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Em Morley

Increase in rent arrears during May, according to Telegraph Money research

Published On: June 5, 2020 at 8:06 am

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Categories: Landlord News,Tenant News

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Research undertaken by lettings platform Goodlord for Telegraph Money has noted an increase in rent arrears during May.

The results show that 6.6% of the 16,000 rental properties included in the survey were in arrears for a minimum of one week during last month. In comparison, the arrears rate for April was 5.8% and the overall typical rate sits at 4%.

With around 4.6 million private rented homes in the country, this figure suggests more than 300,000 tenants are struggling with rent payments.

Franz Doerr, CEO of flatfair, has commented: “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. The mounting rent arrears crisis will get worse before it gets better.

“This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments. Landlords and tenants alike need to be given the space to negotiate repayment plans that ensure that everyone is treated fairly.”

Landlords are still currently unable to evict tenants for falling into arrears with rent payments due to an overall ban on evictions. This is scheduled to end on 25th June, with Generation Rent calling for an extension.

Free online landlord course for new tenancies as Government eases restrictions

Published On: June 4, 2020 at 8:07 am

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The Deposit Protection Service (The DPS) and safeagent have created a free, online course to enable landlords to start tenancies off on the right footing, as the Government has eased restrictions on moving house during lockdown.

The DPS’ aim is to increase its focus on offering online resources in order to be able to continue to share information and guidance. The new, interactive e-module, Starting a residential tenancy, was produced in partnership with safeagent, the country’s leading, not-for-profit letting agent accreditation scheme, and covers tenancies in normal circumstances.

Designed to highlight best practice for landlords, the module covers:

  • Tenancy agreements
  • Receiving and protecting deposits
  • Check-in and check-out inventories
  • What makes a good tenancy agreement
  • Types of deposits
  • Information landlords must by law supply to tenants

The module is the second in a suite of four created with safeagent, which together form part of an accredited award.

The DPS highlights: “On 13th May the Government lifted restrictions on house moves, so long as people observed safety and social distancing measures including maintaining a two meter distance from others not in the same household and frequent hand washing.”

Matt Trevett, Managing Director at The DPS, said: “Our latest online module with safeagent provides detailed information on the best way to initiate a successful tenancy.

”It’s vital that the industry keeps working together to share knowledge and support each other during these difficult times, so we’re pleased to be able to continue to engage with landlords and letting agents on tenancy best practice now that the Government has eased restrictions on moving house for renters.”

Isobel Thomson, Chief Executive Officer at safeagent, said: ”Our eLearning modules in collaboration with The DPS enable lettings agents to ensure that they are meeting their responsibilities to tenants and creating the optimal start to a tenancy.”

Learners can also complete a test to check their understanding and will receive an eCertificate upon completion of the module, said The DPS. 

Landlords can access the module, Starting a residential tenancyon the safeagent website. New learners will need to create a login and access the course via The DPS Training Hub.

Landlords heavily exposed to young renters most at risk of losing their job

Published On: June 3, 2020 at 8:15 am

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With nearly one in two renters in the UK aged between 16 to 34, residential landlords are heavily exposed to younger people falling into financial distress, according to research by payment technology firm flatfair and real estate investor Rowan Asset Management. 

This research shows that a high proportion of young people work in retail or the gig economy. For example, nearly one in two of the over 2.8 million retail workers in the UK are aged between 16 to 34, with one in four aged 25 to 34. Restaurant workers are even more likely to be young, with six in ten of those working in food and beverage aged between 16 to 34.

More than one in three 18 to 24-year-olds are earning less than before the outbreak, research by the Resolution Foundation recently found. Two million renters told charity Shelter that losing their job will leave them unable to pay rent. Research from the housing charity also found 1.7 million renters ( one in five) in England expect to lose their job in the next three months.

Buy-to-let landlords who rely on rental income for their livelihood may struggle to meet their own obligations if their tenants fall behind on the rent while housing associations may also find their tenants are falling behind on rents.

Franz Doerr, CEO and founder of flatfair said: “As more firms start to furlough staff and others cease trading due to the economic impact of the virus, swathes of young renters up and down the country will see their incomes plummet and may not be able to pay their rent. Rising rent arrears are likely to mount over the year as a consequence.

“This may, in turn, see many landlords struggling to meet their own obligations such as mortgage repayments.”

George Jackman, chief investment analyst at Rowan Asset Management said: “It’s clear that there is going to be a sharp, short-term impact on many young people’s income due to the economic distress caused by the virus. 

“But the more worrying aspect of this whole crisis is how this young cohort of workers will be able to find stable employment over the long-term, with sectors like retail looking set to change fundamentally. It’s really hard to see retail being able to employ 2.8 million again any time soon, and right now there aren’t any emerging industries in this country that will be able to step in and fill this gap.”

Impact of coronavirus on the rental market and those looking for new homes

Published On: June 2, 2020 at 8:14 am

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Proptech rental service Home Made has commented on the trends it has noticed in the market due to the impact of coronavirus.

The highlights include:

  • An increased interest in new build properties
  • A 50% increase in interest in pet friendly properties
  • People wanting properties with work from home space, plus gardens
  • To avoid public transport, people are likely to be looking for homes closer to their places of work

Commenting on these rental market findings, Asaf Navot, founder of Home Made, says: “Months in lockdown and the realisation that the emerging ‘new normal’ is here to stay has led people to re-prioritising what matters to them in a home.

“We’re already seeing a growing preference for new build homes amongst renters – physiologically people don’t seem to want to live where someone else already has. While we believe this is temporary, we’ve seen a 21% increase in renters looking for new homes compared to old build ones.

“This means we expect to see landlords with new build properties finding filling vacant properties easier than those with older accommodation – viewings will also be easier to manage with no existing tenants to work around.  

“We’ve also seen a significant 50% increase in enquiries for pet friendly properties. It seems many people have got a new pet during the pandemic or are planning to as they see they can work from home more in the future.

“The upshot is, landlords wanting to fill properties in the coming months need to adapt to this. Pets do tend to cause a little more wear and tear so consider hardwood floors over carpets, new furniture better suited to withstanding the impact of pets and bear in mind that tenants with pets usually stay longer 

“Looking forward landlords should also think about the availability of work from home space, and how they showcase this when renting properties. Along with properties with a garden or outside space we expect flats or houses that can highlight how they work well in the ‘new normal’ will see much higher demand.

“Renters looking in cities will also rate properties that are closer to their place of work to minimise time on public transport or avoid it all together – and bike storage facilities (something most landlords can add) or proximity to direct cycle lanes into city hubs will have added value. 

“It’s also likely we will see a drop in the number of people looking for shared living with unknown housemates – so any landlords with multi-occupant spaces should focus on making the most of larger personal space areas prioritising spacious and well-equipped bedrooms over living rooms in shared houses.”

The Oldest Towns in the UK

Published On: May 22, 2020 at 11:12 am

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The UK’s heritage is all around, but for those craving culture and history, the following towns boast the most.

The exact dates of the oldest continuously populated urban settlements are hard to determine, but these towns in Northern Ireland, England and Wales have solid factual evidence of inhabitation dating far back.

Would you move into any of these historic habitats?

Carrickfergus, Northern Ireland 

A 1909 report on the town’s history by Samuel McSkimin reads: “The ancient accounts of Carrickfergus present little but traditionary legends.” He quotes a source that explains the area was inhabited by Celts from northern Britain “near three centuries before the nativity of Christ”1.

However, the volume also indicates that the town was only fully established after the invasion of John deCourcy, an Anglo-Norman knight, in 1167. He later built a castle that is one of Ireland’s best-preserved Norman buildings. The 2001 Census recorded a population of around 27,000.

Selby, North Yorkshire

The town’s abbey’s founding charter dates back to 1070, however a monk named Benedict from France is believed to have gone to Selby following instructions in a dream, according to A History of the County of York. William the Conqueror granted a piece of land for the abbey, and Selby Abbey’s records show over 80 charters, confirmations and other royal deeds.

The town council believe that by the 18th century, Selby was a thriving sea access route, with over 360,000 tonnes of shipping coming through the river every year.

The town used to be an industrial coal mining and shipbuilding area, but now, heavy industry is less prevalent.

Lowestoft, Suffolk

This East of England town originated in Viking times, with the name deriving from Hlothver and the suffix toft, meaning homestead. In the Domesday Book of 1086, it is called Lothu Wistoft and is described as a settlement of 20 families.

Around 90% of the population died in the 1349 Great Plague, but the town recovered in the later Middle Ages.

A harbour opened in 1831 and the population is now around 60,000. Lowestoft’s beach, museums and maritime culture attract tourists.

Whitby, North Yorkshire 

This town sits across the River Esk. It has previously been known as Streanæshalc, Streneshalc, Streoneshalch, Streoneshalh and Streunes-Alae in Lindissi in the 6th-9th centuries.

The town became Witebi in the 12th century and Whitebi 100 years later, revealed British History Online records.

In Saxon times, the town was inhabited, however, the town began to take shape when the Abbey was founded in 657 by Oswy, King of Northumberland. During the Dissolution of the Monasteries, the Abbey stopped being used.

The town was the location of Bram Stoker’s gothic novel Dracula, and now hosts the annual Goth Weekend, on from 30th October-1st November this year.

Ipswich, Suffolk 

Ipswich’s name comes from the Old English, Gippeswic, dating back to the early 600s. In 2013, the town council disputed the claim of being Britain’s oldest recorded town with Colchester.

The town could be the oldest Anglo-Saxon town, but was inhabited before this by the Romans. The largest villa of this period was at Castle Hill.

The original settlement was arranged around the port, where it traded with towns and communities in modern-day Germany.

Colchester, Essex

Colchester has been dated back to the Palaeolithic period by six hand axes found in the area. The tourist board claims it is Britain’s oldest recorded town, as Pliny the Elder used its Roman name in 77 AD. He wrote of Anglesey in Wales: “It is about 200 miles from Camulodunum, a town in Britain”.

Colchester was the provincial Roman capital of Britain later on, and the Normans built Colchester Castle within ten years of conquering England.

Carmarthen, Wales

Carmarthenshire is believed to be the oldest town in Wales, housing a Roman fort from 75 AD. It was a centre of industry and the South Wales Railway came to Carmarthen from Swansea in 1852.

Abingdon, Oxfordshire

A stone hand axe was found in Abingdon, dating the town back to 4,000 BC. It is claimed that the area was occupied in the early to middle British Iron Age, from 800-100 BC, due to a defensive structure beneath the present town centre.

Thatcham, Berkshire

Thatcham was believed to be the UK’s oldest town for quite some time, due to a history of continuous inhabitation from 7,770 BC, in the Mesolithic era, from which well-preserved remains were discovered.

Bronze and Iron Age settlements have also been found, plus evidence of a Roman town in the current area.

The Black Death of the 14th century brought great loss to the town, but the present day population is 25,000.

Amesbury, Wiltshire 

Thatcham’s claim to be the UK’s oldest town in continuous settlement was surpassed by Amesbury. Research from the University of Buckingham revealed last year that carbon dating proved this town is the oldest. Two miles from Stonehenge, the town goes back 5,000 years.

A researcher from the University, David Jacques, said the finding “blows the lid off” knowledge of Stonehenge. He commented: “It provides evidence for people staying put, clearing land, building and presumably worshipping monuments.”1

Today, the town of Amesbury is home to 10,000 people.

1 http://www.telegraph.co.uk/travel/destinations/europe/uk/11596766/10-of-the-UKs-oldest-towns.html?frame=3309612

Majority of landlords willing to take a financial hit to support tenants

Published On: May 21, 2020 at 8:29 am

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Private landlords have been willing to take a temporary hit to rental income to support struggling tenants, new research shows.

The findings of a new survey have been published today by the National Residential Landlords Association (NRLA), involving over 4,500 landlords across England and Wales. They show that 90% of landlords who had received a request for support from a tenant had responded positively. This included offering tenants a rent reduction or deferral, a rent-free period, early release from a tenancy, or a refund on service charges included in rents for houses in multiple occupation (HMOs).

Of all the landlords surveyed, 44% had received a request for help. 54% have experienced a combination of rent payment problems or unanticipated void periods. The survey also finds that 60% of those landlords who have declared rent arrears have experienced at least the equivalent of one month’s loss of income across their portfolio.

The NRLA has reported a large number of case studies that support the figures. They portray landlords seeking to support their tenants which has included free or substantially discounted accommodation for NHS workers, and landlords pro-actively assuring tenants that their tenancy is not at risk.

Ben Beadle, Chief Executive of the National Residential Landlords Association said: “This research proves that the vast majority of landlords are doing everything possible to support tenants through difficult times. To suggest otherwise is needless scaremongering and serves only to heighten anxieties for tenants when we need a spirit of co-operation.

“We are continuing to work with landlords and the Government to sustain tenancies through the immediate crisis and beyond.

“As Ministers consider their next steps regarding the ban on evictions, they should not make it more difficult to take action against tenants who may be committing anti-social behaviour or domestic abuse, or where they are wilfully withholding rent which they can afford to pay.

“We need landlords who are going through a difficult time to have the confidence to stay in the market. Otherwise, we are only going to end up with a worsening housing crisis as more tenants chase fewer properties.”