Written By Em

Em Morley

Which Features and Facilities will Renters Pay Premium for?

Published On: May 29, 2018 at 9:31 am

Tenants are often keen to pay more for additional perks that a property they are interested in has to offer, whether it’s extra storage or a spacious garden. However, in order to ensure a greater chance of tenants paying premium, it is imperative to consider what incentives tenants find most appealing.

Recent research collated by the LSL Property Services after surveying 3,000 tenants, reveals that tenants are mainly enticed by the permission to have pets in their property, with an impressive 28% willing to pay an average of £24 per month to keep their furry friends with them in their rented accommodation.

In addition, the more obvious factor was high-speed internet. This proved to be a priority, with 21% of tenants more than happy to spend an extra £19 each month for this.

Having a concierge service available is a slightly different option popular amongst some, with 3% willing to pay an additional £20.

Other renters were enthused by the possibility of having extra storage space for their bikes. The percentage of tenants willing to pay more for this was a marginal 1% higher than that of tenants wanting to pay extra for the concierge service.

The survey also revealed that many tenants would be prepared to pay additional fees for communal facilities when renting. The top priority was a gym, highlighted by the fact that 41% of renters said they were willing to pay an extra £20 on average every month to stay fit and conveniently exercise in their own accommodation.

34% of tenants have agreed that if a laundry facility were provided, an additional payment of £10 on top of their standard rent wouldn’t be an issue at all.

Martin Smith, Managing Director of Showerstoyou.co.uk, has commented: “Property prices have certainly been unattainable for those looking to get on the property ladder over the last few years. Brits therefore have had no option but to rent. As a result, individuals have been applying similar criteria’s to renting as they would when seeking a property to buy.

“This research shows that there are features and facilities that renters really want and would pay a premium for. Whilst some features/facilities are prioritised over others, they all provide great indications for landlords/developments as to what tenants are expecting from rental properties going forward.”

Not Just your Local Supermarket: Sainsbury’s Bank Expands Mortgage Range

Published On: May 29, 2018 at 9:13 am

Author: Em Morley

Categories: Finance News

Tags: mortgages

Not Just your Local Supermarket: Sainsbury's Bank Expands Mortgage Range

Sainsbury’s Bank has recently decided to extend its range of mortgage products with the launch of two-year and five-year buy-to-let products for landlords owning up to three properties.

These new purchase and remortgaging products are available only through the bank’s network of brokers. They provide loans of up to £1m at 60% loan-to-value (LTV) and £500,000 up to 70% LTV.

What do these products offer?

The five-year fixed rate deals for purchase at up to 75% LTV offer a 3.06% deal without a fee, 2.81% with a £995 fee and 2.71% with a fee of £1,995 fee.

Commenting on the introduction of Sainsbury’s buy-to-let products is David Buxton, head of banking at Sainsbury’s Bank, saying: “We are delighted to introduce our buy-to-let products as we’re keen to begin to help smaller investors and non-portfolio landlords manage their mortgage outgoings.

“We work in a partnership with our broker partners and they told us that a buy-to-let range was important so we developed one as soon as we could, within our first year of trading.

“By creating strong partnerships and listening to our brokers every step of the way, we’re continuing to build a strong mortgage proposition.”

Sainsbury’s bank expands its mortgage range for non-portfolio landlords

Mortgage rates expanded to accidental landlords

Sainsbury’s has called this a ‘key stage in its expansion’, and said the move was driven by broker feedback. The range is specifically for non-portfolio landlords, with up to three properties.

Daniel Bailey, a mortgage broker with Middleton Finance, has commented on Sainsbury’s decision to introduce these new buy-to-let products: “It is positive news if any buy-to-let lender comes to the market and offers more competition and more competitive rates.

“I would question whether they are bringing anything new to the market apart from rates, and whether they are offering clients anything new. There are a lot of buy-to-let lenders in the market so maybe you have to offer something a bit different.”

Pressure put on Rents in Prime Central London due to Housing Shortage

Published On: May 29, 2018 at 8:22 am

Author: Em Morley

Categories: Property News

Tags: housing crisis,London

According to Knight Frank, a decrease in the amount of properties coming onto the private rented market in central London has caused an increase of pressure on rental values.

The company’s assessment reveals that the fall in house prices in central London appear to have reached its lowest and rental declines have also slackened.

The supply of new lettings for properties has faced a decline over the last 12 months due to a few contributing factors, including more pricing stability in the sales market and a succession of tax changes in recent years, affecting landlords.

Parts of London such as Chelsea, continue to face high demand with 25% more new prospective tenants registering in the year to April 2018 in compared to the last 12-month period. Moreover, the viewings for properties in Chelsea have seen a 5% increase, while Knight Frank granted 13% more tenancies over the corresponding period in Chelsea and the surrounding area. In addition, research collected by the Financial Times reveals that the housing shortage is a by-product of London’s economic success and ever-increasing population.

Sadiq Khan, mayor of London, has previously commented on the housing shortage issue, explaining the urgency for more emphasis on what proportion of housing stock is “genuinely affordable” for those currently on average incomes.

Arya Salari, Head of Lettings at Knight Frank’s Chelsea office reports: “Strong demand for Chelsea houses among tenants is the result of lingering caution in the sales market around higher rates of stamp duty.

“However, at some point this dynamic will reverse and it is increasingly common for tenants above £3,000 per week to insert a clause in the tenancy agreement that gives them first right of refusal to buy at the end of the contract.”

He explains that due to the high stock levels and the fact that it remains more of a tenant’s market, this trend is reversing, consequently placing pressure on rental values.

The Most and Least Popular London Boroughs for Lovers of Pets

Published On: May 25, 2018 at 9:44 am

Author: Em Morley

Categories: Lettings News

Tags: London,tenants

The number of people looking to live in private rented accommodation is continuously increasing, and with it the call for pet-friendly tenancies.

Times are changing, and although some landlords have had a negative outlook on pets in rented housing in the past, certain areas in London are becoming more accommodating.

However, there are still plenty of landlords unhappy about having animals living in their properties, due to fears that they may cause damage.

With the aim to determine exactly where in London is the best location for those with pets, FASThomes.org (Family Accommodation Support Team) has extracted figures from Zoopla over the period of one month.

The results show that Kensington and Chelsea are the most pet-friendly, with 153 properties allowing pets during the time at which the information was gathered. Lewisham followed with 59, and Westminster, Lambeth and Wandsworth were close behind, with 56, 49 and 44 respectively.

The least pet-friendly London borough appears to be City of London, showing only one property that would allow pets. Other boroughs showing a pet-let reluctance include Redbridge with five and Barking and Dagenham (ironically) with three.

A list of the results for each borough can be viewed on the FASThomes website.

The Pet Food Manufacturers’ Association (PFMA) has also released its Pet Data Report 2018 showing that 45% of households in the UK own pets. The association has stated: “We are delighted to see a growing number of households with pets, which has been triggered largely by an increase in ownership among families.”

This data shows an increase of 600,000 on last year and rises to 53% when looking at household with children.

With this in mind, it could be worth reluctant landlords reconsidering their stance on allowing animals to live in their properties. Despite worries about damage, there are responsible owners out there looking to rent. For those already with pets, landlords could look to references from their previous tenancies to confirm that there have been no issues in the past.

Rogue Landlords be Warned: Database Enables London Boroughs to Name and Shame

Published On: May 25, 2018 at 9:27 am

Author: Em Morley

Categories: Landlord News

Tags: landlord responsibilities,London

Rogue Landlords be Warned: Database Enables London Boroughs to Name and Shame

The mayor of London, Sadiq Khan, has set up a new database for boroughs to submit records of successful prosecutions and fines of rogue landlords and letting agents.

All 33 London boroughs have now signed up to be a part of it. This means that landlords or letting agents who have been prosecuted or fined across the capital will now be publicly accessible on an online database. In addition to the public side of the database, local authorities will also be able to access certain records which cannot be viewed publicly, but which are available for local law enforcement authorities to help crack down on living conditions in the capital.

The database is primarily designed for protecting private renters in London, enabling them to check up on landlords and letting agents before they enter into tenancy agreements.

As it currently stands, ten boroughs have now submitted their reports, with the rest expected to follow shortly. The first six boroughs to sign up to the scheme were Newham, Brent, Camden, Southwark, Kingston and Sutton.

One record that has already gone up is of a landlord in Westminster, who was fined £150,000 after a major fire took place in a block of flats they owned.

The database is accessible here, on the City Hall’s website.

New database enables private renters to access information regarding rogue landlords and agents

Sadiq Khan Comments

Sadiq Khan says, “When I launched the checker I made it clear unscrupulous landlords and agents would have nowhere to hide. Now, with all local authorities signed up, we have reached an important milestone in protecting London’s renters.

“The rental market in the capital is difficult enough to navigate without a small minority of rogue operators exploiting their tenants. This tool will empower Londoners to make an informed choice about where to live.

“I’m extremely grateful for the support of all the local authorities and other bodies which have signed up to contribute their records to the database. I’m confident this will be a major step in tackling unscrupulous and illegal practices in the rented sector.”

In addition to this new database, Khan has also launched a property portal on City Hall’s website, which advertises affordable homes to rent or buy in the capital. This accompanies the Shared Ownership home search, which provides prospective London buyers with a way to get onto the initial step of the property ladder.

Khan continues, “I refuse to stand by as thousands of Londoners suffer sky-high rents and horrendous living conditions in a city they call home.”

Tenants Facing Lack of Choice with Fall in Rental Homes

Published On: May 25, 2018 at 8:13 am

Author: Em Morley

Categories: Tenant News

Tags: property market,tenants

With a fall in the number of homes available to rent, private sector tenants are finding rents are rising, with fewer options to choose from.

According to data published yesterday by the Ministry of Housing, Communities and Local Government, the number of homes in England available for private rent fell by 46,000 between March 2016 and March 2017. This was during the first year that the 3% Stamp Duty surcharge for the purchase of additional buy to let properties came into effect, as well as the final year before the Government began phasing in a reduction in mortgage interest relief for the sector to the basic rate of income tax.

This information about the fall in supply comes as recent figures from the Association of Residential Letting Agents (ARLA) have revealed an increase in demand for private rented homes. It was also in March that the Prime Minister made a speech regarding the launch of the new National Planning Policy Framework. In the speech she argued that “rents come down” when “supply goes up.”

A warning has previously come from David Miles, Professor of Financial Economics at Imperial College London and a former member of the Bank of England’s Monetary Policy Committee, stating that “aspiring first-time buyers are hardly helped by squeezing the supply of rental property and driving rents up.”

David Smith, Policy Director for the Residential Landlords Association (RLA), has commented: “Today’s figures show that tax hikes on the sector are choking off supply and making it difficult for prospective tenants, many of whom cannot afford to buy a home of their own, to access the homes to rent they need.

“At the same time that the Ministry of Housing has published its corporate plan in which it pledges to support the delivery of one million homes by 2020, this is hardly an auspicious start.

“Delivering homes just for those who can afford to buy is not a policy which meets the needs of many less fortunate households in the UK. With corporate investors still accounting for only two per cent of the private rental market, it is time to develop pro-growth taxation that supports the majority of landlords who are individuals or small businesses to invest in the new homes to rent we desperately need.”