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Em Morley

End of England eviction ban could be starting point for eviction reform

Published On: May 28, 2021 at 9:19 am

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'More misery for landlords as bailiff crisis kicks in' says Landlord Action

The eviction ban in England is due to end on 31st May, with a change being made to notice periods.

A press release published 12th May 2021 from the Ministry of Housing, Communities & Local Government states that there will be four-month notice periods for most tenants until at least the end of September this year.

Neil Cobbold, Chief Sales Officer at PayProp, comments on the end of the eviction ban: “The end of the ban on bailiff-enforced evictions, which has been in place in England since March 2020, will be welcome news for landlords struggling to regain repossession of their homes. However, it is also an opportunity to rethink the current eviction system in order to reduce backlogs and reach fair outcomes more quickly.

“We’ve already seen the government trialling a mediation service to solve landlord-tenant disputes before a full court hearing. If the trials are successful, this can become accepted practice and really help to lessen the number of disputes between the main parties involved in a rental transaction.

“Of course, in some situations – where severe rental arrears or anti-social behaviour are involved – heading to the courts may be the only way forward, but those cases will be able to proceed more quickly if they have less competition for court dates.

“Letting agents have a key role to play in all this, facilitating communication between landlords and tenants, finding mutually acceptable solutions and keeping robust payment records to demonstrate whether renters are meeting their obligations.

“However, no matter how successful mediation proves to be, a speedy and effective repossession system will always be necessary. The government has said that it will conduct a review of renters’ rights later this year with input from the industry, and the planned publication of its consultation into scrapping Section 21 evictions could also shed some light on its ideas for the future of repossession.

“Property professionals will hope that politicians take a balanced approach that respects the rights of everyone involved and provides timely access to justice.

Average age of UK landlords drops compared to three years ago

Published On: May 27, 2021 at 8:21 am

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The average age of UK landlords has decreased, with 47% of landlords now aged under 40. 

This figure compares to just three years ago (2018), when only 29% of landlords were aged under 44. The insight, from property investment company Knight Knox, shows that people are investing in rental properties from a younger age and they’re also making more money from rental income than their older counterparts.

Knight Knox, which specialises in the sale of off-plan buy-to-let properties for the private investor market, surveyed 500 private landlords in March 2021 with One Poll.

The average income per year is highest for the very youngest landlords, with those aged between 18 and 30 generating an average £25,481 a year, according to a research base of 500 private landlords.

Andy Phillips from Knight Knox has commented: “Landlords in the UK are getting younger and they’re more willing to invest in the market in order to grow their portfolios quickly. It’s really quite remarkable to find that almost half of British landlords are aged under 40 and shows that property investment isn’t exclusively for the elite.

“In 2018, 50% of landlords were aged over 55. Our latest research shows that this has declined to just 26% being aged 51 or over. The face of modern landlords in the UK is changing and it’s the younger generation which is seeing the greatest opportunity.”

The research also showed that younger landlords are more optimistic about the future. 54% of those under the age of 30 involved with the survey were ‘very confident’ about the market predictions for the next 12 months – compared to 15% of over 51s who said the same. 47% of under 30s plan to buy another house within the next year.

Unfair evictions costing councils more than £161m per year

Published On: May 26, 2021 at 8:27 am

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168% increase in people facing eviction, Government figures show

Ending unfair evictions could reduce homelessness by 9% and save the public purse £161m per year, a Generation Rent analysis finds.

Since April 2018, 68,430 households have faced homelessness after their landlord evicted them to sell or re-let the property or in retaliation for a complaint.

Generation Rent today publishes proposals for tenancy reform which would:

  • Require landlords who wished to sell to compensate their tenants for a blameless home move
  • Ban evictions where landlords simply wished to replace their tenants or avoid responding to a complaint

In the Queens Speech, the Government has committed to publishing a White Paper in the autumn which would set out reforms to protect renters. This includes the abolition of Section 21 “no fault” evictions, a lifetime deposit that transfers between tenancies, and regulation of landlords, which are all policies Generation Rent has campaigned for.

Figures from the Ministry of Housing, Communities and Local Government show that out of 755,250 households made homeless or facing becoming homeless between April 2018 and December 2020, 140,950 had been in a private assured shorthold tenancy (19%). Of these households, 68,430 had faced an unfair eviction. This was either following a complaint about disrepair or due to their landlord selling or re-letting the property (49% of private rented sector cases and 9% of the total).

Generation Rent says these evictions have placed a burden on local authorities. In 2019-20, the most recent year for which we have figures, councils in England spent £543m on prevention, administration and support activities around homelessness. Each of the 289,810 homelessness cases that year cost councils an average of £1,874 to respond to.

In 2019-20, there were an average of 88,533 households in temporary accommodation, costing councils a total of £1.187bn, which is an average of £13,410 per household.

Generation Rent estimates that unfair evictions directly cost councils £161m in 2019-20 – through responding to 28,150 homelessness cases and housing an estimated 8,057 households who had been evicted unfairly in temporary accommodation. This figure does not include households evicted as a result of rent arrears.

In a report published today, “A safe place to call home: Ending unfair evictions & reforming renting”, Generation Rent recommends five reforms to end unfair evictions and give renters’ greater long-term security in their home: 

  • Open ended tenancies 
  • More time to find a new home 
  • Compensation for a blameless move 
  • No excessive rent increases to force an eviction 
  • No mandatory evictions for people in rent debt 

Alicia Kennedy, Director of Generation Rent, comments: “The government’s commitment to abolishing Section 21 means that landlords will no longer be able to evict tenants just for requesting repairs or on other spurious grounds. But without further protections tenants could still face hardship and homelessness if their landlord decides to sell up. It cannot be right for a housing provider to leave their customer in the lurch and expect tenants and taxpayers to pick up the bill. Renters can never enjoy a stable life if they can have the rug pulled from under them, so the government’s reforms must make sure renters get proper support during unwanted moves.”

Highest rental growth in ten years recorded for three England regions and Wales

Published On: May 25, 2021 at 8:14 am

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rental growth

UK rent prices have increased by 3.0% in the last year but dropped by 9.4% in London, according to the latest UK Rental Market Report from Hometrack.

The report states that there is strong rental demand amid constrained supply across the UK outside of London. The North East, South West, East Midlands and Wales have seen the highest rental growth since March 2011.

Hometrack predicts there will be an increase in demand for rental homes in city centres as offices start to reopen.

Terry Mason, Group Operations Director at the UK’s largest rental guarantor service, Housing Hand, comments: “We’ve seen renters in London and other cities head to the suburbs in search of cheaper property while working from home. Many tenants simply waited until their current contract ran out and then headed out of the city centre to save money. Others moved back in with their parents while working from home, making huge savings.

“A few companies have saved money too. Let’s say a typical office desk costs around £750 per month. That’s £15,000 per month for a 20-person team. A company that reduces its requirement to 10 desks can add £90,000 per year straight to its bottom line. While those with long leases don’t have much room for manoeuvre, businesses using flexible office space have gained enormously.

“Of course, if staff are less productive working at home, then those gains are reduced. Some staff are more productive at home; others in the office. Many companies, however, still favour those who are able and willing to work in an office environment.

“As such, it makes sense that demand for rental homes in city centres is likely to pick up once more. Rents now being so much cheaper in many central locations, following the past year of reduced demand, is likely to feed into this too. Tenants can save quite substantially compared to what they were paying pre-pandemic, as we see highlighted by the 9.4% drop in rents in London. I believe all of this points to an uptick in demand, which we will see play out over the remainder of this year and into 2022.”

Read Hometrack’s full report here: www.hometrack.com/uk/insight/rental-market-report/q1-2021-rental-market-report/

Councils launch projects to listen to local private renters

Published On: May 24, 2021 at 8:44 am

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Councils launch projects to listen to local private renters

Generation Rent has partnered with five local authorities around Great Britain to help them better engage and communicate more effectively with private renters.

The five engagement projects are with Dundee City Council, East Suffolk Council, Gedling Borough Council, the London borough of Newham, and Newport City Council. The aim of each project is to help each local authority better understand the challenges private renters face, and respond effectively.

The first stage of consultation is a survey of private renters in each local area.

Local government has responsibilities for enforcing safety standards, licensing landlords and protecting tenants from illegal eviction. Despite this, a poll by Survation found that 46% of private renters were unaware that their local council had powers to help private tenants.

37% of respondents have experienced problems with mould or damp in their private rented home in the past five years. 30% had experienced problems with heating or hot water, and 25% had lived in a leaky or draughty home.

When private renters were asked what they would do if their home felt unfit to live in, 44% responded that were more likely to try to find a new home. 35% responded that they would seek help from the council.

Generation Rent points out that many councils around the country have landlord forums, whereas very few have formal structures to hear from private renters.

Through these engagement projects, the local authorities and Generation Rent expect to learn what private renters already know about their rights and responsibilities. They also hope to find out how this knowledge differs between different nations, rural and urban areas, and different communities living in private rented homes. The projects are funded by the Joseph Rowntree Reform Trust.

Local authorities are looking to develop best practice for engagement with private renters to better consult with them, be more responsive to issues and concerns, and develop policies and practices to better support private renters, for example through enforcement or landlord licensing.

Alicia Kennedy, Director of Generation Rent, comments: “The private renter population has grown dramatically in the past two decades, making it a much more important part of local authorities’ work. That’s why we’re delighted to be working in partnership with these five local authorities across the country.

“They have recognised the important role councils play in supporting private renters, and now want to improve the way they represent and engage private renters.

“We hope this joint work will develop new models of engagement that can be shared and built upon by other local authorities.”

New study reveals the extra value a garden can add to rental yields

Published On: May 21, 2021 at 8:04 am

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Gardens can help sellers during difficult housing market conditions

As demand for homes with gardens has risen due to the pandemic, landscaping material provider Paving Direct has researched the best places in the UK to invest in buy-to-let.

Paving Direct looked at the average price of renting a three-bed home in each city across the country on Rightmove to determine the changes in rental yields.

This research shows that having a garden adds 25% more to the average rent price, but this varies drastically when broken down city by city.

According to the data, the most expensive gardens in the UK are in Bath, with over 43% added to the average rent price.

The top 10 cities where renters are paying the most for gardens

RankCityAdditional Value of garden
1Bath43.13%
2Lancashire34.97%
3Birmingham32.72%
4London27.07%
5Leeds25.02%
6Wolverhampton24.30%
7Reading22.85%
8Newcastle Upon Tyne20.48%
9Norwich19.72%
10Portsmouth19.03%

The research also found the areas where gardens are less likely to impact the rental yield. Properties in Kingston Upon Hull, Sheffield and Leicester ranked bottom of the table.

The 10 cities where gardens add the lowest value

RankCityAdditional Value of garden
1Derby5.44%
2Sunderland5.30%
3Southampton4.78%
4Bradford4.33%
5Northampton3.70%
6Cardiff2.78%
7Liverpool1.65%
8Leicester1.19%
9Sheffield0.75%
10Kingston Upon Hull0.48%

Cass Heaphy, Digital Director at Paving Direct, comments: “Homes in the centre of cities like Bath and Birmingham do not always have a garden, which can drastically increase the price of houses which do benefit from a green space. With the impact of lockdown, we’ve seen demand for paving jump. People have been spending an increasing amount of time in their own homes and want to make the most of their outdoor space.

“The data here shows just how much value a garden can add to a house and why homeowners need to be making the most of their outside space. Likewise, property investors need to be aware of the opportunity cost of upgrading the garden in their properties, as it can add real value, and higher income.

“I think one of the key things to come out of the whole lockdown experience for many people is really valuing their garden. It has underscored our appreciation of all the benefits it provides to happiness, health and well-being. That appreciation is only going to increase demand and therefore, more value, to homes with gardens or outdoor spaces.”

While the data shows gardens add value to homes across the country, the research showed less than a 1% price difference between houses with and without gardens in both Sheffield and Hull.

Daniel Bunting, Estate Agent at Apropos, comments: “From my own stock of managed properties I have noticed that smaller flats and houses with no outside space have received much less interest than usual. Properties with lots of natural light have done well but properties with outside space have seen increases in rent of up to 10% more than equivalent properties without outside space. This is clearly due to people spending more time at home and being restricted on travel.

“We live in a country with high population density so having some outside space to call your own I think is more important here than other countries. Also, we are more limited on suitable weather for being outside so we want to make the most of it when the weather is good.”

View the full report from Paving Direct here: https://www.pavingdirect.com/gardens-and-uk-rental-prices-2021