Written By Em

Em Morley

Capital pains as rents top £1,750 for first time

Published On: September 20, 2016 at 10:11 am

Tags: new tenancies,rents,tenancy agreements,tenancy deposit scheme,UK rents

The price of renting property in London is now costlier than ever, with new figures revealing that the average rent on a flat or house in the capital now more than £1,750.

Data collated by the Tenancy Deposit Scheme (TDS) also shows that rents in other locations in England and Wales have also soared over recent months. However, tenants are still paying far the most to live in London.

Rent rises

Figures from the report are based on new deposit registrations with TDS insured in England and Wales during August 2016. This information shows that average monthly rents spiralled to hit £1,765 in the capital.

Following London, the next most expensive region to rent was revealed to be the South East. Here, average monthly rents presently stand at £1,124.

The cheapest region to rent is in Wales, with average rent on new lets in the country in August 2016 at £664.80. Next cheapest was the North East, with typical costs standing at £652.88.

Steve Harriott, chief executive of the Tenancy Deposit Scheme, said: ‘this data comes from landlords and agents registering new deposits on our database in August 2016 and advising us of the monthly rent that they charge. The figures show starkly the differential in regional rents across England and Wales.’[1]

Capital pains as rents top £1,750 for first time

Regional differences

Average rents for new lets across England and Wales in nine regions were found to be:

London-£1,765.44
South East-£1,124.22
South Central-£1,123.42
South West-£878.78
East Anglia-£872.79
Midlands-£737.32
North West-£716.10
Wales-£664.80
North East-£652.88

[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/london-rents-exceed-1-750-for-first-time-data-suggests

Private Rental Sector Moving Towards Hotel-Style Rentals

Published On: September 20, 2016 at 9:15 am

Author: Em Morley

Categories: Property News

Tags: private rental sector,private tenants,proptech,rental accommodation,short-term rentals

The private rental sector is moving towards hotel-style rentals, as the proptech industry develops and caters to the needs of private tenants.

Hoteliers have begun to expand the idea of short-term, furnished accommodation to the private rental sector, reflecting the increasing need for efficiency and technology in the housing market.

Private Rental Sector Moving Towards Hotel-Style Rentals

Gerard Greene, the co-founder of Yotel, has launched Society, a property provider that offers rental homes across the UK.

Greene explains: “To find an apartment, there is a lengthy process where you have to send your passport and various other forms of ID, pay different fees to different people before you are moved into an apartment block – and then you never hear from them again.”

He plans to reduce the moving in time by making use of digital technology, allowing tenants to move into a new home in as little as 48 hours. A smartphone app will be used to manage the property.

Space efficiency is another key feature of the Society homes, which use furniture that can be collapsed and hidden in the floor or on walls.

This move into short-term, hotel-style rentals challenges traditional lettings models, which usually feature arduous paper applications, identity and credit checks, and year-long leases.

Greene believes that tenants’ needs have evolved to a faster pace, and the housing and proptech industries are starting to react. As people’s lives become increasingly centred around technology, business are adapting to cater to their needs.

And Greene isn’t the only hotelier to invest in short-term rentals. Richard Born and Ira Drukier, of BD Hotels, have unveiled plans to lease one and two-bedroom furnished apartments in New York City, at Pod Times Square. The Pod Pads can be leased from as little as one month up to a year, and will include cable, electricity and wifi. The apartments will range from 400-800 square feet.

Another proptech pioneer is Imfuna, whose suite of mobile inspection apps have been used in the lettings sector since 2009. The tools are used to increase efficiency, facilitating ultra-fast turnaround times, which can be cut by 75%.

Founded by Jax Kneppers, Imfuna has revolutionised the system of reporting on a range of property needs, from rentals to construction. The apps record the condition of a property using the phone’s camera and offer transcription to convert voice notes into written text. The information is then compiled into a shareable PDF report.

With new hotel-style rentals and proptech pioneers, it looks like the property industry is beginning to change. But is it for the better?

Half of UK renters over the age of 46

Published On: September 20, 2016 at 8:49 am

Author: Em Morley

Categories: Property News

Tags: renters,renting in the UK,tenant ages,tenants

Latest data released from estate agents Your Move has revealed that nearly half of the total number of renters in the private rental sector in Britain are over the age of 46.

This result came from research of 36,500 participants, with the investigation commissioned to give a further insight into the 4.5m privately rented households in Britain.

Renting results

The research uncovered that 18% of renters are over the age of 55, with 22% in the 46-55 age bracket. Somewhat surprisingly, 39% of people in the private rental sector are under 35.

Of those questioned, 25% of 18-25 year olds said that they were happy with renting, with 80% longing for their own home in the future. For those over 55, 46% said they were happy with renting and only 19% wanted to own their own property in the future.

For all age groups, 81% of tenants said that renting suited their lifestyle, either permanently or for a few years.

Half of UK renters over the age of 46

Important

Valerie Bannister, Head of Lettings at Your Move, noted: ‘these results show very clearly that renting is becoming extremely important across the UK. The rise of the Silver Renter may seem surprising, but increasingly thousands of people have turned to the Private Rental Sector as the most convenient option available to them, following a change in personal circumstance. Now more than ever, it is important that this sector offers good quality, well managed properties that allow tenants to feel at home in them.’[1]

‘Many of the younger tenants in our survey have aspirations to own their own home in the future. However, the endemic lack of affordable housing to buy across the UK, coupled with a low savings-rate environment, is making it increasingly difficult for want-to-be homeowners to buy their first home,’ she continued.[1]

Concluding, Bannister said:’ the Private Rental Sector needs to answer this issue by becoming a first choice tenure and not just the second best option. If the flexibility of renting can be combined with the stability and reassurance of longer residencies and fewer restrictions around making the space feel like home, for many, renting would be considered a better long-term, as well as short-term option.’[1]

[1] http://www.propertyreporter.co.uk/landlords/almost-half-of-uk-renters-are-now-aged-over-46.html

Landlords, Remember that it’s Gas Safety Week!

Published On: September 20, 2016 at 8:31 am

Author: Em Morley

Categories: Landlord News

Tags: Gas Safe Register,gas safety,gas safety week,landlord law,regulations

All landlords and homeowners must remember the importance of gas safety this week, as it’s Gas Safe Register’s Gas Safety Week!

Landlords, Remember that it’s Gas Safety Week!

From 19^th to 25^th September 2016, Gas Safe Register is holding its annual Gas Safety Week for the sixth year running. It sees organisations from across the UK working together to raise awareness of the dangers of poorly maintained gas appliances, which can cause devastating gas leaks, fires, explosions and carbon monoxide (CO) poisoning.

Although gas safety is important all year round, it is not always a landlord’s or homeowner’s top priority. Gas Safety Week provides a platform for the gas industry, consumer organisations and individuals to focus on spreading the word.

Gas Safe Register reminds all landlords and homeowners to remember that unsafe gas appliances can put you and your tenants at risk of CO poisoning, gas leaks, fires and explosions.

You must:

Check your gas appliances every year
Check that your gas engineer is Gas Safe registered
Check your engineer’s Gas Safe ID card

If you are worried about gas safety in your area, you can use the Gas Safe Register’s simple postcode tool that will show you all the dangerous gas appliances that have been found in your area.

If you’re a landlord, we have a handy guide that offers all the advice and information you need on complying with gas safety regulations. With specialist tips from Gas Safe Register, our guide will ensure that you stick to the law and protect your tenants: /landlords-guide-gas-safety/

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, reiterates the group’s support for Gas Safety Week: “ARLA wholly supports Gas Safety Week; conducting gas checks in any property is hugely important, but especially in rented properties, to minimise risks for tenants. Failing to arrange an annual gas safety check, which in the worst case can lead to injury or even death, is a legal requirement. Anything that can be done to increase tenant awareness and reduce the risk in rental properties is a good thing.

“ARLA regularly communicates the importance of gas safety to its members, reminding them of the importance of conducting annual checks with a Gas Safe registered engineer, but Gas Safety Week provides a great opportunity to further raise awareness of the risks associated with not conducting safety checks.”

Landlords, remember gas safety this week and every week, to ensure your tenants are safe and you comply with the law.

Central London property market optimism remains high

Published On: September 19, 2016 at 11:30 am

Author: Em Morley

Categories: Property News

Tags: central London,property market in London,rental demand

Demand is continuing to outstrip supply in Central London, with one firm suggesting there could be reasons for optimism in the capital during the coming months.

Greater London Properties believe that constant demand is giving reasons positivity in the sector.

Rises

Rightmove has seen an increase of 13% in property searches during 2016, with the opening six months of the year seeing more visits to the portal than in 2015. Rental stock has also seen a surge of 270,000 properties, a rise of 11.6% year-on-year.

Rob Hill, of estate agency Greater London Properties, expressed his positivity about the future. Hill said: ‘the advantages of working in rentals and sales in Central London is we are able to see changes made by external factors like Brexit and Stamp Duty almost instantly and can respond equally as quickly. Adopting a wait and see approach is a very traditional method. Agents need to value realistically, something that hasn’t been happening for a long while now. Plus managing vendors’ expectations is incredibly important and daily/weekly feedback on viewings including applicants reactions can help achieve this.’[1]

Central London property market optimism remains high

‘Since Brexit there has been a noticeable drop off in the percentage of properties actually going through to exchange however there are buyers out there with the confidence to buy at the right price and the usual investors returning to market after the summer months.’[1]

Our sales properties that were under offer prior to Brexit and post result had fallen through, have all gone back on the market and been sold within days – 80% of them actually went for higher than the previous offers on the table. It’s an extremely optimistic market in my opinion, for both vendors and landlords alike,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/optimism-in-central-london-property-market-remains-high.html

Developer Welcomes Housing Minister’s Commitment to Private Rental Sector

Published On: September 19, 2016 at 10:27 am

Author: Em Morley

Categories: Property News

Tags: build to rent,housebuilding,housing crisis,private rental sector

Following last week’s news that the Housing Minister is backing investment in the private rental sector, a property developer and investment firm has spoken out in support of the pledge.

Developer Welcomes Housing Minister’s Commitment to Private Rental Sector

The Chief Executive of Quintain believes that Gavin Barwell’s commitment to the private rental sector will ensure the right type of homes are built to meet demand.

Speaking at the RESI Conference last week, Barwell said that the necessary number of new homes will “never be achieved” without significant investment in the private rental sector.

Barwell commended the recent “impressive” growth in the bespoke rental market, but insisted that this “progress must be expanded” to ensure that there is a “thriving private rented sector”.

With the amount of people living in the private rental sector continuing to grow, Barwell also noted the increasingly important role that the build to rent sector will play in providing the many homes that are so desperately needed.

The Chief Executive of Quintain, Angus Dodd, responds to the pledge: “I welcome Gavin Barwell’s comments made earlier this week at the RESI Conference and agree that build to rent can play a critically important role in delivering the high quality and affordable homes which are needed across the country to meet Britain’s housing needs.

“The sector is still immature in the UK, but the focus the industry has on the technical and design aspects of build to rent developments and the appetite of investors and lenders to finance schemes means it is growing up fast.”

The developer insists that the planning process remains the greatest barrier to the delivery of significantly more new build homes for sale and to rent in the UK, and is now calling on the Government to streamline the planning process, particularly regarding tighter rules around the consultation procedure, enabling developers to speed up the delivery of new homes.

He explains: “We believe that build to rent schemes usually contribute directly to the supply of affordable housing and that should be taken into account when S106 affordable housing provisions are agreed.

“We’d also like to see local authorities use their existing powers to give developers greater flexibility to adapt the interiors of their properties for build to rent, such as variable unit sizes and taking account of common amenities.”