Posts with tag: housing crisis

Dampening rental housing investment will fuel supply crisis, says NRLA

Published On: May 6, 2022 at 8:17 am

Data from the National Residential Landlords Association (NRLA) shows that demand for rental property is at a record high.

The association warns that government efforts to dampen investment in rental housing are fuelling a supply crisis, hiking rents and making homeownership more difficult to afford.

According to new data from research consultancy BVA/BDRC for the NRLA, 62% of private landlords in England and Wales reported a record high tenant demand in the first quarter of 2022.

Over the same quarter, more landlords sold property (11%) than purchased new property (8%).

Government data shows that private rents across the UK increased by 2.4% during the first quarter of 2022. This was the largest annual growth in rents since July 2016, although still much less than inflation, which stood at 6.2% over the same period.

The NRLA is calling on the Government to scrap the Stamp Duty levy on the purchase of additional properties. According to Capital Economics, removing it would see almost 900,000 new private rented homes made available across the UK over the next ten years.

Ben Beadle, Chief Executive of the NRLA, comments: “Ministers have been repeatedly warned of the damage that would be caused if they continued to attack the private rented sector.

“The supply crisis is completely counterproductive to the Government’s mission to turn renters into homeowners. By suppressing supply whilst demand increases, with rents going up as a result, they continue to make it harder for tenants to save for a home of their own.

“The Chancellor needs to wake up to a crisis of the Government’s own making, scrap the tax on new homes to rent and review other measures which add to a landlord’s costs.”

70% of home movers say they wouldn’t do it again due to high stress

Published On: November 27, 2019 at 10:45 am

Author: Em Morley

Categories: Property News

Tags: housing crisis,property market

70% of home movers say they wouldn’t do it again due to high stress

Online Mortgage Advisor has surveyed more than 1,300 home movers in Britain, and found that 64% say that moving house was their most stressful experience of the past five years. Many say that they are put off moving again due to their negative experiences.

Ten categories of stress triggers were created by asking respondents to indicate what they found most stressful about moving home in their own words. The following were the top five most commonly cited sources of stress:

Finding and securing a property – 46%
Selling their own property – 36%
Waiting for the chain to complete – 34%
Completing and removals – 21%
Solicitors/conveyancing – 14%

69% of those surveyed said that they would be put off moving home again, although it is not clear how long they would continue to feel that way.

Just 8% of home movers said that they didn’t find the experience significantly stressful.

Online Mortgage Advisor has partnered with clarity coach Jamie Smart to launch a wellbeing portal, which it hopes will help its customers during the particularly stressful time of moving home.

Pete Mugleston, Managing Director at Online Mortgage Advisor, explained: “This has made us stop and think. We’re regularly thinking about how we can make the process of obtaining a mortgage smoother for our customers. But that’s only one small part of the whole experience for home movers and first-time buyers.

“We should be giving more consideration to how we can add value outside of helping customers find the right financial advice. My personal struggles with anxiety in the past, and the things that helped resolve them, made teaming up with Jamie Smart a natural starting point. We will endeavour to build on this inside and outside our wellbeing portal as time goes on.”

RLA suggests pro-growth measures to avoid looming rented housing supply crisis

Published On: October 25, 2019 at 8:29 am

Author: Em Morley

Categories: Landlord News

Tags: government,housing crisis,RLA

A rented housing supply crisis could be on the horizon, as a new survey shows more landlords are selling properties than buying, whilst demand continues to increase.

According to the Residential Landlords Association (RLA)’s survey of over 2,700 landlords, almost 25% have seen demand for private rented property increase over the last three months. Only 15% said that demand had fallen.

However, 41% have said they haven’t noticed a change.

According to this research, over the next 12 months, we will see 31% of landlords sell at least one property. Only 13% said they plan to buy at least one.

These figures have also been supported by statistics from other organisations:

Rightmove’s data shows a shortage in private rented housing together with a strong demand from tenants has led to record asking rents across most of Great Britain.
The Royal Institution of Chartered Surveyors (RICS) has warned of an acceleration in rent increases over the next five years as a result of this demand for housing outstripping supply.

A programme has been designed by the Government over recent years to cut investment in private rented housing through various tax increases. It hopes to encourage more houses to be available for purchase by owner-occupiers.

The latest figures, however, show that this strategy was a failure. The RLA is now calling on the Government to adopt pro-growth measures. It suggests scrapping the Stamp Duty levy on the purchase of additional properties where landlords add to the net overall supply of homes available, including bringing long-term empty homes into use.

David Smith, Policy Director for the RLA, said: “Those who argue that a smaller private rented sector is good for tenants wanting to buy a home are plain wrong. The Government’s policies are choking off the supply of homes to rent whilst demand remains strong. This is only making life more difficult and potentially more expensive for those looking for somewhere to live.”

“Without an urgent change of course and the introduction of pro-growth policies the situation will only become worse.”

Landlords needed in Cardiff to help solve housing crisis, says housing association Cadwyn

Published On: August 15, 2019 at 9:42 am

Author: Em Morley

Categories: Landlord News

Tags: housing crisis,Wales

Cardiff based housing association Cadwyn is calling for more landlords with properties in Cardiff to lease their houses with them and help those at most risk of losing their homes.

There are approximately 8,000 households in Cardiff on the Cardiff Council waiting list for new homes. Around 400 new applications are being added each month.

Currently Cadwyn has just over 400 houses leased with the council, but more are needed to keep up with demand. Cadwyn has launched #The400 campaign, which focuses on encouraging private landlords to lease their properties through one of their schemes. If this is successful, it should reduce the number of families and individuals waiting for safe and secure homes.

There are a range of reasons why families and individuals are at risk of becoming homeless. A breakdown in a relationship, harassment or intimidation illness, difficulty paying a mortgage or rent, or domestic violence can all be key factors.

Naomi Carter and her family now live in a Cadwyn property. However, her situation could have been very different: “Our previous landlord decided to sell the property and I had nowhere to go. The time we had to vacate was getting closer and it worried me a lot because I have four children and becoming homeless was just not an option.

“Cadwyn approached me and looked at what property would be suitable for a large family like ours. It was also important that we stayed in the area as my son has autism, so he doesn’t take to change very well. The effects on him and my other children would have been extremely stressful.

“Without a Cadwyn home, there was a possibility that we could have been in a hostel. My eldest son is 18, so we would have been split up too. I know Cadwyn need more properties, and bigger properties as well for families like mine to make sure families don’t end up without a safe place to live.”

Ramon Selvakumaran, a landlord who is based in London and leases to Cadwyn, said: “I first came across Cadwyn when researching how to receive secure rent. I was attracted to Cadwyn for the guaranteed rent, the fact that they take over the running of the property and the social side, helping society.

“I have leased my property to Cadwyn for three and a half years and I fully trust them. It’s a smooth, simple and easy process. The guaranteed rent was the main attraction, the other things were a bonus, and I’m really proud and happy to tell people about the scheme. I know there’s a need for temporary accommodation, so to help at all is a great feeling.”

Helen Armstrong is the Director at Cadwyn responsible for making places and changing lives: “Cadwyn has been leasing properties from private landlords for fourteen years. We are well experienced in looking after your property, guaranteeing your rent and we also give you the chance to help someone who otherwise might be homeless. Lease your property to us and provide a home for one of the 400. You won’t regret it.”

Cabinet Member for Housing and Communities, Cllr Lynda Thorne, said: “We understand the importance of a good quality home for people’s wellbeing and while we are doing everything we can to increase the amount of affordable housing in the city, including building 2,000 new council homes and buying back property from the market, there is still significant pressures on the housing waiting list. That’s why we are happy to support Cadwyn, and back their campaign to encourage more private landlords to work with them, to be able to provide decent homes for people who need them.

“It’s vital that if anyone is worried about losing their home that they act now, don’t wait. In many cases, our Housing Options team are able to provide advice and support that can prevent people becoming homeless, so get in touch on 029 2057 0750 as soon as possible.”

Tenants hit hardest by Government’s focus on homeownership

Published On: August 13, 2019 at 8:51 am

Author: Em Morley

Categories: Tenant News

Tags: housing crisis

New data reveals that tenants in private rented housing are bearing the brunt of the Government’s focus on boosting homeownership at the expense of the rental market.

The Royal Institution of Chartered Surveyors (RICS) has released its latest figures, which show a fall in the supply of private rented housing. However, demand from prospective tenants increases is “likely to squeeze rents higher.”

Tenant demand has picked up, despite the Government’s efforts to boost homeownership. The RICS notes that many respondents to its latest residential market survey saw an increase in the number of enquiries from new homebuyers in July.

Recent tax changes introduced by the Government in recent years have led some landlords to leave the market. This includes the restriction of mortgage interest relief to the basic rate of income tax and introducing a 3% Stamp Duty levy on the purchase of new homes to rent out. This is despite the Institute for Fiscal Studies warning that it is “plain wrong” to argue that landlords are taxed more favourably than homeowners. The Chartered Institute of Housing has also noted that “tax reliefs deliver a much bigger benefit to homeowners than they do for private landlords.”

David Smith, Policy Director the Residential Landlords Association (RLA), comments: “These figures demonstrate yet again that hitting the private rented sector to boost homeownership serves only to hurt tenants. Demand from tenants and new buyers is increasing at the same time. It is vital that the needs of both groups are met.

“The Government needs to stop making landlords the scapegoat for the housing crisis and embark on a raft of pro-growth measures to boost the supply of homes for the private rented sector. If they do not, supply will continue to fall, meaning higher rents, less choice, and a reduction in quality for tenants.”

Sharp Rise in the Number of Fraudsters Letting Out Empty Property

Published On: August 9, 2019 at 2:11 pm

Author: Em Morley

Categories: Lettings News

Tags: housing crisis,rogue landlords

Sharp Rise in the Number of Fraudsters Letting Out Empty Property

Owners of empty property and would-be tenants are being warned about people falsely posing as landlords in order to let out property they do not own.

In some cases, theses opportunistic criminals are taking money for deposits then disappearing never to be seen again, but in even more brazen cases, ‘tenants’ have moved into properties and began paying regular rent. Sometimes continuing for months, they are totally unaware that they are handing their rent over to a complete stranger whom has no ownership of the property.

John Williams, of Outlook Property Agency, learnt that his identity had been stolen in order to facilitate a crime like this: The scammer used a corporate-seeming email address in John’s name, and imported the company logo and branding to make it look authentic. All text messages and phone calls also supposedly came from John Williams.

“The first I knew of it was when a woman phoned me up to ask about the keys to the flat she was about to rent. I had no knowledge of the property and asked who she had been dealing with.

“She said: ‘You’.

“I took three other phone calls like it.”

In total, four people were scammed out of £1000 each for supposed deposits.

In another case, also involving Outlook Property, the buyer happened to drive past the property to show it to a friend and saw signs of life inside.

The next day two Romanian families with little English were found by Williams living in the property. Police were called and Williams said:

“They were very unsympathetic. I told them that the tenants were victims but the police gave them half an hour to get out. I had been worrying about how I was going to get the property back for the vendor but there were these families left standing on the pavement.”

However some property owners and tenants have managed to make the best of a bad situation: in one case an owner quickly drafted a tenancy agreement for those found living in their property so that they could continue to stay until suitable accommodation was found.

Williams says: “The problem is massive, and growing, although whether it is largely a London issue, I don’t know. However, it is certainly something that all agents should be alert to.

“Typically, the fraudsters look for sales properties advertised on Rightmove, although in one of the cases we have experienced, there was no marketing on the portals and no For Sale board by request of the vendor.

“The fraudsters seem to use local knowledge to look for empty homes, such as probate properties, change the locks, and advertise on Gumtree.

“It has got to the stage where we are incredibly careful about marketing sales properties.

“We don’t put up For Sale boards without explaining the risks to the sellers, and we always make sure the properties look occupied at all times, using automatic timers to make the lights go on and off.”

Williams doesn’t blame the would-be tenants though, he believes that they’re usually innocent foreigners without the means to produce the kind of paperwork needed for proper referencing.

He said: “There is obviously a gap in the market to service this kind of tenant, who may have cash but no acceptable employment records. They have usually handed over money and signed what they believe are legitimate tenancy agreements.

“The police usually tell them they must leave immediately, potentially adding to the homelessness problem.”