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Em Morley

Retired Homeowners Looking to Downsize Should Consider Renting with Assured Tenancies

Published On: October 8, 2018 at 7:59 am

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Categories: Property News

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A recent nationwide survey from equity release adviser, suggests estate agents have seen a surge in inquiries about downsizing from retired homeowners, with 1.4 million over-65s saying they will consider downsizing in the next five years.

The survey discovered that over two out of five estate agents have witnessed an increase in inquiries from over-65s homeowners looking to downsize in the past year, with the need to save money (80%) the biggest reason for selling, followed by the desire for a more manageable home (78%).

Besides this, other reasons included moving to a more suitable retirement area. and boosting retirement income. However, the survey also revealed that three-quarters of estate agents believe there is a shortage of homes for retired people to move to, while 80% say there is a lack of homes suitable for those who are less mobile.

There is a solution – and that is to rent. According to Gillian Girling, Chief Executive of Girlings Retirement Rentals, more retirees are choosing to downsize and rent in a purpose-built retirement development because of the many benefits it can offer.

Gillian Girling says “Over the past decade, we have seen growing interest in renting in retirement as it allows people to free up capital in their home, move to a smaller more manageable property and not have to pay stamp duty when purchasing a home.
“In our experience the main barrier to renting has always been short term tenancies that don’t provide long term security for people. This isn’t the case with our properties as most are available with assured or ‘lifetime’ tenancies, so people have security of tenure.

“Our homes are designed for independent living but with the added benefit of being part of a community and being able to get involved in social activities with people of a similar age, plus most of our developments have lifts or people can request a ground floor apartment, ideal for people with mobility issues,” Gillian Girling adds.

One lady who decided to downsize and rent in retirement, moved into a one bedroom apartment on an assured tenancy, in a purpose-built retirement development in Wimborne, Dorset in May.

She claimed that there were many benefits of renting in retirement. She doesn’t have to worry about any property upkeep or maintenance, as this managed by the landlord. The apartment is safe and secure, plus there is a house manager on site to check in on the residents, beautiful communal gardens and a communal laundry room.

Janet commented: “I’m very happy renting. I have an assured tenancy which means I can remain here for life if I choose and I don’t have that awful fear of the landlord turning me out. I also find it reassuring that there’s a very capable and caring manager at the development should I need any assistance.”

Gillian Girling added: “Renting in a purpose-built retirement development particularly appeals to single people in later life. Many of our residents are widowed or on their own. They like the fact there is a ready-made community of people of a similar age and they can take part in social activities if they wish.

“Many find it reassuring that all our apartments come with a 24-hour emergency call line in case of emergency, and renting also frees people from the worries of property and garden maintenance. We believe more retired people will be choosing to rent in the future as it can suit their lifestyle as they get older.”

Girlings have a one-bedroom apartment available at Kingsmead Court, Wimbourne where Janet lives for £850 pcm. They also have one-bedroom apartments available at Homewaye House from £725 pcm and Restharrow for £695 pcm in nearby Bournemouth.

RLA Urges Chancellor to Back Longer Tenancies

Published On: October 5, 2018 at 9:56 am

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The Residential Landlords Association (RLA) is urging the Chancellor to back longer tenancies in rental housing, in order to meet the needs of the growing number of families with children who rely on the private rental sector for their homes.

Almost 40% of private rental homes have at least one child living in them, with such families seeking long-term stability to settle into their communities and local schools.

Rather than resorting to legislation to impose longer tenancies on the sector, the RLA is calling for tax reforms to encourage and support more landlords to offer them to tenants who have already been living in their homes for almost four years.

The Government has already admitted that such incentives “could be quicker to implement” than legislation.

This idea would also ensure that the flexibility of the sector is retained, enabling those wanting short-term tenancies to quickly access new work and educational opportunities.

In its submission to the Treasury ahead of the Autumn Budget on 29th October 2018, the RLA is calling for tax relief on rental income, which could increase each year a tenancy continues, up to a maximum of five years, if the tenancy is renewed. The relief would then remain at this level.

Alongside this, the RLA is urging the Government to develop its plans for a housing court to speed up justice for tenants and landlords if something goes wrong during a tenancy, especially longer tenancies.

At a recent event hosted by the RLA, the Housing Secretary, James Brokenshire, confirmed that the Government would be consulting on a housing court in the next few months.

The RLA’s research arm, PEARL, has found that 73% of landlords would offer longer tenancies with a combination of financial incentives and court reform, to ensure that they have the confidence that, where they provide longer tenancies, they can swiftly regain possession in cases such as tenants failing to pay their rent or committing anti-social behaviour.

The Policy Director of the RLA, David Smith, comments: “Landlords recognise the demand for longer tenancies, which provide stability for tenants and landlords.

“Recent statements by MPs suggest that positive taxation to support longer tenancies would gain support in Parliament, enabling such tenancies to become available far quicker than imposing them by law.”

He adds: “We call on the Chancellor to back this pragmatic proposal.”

What do you want to hear from the Chancellor during this month’s Autumn Budget?

Prime Minister Paves Way for Whole New Wave of Council House Building

Published On: October 5, 2018 at 9:29 am

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A new wave of council house building is in sight, subsequent to Theresa May’s claim that the Government will scrap the cap on how much local authorities can borrow to get building again.

May used the end of her speech at the Conservative Party conference to outline plans to get councils involved in house building.

The announcement caused some controversy on Twitter, with housing commentators describing the announcement as significant and exciting – and far more so than the major part of the speech which concentrated on Brexit.

She commented: “The last time Britain was building enough homes – half a century ago – local councils made a big contribution.

“We’ve opened up the £9bn Affordable Housing Programme to councils, to get them building again.

“At last year’s conference I announced an additional £2bn for affordable housing. But something is still holding many of them back.

“There is a government cap on how much they can borrow against their Housing Revenue Account assets to fund new developments.

“Solving the housing crisis is the biggest domestic policy challenge of our generation.

“It doesn’t make sense to stop councils from playing their part in solving it.

“So, I can announce that we are scrapping that cap. We will help you get on the housing ladder. And we will build the homes this country needs.”

Lord Porter, chairman of the Local Government Association, warmly welcomed the move

He said: “It is fantastic that the Government has accepted our long-standing call to scrap the housing borrowing cap.

“We look forward to working with councils and the Government to build those good-quality affordable new homes and infrastructure that everyone in our communities need.

“Our national housing shortage is one of the most pressing issues we face and it is clear that only an increase of all types of housing – including those for affordable or social rent – will solve the housing crisis.

“The last time this country-built homes at the scale that we need now was in the 1970s when councils built more than 40% of them.

“Councils were trusted to get on and build homes that their communities needed, and they delivered, and it is great that they are being given the chance to do so again.”

Hew Edgar, head of policy for RICS, said that the Prime Minster had taken a “large, and very positive, step”.

He said: “The RICS has long called for councils to be alleviated from the restrictive borrowing cap, and this policy will allow them to re-establish themselves as genuine players in housing again.

“Indeed, 40 years ago, local councils built 40% of all new homes, but for too long, councils have been limited in their capacity to make this significant contribution.

“We will monitor the outcomes of this policy closely in the hope this will genuinely bring in a new era of well-built affordable council homes, delivered at scale, across the UK.”

Liverpool is Ideal for BTL Investors Looking for ‘Lucrative Long-Term Rental Returns’

Published On: October 5, 2018 at 9:00 am

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Liverpool has once again been highlighted as an ideal destination for buy-to-let landlords seeking solid rental returns, this time by an experienced property investment specialist.

The city continues to see high demand from tenants for private rented accommodation, thanks in part to ‘Knowledge Quarter’, which has seen a huge influx of students and young business professionals choosing to relocate to the city due to the new and innovative opportunities available.

Mark Burns, managing director of property investment firm Hopwood House, said: “Not only does the city’s beautiful waterfront setting and impressive skyline attract major international interest, the city was also awarded the title of one of the best places in the UK to invest, making it the perfect opportunity for buy-to-let property investment.”

Burns points out that with unparalleled earnings to house price ratio, properties in this high-spirited and fast-paced city cost on average 4.8 times more than the typical annual salary.

“Nominated as the annual European Capital of Culture in 2008, Liverpool possesses all the attractive qualities of larger UK cities at a fraction of the price,” he added.

Property prices in Liverpool are relatively affordable compared with other major UK cities, and with an average house price growth of 5.9% last year, Burns sees Liverpool as “the ideal location for buy-to-let property investors looking for lucrative long-term rental returns”.

He continued: “Liverpool offers some of the most profitable rental yield returns in the country, with three Liverpool postcodes ranking in the top 10.
“The L7 area of Liverpool, located just outside the busy and energetic city centre, offers unrivalled yields of up to 11.79%. Areas elsewhere in Liverpool can offer rental yields anywhere between 11.52% and 9.36%.”

Plans for the Northern Powerhouse scheme, designed to rival London and the South East as the main driver of economic growth in the country, by pooling the strengths of the cities and towns of the north as one cohesive unit, are also expected to support the housing market in Liverpool as well as boost the wider economy in the city.

Burns went on: “Liverpool is set to benefit from 10,000 new properties and two million square-feet of office space due to the redevelopment proposals set out by the city council.

“The new office space available is expected to attract a substantial number of young business professionals to the area while the new properties available are a perfect opportunity for investors looking to enjoy long term rental returns.

“Liverpool is most certainly one of the most beneficial and profitable places for property investment at the moment, especially in the buy-to-let sector. Cheap house prices and attractive yields allow investors to enjoy long term lucrative returns whilst the growing population of young professionals and the number of properties available on the market make it a straightforward investment with fewer risks than investing in other larger UK cities.

“The Northern Powerhouse initiative and the city’s extensive transport networks make it both refined and accessible for both tourists and locals.

“Liverpool is set to continue growing and thriving in years to come, making it an ideal investment opportunity for investors looking to expand their property portfolio.”

Upward Pressure on Rents in Prime Central London as Supply Falls

Published On: October 5, 2018 at 7:59 am

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Categories: Lettings News

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Rents in London’s prime property market rose again in August as market conditions in the capital improved to levels not seen for nearly two-and-a-half years.

According to Knight Frank’s latest prime London lettings report, rents increased for the third consecutive month, rising by 0.9% in the 12 months to August 2018, following a fall in the supply of rental homes as more landlords look to offload properties due to punitive tax changes.

The supply of rental properties has fallen in both prime central and outer London as more landlords sell or list their property for sale. There were 18% fewer listings in prime central London in the year to August compared to the previous 12 months. The equivalent decline in prime outer London was 13%.

But while supply falls, demand from renters is growing, with the number of new prospective tenants per new lettings listing hitting a ten-year high.

Knight Frank’s latest findings support separate figures released by other firms, including Home.co.uk.

The latest data from Home.co.uk shows that the number of available properties to rent is plummeting at an alarming rate, particularly in Greater London, and this is placing upward pressure on rents.

The property website reports that rents have already risen by 4% in the Greater London area over the last 12 months, with further growth anticipated as a result of the widening supply-demand imbalance in the private rental market in the capital.

Home.co.uk Director Doug Shephard commented: “The main driver for rent hikes going forward is an alarming lack of homes to rent, especially in Greater London.”

One in Five Students Lost Part of their Tenancy Deposits

Published On: October 4, 2018 at 9:56 am

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Categories: Tenant News

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One in five (22%) students lost part of their tenancy deposits when they left their accommodation at the end of the last academic year, according to new research from The Deposit Protection Service (The DPS).

UK landlords are legally obliged to protect any deposit that they take from their tenants in case of loss or damage caused during the course of a tenancy agreement with one of three Government-approved protection schemes.

The DPS explains that students arriving at university can drastically improve their chances of receiving their deposit back when they leave by acting now.

The Managing Director of the protection scheme, Julian Foster, says: “Like anyone renting accommodation, students must act responsibly during their tenancies and be aware of both their rights and responsibilities.

“If their deposit is protected, our free dispute resolution service can ensure that they can challenge any deduction they consider unreasonable, and that an independent adjudicator will consider their evidence before making a decision.”

One in Five Students Lost Part of their Tenancy Deposits

One in Five Students Lost Part of their Tenancy Deposits

He continues: “The system also gives landlords a chance to reclaim any costs created by the behaviour of their tenants, so student renters should think and act in a way that prevents damage or other losses from the very first day of their tenancy – not just towards the end of the academic year.”

The research found that cleaning (63%) is the most common reason cited by landlords for claiming part or all of their tenants’ deposits, followed by damage to the property (54%), redecoration (37%), rent arrears (23%), gardening (16%), replacing missing items (16%), and paying outstanding bills (4%).

Top tips for student tenants

The DPS has offered its 12 top tips on how students can increase their chances of retaining their tenancy deposits:

  1. Firstly, make sure that your landlord protects your deposit with a Government-authorised deposit protection scheme.
  2. When you move in, approve the inventory with any other tenants and return it to the landlord.
  3. If you have not met the landlord of your property, make sure to check their name against your university or student union’s list of approved landlords.
  4. Remember that every tenancy agreement can be different; make sure to read yours carefully to understand your rights and responsibilities.
  5. Record all communications with your landlord in writing, particularly any agreements that you make. Also, follow up any phone calls or face-to-face conversations with what was agreed in an email.
  6. Keep copies of any documents, receipts and email correspondence relating to your tenancy.
  7. Report any issues with the property promptly and in writing, including the cause of the problem.
  8. If you ever take photographs of issues with the property, ensure that they are date stamped.
  9. Remember that your obligations as tenants are likely to be what is known legally as “joint and several”; if one individual tenant does not accept personal responsibility when something goes wrong, such as a breakage, then it becomes the joint responsibility of all the tenants.
  10. Remember that most tenancy agreements stipulate that tenants are liable for damage to communal areas, as well as within your own room.
  11. Also, liability generally extends right until the end of the tenancy; if you move out before other tenants, you could remain jointly responsible for the property.
  12. Attend the check-out inspection at the end of your tenancy and take your own photos if necessary.