlord or agent before switching utilities supplier, which could prohibit their right to choose for themselves and could mean that they are stuck on expensive tariffs.
Which? also found evidence of unclear language, which could confuse tenants, in at least eight contracts. These agreements included vague descriptions that tenants may be required to pay a “reasonable” amount or “a fair proportion of” additional charges.
But, without adequate explanation of what those charges would be for, or what constituted “reasonable” or “fair”, renters could risk being hit with extortionate fees during their tenancies.
All of the contracts reviewed referenced statutes and legislation that were not attached or explained further within the agreement, putting tenants (most of whom are not experts in property law) at an unfair disadvantage.
In all but two agreements, Which? found a clause that allowed landlords or authorised workpeople access to the property without prior consent, as long as 24 hours’ notice was given. It was not always specified that this notice should be in writing, and these contracts gave no indication that landlords and agents would take their tenant’s objections into account.
A template contract from the Ministry for Housing, Communities and Local Government (MHCLG) includes some examples of good practice, such as guidance notes explaining legal jargon. It also features a note outlining how tenants have a right to quiet enjoyment of a property, even if landlords provide 24 hours’ notice, so, if visits are very frequent or do not have a good reason behind them, the landlord may be breaching those rights.
However, even in that case, Which? believes that tenants’ rights to enjoy exclusive possession of their homes could be made clearer, and they should be empowered to push back if landlords seek non-urgent access at inconvenient times.
The organisation is concerned that many tenants could be rushed into signing contracts that they don’t fully understand and that contain potentially unfair clauses, as they may feel pressured to secure a property quickly, particularly in areas where demand is high.
According to the latest results from the Which? Consumer Insight Tracker, just one in ten people trust estate and letting agents, meaning that only car dealers are trusted less.
Just One in Ten People Trust Letting Agents
It has heard complaints from tenants who had landlords that entered their homes without prior notice or faced excessive charges for minor repair work.
The findings of this investigation suggest that tenants cannot always trust letting agents to act in their best interests, and, with some agencies apparently skirting the law, Which? is calling on the Competition and Markets Authority (CMA) to investigate further issues relating to practices, and tenancy terms and conditions in the private rental sector, and to take action where needed.
The consumer champion also calls on the Government to move forward with introducing a mandatory code of practice for letting agents, which is legally enforceable and ensures that all agents are held to an agreed set of professional standards.
Natalie Hitchins, the Head of Home Products and Services at Which?, says: “It is outrageous that some agents are demanding cash upfront before tenants are even shown a contract – committing them to agreements before they know what they’re signing up to.
“The results of this Which? investigation show how vital it is for the Government to introduce a legally enforceable code of practice, to ensure all letting agents act in a professional manner.”
She adds: “The CMA must also investigate the sector, and take action where needed to tackle unfair practices and contract terms.”
David Cox, the Chief Executive of ARLA Propertymark, responds to the report: “There is currently no legal requirement in England or Wales to have a tenancy agreement, and, as legal statute overrides contract, any unreasonable terms in a contract would be unenforceable in a court of law. As such, we would question the suggestion that agents are breaching consumer protection law. We have long been advocating for a legal requirement to have a written tenancy agreement, as they have in Scotland, to avoid many of the misunderstandings cited in this research. Which? implies that even MHCLG’s template tenancy agreement is in breach of their best practice; this demonstrates just how complex the issue around terms and conditions can be.”
Dan Wilson Craw, the Director of tenant lobby group Generation Rent, has a more positive reaction: “Renters are under pressure to sign up to anything that a letting agent puts in front of them, knowing that, if they hesitate, someone else will take the property. The good news is that, from next month, tenants who are asked to sign up to unreasonable terms are entitled to back out and get their holding deposit refunded, under the new Tenant Fees Act. But, as Which?’s investigation shows, unscrupulous letting agents are adept at finding ways to bamboozle tenants. There is a constant need to identify and expose these unfair practices.”
Landlords can maximise their rental returns by investing in the property market in Scotland, according to new data from Your Move.
Your Move Scotland reports that the average rental yield for investors with properties north of the border increased for the first time since March 2017 in March this year.
The letting agent found that average rental returns in Scotland stood at 4.7% in March, which is up from 4.6% in the previous month.
As a result, rental returns for landlords with properties in Scotland are now at a six-month high. This contrasts to England and Wales, where yields have held steady, at an average of 4.3%.
The only two regions in England and Wales to offer rental returns higher than the Scottish average during March were the North East and North West, at 5.0% and 4.8% respectively.
Brian Moran, the Lettings Director for Your Move Scotland, says: “Investors in Scotland have seen stronger returns this month than in February.
“This is the first rise in monthly yields since March 2017, and demonstrates why many investors from elsewhere are now looking towards Scotland to maximise returns.”
According to the firm, the average rent in Scotland increased by 1.8% in the 12 months to March, to reach £580 per month.
The Highlands and Islands recorded the greatest rise, taking the average rent price to £688. This is up by 4.9% on March 2018, but growth has slowed from the double-digit increases seen last year.
The only region to record higher rents was Edinburgh and Lothians, where the typical price was £699 in March. This followed a 4.6% year-on-year rise.
Elsewhere, rents were up by an average of 1.4% in the East of Scotland, and 0.9% in Glasgow and Clyde. A typical rent price in the East was £541 in March, while Glasgow’s was £589.
The South of Scotland was the only region to see rents fall on an annual basis, dropping by an average of 1.9% in March, to £537 per month.
Across Scotland as a whole, the average rent rose by 1.8% in the 12 months to March, to hit £580. This is up by 0.2% on a monthly basis.
However, Your Move Scotland’s data also shows that the proportion of rental households in arrears increased modestly in March. Some 10.7% of all tenancies were behind with their rent payments in the month – up on the 10.5% recorded in the previous month. Despite this, the level of arrears is still below the 11.2% seen in December 2018.
On an absolute basis, the amount of households in serious arrears – defined as two months or more – was 8,283 in March.
Moran adds: “With more tenants now renting for longer, thanks to the introduction of the PRT [Private Rental Tenancy], landlords are benefitting from the increased security and stability provided by these tenancies.”
