Posts with tag: private rental sector

Report reveals tenants’ lack of knowledge of rental market

Published On: March 1, 2017 at 10:50 am

Tags: landlords,private rental sector,renters,tenants

A new survey of 1,000 tenants and landlords has provided a bleak account of the state of the private rental sector.

The report suggests that the growing complexity of the sector is providing many tenants and landlords with real challenges.

Legislation Changes

Just under half of tenants said they had never heard of fake landlord scams before, despite them receiving extensive media coverage in the last year.

During 2015, cases of rental fraud reported to Government body Action Fraud increased by 44% year-on-year. The Local Government Association suggests however that this represents just 5% of the true number of victims, as the majority of cases go unreported.

Worryingly, the Government says that fake landlord scams lead to £63m being lost by tenants in the last year.

Report reveals tenants’ lack of knowledge of rental market

Awareness

In addition, the survey revealed a lack of awareness concerning Government-backed initiatives such as mandatory membership of agents in one of the redress schemes, alongside those for landlord licensing and accreditation.

Andrew Goodacre, Chief Executive of the RLA, observed: ‘While the vast majority of private rental sector landlords are providing safe and secure homes for renters across the country we are aware the criminal minority are out there. The Residential Landlords’ Association has always promoted tenant and landlord education to encourage a greater awareness of responsibilities among both landlords and tenants, which in turn improves standards in the sector.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/survey-reveals-tenants-shocking-lack-of-knowledge-about-renting

Number of retiree tenants is rising

Published On: February 27, 2017 at 12:41 pm

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,private rental sector,renting pensioners,retiree renters

There has been a sharp rise in the number of people renting property during retiree age, according to the latest report from Girlings Retirement Rentals.

The firm has attributed this rise to alterations in attitude and perceptions to do with renting in the last decade. In addition, it points to the many benefits that renting in later life can bring.

Retiree Renters

Presently, households aged 65-plus account for roughly 10% of those living in the private rented sector. Girlings said that this figure is rapidly growing

There has been a steady growth in enquiries since the year 2002, with 2015 and 2016 seeing the highest levels of enquiries. 2017’s figures are set to improve further.

This trend is being backed up by the National Landlords Association which found that the number of retired people in Britain moving into the private rental sector has risen by 200,000 since 2012.

A separate study by LSL Corporate Client Department Ltd shows that nearly one in five people aged over 55 are now renting.

Number of retiree tenants is rising

Lifestyle Choice

Peter Girling, Chairman of Girlings Retirement Rentals, said: ‘For many people in their 60s, 70s and 80s renting is a lifestyle choice, as well as a financial one. Many don’t want the financial burden of home ownership or worries about property and garden maintenance. By selling their home and releasing capital to supplement their retirement they can enjoy themselves, gift an amount to their children or invest it.’[1]

‘As people get older they can also find their current property is too big for them, or they feel isolated if they are left living alone. Renting can be a good solution for downsizing to a more manageable home, giving people access to services, should they need them as they get older and a social life that comes with living in a retirement community,’ he added.[1]

Concluding, Mr Girling said: ‘Renting gives older people the chance to move somewhere they have always wanted to live, such as by the sea or closer to relatives. Coastal locations are the most popular places to rent for many people, with Bournemouth the number one requested place last year. Renting allows people the flexibility to try a new location before deciding if it’s right for them.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/sharp-rise-in-number-of-older-tenants

Average rents falling in London

Published On: February 27, 2017 at 10:32 am

Author: Em Morley

Categories: Property News

Tags: Brexit,London rents,private rental sector,renters

The latest report from London based estate agent Foxtons suggests that uncertainty surrounding Brexit and increased supply putting pressure on rents dominated the capital’s lettings market at the end of 2016.

Looking at the performance of the London lettings market in Q4 of 2016, the agent said there was an upward spiral in the number of renters from Western Europe. This indicates that there is recovering confidence in the market despite external influences.

Trends

More findings from the report show that average rents in London continued to fall during the final quarter of the year. The report shows that this impact was more prominently seen between Zones 3-6.

However, gross yields remained largely consistent.

Additionally, the publication of the Housing White Paper earlier in February bought with it encouragement for the private rental sector. It appears to offer greater security for renters with the promise of more longer-term tenancy agreements.

Average rents falling in London

Sarah Tonkinson, PRS Director at Foxtons, observed: ‘We see the policies set out in the White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters.’[1]

‘The developing Private Rented Sector will make a substantial net addition to London’s rental stock and provide much-needed long-term tenancies with emphasis on providing high-quality service and accommodation, in line with the new White Paper guidlelines,’ she added.[1]

[1] http://www.propertyreporter.co.uk/landlords/white-paper-policies-to-boost-london-lettings-market.html

Charity project in Wales awarded lottery funding

Published On: February 22, 2017 at 9:53 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,Open Doors,private rental sector,tenants,Wales

An attempt to promote equality and diversity in the private rental sector in Wales has been given a £249,425 lottery grant.

The Open Doors project, devised and run by Tai Pawb, is a two year scheme intended to provide tenants, landlords and letting agents in the private rented sector skills and confidence to prevent racism and discrimination.

Funding

Cash for the project was delivered from the Big Lottery People and Places Fund. This scheme will support and advise awareness of key rights and responsibilities amongst private tenants from diverse groups. This include migrants, LGBT or disabled tenants, who are more at risk of experiencing certain tenancy issues.

In addition, Open Doors will receive assistance from the Residential Landlords Association to improve agents and landlords’ ability deal with equality and diversity issues.

Alicja Zalesinska, director of Tai Pawb, noted: ‘We are absolutely delighted to have been awarded the People and Places Grant. It will not only enable us to support and empower some of the most vulnerable private sector tenants dealing with difficult housing issues but also guide and raise awareness amongst landlords who house them in times of unprecedented housing pressures, rising inequality and poverty.’[1]

‘The overwhelming majority of landlords we spoke to wanted additional support on equality issues. That’s why it was so important for us to develop something that will work with both groups, empowering them to act to prevent discrimination and mistreatment in the sector. We look forward to the coming months where we will be recruiting staff and setting up this vital project.’[1]

Charity project in Wales awarded lottery funding

Opportunity

Run alongside the RLA in Wales, the Open Doors project will be delivered in Cardiff, Vale of Glamorgan and Merthyr Tydfil regions.

Dougals Haig, vice-chairman and RLA director for Wales, observed: ‘This is a fantastic opportunity to support the diversity of the private rented sector and its ability to house those with a range of diverse and complex needs.’[1]

‘We are delighted to be able to work in partnership with Tai Pawb and the Big Lottery and raise awareness of some of the issues that can be faced by those that they support and how small changes and a little bit of education of landlords and tenants can create long term sustainable tenancies. I believe it will further show how the private rented sector is helping house a huge range of needs in safe and secure homes,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/prs-charity-project-awarded-250k-lottery-funding

Chartered Institute of Housing calls for tougher legislation for agents

Published On: February 21, 2017 at 1:01 pm

Author: Em Morley

Categories: Property News

Tags: Chartered Institute of Housing,legislation,letting agents,private rental sector

The Chartered Institute of Housing has called on the Government to introduce new legislative measures, including a further regulation of letting agents.

Many features outlined in the recent Housing White Paper has brought support from the firm. However, many in the private rental sector believe the Paper has imposed serious challenges for letting agents, investors and landlords.

Standards

In its submission to the Treasury ahead of the Budget next month, the Chartered Institute of Housing wants the development of an easy-to-understand set of standards. These will cover both the conditions of properties and property management in the rental sector.

What’s more, it has called for councils to receive more funding in order for them to proactively enforce existing and future standards. This is vitally important given recent alterations to licensing schemes, the Chartered Institute of Housing warns.

However, the Institute wants to see letting agents regulated most.

Chartered Institute of Housing calls for tougher legislation for agents

Rents

Included in the submission to Chancellor Phillip Hammond will be a 2010 survey from the Department of Communities and Local Government that shows 79% of landlords received less than one-quarter of their income from rent. This is evidence that, according to the firm, being a landlord is, ‘is a side-line activity for most.’[1]

It says therefore that a greater reliance is put onto letting agents. The submission goes on to say: ‘There is widespread agreement, including among organisations representing against themselves, that regulation is needed to stamp out poor and exploitative practices. This could most easily be implemented by extending the arrangements already in place to regulate estate agents, to the lettings industry.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/trade-body-wants-much-stricter-regulation-on-letting-agents

Tenant Demand Still Rising Despite Government Intervention in Buy-to-Let

Published On: February 21, 2017 at 9:24 am

Author: Em Morley

Categories: Landlord News

Tags: landlord taxes,private rental sector,tax changes,tenant demand

Tenant demand for private rental housing is still rising, despite Government intervention in the buy-to-let sector, reassures Paragon Mortgages following its latest Private Rented Sector Trends report.

Tenant Demand Still Rising Despite Government Intervention in Buy-to-Let

The Government’s plans to restrict tax relief on buy-to-let finance costs, which were announced in the 2015 Summer Budget, compounded by the 3% Stamp Duty surcharge, caused uncertainty amongst the landlords surveyed, with the proportion of those expecting to sell their properties reaching its highest ever level (25%) in the first quarter (Q1) of 2016.

However, as the tax relief changes edge closer, landlords have begun to develop strategies to mitigate the impact of the reduction, causing the number of landlords looking to sell to drop to 17%, while the proportion of landlords considering a buy-to-let property purchase grew to 13% in Q1 2017, up from a record low of 9% in the same period last year.

Tenant demand

Of the 204 landlords surveyed, 94% described tenant demand as stable or growing, with less than one in 30 suggesting a decrease.

Tenant demand continues to affect average void periods, which remain unchanged at 2.7 weeks, with 48% of landlords reporting that their properties stand empty for less than two weeks. Average yields are also remarkably stable, at 6.1%.

Property purchases

Among the landlords looking to purchase, they are most likely to buy terraced houses (62%), flats/maisonettes (31%), or semi-detached houses (23%). Notably, the proportion most likely to buy flats/maisonettes has dropped from 67% in the previous quarter.

The Managing Director of Paragon Mortgages, John Heron, says: “With no material improvement in the supply of new housing against a background of strong population growth and household formation, it is no surprise that landlords are continuing to experience strong rental demand. It is promising, therefore, that there has been some improvement in landlord buying intentions, albeit from a low base.

“Any boost this gives to improving supply to the sector, however, needs to be balanced against the additional upward pressure that we are likely to see in rents as a result of the phased impact of the changes to the taxation of rental income.”

Have you experienced stable or even growing levels of tenant demand?