Posts with tag: London

Councils launch projects to listen to local private renters

Published On: May 24, 2021 at 8:44 am

Tags: Dundee City Council,East Suffolk Council,Gedling Borough Council,Generation Rent,London,Newport City Council,private renters

Councils launch projects to listen to local private renters

Generation Rent has partnered with five local authorities around Great Britain to help them better engage and communicate more effectively with private renters.

The five engagement projects are with Dundee City Council, East Suffolk Council, Gedling Borough Council, the London borough of Newham, and Newport City Council. The aim of each project is to help each local authority better understand the challenges private renters face, and respond effectively.

The first stage of consultation is a survey of private renters in each local area.

Local government has responsibilities for enforcing safety standards, licensing landlords and protecting tenants from illegal eviction. Despite this, a poll by Survation found that 46% of private renters were unaware that their local council had powers to help private tenants.

37% of respondents have experienced problems with mould or damp in their private rented home in the past five years. 30% had experienced problems with heating or hot water, and 25% had lived in a leaky or draughty home.

When private renters were asked what they would do if their home felt unfit to live in, 44% responded that were more likely to try to find a new home. 35% responded that they would seek help from the council.

Generation Rent points out that many councils around the country have landlord forums, whereas very few have formal structures to hear from private renters.

Through these engagement projects, the local authorities and Generation Rent expect to learn what private renters already know about their rights and responsibilities. They also hope to find out how this knowledge differs between different nations, rural and urban areas, and different communities living in private rented homes. The projects are funded by the Joseph Rowntree Reform Trust.

Local authorities are looking to develop best practice for engagement with private renters to better consult with them, be more responsive to issues and concerns, and develop policies and practices to better support private renters, for example through enforcement or landlord licensing.

Alicia Kennedy, Director of Generation Rent, comments: “The private renter population has grown dramatically in the past two decades, making it a much more important part of local authorities’ work. That’s why we’re delighted to be working in partnership with these five local authorities across the country.

“They have recognised the important role councils play in supporting private renters, and now want to improve the way they represent and engage private renters.

“We hope this joint work will develop new models of engagement that can be shared and built upon by other local authorities.”

Over 3,000 people rough sleeping in London during third national lockdown

Published On: May 10, 2021 at 9:58 am

Author: Em Morley

Categories: Tenant News

Tags: Crisis,homelessness,London

Crisis comments on 16% rise in rough sleeping across London

New figures from the Combined Homelessness and Information Network (CHAIN) reveal that from January to March 2021, 3,002 people slept rough across London.

This was down 9% on the previous quarter. 1,567 people also slept rough for the first time during this period.

The figures from this data also show:

33% of people rough sleeping had two or more support needs
1,587 people were placed in emergency accommodation, this is up 72% from the last quarter. This reflects the work of local authorities and the Greater London Authority to continue to accommodate people sleeping rough during the pandemic.

Jon Sparkes, Chief Executive of Crisis, comments: “It’s deeply concerning that we entered the new year and a third national lockdown with over 3,000 people sleeping on our streets and 316 people forced to live this way day-after-day. Rough sleeping at any time is unacceptable, but we must remember this was when coronavirus cases were rapidly accelerating, and temperatures were freezing meaning this situation was all the more dangerous and deadly.

“While fewer people were sleeping rough during this time due to councils going to great lengths to get everyone in, people did continue to fall through the cracks, largely because of their immigration status. The same issue persists today so we must stress that while the threat of the virus remains among us, we urge councils to continue to provide everyone with a safe place to stay in line with the recent High Court judgement.

“But ultimately a hotel room is not a safe and secure home. We urgently need the Westminster government to set out a clear plan to end rough sleeping and homelessness by providing genuinely affordable housing. This must also include a new approach to how we treat people with interlocking problems such as mental health, trauma and drug and alcohol dependencies, which can only be achieved by making Housing First available to everyone who needs it. As we move out of the pandemic, a truly impactful and lasting recovery must have ending homelessness at its heart.”

London tenants seeing ‘more manageable’ rent prices during pandemic

Published On: April 28, 2021 at 9:20 am

Author: Em Morley

Categories: Lettings News,Tenant News

Tags: Benham and Reeves,London,rent prices

Tenant applications for London rentals double in last six months

London has become a more affordable place to rent during the pandemic, according to research by London lettings and estate agent Benham and Reeves.

Benham and Reeves analysed the rent to income ratio prior to the pandemic and found that across London, 64.4% of the average net monthly earnings was required to cover the average rent.

The agent also analysed how this has changed based on the latest rental data combined with the latest earnings data from the ONS, whose estimates included furloughed employees and were based on actual payments made to these employees from company payrolls and the hours on which this pay was calculated.

The research shows that across London, this ongoing financial support via the furlough scheme and a reduction in the cost of renting means that the average London tenant is now paying just 60.2% of their income to cover the cost of renting.

This trend has been seen across 23 of the capital’s boroughs and in some cases has been far greater. However, areas such as Islington and Haringey have seen rent increases.

	Pre-COVID			Currently
Location	Average Rent (Sep 2019)	Average Net Salary (Oct 2019)	Rent to Income Ratio	Average Rent (Sep 2020)	Average Net Salary (Nov 2020)	Rent to Income Ratio	Change in Rent to Income Ratio
London	£1,697	£2,634	64.4%	£1,639	£2,721	60.2%	-4.2%
Camden	£2,536	£3,403	74.5%	£2,012	£3,223	62.4%	-12.1%
Lewisham	£1,324	£2,316	57.2%	£1,322	£2,643	50.0%	-7.1%
Kingston upon Thames	£1,390	£2,778	50.0%	£1,288	£2,981	43.2%	-6.8%
Hammersmith and Fulham	£2,117	£3,215	65.9%	£2,016	£3,288	61.3%	-4.5%
Barking and Dagenham	£1,194	£1,805	66.2%	£1,206	£1,951	61.8%	-4.3%
Harrow	£1,407	£2,365	59.5%	£1,445	£2,611	55.3%	-4.1%
Hounslow	£1,432	£2,260	63.4%	£1,416	£2,370	59.8%	-3.6%
Ealing	£1,463	£2,422	60.4%	£1,568	£2,758	56.9%	-3.6%
Kensington and Chelsea	£3,053	£5,190	58.8%	£2,977	£5,349	55.7%	-3.2%
Bromley	£1,321	£2,779	47.5%	£1,318	£2,966	44.4%	-3.1%
Hillingdon	£1,270	£2,097	60.6%	£1,244	£2,162	57.5%	-3.0%
Hackney	£1,834	£2,363	77.6%	£1,860	£2,481	75.0%	-2.6%
Waltham Forest	£1,309	£2,268	57.7%	£1,359	£2,458	55.3%	-2.4%
Bexley	£1,106	£2,360	46.9%	£1,113	£2,498	44.6%	-2.3%
Redbridge	£1,318	£2,385	55.3%	£1,311	£2,465	53.2%	-2.1%
Brent	£1,535	£2,206	69.6%	£1,494	£2,195	68.1%	-1.5%
Croydon	£1,136	£2,262	50.2%	£1,155	£2,363	48.9%	-1.3%
Merton	£1,530	£2,787	54.9%	£1,639	£3,060	53.6%	-1.3%
Barnet	£1,523	£2,490	61.2%	£1,485	£2,476	60.0%	-1.2%
Enfield	£1,310	£2,132	61.5%	£1,301	£2,150	60.5%	-1.0%
Havering	£1,169	£2,309	50.6%	£1,175	£2,364	49.7%	-0.9%
Westminster	£3,018	£4,043	74.6%	£2,822	£3,803	74.2%	-0.4%
Newham	£1,424	£1,999	71.2%	£1,476	£2,083	70.9%	-0.4%
Southwark	£1,654	£2,711	61.0%	£1,720	£2,816	61.1%	0.1%
Lambeth	£1,754	£2,561	68.5%	£1,961	£2,838	69.1%	0.6%
Richmond upon Thames	£1,857	£3,749	49.5%	£1,940	£3,869	50.1%	0.6%
Tower Hamlets	£1,803	£3,159	57.1%	£1,810	£3,108	58.2%	1.2%
Greenwich	£1,404	£2,649	53.0%	£1,494	£2,755	54.2%	1.2%
Sutton	£1,167	£2,335	50.0%	£1,133	£2,206	51.4%	1.4%
Wandsworth	£1,883	£3,395	55.5%	£1,948	£3,393	57.4%	1.9%
Haringey	£1,558	£2,339	66.6%	£1,644	£2,292	71.7%	5.1%
Islington	£1,914	£3,193	59.9%	£1,908	£2,906	65.7%	5.7%
Data Sources	ONS Private Rental Market Summary	ONS Employee Earnings in the UK	Rent as a percentage of net income	ONS Private Rental Market Summary	ONS Employee Earnings in the UK	Rent as a percentage of net income	Change between rent to income ratios

Marc von Grundherr, Director of Benham and Reeves, comments: “The pandemic has caused a large degree of financial instability for tenants and landlords alike and so the last two years have been far from smooth sailing for those within the London rental sector.

“However, one silver lining to the ongoing uncertainty caused by Covid does seem to be an increase in rental affordability across much of the capital.

“This has come about due to two driving factors. The first being a drop in demand which has caused many landlords to slash rents in order to secure a tenant and recoup some form of rental income.

“The second has been the ongoing financial support of the furlough scheme which has made the difference between retaining employment and losing it for a great deal of people. As a result, they’ve been able to maintain some form of income, albeit at a lower level, and this has enabled them to cover the cost of renting.

“As it stands, the cost of renting is more manageable now than it was two years ago and so those returning to the capital should be able to secure a decent rate of rent for the duration of their initial tenancy.

“Of course, as we do return to normality, this growing demand is likely to bring rental prices back to their pre-pandemic highs and so any tenants with intentions of snagging a deal should act sooner rather than later.”

Will call for rent controls in London leave tenants worse off?

Published On: April 13, 2021 at 8:08 am

Author: Em Morley

Categories: Law News,Tenant News

Tags: London,NRLA,rent controls

A new analysis published by the National Residential Landlords Association (NRLA) shows that rent controls called for by London mayor Sadiq Khan would leave tenants across the capital worse off.

The figures show that private rents have fallen every year in real terms throughout Khan’s time at City Hall. The NRLA’s analysis, looking at figures from the Office for National Statistics (ONS), shows that rents in the capital have fallen by 9.6% between April 2016 (the month before Sadiq Khan came to office) and February 2021.

It also compared them to the Consumer Price Index, including housing costs, which the Government has said it plans to start using, showing rents fell by 5.1% over the same period.

The NRLA is warning that any move to control rent rises by linking them to inflation would leave tenants worse off.

In his manifesto for re-election as Mayor, Sadiq Khan calls for the power to introduce rent controls in London. This is despite a report published by The Treasury in 2010 under the last Labour Government, in which the current Mayor was a Minister, that warned of the devastating impact such a policy would have on inner city housing.

Assessing the impact of rent controls before they were abolished in 1988, the report concluded that they had been a major factor in the ‘decay of much of the inner city housing stock.’

Ben Beadle, Chief Executive of the NRLA, said: “Rent controls would be a disaster for London as the last Labour Government made crystal clear. They would mean tenants actually paying higher rents than leaving them to market forces.

“The story of rent controls wherever they have been introduced is that they exacerbate an already serious shortage of available homes.

“Rather than calling for things he cannot deliver, the Mayor should focus on using the powers he already has to boost the supply of available housing, including for private rent.”

Less first time buy-to-let landlords are choosing to invest in London

Published On: March 25, 2021 at 8:52 am

Author: Em Morley

Categories: Landlord News,Property News

Tags: Buy-to-Let,first time landlords,London,Quotezone.co.uk

Data from insurance comparison provider Quotezone.co.uk shows a 41% drop in first time buy-to-let landlords in London during 2020 when compared to 2019.

It points out that this decrease is in direct opposition to the rest of the country, which has seen first-time landlords spike as high as 62%.

Greg Wilson, CEO of Quotezone.co.uk, comments: “Alongside the recent news that almost 700,000 Londoners have moved out of the city due to the pandemic, our data shows a 41% drop for first-time buy-to-let landlords in London in 2020 compared with 2019. This contrasts with the rest of the UK, with almost every other region showing a year-on-year increase, which could be to do with buyers taking advantage of the Government’s Stamp Duty holiday.

“While COVID has created a temporary shopping spree within the housing market, I fear this temporary boost in sales may be short-lived as the economic aftermath of the pandemic is yet to be revealed and the Stamp Duty holiday is due to expire at the end of June. The region-specific data showing a decline in London could be the first signs of COVID-19’s true impact on the city’s property market and a potentially stark warning for the rest of the UK.

“However, while there has been a huge drop in demand for London properties, rental properties haven’t gone untouched by the crisis with many tenants on furlough or facing redundancies and social distancing creating physical barriers to the properties making routine maintenance and repairs difficult. It is perhaps more important than ever to ensure landlord insurance policies are thorough, accurate and up to date so that landlords are fully protected should a claim be needed.”

Regional statistics from Quotezone.co.uk

Region	% change
Yorkshire	61.90%
North East	34.29%
South East	50.75%
London	-40.63%
South West	27.87%
North West	50.00%

Areas with best rental yields in London revealed by Portico research

Published On: March 17, 2021 at 9:08 am

Author: Em Morley

Categories: Landlord News

Tags: London,Portico,rental yields

Areas with best rental yields in London revealed by Portico research

With lockdown restrictions being gradually eased, and major mortgage lenders such as Barclays, Accord Mortgages, and Skipton International cutting rates, London lettings agency Portico looks into the best property investment locations in the capital.

According to Portico’s data-analysis and interactive rental yield map, east London offers the best rental yields in the capital.

Within east London, Barking has one of the lowest median house prices across Greater London According to the Evening Standard, the average house price in the borough was just over £300,000 at the end of last year. Portico also reports that it has the best current rental yield in the capital at 5.9%.

Although property prices are slightly higher in Upney than in other parts of east London, Portico points out that landlords can still find investment opportunities here with a yield of 5.8%. Third on the list if Wall End, with a 5.8% rental yield.

Across the rest of the capital, north London’s Brimsdown offers a yield of 5.6%. The best yield in the west is 5.1% in Hayes and Harlington, and in the south, Mitcham offers 4.9%.

East London, Top Yields by Neighbourhood
Barking	5.9%
Upney	5.8%
Wall End	5.8%
East Ham	5.5%
Barking and Dagenham	5.4%

North London, Top Yields
Brimsdown	5.6%
Edmonton	5.3%
Enfield	4.6%
Tottenham Hale	4.5%
South London, Top Yields
Mitcham	4.9%
South Beddington	4.7%
Willowbrook Estate, Peckham	4.7%
West London, Top Yields by Neighbourhood
Hayes and Harlington	5.1%
Wembley	4.8%
West Drayton	4.7%

Robert Nichols, CEO of Portico, says: “Landlords and tenants have both changed their thinking in recent years due to a combination of factors. While property prices rose overall during the first half of the last decade and climbed 74% between 2010 – 2020, rents largely followed modest wage rises, and rental yields suffered somewhat as a result – especially in areas around central and West London. Heading into the new decade, coupled with Brexit, the global health crisis heaped further uncertainty on an already subdued property market, and that has carried into the current year.

“Despite this, our research shows that there are still healthy rental yields to be found in London – if you know where to look. Outer London areas are actually seeing rent increases between 1-3% as tenants – now spending a lot more time at home – migrate from more central areas to the suburbs looking for more space. East London is still a buy-to-let hotspot – and we expect demand from tenants to increase as lockdown restrictions ease.”