Posts with tag: private rental sector

Rightmove to Share Property Market Insights with NAEA and ARLA Members

Published On: February 6, 2017 at 9:25 am

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The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have announced that they are working with property portal Rightmove to deliver property market insights to their members.

Rightmove to Share Property Market Insights with NAEA and ARLA Members

Rightmove to Share Property Market Insights with NAEA and ARLA Members

In a bid to offer more help and support to letting and estate agents, Rightmove will work alongside the organisations to bring the latest property market insights to their members.

The two membership bodies also believe that the partnership will help to keep agents up to date with any changes to legislation.

The Managing Director of the NAEA, Mark Hayward, and the Managing Director of ARLA, David Cox, issued a joint statement: “The invaluable research and data Rightmove provides helps build the knowledge of our members, which they can then use and implement into their own business model effectively.”

Miles Shipside, the Commercial Director of Rightmove, also comments on the partnership: “We’ll be working with the NAEA and ARLA throughout the year to enhance the support that we can offer estate and letting agents by providing insights using our research and whole of market data. We’ll be speaking at their national conferences and regional meetings, and we’ll be hosting free webinars that anyone in the industry can sign up to.”

If you think you can benefit from Rightmove’s property market insights, sign up for training and webinars from the NAEA and ARLA on the Rightmove Hub, at hub.rightmove.co.uk.

Upcoming webinars include:

  • February 14th with Miles Shipside, with content from the ARLA national conference
  • February 22nd with Mark Hayward
  • April 4th with David Cox

Upcoming events include:

Landlords, you may find the property market insights and updates from Rightmove and the NAEA/ARLA useful for your lettings business. Sign up to the webinars to help you understand your responsibilities.

Tax changes are not having desired impact, says peer

Published On: February 3, 2017 at 10:46 am

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The head of one of the country’s biggest franchise agency groups has stated that the Government’s tax assault on buy-to-let will not impact the drivers that will ultimately lead to rental sector expansion.

Ian Wilson, head of MartinCo said in a trading statement to the City, that the fundamental drivers for the expansion of the private rental sector remain in place:

  • High migration
  • Low supply of new housing stock
  • Deposit issues for first-time buyers
  • Pension reforms for over 55’s

Performance

MartinCo suggest that total returns from buy-to-let investment during the past ten months have outperformed all other asset classes. The prospect of owning a rental property to obtain income in retirement, alongside benefitting from rising capital values, remains an attractive one.

Tax changes are not having desired impact, says peer

Tax changes are not having desired impact, says peer

Mr Wilson said: ‘We do not envisage the Government’s recent interventions in the buy-to-let sector significantly impacting our business. Buy-to-let investors have generally reduced gearing in their portfolios over the years since 2008 and are believed to be able to absorb rising interest rates.’[1]

‘We are well positioned to sell investment properties if investors decide to exit and our research suggests that larger buy-to-let investors would purchase this stock. Early indications from the mortgage industry show that investors are beginning to incorporate their activities into trading companies to avoid the stamp duty surcharge and to retain the benefit of interest tax relief on buy-to-let loans,’ Wilson added.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/tax-changes-not-hitting-buy-to-let-significantly-says-agency-chief

Landlords Warned to Not Get Caught Out by Rogue Tradespeople

Published On: February 2, 2017 at 9:24 am

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Landlords and letting agents have been warned to not get caught by rogue tradespeople operating in the private rental sector.

Landlords Warned to Not Get Caught Out by Rogue Tradespeople

Landlords Warned to Not Get Caught Out by Rogue Tradespeople

The Association of Independent Inventory Clerks (AIIC) urges landlords and letting agents to be increasingly aware of being ripped off by rogue tradespeople who conduct maintenance work on their rental properties.

The organisation warns that some rogue tradespeople and contractors take advantage of those letting properties to private tenants by either overcharging or not completing jobs to a sufficient standard.

The AIIC claims that employing the wrong contractors could cost landlords and letting agents thousands of unnecessary pounds every year.

It refers to a case from a few months ago, when a landlord complained that a plumber had charged £90 to tighten a valve connection in a leaking radiator, a job that, according to the landlord’s tenant, had taken just two minutes to complete.

The Chair of the AIIC, Patricia Barber, says: “This is a problem that seems to be becoming more common, but it’s something that landlords and agents can address easily.

“Before employing any tradesperson, you should ask for a quote. You can also ask them to provide an updated quote once they have visited the rental property and assessed the situation.”

She also suggests: “What’s more, by informing a tradesperson of your maximum spend or budget, you can alleviate the worry of being hit with an unexpected bill. It is then up to the contractor to decide whether or not they want to take on the job.”

The AIIC also advises landlords and letting agents to avoid rogue tradespeople by using resources such as checkatrade.com, ratedpeople.com, and trustatrader.com.

Barber recommends: “As well as using these sites when looking for a contractor, you should also leave reviews when work has been completed. This will help others to make decisions and contribute towards keeping these online directories as accurate and up to date as possible.

“When letting a property, you will always need to put aside some money for essential maintenance jobs. However, choosing the right contractor, and making sure you receive quotes and inform them of what you’re looking to spend could significantly reduce your annual costs.”

If you’ve had problems with rogue tradespeople in the past, follow these tips!

Tenant Demand Falls to Two-Year Low, Reports ARLA

Published On: January 30, 2017 at 9:28 am

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Last month, letting agents recorded the lowest level of tenant demand for two years, according to the latest report from the Association of Residential Letting Agents (ARLA).

Tenant demand

Tenant Demand Falls to Two-Year Low, Reports ARLA

Tenant Demand Falls to Two-Year Low, Reports ARLA

In its December Private Rental Sector report, ARLA found that just 26 prospective tenants were registered per member branch last month. This is the lowest level of tenant demand since records began in January 2015, and is down by 19% on the 32 tenants registered in November 2016.

However, the drop in tenant demand is in line with seasonal expectations. In December 2015, 29 prospective tenants were registered per branch, a figure that was down by 15% on the previous month.

Supply of rental stock

The number of rental properties managed per member branch rose from 185 in November last year to 188 in December. While supply is still very low, this figure indicates a broadly positive picture for tenants in the short-term, believes ARLA.

Following last year’s tax hikes for landlords, including the Stamp Duty surcharge and changes to Capital Gains Tax, almost half (46%) of letting agents expect to see rental supply decline this year.

Rent prices 

The amount of letting agents witnessing rent increases for tenants grew by three percentage points in December, to 19%.

In December the previous year, the number of rent rises fell month-on-month, from 23% in November 2015 to a similar 18%.

The Managing Director of ARLA, David Cox, comments on the findings: “Although December’s figures could indicate a bright future for renters, with the Government’s impending ban on letting agent fees, the future is actually rather bleak for the UK’s renters.

“Although we saw demand fall and supply rise slightly last month, these are in line with seasonal expectations and is what we expect to see in December. If the Government goes ahead with an outright ban on fees, tenants will unfortunately be the ultimate victims, as costs are recouped for the vital services fees cover.”

Landlords, have you witnessed a decrease in tenant demand over the past month?

Over Half of Private Tenants Believe they will Never Own a Home

Published On: January 26, 2017 at 10:05 am

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Over half of private tenants in the UK believe they will never own their own home, according to a worrying new survey.

As house prices continue to rise in some parts of the country, private tenants often consider saving for a deposit to be the greatest barrier to getting onto the property ladder.

Over Half of Private Tenants Believe they will Never Own a Home

Over Half of Private Tenants Believe they will Never Own a Home

The study, conducted by property investment consultancy Knight Knox, found that less than a quarter (23%) of private tenants are currently saving for a deposit, with many renters having little hope of affording a deposit for their own home, unless their circumstances change dramatically.

The survey, which polled 2,000 private tenants across the UK, suggests an acceptance among those living in the private rental sector that owning a home will remain unattainable, believes Andy Phillips, the Commercial Director of Knight Knox.

He explains: “With rising house prices and stagnant salaries, it appears that many people currently renting have come to terms with the idea that they’ll never own a home and now accept renting as a viable option in the long-term.

“We’ve grown up in this country with the notion that you must settle down and buy a house, but, due to numerous factors, that’s not as much of a reality as it once was, and we’re starting to see the stigma traditionally attached to renting dissolve.”

He adds: “The reducing number of people saving for a deposit could mean we’re seeing a shift towards a private rental sector-centric property landscape, similar to that which has long been a way of life in Germany and wider continental Europe.”

In support of Phillips’ views, 61% of private tenants said they were content to rent, claiming that renting suits their lifestyles, and they do not want to be tied down to one property or a lengthy mortgage contract.

Phillips agrees: “The traditional model of homeownership doesn’t suit everyone’s lifestyle, and whether it’s the best way forward is being called into question.

“Meanwhile, the private rental sector is increasingly being seen as an essential solution to the lack of housing available, with rented homes expected to account for over seven million homes in the UK by 2025.”

The survey’s findings are good news for landlords, who can rest assured that demand from private tenants will remain high in the long-term, despite fears that investing in buy-to-let may not be as lucrative as it once was.

Private Sector Rents Not Rising Faster than Wages

Published On: January 20, 2017 at 9:28 am

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Private Sector Rents Not Rising Faster than Wages

Private Sector Rents Not Rising Faster than Wages

Private sector rents in England are not rising faster than wages, in stark contrast to the social rental sector, where rents have increased faster than earnings, according to a new report from the National Audit Office.

Although private sector rents in England aren’t rising as fast as wages, the report does note that London is the exception to this. In the capital, rents are rising much faster than earnings, warns the National Audit Office.

The Residential Landlords Association (RLA) warns that this is a result of a chronic shortage of housing across all tenures in London. Indeed, it has been suggested that London’s housing bubble may finally burst this year, which would cause property owners to lose thousands off pounds off their assets and private sector rents to plummet.

The Royal Institution of Chartered Surveyors has also warned, “rents are being squeezed higher due to demand consistently running ahead of supply”, in its latest analysis of the sales and lettings markets.

The RLA cautions that there will be further pressure on private sector rents as a result of the forthcoming changes to mortgage interest tax relief.

The Policy Director of the RLA, David Smith, says: “Today’s findings from the National Audit Office will surprise those who have falsely sought to argue that landlords are profiteering. The question must surely now be why the heavily subsidised social rented sector is seeing its rents increasing so much more than earnings.

“We cannot afford to be complacent. Forthcoming changes to mortgage interest relief, due to be rolled out from April, will serve only to place upwards pressure on market rents, stifling the supply of homes to rent and reducing choice for tenants.”

He warns: “In the end, those who will suffer will be tenants unable to save for a house of their own, and the many vulnerable people, such as the homeless, who rely so much on the sector to provide a home for them.”