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Greenwich Offers Highest Rental Yields in Inner London

Published On: August 18, 2016 at 9:19 am

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Landlords looking for the highest rental yields in inner London should buy a House in Multiple Occupation (HMO) in Greenwich, according to Multi-Let London.

According to data from London estate agent Portico, Greenwich offers the highest returns for landlords and the most affordable monthly rents for tenants.

Landlords can achieve a 6% annual rental yield around the north Greenwich station, on Pelton Road, Bellot Street, Blackwall Lane, Armitage Road and Millennium Way. The average monthly rent in the area is £1,477.

Greenwich Offers Highest Rental Yields in Inner London

Greenwich Offers Highest Rental Yields in Inner London

Room rents in Greenwich are cheaper than many parts of inner London. The average monthly room rent in the borough between April-June was £805, up by 12% over the year.

Room rents in Abbey Wood, which is within the boroughs of Greenwich and Bexley, have experienced the greatest increases over the year, up by 21% to £564 per month.

However, the area boasts some of the lowest room rents in inner London, including £554 a month in Charlton and £557 in Plumstead and Woolwich.

The Head of Multi-Let London, Mattias Sandvall, says: “Greenwich borough gives landlords excellent yields and is a great place to invest. It is very popular amongst families, commuters and young professionals. Many are attracted to the borough’s parks and outdoor attractions, including Greenwich Park, Blackheath Common, the large, open, paved area where the Cutty Sark is dry-docked by the river, the Observatory and the National Maritime Museum.

“It also has a thriving student population with Greenwich University, and rooms in HMOs are very popular amongst students and professionals. Many tenants choose shared accommodation for both financial and social reasons.”

He believes that landlords can achieve higher rental yields by investing in an HMO.

“A more demanding, but rewarding way for landlords to achieve higher yields than traditional single let is multi-let the property,” he believes. “In fact, landlords can increase their rental yields by switching from single let accommodation to HMOs.”

He explains: “For example, a three-bedroomed, single let property in the Greenwich borough may typically achieve a gross rent of £1,800 per month for a family. If it is converted into an HMO, the gross rent on the same property could exceed £4,000 per month. This represents a significant profit opportunity for buy-to-let investors who have the required expertise to generate sustainable returns in this increasingly competitive market.

“Many standard properties can be successfully converted to HMOs with the introduction of C4 building regulations. If a high quality refurbishment is undertaken, the property can attract working professionals in the right location, who are prepared to pay more for a shared property with a superior finish. Luxury ensuites, large TVs, premium kitchen appliances and furnishings are the type of features that help to generate a high yielding HMO, where the market conditions accommodate.”

Do you fancy an HMO investment in Greenwich?

Northern cities still produce best student property yields

Published On: August 18, 2016 at 9:04 am

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New research from property crowdfunding platform Property Partner has revealed that cities in the North of England still lead the way for student property rental yields.

Ahead of the new academic year, buy-to-let properties in Northern cities still come top of the class for potential returns.

Student success

Property Partner has constructed a list of 86 university towns and cities across Britain and Northern Ireland and ranked them in terms of rental yields expected in the local market.

Cities in the North East of England have seen A grades, with Sunderland topping the list with returns of 6.9%. Middlesbrough came next, with yields of 5.9%.

Birmingham took the third medal position, with Aston and Birmingham City University offering good demand for investors. Average house prices here stand at £116,732 per year, with expected yields 4.5%.

In Manchester, over 100,000 students are expected to descend on the city in September. All three Greater Manchester universities are the top-ten places for expected yields. What’s more, the city is experiencing substantial infrastructure projects and regeneration works in areas such as Salford and Deansgate, meaning an investment could prove very savvy in the long-term.

Capital Pains

However, it is a different story in London and the South East of England. Years of substantial house-price rises have moved to severely restrict buy-to-let yields.

Six of the bottom ten universities for rental yields are in London. Imperial College, located in Kensington and Chelsea, was found to be the lowest-yielding area surveyed, with yields of just 1.3%.

Dan Gandesha, CEO of Property Partner, noted, ‘in this era of ultra low rates and high market volatility, stable investments which provide a reliable income and medium to long-term capital growth prospects are the holy grail. Property is a total returns investment and until recently, it’s been a capital returns play.’[1]

Northern cities still produce best student property yields

Northern cities still produce best student property yields

‘But with Brexit, the rules of the game are changing. Now our investors are increasingly focussed on the reliable income they can earn, month after month. Property Partner enables anyone to invest in residential property all over the country, providing one-click access to grandparents, parents, and their college-age children, so they can take their view on the property market, wherever they study,’ Gandesha added.[1]

The top 20 university towns by average rental income by postcode were found to be:

University town Median Rent pcm Gross annual rent Average house price Average gross annual yield % Average net annual yield %
Sunderland £575 £6,900 £65,201 10.6 6.9
Teesside (Middlesbrough) £425 £5,100 £56,272 9.1 5.9
Aston + Birmingham City £676 £8,112 £116,732 6.9 4.5
Salford £750 £9,000 £131,863 6.8 4.4
Edinburgh £1,101 £13,212 £197,010 6.7 4.4
Manchester Metropolitan £895 £10,740 £160,315 6.7 4.4
Manchester £750 £9,000 £135,174 6.7 4.3
Newcastle + Northumbria £823 £9,876 £150,609 6.6 4.3
Nottingham + Nottingham Trent £794 £9,528 £151,535 6.3 4.1
Coventry £901 £10,812 £179,412 6.0 3.9
Bangor £750 £9,000 £156,173 5.8 3.7
Huddersfield £540 £6,480 £116,802 5.5 3.6
Portsmouth £925 £11,100 £201,434 5.5 3.6
Queen’s, Belfast £802 £9,624 £183,505 5.2 3.4
Edge Hill (Ormskirk) £1,040 £12,480 £239,298 5.2 3.4
Durham £650 £7,800 £151,438 5.2 3.3
Southampton £901 £10,812 £212,852 5.1 3.3
Cumbria (Carlisle) £477 £5,724 £113,025 5.1 3.3
Leeds £776 £9,312 £184,628 5.0 3.3

[1]

[1] http://www.propertyreporter.co.uk/landlords/northern-cities-continue-to-dominate-university-btl-scene.html

Rogue Landlord Fined £40k for Cramming 24 Tenants into House

Published On: August 18, 2016 at 8:36 am

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A rogue landlord in Wembley has been fined almost £40,000 for cramming 24 tenants into his House in Multiple Occupation (HMO).

Willesden Magistrates’ Court was told that Tilak Raj Sarna, of George V Avenue in Pinner, initially claimed innocence, but then admitted his guilt after two days of cross examination.

Brent Council granted Sarna a license to house seven tenants at his HMO on Bowrons Avenue, but discovered that 24 people, including seven families with ten young children, were living in the property when housing enforcement officers made an unannounced visit in January 2016.

The squalid conditions discovered at the house include:

  • A cockroach infestation
  • Rogue Landlord Fined £40k for Cramming 24 Tenants into House

    Rogue Landlord Fined £40k for Cramming 24 Tenants into House

    Disregard of basic fire safety measures, such as missing smoke alarms, overloaded electrical sockets and inadequate fire doors

  • Cold and damp rooms
  • Overflowing bins outside the property

Six of the tenants lived in an unheated shed in the house’s back garden until it burnt down in October last year, in a fire caused by a portable heater. The sheer number of people living in the small space exacerbated the blaze, which started while a child was sleeping in the shed.

The court fined Sarna £33,000 for his overcrowding and fire safety offences. He was also ordered to pay costs of £6,420 and a £120 victim surcharge, making a total of £39,540.

Anila Patel, who collected £3,700 in rent each month from the tenants on the landlord’s behalf, was also prosecuted during the case. She was convicted of two offences, fined £1,000 and ordered to pay a £90 victim surcharge.

All of the tenants living in the property have now found alternative accommodation.

Councillor Harbi Farah, Brent Council’s Lead Member for Housing, says: “This case underlines the necessity of our commitment to ensuring private tenants in our borough have safe, high quality accommodation. In situations like this, unscrupulous landlords are not only taking financial advantage of vulnerable tenants; they’re also placing tenants’ lives in danger.

“We are improving standards in Brent’s private rented properties by working with landlords through our property licensing regime, which helps ensure that tenants do not have to live in filthy, dangerous accommodation.”

The council’s Deputy Leader, Councillor Margaret McLennan, also comments: “Where we find serious breaches of the law like this, we will always take landlords and their agents to court. Mr. Sarna had housed a family in the garden shed and had grossly overcrowded the two-storey property, leaving tenants in an unsafe, damp and cockroach-infested house, while taking £3,700 off them each month for the privilege.

“As he had been granted a license, Mr. Sarna knew exactly what was required of him, so we are very pleased that the court shared our view of the seriousness of the offences and imposed such severe penalties.”

Most private landlords in Brent are legally required to obtain a license from the council. Find out more here: www.brent.gov.uk/prslicensing

Where are the happiest places to live in the UK?

Published On: August 17, 2016 at 11:16 am

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Leigh-on-Sea, a seaside resort in Essex, has been named as the happiest place to live in the UK in a new survey.

In the report conducted by property website Rightmove, another seaside town, Troon in Scotland, came second. Harrogate in North Yorkshire slipped to third place, having been top of the pile for the last three years.

Spirit

The study of 24,000 people across Britain asked residents to rank their local area against twelve factors. These ranged from friendliness of neighbours to the quality of local amenities.

Leigh-on-Sea took the top spot for a range of features, such as community spirit and a sense of belonging.

Residents of the town said that there are a number of things to do, such as sports and arts activities. What’s more, the spiralling property prices seen in London has driven many tenants further out of the city.

There has been a 15% increase in asking prices in Leigh-on-Sea during the last year, with the average price of a home here now standing at £384,439.

According to the Rightmove report, the top-ten happiest places to live in the country are:

  • Leigh
  • Troon
  • Harrogate
  • Hertford
  • Lytham St Annes
  • Shepperton
  • Stanford-Le-Hope
  • Shrewsbury
  • Hitchin
  • Woodbridge

[1]

Where are the happiest places to live in the UK?

Where are the happiest places to live in the UK?

Seaside dreams

Abiola Oni, Rightmove’s research manager, observed, ‘it seems the saying that we do like to be beside the seaside is true, whether you’re down in the East of England or up in Scotland.’[1]

‘Obviously, what happy means to different people can vary greatly, but when you compare the factors which score highest in the happiest areas, it shows just how important having friendly people in the local community area is, alongside the services and amenities, which is something buyers often tell us when they are looking in new areas to live,’ he continued.[1]

Oni added that, ‘space is also one of the most important things when people are looking for a new home, so it’s not surprising that places with open spaces such as beautiful parks and beaches have featured in the to

[1] http://www.dailymail.co.uk/property/article-3741240/Leigh-Sea-Essex-coast-happiest-place-live-UK.html

£500 a Month Room Rents in London Now Extinct

Published On: August 17, 2016 at 10:38 am

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£500 a Month Room Rents in London Now Extinct

£500 a Month Room Rents in London Now Extinct

It is now impossible to find £500 per month room rents in London, according to estate agent Portico.

The London estate agent found that although average rents dropped by 1.7% in London following the Brexit (between May to July), rents of £500 a month for a two-bedroom property in the capital are now extinct.

Portico’s data found that Bexley is the cheapest borough in London to rent a room, with the average rent price for a two-bedroom property in July standing at £1,108 a month, or £554 per room.

And tenants will pay even more if they live alone: Even in the most affordable borough, the average rent on a one-bed property in Bexley is £847.

On the other end of the scale, if you’re looking to live in the exclusive borough of Kensington and Chelsea, you’ll have to fork out a huge £3,989 a month in rent on a two-bed home, or £1,995 per room.

Across the capital as a whole, the average monthly rent on a two-bed property is £1,756, or £878 per room.

Average monthly rent for a two-bed property in all London boroughs

[table id=23 /]

The Managing Director of Portico, Robert Nichols, comments: “Many Londoners now consider renting as a long-term norm, as a result of rising property prices. It’s therefore good to know where you can find the most affordable rent – and our data lists the London boroughs’ two-bedroom rental prices from the cheapest to the most expensive.

“Bexley in southeast (£1,108) and Havering (£1,156) in the east offer the capital’s cheapest rents, and they’re soon to become well connected too, with stations planned on the eastern edge of the Elizabeth line. If you want to live in inner London, Lewisham offers the most affordable rent (£1,430).”

The latest figures from the estate agent further highlight the problem of sky-high rents in London.

Flatsharers raise budgets to combat higher rents

Published On: August 17, 2016 at 9:51 am

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The typical flatsharing tenant has moved to increase their budget, in order to combat rental rises, according to a new report.

EasyRoommate’s latest Index reveals that in the second quarter of the year, tenants’ average budget was £531pcm, up 5% on the same period twelve months ago.

Since 2012, tenants’ average budgets have risen by 25%.

Increases

The flatsharing website reports that budgets have increased in an attempt to keep pace with average rents. According to data from the Index, rents rose by 13% between Q2 of 2015 and 2016.

In addition, the rental platform said that demand for shared rental properties has also risen over the same period. During the second quarter of this year, there were an average of five tenants looking at each room available. This was compared to four last year.

What’s more, the number of rooms being posted on the EasyRoommate website has risen substantially, by over 40% since 2015.

The average age of a flatmate is 28, with 37% of sharers aged between 21 and 25.

Flatsharers raise budgets to combat higher rents

Flatsharers raise budgets to combat higher rents

Finances

Student tenants utilising the platform has increased by 4% in the same period.

EasyRoommate has also moved to attack the number of letting agent fees which are being charged to tenants.

It has called for the Renters’ Rights Bill, currently being passed through Parliament, to be implemented to improve tenants’ finances.

Albin Servant, chief executive of EasyRoommate, said, ‘every time you use an estate agency to find accommodation, you might incur extra fees. Meanwhile Scotland decided to ban those hidden fees in 2012.’[1]

‘Rent fees need to be regulated,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/flatsharers-increase-their-budgets-to-cope-with-rising-rents