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Em Morley

Demand for private rental housing at record a high

Published On: November 29, 2021 at 10:12 am

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Categories: Landlord News,Lettings News

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SpareRoom study shows most affordable places to rent in the UK

Demand for private rental housing is at an all-time high according to new research being published by the National Residential Landlords Association (NRLA).

A survey of private landlords across England and Wales, conducted in partnership with the research consultancy BVA/BDRC, found that 57% confirmed demand for private rental homes had increased in the third quarter of 2021. This is up from 39% in the second quarter of the year.

At the onset of the first COVID lockdown in the second quarter of 2020, just 14% of landlords reported an increase in tenant demand.

In a sign of recovery in the market, landlords operating in London have seen a significant uptick in demand compared to the levels reported throughout the pandemic as workers returned to the capital.

68% of landlords operating in outer London reported an increase in demand, up from 25% in the third quarter of 2020. In central London, 54% reported increased demand, up from 16% at the same time last year.

Elsewhere, landlords operating in the South West reported the strongest demand with 79% saying that demand had increased in the third quarter of the year. This was followed by 74% in the South East (excluding London), 73% in Wales and 71% in the West Midlands.

Despite the booming demand, the same proportion of landlords plan to reduce the number of properties they rent out as planned to increase them at 19%.

It comes as the Royal Institution of Chartered Surveyors has warned of rents increasing due to the “mismatch between supply and demand.”

Ben Beadle, Chief Executive of the NRLA, comments: “As demand picks up following lockdown measures, we need a stimulus to support responsible landlords to provide the homes to rent we vitally need. Without this, it will ultimately be tenants that suffer as a result of less choice, higher rents and the resulting difficulties they will encounter when looking to become homeowners.”

Average tenancy lengths are increasing, English Housing Survey shows

Published On: November 26, 2021 at 9:34 am

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Average tenancy lengths are increasing, English Housing Survey shows

The latest English Housing Survey found that private renters had lived in their home for 4.3 years on average. This is up from 4.1 years recorded in the 2017/18 English Housing Survey and 3.9 years in the 2016/17 report.

Property inventory management specialist No Letting Go says that these rising average tenancy lengths make inventories and regular inspections much more important for letting agents and landlords.

It points out that this latest survey shows the average length of residence increased with age. It increased from a mean of 1.3 years for private renters aged 16 to 24, up to 5.7 years for those aged 45 to 64, and jumps to 17.5 years (more in line with the average tenure for owner occupiers) for private renters aged 75 and over.

While the survey implies time in current accommodation was relatively short, time in tenure appeared longer, suggesting that private renters were moving home within the private rented sector (PRS).

It found that most private renters had rented from private landlords for a continuous period of three years or more. In total, 18% had been private renters for three to four years, 24% for five to nine years and 30% for ten years or more.

Older people reported living in the PRS for longer than younger people, with the majority (94%) of young renters, those aged 16 to 24, residing in private rented accommodation for less than five years.

Older tenants are far more likely to have been in the PRS for a longer period, with some 17% of those aged 65 to 74, and 22% of those aged 75 and over, renting for 30 years or more.

Nick Lyons, founder of No Letting Go, comments: “The trend has been this way for quite some time, with the average tenancy length slowly rising over the years. This isn’t surprising given the growth of the private rented sector among all ages in recent times, now accounting for 19% of all households in England, or 4.4 million.

“This means the PRS is now bigger than the social rented sector and responsible for housing nearly one in five households. It’s also only likely to get bigger as people continue to rent for the long-term.” 

Lyons says continued high house prices and the ongoing cohort of people who choose renting as a lifestyle choice – for the flexibility and lower levels of responsibility it provides – is likely to keep high levels of people in the rental market for a considerable period of time. 

He explains: “While this is undoubtedly good news for landlords and letting agents, in terms of more tenancies, more rental income and more growth for all involved, longer tenancies also potentially increase the problems surrounding maintenance, repairs and wear and tear, which could in turn increase the number of issues at check-out.

“Rather than longer tenancies making inventories less vital, they actually make them more so to increase transparency, create a solid evidence trail and keep issues to a minimum if a tenant decides to move out for whatever reason.” 

He added: “Naturally, the longer the tenancy goes on for, the more opportunity there is for every day, general wear and tear and other small bits of damage that build up over time. By having a clear before and after picture, written, pictorial and video-based, landlords and agents can be better set to deduct the right amounts from a deposit if this is required.

“No-one doubts that longer tenancies are better for the PRS – in terms of stability, peace of mind and comfort for landlords and tenants, as well as longer management contracts for agents – but it shouldn’t be a time to get complacent or to take tenancies for granted.

“Partnering with an inventory specialist is a simple, cost-effective way of ensuring tenancies – no matter how long they are – start and end in the right. Because long tenancies have a longer gap between the start and end, for obvious reasons, the need for the check-in report to be as thorough as possible is actually much greater.”

Government data shows use of Section 21 eviction notices declining

Published On: November 23, 2021 at 9:29 am

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Shelter calls on Government to act on repossession reform promise

The number of repossession cases in the courts involving landlords using Section 21 ‘no fault’ eviction notices has dropped over the last two years, government data shows.

A new analysis of this data found that the number of cases brought to County Courts in England and Wales off the back of a Section 21 notice during the third quarter of this year was 55% less than the same quarter in 2019.

The assessment, undertaken by the National Residential Landlords Association (NRLA), shows also that this fall is not merely as a result of the temporary ban on repossessions in response to COVID-19.

The NRLA points out that even before the pandemic, between 2015 and 2019, the number of repossession cases brought after a landlord had served a Section 21 notice fell by 50%. It comes as further government data shows that fewer than one in ten tenancies in England are ended because a landlord asks a tenant to leave.

Ben Beadle, Chief Executive of the NRLA, comments: “These figures dispel the myth, peddled by some, that landlords spend much of their time looking for ways to evict tenants for no reason. Whilst we condemn any landlord who abuses the system, it is vital to remember that the vast majority of tenants and landlords enjoy a good relationship.

“It is in that spirit that the Government should develop its plans for a system to replace Section 21 in its forthcoming White Paper on rental reform.”

The NRLA has developed detailed proposals for a system to replace Section 21 notices that is fair to both tenants and landlords. It is calling for the new system to include clear and comprehensive grounds upon which landlords can legitimately repossess properties. This will need to address some of the most difficult areas, especially ensuring swift action can be taken against anti-social tenants who cause misery for their neighbours and fellow tenants.

Where legitimate possession cases do end up in court, the NRLA is calling for the Government’s plans to include proposals to speed up the process. At present it can take an average of almost 59 weeks from a private landlord making a claim to repossess a property to it actually happening.

Landlord tips for looking after let properties in winter

Published On: November 19, 2021 at 9:33 am

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Landlord tips for looking after let properties in winter

With winter on its way in the UK, rental platform LettingaProperty.com has put together a few tips to help landlords and their let properties survive the colder months.

Jonathan Daines, Founder and CEO of LettingaProperty, comments: “November and December are known for bringing a fall in lettings activity. And decreased tenant demand isn’t the only issue facing landlords – letting properties during the winter months also means there’s plenty to think about from a maintenance perspective.”

Perform maintenance checks

Looking for tenants during the winter months? LettingaProperty suggests one quick win is to fix all minor repairs. Tackling loose cupboard doors, wonky drawer handles, and dilapidated garden fences can make a difference to a potential tenant’s first impression of a property. Ensure the boiler has been serviced and bleed the radiators as part of your winter maintenance work.

Outside the property, it’s important to keep gutters and roofs clear and in good repair. Guttering that is clogged with autumn leaves and moss is unlikely to direct water away from the house efficiently, creating potential problems with damp and mould.

Take good photographs

Whether it’s for a traditional listing or 360° tour, having photos to show off your property’s potential is important. Using a professional to capture the property at its best could also help.

Highlight the home’s best features

Pay careful attention to how you describe the property when advertising it. Avoid generic language and highlight the best features to ensure the property stands out from the crowd. Marketing across multiple platforms can also help.

Keep the heating on in unoccupied properties

If the property is empty, it can be tempting to leave the heating off. However, this runs the risk of the pipes freezing and bursting, so it’s much better to leave the heating on low. In addition, any exposed pipework will need attention – insulation tubes are a cost effective and easy way to reduce the risk of freezing. External taps can also be protected with insulation tubes.

Avoid keeping the windows shut all of the time

Keeping the property warm will also help to combat any condensation, mould or damp. However, avoid the temptation to keep the windows shut all of the time, as air flow and ventilation are also key to avoiding condensation and damp.

Compare energy suppliers

Given the spiralling cost of energy bills during the winter, consider using the winter months to switch supplier, with a view to making a saving.

Protect your property investment

Finally, make sure you have relevant insurance in place, as the property is more likely to sustain damage over the winter months than in the summer, the rental platform says.

Daines comments: “Good communication with the tenant is also crucial to successful winter lettings. After all, tenants who have a good relationship with their landlord are likely to make more effort to keep the property in good condition.

“And if heavy snow, local flooding or other extreme weather is expected, the landlord and tenant can agree an emergency plan and share ways to contact each other if required. By working in partnership, they can ensure that the property will still be in tip top condition come spring.”

Crisis comments on latest possession statistics since end of eviction ban

Published On: November 17, 2021 at 9:20 am

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Shelter calls on Government to act on repossession reform promise

The Ministry of Justice’s latest Mortgage and Landlord Possession statistics cover the first full quarter since the ban on bailiff-enforced evictions ended.

The highlights from this report, covering statistics from July to September 2021, include:

  • There were 4,853 landlord possessions across England and Wales in this quarter.
  • This is a 207% increase compared to the previous quarter (when there were 1,582 possessions), but 35% lower compared with the equivalent quarter in 2019, before the pandemic (when there were 7,453 possessions).
  • There were 10,202 possession claims issued, with more possession claims from private landlords (4,373) than from social landlords (3,681). 
  • Mortgage repossessions by bailiffs have increased by 756% since the previous quarter, from 45 to 385. 

Jon Sparkes, chief executive of Crisis, comments: “These figures make clear how damaging it was for the UK government to end the eviction ban without providing sufficient support for renters who had built up arrears in the pandemic. More and more people who lost their jobs and had their lives turned upside down are now being forced into homelessness. As more cases make their way through the courts, we sadly expect this to increase further still. 

“Last month the UK government did announce a winter support package of £65m for renters but with a million in arrears, it falls well short of the £270m that is needed.  

“The real people behind these statistics have been left to bear the brunt of this piecemeal support, as cost of living is rapidly increasing and temperatures dropping. Seeing more people face homelessness is simply unacceptable. 

“To tackle homelessness before it happens, we need to prevent people falling into arrears in the first place and that must include unfreezing housing benefit so it covers the true cost of renting.” 

Majority of councils fail to tackle criminal landlords, research shows

Published On: November 15, 2021 at 9:56 am

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Landlords urge ministry of justice to speed up court wait times

Two thirds of councils in England have prosecuted no landlords for offences related to standards in or the management of private rented housing over the last three years.

The National Residential Landlords Association (NRLA) is warning that this failure to take action against the criminal minority brings the sector into disrepute and risks undermining further reform of the sector.

The NRLA obtained the data via Freedom of Information Act requests from 283 local authorities across England. In the three years between 2018/2019 and 2020/21, 67% had not successfully prosecuted a landlord for offences related to standards in or the management of private rented housing. A further 10% had secured just one successful prosecution.

Overall, just 20 local authorities were responsible for 77% of all successful prosecutions. The three local authorities with the highest number of prosecutions (Southwark, Birmingham and Hull) were responsible for 38% of all such action across England. Of these, Birmingham and Hull had no local landlord licensing scheme in place.

Among those councils responding, just 937 successful prosecutions of criminal landlords had taken place over the past three years. This is despite government estimates in 2015 that there may be around 10,500 rogue landlords in operation.

The new data follows research published earlier this year by the NRLA which showed that over the same three years, 53% of English councils had issued no civil penalties against private landlords.

Whilst the Government has pledged to publish a white paper on reform of the private rented sector next year, the NRLA is warning that a failure to enforce the wide range of powers already available to tackle criminal and rogue landlords will critically undermine further reform.

The NRLA is calling on the Government to provide councils with the multi-year funding needed to ensure they are properly resourced to take action against criminal landlords. According to research by Unchecked UK, the amount spent on housing standards by local authorities in England fell by 45% between 2009 and 2019.

The NRLA argues that this must happen alongside a requirement for councils to publish details of formal and informal enforcement activity against private landlords on an annual basis. This is vital to ensuring that they can be held to account for efforts to tackle criminal and rogue landlords.

Ben Beadle, Chief Executive of the NRLA, comments: “The vast majority of responsible landlords are sick and tired of a failure to root out the minority who bring the sector into disrepute. The problem is not a lack of powers, but a failure by councils to enforce them properly.

“Whilst ensuring councils have the resources, they need is vital, so too is the need for them to be more transparent about the levels of enforcement they are taking. In short, local authorities need to prioritise activity to find and root out criminal landlords, ensuring it is they who meet the costs of such efforts.

“Our research illustrates also that there is no clear link between the existence of a landlord licensing scheme and levels of prosecutions. Councils again need to be open with tenants and landlords about how such schemes are ensuring standards are met in rental housing.”