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Rise for Rents in London since December 2016, Landbay Index Reveals

Published On: July 9, 2018 at 7:59 am

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Rent prices in London have increased by 0.1% in the past year to June 2018, according to the most recent Landbay Rental Index. This is the first annual rental rise in the capital since December 2016.

There has been a lot of conversation concerning slowed rental growth in the capital which has dragged down the national average. However, rental growth finally returned to a promising territory this month.

Results provided by the index reveal that rent prices have soared in 25 of the 33 boroughs over the last six months.

The average rent paid for a property in the capital now stands at £1,884 per calendar month (PCM). This is still double the £764 per calendar month (PCM) in the remainder of the UK despite the vigorous market in London forcing rents down in recent years.

In other locations of the UK, rental development persisted to slow, with rents increasing by just 0.4% in the first half of the year.

Landlords have witnessed rental prices increase by 0.95% in addition to 0.70% respectively.

Contrastingly the northeast has lagged behind, with rents dropping by -0.08% this year.

In regards to a county level, Nottingham experienced the fastest rental increases this year, at 1.43% and 1.25%.

CEO of Landbay, John Goodall comments: “While there remains a huge degree of regional variation, the overall trend has been a slowing of rents across the UK in the first half of this year. However, much of this has been London weighing down heavily on otherwise resilient growth across the UK. Now that London rents have bounced back to growth this could all be about to change.

“Wherever they’re based, landlords have had to face a myriad of challenges over the past two years, with regulatory and tax changes reshaping the sector. Despite this, there has been little sign of them passing on additional costs to tenants. However, with a rate rise on the horizon, meaning a rise in the cost of borrowing for landlords, we may well start to see landlords increasing rents in the coming months to stay afloat.”

 

 

 

 

New Homes Listings Data Shows National Slight Drop

Published On: July 6, 2018 at 10:00 am

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New figures from estate agents HouseSimple show that the number of new homes being listed for sale fell by 3.8% last month in the UK. This is based on listings tracked through the Home.co.uk website, showing the first drop in supply since December 2017.

However, despite this drop, new listings are continuing to remain high, as, for the second month in a row, new listings have surpassed 70,000.

Looking at new property listings across the UK, they were 60.4% higher in June than they were in the same month in 2017. However, 76.6% of towns and cities saw a fall in new stock levels in June compared to May.

The largest drop in new listings in June compared to May last month was experienced by Salford in the North West, at -32.8%. The largest increase in new listings during the same period was in Lichfield in the West Midlands, at 27.6%.

Sam Mitchell, chief executive of HouseSimple, said: “Although new property supply fell slightly in June, listings still exceeded 70,000 for the second consecutive month across the 100 towns and cities we analysed.

“Seller activity has picked up noticeably since mid-May, particularly in London, where prices have cooled. Buyers are viewing a lot more properties before they make an offer, and with more sellers listing in the past month, they have more choice.

“More than ever, the key for motivated sellers is to price correctly and competitively to attract buyers. It’s important to do your research, to check what properties are selling for on your street and in the nearby area. This is probably not the right market to price high, hoping to squeeze a little more money out of buyers.

“Although we are seeing real intent from buyers to purchase, even with Brexit looming, they are more willing to move on to the next property, or wait and see, if they believe the price is too high.”

New Licencing Scheme for Landlords to be Introduced in Nottingham

Published On: July 6, 2018 at 9:24 am

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Rules are to change for landlords in Nottingham, as a new rental licencing scheme will introduce new conditions within the city.

Designated areas will be enforcing the need for landlords to be licensed through the council and comply with conditions that aim to maintain that private tenants have access to safe and liveable homes.

There are an estimated 30,000 homes within these designated areas in Nottingham. Outside of London, this is the largest scheme of its kind.

The scheme will come into force from 1st August this year, but will not apply to Homes in Multiple Occupation (HMOs) already licensed under an existing scheme.

Adam Kingswood, director of Kingswood Residential Investment Management has offered the following advice: “Our advice to landlords is to keep a close eye on the Nottingham City Council website for updates and to use the guidelines which are located on the site to help steer a course through the process.

“Whilst there is undoubtedly plenty of work involved in the process of applying for a licence, reputable landlords will already have most of the required documentation. For example, proof of buildings insurance, gas safety certificates and EPC’s are required amongst other documentation.”

“The difficult requirement may be in providing evidence of ‘landlord training’ which is required but this should not delay the application process. Where this has not been undertaken, the Council will make this a condition on the licence for the licence holder to complete within 12 months and details of suitable training will be required.”

Registration for the scheme opened on 1st July this year, and landlords are to complete the process by 1stAugust, leaving them under a month to either register themselves or appoint an agent to act on their behalf.

Those who do not comply may end up with a civil penalty of up to £30,000, or prosecution on summary conviction, which carries an unlimited maximum fine. This could also result in landlords being banned from holding a licence in the future.

The licence for each property currently stands at £780 for non-accredited landlords and £480 for those accredited with the Nottingham Standard (either Unipol or DASH).

Adam Kingswood also added: “The introduction of the licensing scheme requires work from all landlords in Nottingham City to take action and register, whether they rent one property or have a large portfolio. My advice is to check if your property falls within the licensing area asap and seek professional advice from an ARLA regulated agent if you need assistance.”

Property Manager Faces Trial After Toddlers Die in Blaze

Published On: July 6, 2018 at 8:56 am

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Due to the absence of smoke alarms in a rental property, two children, Logan Taylor, 3 years old and Jake Casey, 2 years old, have died in addition to a property manager facing trial.

As reported, despite smoke alarms being requested by tenants of the property, Emma Taylor and her partner Jamie Casey, Kamal Baines, the Director of Prime Property Estates in Yorkshire had allegedly neglected this request, failing to install these alarms.

Taylor told Leeds Crown Court: “He didn’t seem bothered. As long as he got the rent, he was happy for me to live like that with my kids.”

It is common knowledge that Baines’ firm, which was closed last year, was responsible for the management of over 140 rental properties around the Huddersfield area on behalf of private landlords.

Taylor had apparently enquired about smoke alarms upon moving into the property, due to her eldest son having started a fire in their previous property by putting a tea towel on a gas ring.

According to Prosecutor Allan Compton also commented: “One of the children living in the property who died was autistic. If ever there was an address to prioritise in ensuring alarms were present, it would have been that one.”

The cause of the fire was reportedly concerning an electrical fault that had taken place on the children’s bedroom.

The Court was informed that an upstairs alarm could have provided Miss Taylor with a 5-minute window to save the children.

Furthermore, in October 2015, it was mandatory that smoke alarms were installed on all floors of rental properties.

Miss Taylor had urgently attempted to make her way into her children’s bedroom, however, was unable to avoid the smoke and flames blocking her way. Neighbours who also intervened were unfortunately defeated by the smokes and flames.

Taylor and Casey’s eldest son, Finley has managed to escape the fire.

Baines, aged 51, denies two counts of manslaughter in addition to one offence under the Health and Safety at Work Act.

This trial continues today.

For advice concerning compliance with Fire Safety regulations, in addition to advice on Gas Safety, please visit the Landlord News website

Government Criticised for Failure to act on Improvements to PRS

Published On: July 6, 2018 at 8:03 am

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According to the Chartered Institute of Environmental Health (CIEH) the Government have failed to respond sufficiently to the Housing, Communities and Local Government Select Committee’s report on the private rental sector (PRS), in addition to ignoring fundamental recommendations designed to improve standards.

The HHSRS, introduced in the Housing Act 2004, assesses risks to health and safety in the home and observes faults and deficiencies that can cause injury and ill-health to residents.

This system which has been implemented since April 2006, is the foundation and determinant of how local authorities decide on whether they should take formal action on unsatisfactory housing.

According to the survey of environmental health professionals, 97% of environmental health professionals agree that the HHSRS requires and update. 90% opted for an update of the official guidance in addition to better working examples. 71 respondents requested underlying statistics of this evidence-based system to be updated, while 53% claimed they had witnessed hazards that could not be addressed with the current system.

The official response from the Government states: “We recognise that the methodology and associated guidance for the HHSRS is now several years old and we will carefully consider whether it needs to be updated. In doing so, we would wish to reflect upon who is best placed, and has the necessary expertise, to carry out such a review.”

Tamara Sandoul, housing policy manager at CIEH, commented: “We are bitterly disappointed that the Government has decided not to make a decision on the review and update of the Housing Health and Safety Rating System – an issue that has surfaced throughout the Select Committee inquiry into the private rented sector.

“The evidence and guidance that local authorities use to take action on dangerous housing conditions has not been reviewed or updated since it was introduced 12 years ago. Housing courts rely on this outdated guidance to make their decisions. We urge the Government to commit to a full update of HHSRS and to see how it could be improved going forward.

“We are further disappointed to hear that decisions have also not been made on two other key areas of housing safety. The requirement to undertake five yearly electrical safety inspections and the need to provide a working carbon monoxide alarm for all rented properties with a fuel-burning device have been postponed until a later date.

“This is simply not good enough and the millions of people currently in the private rented sector expected better.”

Warning Issued for London Economy as Record Numbers Leave Capital

Published On: July 5, 2018 at 9:49 am

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Warning Issued for London Economy as Record Numbers Leave Capital

High house prices in London have contributed to record numbers of people leaving the capital for more affordable living elsewhere, Knight Frank claims.

The agent has put together figures from the Office of National Statistics (ONS), which showed migration numbers were at 336,000 people leaving London for other UK cities. This is for the year up to June 2017, and is up by nearly 15% since the previous year.

In total, 229,405 individuals moved to the capital from other parts of the UK, and 336, 013 left in the year to June 2017. This puts London’s net outward migration at 106,608 – 55% higher than in 2012.

Where are the most desirable areas for people moving out of London?

The highest proportion of movers from the capital ended up in Scotland, but Birmingham and Brighton were the most popular cities in England.

As part of the cohort leaving the city, areas concentrated around London’s commuter belt have become increasingly popular, with Elmbridge, Dartford, Reigate and Slough being the most sought-after areas.

Warning Issued for London Economy as Record Numbers Leave Capital

Warning Issued for London Economy as Record Numbers Leave Capital. Pictured: The Jubilee Plantation, Richmond, London

Who is this likely to affect most?

Londoners in their 30s formed the largest cohort of people leaving the capital, and were also the ones that favoured the commuter belt areas.

In terms of positive net migration, the only age group where more people moved into the capital than out of it were those in their 20s. Knight Frank attributed this to the large number of students who move to London universities to study.

Tom Bill, head of London residential research at Knight Frank, said: “While this highlights a potential longer-term risk, housing affordability is likely to have helped sway the decision of some to leave London.

“While this highlights a potential longer-term risk for the capital’s economy, for others, exceptional house price growth in London in recent years will have enabled them to make the move.”