Posts with tag: London

European Demand for London Rental Properties Continues Despite Brexit

Published On: October 18, 2017 at 8:09 am

Author: Em Morley

Categories: Property News

Tags: Europe,London,Right to Rent,tenants

European Demand for London Rental Properties Continues Despite Brexit

High levels of European demand for rental properties in London continue to be recorded, despite concerns around the UK’s departure from the EU and the status of European citizens in the country when Brexit finally happens.

The latest figures from rental website Spotahome show that the majority of bookings made for rental properties in London stem from the UK’s European neighbours. The largest number of bookings comes from France, which accounts for 22.2%, followed by Spain, Germany and Italy.

With an estimated 300,000 French citizens currently residing in the UK and the majority of these believed to be based in London, the English capital was recently referred to as France’s “sixth biggest city” by the French president, Emmanuel Macron.

Despite Brexit, the French love affair with London continues. This is demonstrated by the large number of searches and bookings for rental properties in London from the European nation.

Despite strong European demand for British rental properties, the second largest number of bookings made on the site came from the UK – accounting for 11.9% of bookings.

The CEO of Spotahome, Alejandro Artacho, comments: “It is no surprise that the majority of the bookings on the site are from the UK’s European neighbours. London is and always will be a hub that appeals to people from all over the world. It’s great to see that alongside Spotahome being popular with people from overseas, the platform is gaining popularity within the UK, due to it being a far more effective method for finding accommodation.”

Landlords, are you seeing high levels of European demand for your properties? While it is uncertain what will happen to the rights of European citizens when the UK leaves the EU, you can still accept tenants with EU citizenship.

However, please remember that you must check the immigration status of all prospective tenants before letting to them under the Right to Rent scheme. The Home Office has worked with us to create a guide to help you understand the requirements: /home-office-reinforces-landlord-responsibilities-right-rent/

New Licensing Rules and Penalties for Rogue Landlords Set to be Agreed

Published On: October 10, 2017 at 9:49 am

Author: Em Morley

Categories: Landlord News

Tags: landlord licensing,London,penalties,rogue landlords,York

Harsher penalties for rogue landlords in York could soon come into force, while new licensing rules are close to being approved in Havering, east London.

City of York Council is considering imposing fines of up to £30,000 on landlords that do not meet safety and licensing regulations, as an alternative to prosecution.

New Licensing Rules and Penalties for Rogue Landlords Set to be Agreed

The council believes that the proposed new measures will give it the additional powers needed to tackle poor quality rental homes in the local area, raise standards and give tenants the protections they need.

The decision follows an agreement by senior councillors almost two weeks ago that penalties could be used as formal enforcement action, to ensure that no landlord can gain financially from any failure to comply with legislation.

Councillor Sam Lisle, the Executive Member for Housing and Safer Neighbourhoods at City of York Council, says: “Introducing these penalties follows Government guidelines and complements our work to support landlords to further improve standards, which I’m pleased to see is ongoing.”

Government guidance advises that, when setting the penalty for an offence, factors such as the level of culpability, level of harm, severity of the offence, mitigating factors and deterring other failures must be taken into account.

“High quality homes are good for the city’s private tenants and, in the long-term, for the landlords themselves,” Lisle adds.

The decision session will take place on Monday 16^th October 2017 from 4pm and will be available to watch here: https://www.york.gov.uk/webcasts

Meanwhile, plans to introduce an additional licensing scheme across 12 wards in Havering, east London look set to be approved tomorrow.

Local councillors will meet to discuss the proposal to charge landlords £900 to register their properties with Havering Council.

Aside from boosting council finances, it is hoped that the proposed licensing scheme will help to improve local housing conditions and anti-social behaviour in locations where there are large numbers of Houses in Multiple Occupation (HMOs).

The 12 wards that would be affected are: Brooklands; Mawneys; Elm Park; Pettits; Gooshays; Rainham & Wennington; Harold Wood; Romford Town; Havering Park; South Hornchurch; Heaton; and Squirrels Heath.

Under the scheme, landlords in these areas would have to purchase five-year licences for their properties, paid in two parts, which would cost £900 in total – although a discounted fee of £762.50 is available for those who sign up before the end of February.

A council report, which is set to be debated by cabinet members, states: “The introduction of a suitable licensing scheme will enable a significant change in the way that anti-social behaviour and poor management associated with some of the private rented sector is tackled.

“Through licensing, the council will know who is responsible for the management of properties that are rented out and who is responsible for dealing with problems associated with the dwelling.”

We remind all landlords to stay on top of the regulations governing the private rental sector in the locations they operate.

Rent Prices Down Across Britain, Driven by the South

Published On: October 9, 2017 at 9:19 am

Author: Em Morley

Categories: Property News

Tags: lettings market,London,rent prices,South East

Asking rent prices have dropped across the UK in the third quarter (Q3) of the year, driven by declines in the south, according to the latest report from Rightmove.

Rent Prices Down Across Britain, Driven by the South

Historically, asking rents for new properties coming onto the market rise in Q3, as it is typically one of the busiest times for the lettings market. However, the latest Rental Trends Tracker from the property portal shows that rents are down, as supply starts to exceed demand.

The average asking rent was down by 0.2% in Q3, driven by a 2.3% decline in the South East, where rents were down for the first time in six years. Outside of London, the average asking rent is now £789, down from £790.

The Head of Lettings at Rightmove, Sam Mitchell, says: “Since last April’s second home Stamp Duty changes came in, the supply of new rental properties in the South East has been steadily increasing, up 5.5% on this time last year.

“Agents are reporting that some investors looking for better yields are shifting their focus from London to instead buy in the surrounding counties of Surrey, Berkshire and Buckinghamshire.

“The increase in stock in the South East has led to softening in rents in some areas where there is less competition among tenants, but they are holding up in key commuter areas where tenant demand is strong.”

In London, asking rent prices are at their lowest for this time of year since 2013, at an average of £1,920 per month, from £1,934 – down by 0.7%.

While the decline seen in the South East is due to increasing supply, the picture is different in the capital, where new listings were down by 3.7% on Q3 2016.

Mitchell adds: “Last year, the supply of rental properties in London increased as much as 26% when investors rushed to buy ahead of the Stamp Duty changes, leading to cooling rents over the last 12 months in the capital.

“Now, it appears that rental investors are starting to move their money away from London, with a number of agents across London saying that investors are being replaced by first time buyers. This is likely to constrict rental supply in the capital and lead to rents increasing again, so now would be a good time for prospective tenants to act, before this happens.”

In every region but the South East, London, and Yorkshire and the Humber (where rent prices dropped by a slight 0.2%), asking rents rose by up to 2.6%.

How Rents have Fared since Crossrail 2 was Announced, as TfL Hints at Decade-Long Delay

Published On: October 9, 2017 at 8:22 am

Author: Em Morley

Categories: Property News

Tags: Crossrail 2,London,rent prices

Since the Crossrail 2 route was announced in 2013, rents have been pushed up in 13 of the 15 affected local authority areas, according to the latest Rental Index from Landbay, powered by MIAC. However, as Transport for London (TfL) hints at a decade-long delay, how will the property market be affected?

How Rents have Fared since Crossrail 2 was Announced, as TfL Hints at Decade-Long Delay

Last week, a leaked business case from TfL to the Government revealed that Crossrail 2 could be delayed by a decade, as a funding shortfall jeopardises the final go-ahead from ministers.

As the future of the line is called into question, Landbay’s latest Rental Index reveals that a significant uplift in tenant demand in the four-and-a-half years since the route was announced has pushed up rents in 13 of the 15 affected local authorities, and by 21.5% around the north terminus of Broxbourne.

When the route for Crossrail 2 was first revealed in February 2013, rents were falling in seven of the 15 local authority areas set to house the new line. In the year that followed, a dramatic uplift in tenant demand saw rents grow in all but one, Epsom.

Overall, in the four-and-a-half years since the announcement was made, 13 of the 15 local authorities have seen notable rent price rises – most significantly in the north and west extremities of the line, namely Broxbourne (21.5%), Enfield (13.8%), Haringey (11.4%) and Spelthorne (10.5%).

However, while tenant demand indeed grew quickly until 2016, the Government has begun to drag its feet on the final approval of the new infrastructure project, and rents have once again begun to drop – almost across the board. Only Enfield saw rents grow in the past year (by 0.4%), although, by September, rents had fallen here too, by 0.2%. Meanwhile, Broxbourne (-1.75%), Richmond (-1.13%) and Spelthorne (-2.16%) are all showing signs of dwindling tenant demand.

As London rents return to growth in September – after falling for 15 consecutive months – there are signs that demand for rental housing could again be on the rise in the capital, putting further pressure on the Government to follow through on its pledge to release an extra £2 billion of Government cash for local authorities across the UK to build more affordable homes.

The CEO and Founder of Landbay, John Goodall, comments: “The idea of a north/south London railway dates back to the 70s, but it was only in 2013 that we found out where Crossrail 2 would actually run. Planned infrastructure is a key driver of tenant demand, so rents and property prices along the planned line quickly followed suit. But news that the line may now be delayed by a decade is nothing short of a hammer blow to all those that have had the foresight to plan that far ahead.

“What’s needed by tenants, landlords, buyers, business and builders is a clear commitment from the Government that the project will be delivered in 2033 as expected. Not only to help people and businesses plan their lives ahead, but also to allow adequate time for local authorities to plug housing shortfalls before demand spirals out of control.”

He adds: “For example, the latest £2 billion social housing pledge is an encouraging sign that the Government is taking seriously the UK’s housing shortage, but this could and should be linked to the UK’s infrastructure plan, to spare any nasty surprises down the track.”

London Bridge is the Most Desired Location for Overseas Renters

Published On: October 5, 2017 at 8:12 am

Author: Em Morley

Categories: Property News

Tags: London,overseas,rental property,tenants

London Bridge is the most searched for location for mid to long-term tenancies in the capital from overseas renters, according to data from rental accommodation platform Spotahome.

London Bridge is the Most Desired Location for Overseas Renters

London Bridge attracted more than twice the interest than the next most searched for locations – Camden Town and Shoreditch.

Spotahome is predominantly used by overseas renters moving to the UK for a minimum of 30 days. The website has found that London sees a high level of demand from overseas renters in France, Spain and Germany in particular.

This explains why locations in London that are well known outside of the UK, such as London Bridge and Camden, are so popular. But Spotahome is also seeing the growing popularity of areas such as Stratford, Hammersmith and Ealing – the next most searched for locations on the platform.

The CEO of Spotahome, Alejandro Artacho, says: “The demand for property in key locations around London remains high and growing, and in places such as London Bridge, it is unlikely that this will fall. There is a growing opportunity for landlords to meet mid to long-term rental demand in locations such as Stratford, Ealing and Hammersmith, as there is not currently enough rental stock to satisfy the demand in east and west London in particular.

“Individuals and landlords with property in areas which are growing in demand – such as Ealing, which is undergoing an exciting regeneration process – can look to take advantage of this by putting their spare room or properties up for rent. With the average rental asking price on the site currently standing at £763 for a flatshare to £902 for a whole property, homeowners could stand to earn £9,000 to £11,000 a year, before tax.”

He continues: “London is an international hub, with thousands of individuals moving to the city on a daily basis. Unfortunately, homeowners across Greater London are yet to wake up to the earning potential of their spare rooms, resulting in black holes across London where demand for accommodation far outstrips supply. Spotahome enables potential landlords to find a tenant without the hassle of having to spend days organising and conducting interviews, meaning that renting out your property is a far easier and a less time consuming process.”

This research reveals a great opportunity for landlords to tap into the overseas renters market in certain spots across London – will you invest?

What you can Buy in Northern Cities for the Price of a London Pad

Published On: October 4, 2017 at 8:21 am

Author: Em Morley

Categories: Property News

Tags: house prices,London,north

It’s been a rough ride for London landlords in recent months, as investors shun the capital and head north in search of lower property prices and higher returns. But what can you really buy in northern cities for the price of a London pad?

What you can Buy in Northern Cities for the Price of a London Pad

House price growth in the UK weakened in July 2017, with London being the third worst performing region, according to Office for National Statistics (ONS) data. The average price in the capital rose by just 2.8% over the year, while it was up by only 0.3% on a monthly basis.

In contrast, the North West of England experienced greater month-on-month growth, with the average price up by 1.4% between June and July, reaching an annual increase of 4.7%.

Home to urban hotspots such as Liverpool, Manchester and Salford, northern cities are looking strong when it comes to rent price growth, leading buy-to-let investors to give serious thought to these locations.

The crown in the jewel of the northern cities remains Manchester, with its rapidly growing suburbs, where investors received an average yield of 6.9% in the year to July.

The CEO of agent Properties of the World, Jean Liggett, says: “Properties of the World has been active in Manchester’s property market for many years now, having been quick to identify the city’s potential as a cornerstone of the UK’s buy-to-let boom.

“The huge demand projected for homes in Manchester and the low property prices make this northern city far more attractive for investors than the capital.”

When it comes to residential investment in northern cities, latest data analysed by Strutt & Parker shows that three-bedroom homes are the biggest winners, especially for young professionals, who are looking for properties that offer more space and better value for money than London.

A typical three-bed in the capital costs almost £820,000, according to research by Savills, a sum that is out of reach for most.

Meanwhile, a three-bed apartment a few minutes from Manchester city centre costs just £242,495. In the heart of Salford Quays, a luxury three-bed apartment is £375,995, while a three-bed flat in the award-winning Manchester Waters development is just £229,995, with a 6% return for investors.

You could also snap up a £226,000 property just a short walk from Manchester city centre, which is four times cheaper than the average three-bed price in London, and with a 5.5% net yield.

With the latest study by LendInvest showing that northern cities are challenging those in the South East where returns are concerned, it looks like a move up north is on the cards.