Posts with tag: landlords in London

Is the lettings market in London favouring tenants?

Published On: May 23, 2017 at 9:00 am

Tags: landlords,landlords in London,London,private rental sector,rents

New data reveals that private landlords in London are beginning to feel the impact of reduced tenant demand, with many being forced to cut rents to attract new tenants.

With more properties to select from, tenants are in control of the private rental market in the capital, according to the most recent analysis from HomeLet.

What’s more, the capital’s new build housing market has been particularly impacted by the slowdown in the rental market, according to London Central Portfolio’s (LCP).

Period Homes

A recent report from LCP showed that sales in London have fallen by as much as 41%, with the company suggesting that many new build properties are being left vacant as more renters are targeting period homes.

With a number of regions seeing falls in demand, LCP believes that places with vast numbers of planned new homes are, ‘really beginning to suffer.’

One of these regions is between Battersea and Nine Elms. Typically, foreign buyers look to purchase in this region as rental investments. There has been an increase in stock of 28.1% during the course of the last year. What’s more, there has been a reduction in asking rents of 6% during the last quarter.

Despite this, the number of properties actually let has fallen by 14.8% during the same period, alongside a fall of 2.8% in achieved rents.

Is the lettings market in London favouring tenants?

Fragmentation

Naomi Heaten, CEO of LCP, observed: ‘In much the same way as we see in the sales market, there is increasing fragmentation in the lettings market, according to property type (new build or traditional stock) and by price point.’[1]

‘Alongside the oversupply of rental stock in new build heartlands, the uncertain economic outlook has resulted in tighter tenant budgets. It is therefore not surprising that recent reports indicate a 14.8% fall in the number of properties rented south of the river over the last three months and a 6% discount on asking rents,’ she continued.[1]

The research also found that the rental market in London was far stronger in areas with more limited new build potential.

In prime central London, where stock levels has risen by only 5%, rents have not been negatively impacted. In addition, they have seen an increase of 1.5% in the last three months. The number of properties being let out has also risen by 2.5% in the same period.

Heaton went on to note: ‘In contrast to the dynamics south of the river, the mainstream rental market in prime central London has continued to perform positively as demand for well-presented rental property remains high and stock remains scarce.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/5/its-a-tenants-market-in-london

Online database to name and shame rogues in the capital

Published On: April 27, 2017 at 8:42 am

Author: Em Morley

Categories: Landlord News

Tags: landlords in London,letting agents,rogue landlords,rogues

Rogue landlords and letting agents who wrongfully exploit their tenants will be named on a new online database aimed at protecting the two million private renters in London.

The measure was announced by Mayor of London, Sadiq Khan, who said the database would be built in partnership with London Boroughs.

Criminals

Criminal landlords and letting agents who have been convicted for housing offences will appear on the list. Mr Khan hopes that this will give Londoners greater confidence to rent in the capital, by allowing tenants to check their would-be landlord or agent against this database.

The scheme is due to launch in the coming Autumn and will enable all London councils to easily share information on landlords’ criminal history.

During the next few months, the database will be developed with information from six councils, namely:

Newham
Brent
Camden
Southwark
Kingston
Sutton

Online database to name and shame rogues in the capital

Support

Speaking about the database, the Mayor said: ‘I refuse to stand by as thousands of Londoners suffer sky-high rents and horrendous living conditions in a city they call home.’

‘Today I have seen first-hand the abysmal conditions that some of London’s private renters are forced to endure as a result of rogue landlords. I want to be clear that the vast majority of landlords treat renters well – but a minority are exploiting their tenants and it’s simply unacceptable. This must stop now.’

‘To help renters, I will be working in partnership with London Boroughs to launch my new ‘name and shame’ database of criminal landlords and letting agents to help Londoners before they rent a property, and to deter dishonest landlords and agents from operating.’

‘I fully support the excellent work councils like Newham are doing to target the worst offenders in their borough. I will continue to support them and other boroughs who use licensing schemes effectively to drive up standards in the private rented sector.’[1]

Easier

Richard Lambert, Chief Executive Officer at the National Landlords Association, observed: ‘The Mayor’s ‘name and shame’ online database brings information on criminal landlords and agents together to make it much easier for renters to find and avoid landlords anyone who has been prosecuted for housing related crimes. Importantly, it is also the first time renters have had a central online tool that should take some of the stress out of reporting potentially criminal housing conditions to their local authority.’[1]

David Cox, Chief Executive at ARLA Propertymark said: ‘ARLA Propertymark welcomes the Mayor’s announcement today of the ‘name and shame’ criminal landlord database. We have campaigned for the government’s database of banned letting agents to be publicly available as, with no public access to the database, how will landlords or tenants know if they are using a banned agent? This online database overcomes that problem and means tenants and landlords in London can rent with the confidence of knowing their agent has not committed any offences.’[1]

[1] http://www.propertyreporter.co.uk/landlords/criminal-landlords-to-be-named-and-shamed-by-mayor.html

Housing Minister Reinforces Support for Tackling Rogue Landlords in London

Published On: October 24, 2016 at 8:34 am

Author: Em Morley

Categories: Landlord News

Tags: Housing and Planning Act 2016,landlords in London,London,rogue landlords

Housing Minister Reinforces Support for Tackling Rogue Landlords in London

The Housing Minister, Gavin Barwell, has yet again been required to reinforce the Government’s support for tackling rogue landlords in London.

Just last week, an MP questioned Barwell’s efforts to drive rogue landlords out of the private rental sector. The Housing Minister responded with details of the forthcoming Housing and Planning Act 2016, which includes measures to tackle rogue landlords.

Now, Barwell has been asked what steps the Department for Communities and Local Government is taking to support the boroughs where the number of rogue landlords in London is increasing.

Barwell replied to the enquiry: “The Government has made £12m available to a range of local authorities to help them crack down on rogue landlords. £6.6m of that funding was provided to London boroughs. Through the Housing and Planning Act 2016, the Government is introducing a package of measures to help local authorities go further in tackling rogue landlords. They include a database of rogue landlords and property agents, banning orders for prolific and serious offenders, civil penalties of up to £30,000, and extended Rent Repayment Orders. These provisions are expected to come into force in 2017.

“On 18^th October, the Government also announced plans to extend mandatory licensing of Houses in Multiple Occupation (HMOs), to strengthen councils to tackle problem homes head-on and bring an end to ruthless landlords who exploit tenants and charge them extortionate rents to live in poor conditions. These measures will ensure mandatory licensing rules apply to HMOs with five or more people, and to flats above and below shops. Minimum room sizes will also apply to HMOs, to help to clamp down on rogue landlords cramming tenants into unsafe and overcrowded homes.”

He added: “This Government is committed to ensuring this country works for everyone, and a key part of that is ensuring everyone has a safe and secure home.”

Since his first major speech, the Housing Minister has spoken out in support of the private rental sector.

Estate Agent Announces Event for Landlords in London

Published On: October 21, 2016 at 10:11 am

Author: Em Morley

Categories: Landlord News

Tags: landlord event,landlords in London,London,London landlords

Estate agent Portico has announced its latest event for landlords in London on 22^nd November 2016 at the Institute of Directors.

Organised by Portico and held in association with the National Landlords Association (NLA), the London Landlord Seminar will offer a wealth of advice and information from property experts, including an update on the current market. The evening event will also include a panel discussion on how to get the most out of your investment in light of recent tax and legislative changes. The full line-up can be found below.

Estate Agent Announces Event for Landlords in London

The event also offers an opportunity for guests to network with other landlords, along with drinks and canapés.

Portico hosted a similar seminar last year, which was completely sold out, attracting over 300 landlords in London. This year, the agent promises a bigger and better event!

Line-up

A key speaker for the event will soon be announced.

Introduction – Richard Blanco, London Representative at the NLA

Richard will kick off the evening by talking through all of the latest changes in Government policy and Sadiq Khan’s plans for London.

London property market – Mark Lawrinson, Regional Director of Portico

Mark will shed light on the post-Brexit property market, focusing on the uncertainty surrounding house prices. He will go through the latest figures, including an analysis of rental yields across London boroughs.

Networking break

Meet the speakers and other landlords

Adapting your investment strategy

A panel debate on the best strategy for landlords in London in 2017, with Richard Bowser, the Editor of Property Investor News, Robert Nicholls, the Managing Director of Portico, Nicole Bremner, a commercial/residential developer, and Simon Allen, of Searchlight Finance.

Round-up of the evening – Mark Lawrinson and Richard Blanco

For more information on the event, visit: https://www.portico.com/seminar/

Tickets are just £10 with the promotional code: POR41CO

If you are thinking of heading to the event, it is on Tuesday 22^nd November 2016 at 6.30pm at the Institute of Directors, 116 Pall Mall, London, SW1Y 5ED.

Most London Landlords Would Sell if a Rent Freeze was Introduced

Published On: October 9, 2015 at 4:03 pm

Author: Em Morley

Categories: Landlord News

Tags: landlords in London,private rental sector London,property investors,rent controls

The majority of landlords in London (60%) would sell one or more of their properties if a rent freeze was introduced, according to a new report.

The research was commissioned by the London Assembly Housing Committee and conducted by the Cambridge Centre for Housing & Planning Research (CCHPR).

The CCHPR surveyed around 200 landlords, most of whom do not own many properties, and commercial built-to-rent investors.

Most London Landlords Would Sell if a Rent Freeze was Introduced

CCHPR presented the landlords with six potential scenarios of rent stabilisation, for example, a one-off rent freeze for three years or linking rent rises to wage increases.

The study revealed that the majority of landlords would continue as they are doing if rents could only be increased in line with inflation, however, 40% stated that they would sell some or all of their properties if this was introduced.

Additionally, most landlords said they were not keen to offer longer tenancies, but 52% would be more inclined to do so if tax incentives were available.

Chair of the London Assembly Housing Committee, Tom Copley, addresses the sector: “Much has been said from all sides about rent controls, but the debate has been sorely lacking in facts, so it’s incredibly useful to have these set out in this report.

“The choice is not simply between regulating rents and not regulating rents. There is no one size fits all system of rent control, with many cities around the world adopting different models. Each system has upsides and downsides. Our report seeks to find out what could work in London.”

He adds: “We need solutions that work for the millions of Londoners – especially families – in the rental sector. For families, the prospect of having to up sticks with very little notice often means disruption to many aspects of their lives, including schooling and employment.”¹

David Smith, the Policy Director for the Residential Landlords Association (RLA), insists that the country will need more homes to rent if it is to solve the housing crisis.

He says: “This report reminds us of the dangers of rent controls, which would in fact reduce supply, thereby increasing rents. Rent controls would also severely reduce standards in rental housing as investment dries up.

“It would take us back to the bad old days of Rachman landlords, which we must prevent for the good of tenants.”¹

The report was discussed yesterday (8^th October 2015) by various parties, including Alan Benson, the Senior Manager of Housing Strategy at the Greater London Authority, John Bibby, the Policy Officer at Shelter, and Anna Clarke, one of the authors of the report and Senior Research Associate at CCHPR.

¹https://www.landlordtoday.co.uk/breaking-news/2015/10/london-landlords-to-sell-up-in-the-event-of-a-rent-freeze