Posts with tag: private rental sector

Will student tenants be landlords’ ‘ray of hope’ in 2021?

Published On: December 8, 2020 at 9:26 am

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Categories: Landlord News,Lettings News

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Record number of students looking for accommodation last minute

UK rental guarantor service Housing Hand has highlighted that falling property prices, tax changes, and lower numbers of international renters will be a major stumbling block for the UK rental sector in 2021.

Jeremy Robinson, Group Managing Director of Housing Hand, says: “The only thing certain about the UK rental market following Brexit is uncertainty. Landlords face uncertain income from tenants, while tenants continue to face uncertain income due to the pandemic. Meanwhile, the number of working European tenants is likely to drop due to Brexit and COVID. All against a likely backdrop of falling property prices.

“The requirements for European tenants to travel, work and rent in the UK will change as a result of Brexit. Renting is likely to become more difficult, as the right to rent requirements will almost certainly change at some point in the not-too-distant future. Brexit’s effect on rental property, compounded by COVID, tax and legislation changes, means it is difficult to foresee many positives for landlords in 2021.”

Housing Hand points out that data from estate agent JLL indicates house prices in 2021 are likely to drop by 1.5%. Rental values are also predicted to fall by 1.0%. The guarantor service believes that factors such as lost GDP growth, rising unemployment, falling housing affordability, and the end of the furlough scheme will play a part in this.

The problem might only be made worse by a reduction in international tenants, an increase in tenants defaulting on rent, and a possible oversupply of rental accommodation. However, Housing Hand’s ray of hope is student tenants.

Terry Mason, Group Operations Director for Housing Hand, comments: “The indications are that the 2021/22 academic year is likely to be a bumper year for students, with little reaction to Brexit. 

“We have last year’s candidates who decided to take a year out rather than attending university now wanting to start. We also have a larger number of students reaching university age with fewer jobs available, meaning going to university becomes a safer option. Then there’s the fact that a larger number of international students started university in 2020 and will thus be returning for their second year.”

Tenant demand continues to reach record levels, says ARLA Propertymark

Published On: October 1, 2020 at 8:21 am

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Categories: Lettings News

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Tenant demand

The latest Private Rented Sector (PRS) Report from ARLA Propertymark shows that the number of new prospective tenants continued to rise in August.

The number recorded during that month was the highest since records began in January 2015. The average letting agent branch registered 101 new tenants, which breaks July’s previous record of 97.

Demand from tenants by region in August

The report also records 208 rental properties available per letting branch in August. This remained the same as the record high figure recorded in July, which beat the previous record of 192 properties managed per letting agent branch in July 2017. 

Tenancy lengths have also increased to an all-time high, with tenants staying in the same home for an average of 21 months. Regionally, this figure was highest in the East Midlands with tenancies lasting 25 months. Tenancy lengths are currently lowest in the North East at 10 months.

The number of tenants experiencing rent increases has gone up in August. 48% of agents have witnessed landlords increasing rent, compared to 29% in June and 39% in July. Year-on-year, this is still 16% lower than in August 2019, when the figure stood at 64%.

Angela Davey, President, ARLA Propertymark, has commented: “Our latest figures reveal the rental market still isn’t showing any signs of slowing down. We continue to see record breaking levels of rental stock and demand from tenants, painting a positive picture for the future of the private rented sector.

“With COVID-19 lockdown restrictions starting to increase again as we head towards the colder months, it’s more important than ever for landlords to communicate well with their tenants, and that tenants continue to pay their rent to ensure the market remains strong over the next period.”

View the full report here: www.arla.co.uk/media/1049002/prs-report-august-2020.pdf.

Expectations for changes to the private rental sector in 2020

Published On: January 3, 2020 at 10:28 am

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changes to the private rental sector in 2020

As we enter a new year (and a new decade!), specialist landlord insurance provider Just Landlords has collated a list of the biggest changes it expects to see for the private rental sector (PRS).

Here’s a summary of what is likely to be just around the corner for landlords, letting agents and tenants:

  1. Section 21 – Abolishing this as an option for landlords looking to evict their tenants will mean big reforms to the Housing Act.
  2. EPC law – As of 1st April, landlords will need to ensure the properties of all private tenancy lets have an Energy Performance Certificate rating of E or higher.
  3. Grenfell Tower – All building types are under scrutiny, including those in the PRS, to make sure we’re doing all we can to avoid such a devastating event happening again.
  4. Rent controls – There has been a mixed reaction to this suggestion, so we’ll see if it comes up again in 2020.
  5. Mandatory three-year tenancies – The initial proposal was not well-received, but will we hear more on the matter? It has to be said that some would benefit from the option of a three-year contract.
  6. Rogue landlord database – Will tenants and prospective tenants finally be able to access this database to help avoid falling victim to rogue landlords?
  7. Landlord taxes – Already an issue driving many from the market, will our current Conservative government lessen the burden or increase it?
  8. Brexit – Are you as fed up with this portmanteau as we are? We’re Brired of Brearing about it… The official deadline is 31st January, so 2020 will be the first year we feel the effects of whatever decision is made.
  9.  Lifetime Rental Deposits – This one could really make a difference to the ease of renting for all involved. We hope the Government turns its attention to this sooner rather than later!

Em Morley, spokesperson for Just Landlords, comments: “We say these are our expectations, rather than predictions, as this is the least we’re expecting from the Government and local authorities.

“Progress is vital for the sector, as it’s about more than the businesses of landlords and letting agents. It’s also about the supply of safe, comfortable and affordable housing needed in the UK.”

Read Just Landlords’ full article on their blog.

Landlords outline positive vision to improve the UK rental market

Published On: November 1, 2019 at 9:37 am

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uk rental market

Ahead of the General Election, landlords have unveiled a positive vision for the future of the private rental sector (PRS).

The Residential Landlords Association (RLA) has highlighted that too much attention is given to the idea that the sector is a problem requiring management. Instead, it argues that really it needs a positive, ambitious programme for the sector. This should support tenants and good landlords, whilst rooting out the crooks who have no place in the sector.

The RLA’s manifesto for the PRS encourages political parties to build on the positive developments in the market. This includes:

  • 84% of private tenants stating that they are satisfied with their accommodation (a higher proportion than the social sector)
  • Private tenants have now been living in their current properties for an average of over four years
  • 88% of private tenancies are ended by the tenant

The RLA also points out that the PRS has grown to become an important source of housing for families with children, older people, the homeless and students and young people in need of access to new work and educational opportunities.

Its key proposals include:

  • Improving access to justice for tenants and landlords by developing a housing court
  • Supporting vulnerable tenants by ending the Local Housing Allowance (LHA) cap
  • Ensuring councils have the resources to find and root out criminal landlords using the wide range of powers they already have

With warnings of noticeable rent rises as a result of the demand for private rented housing outstripping supply, the RLA believes scrapping the Stamp Duty levy on additional properties for landlords providing homes will add to the net supply of housing.

It also calls for a rejection of all forms of rent controls, which the RLA argues would serve only to dry up the supply of homes to rent, reducing choice for tenants and thereby increasing rents overall.  

David Smith, Policy Director for the RLA, said: “For too long we have let the actions of a minority of landlords who bring the sector into disrepute dictate the debate around rented housing. Whilst we must find and root out such people we cannot let it distract from the positive news in the sector.

“The vast majority of landlords and tenants enjoy good relations, with many tenants staying long term in their rental properties. It is important that we build upon this record, ensuring pro-growth policies to ensure a sufficient supply of homes to rent, supporting vulnerable tenants and ensuring tenants and landlords can access justice more quickly if things do go wrong.

“We call on all parties to accept our positive, pragmatic programme for the sector and end the unnecessary scaremongering which is causing many tenants to live in fear.” 

Top Ten Best and Worst Locations to Sell: England and Wales

Published On: August 8, 2018 at 9:56 am

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Categories: Property News

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The buy-to-let market has recently experienced a slight downfall, with some landlords forced to exit the market as profits drop amid a tax squeeze. However, there remains potential to make a strong recovery from the PRS.

According to Landbay’s Rental Index 2018, the top ten best performing local authorities for rental growth on an annual basis have been identified, with Monmouthshire in Wales ahead of the game with rental growth at 3.22%.

Nottingham follows with 2.7% and Conwy with 2.71% in third.

Four of the ten best performing areas are in Wales, while Scotland and England both have three apiece.

Furthermore, Landbay has also mapped the top ten worst performing areas, with Aberdeen City and Aberdeenshire deemed as the two worst performing locations.

Both locations were impacted as the local economy was impacted by the drop-in oil price in 2014, but the area is appearing to recovery.

The best and worst areas by annual percentage change are as follows, with England racking up a slightly disappointing 7 worst areas:

Top ten areas by annual percentage change

1 Wales Monmouthshire 3.22%
2 England Nottingham 2.87%
3 Wales Conwy 2.71%
4 Scotland Stirling 2.68%
5 Wales Blaenau Gwent 2.61%
6 Scotland Inverclyde 2.59%
7 Scotland Edinburgh City 2.58%
8 England Northamptonshire 2.51%
9 England Bristol 2.42%
10 Wales Carmarthenshire 2.60%

Worst ten areas by annual percentage change

1 Scotland Aberdeen City -4.44%
2 Scotland Aberdeenshire – 4.30%
3 England Windsor and Maidenhead -1.19%
4 England Luton – 1.07%
5 England Halton – 1.06%
6 England Kensington and Chelsea -0.93%
7 England Hartlepool -0.85%
8 England Brent -0.76%
9 England Kingston Upon Thames – 0.50%
10 Scotland Angus – 0.39%

 

Generally, UK rental prices are witnessing an increase, at the slowest pace for five years according to the latest Landbay Rental Index.

The data, powered by MIAC, has revealed that rents in the UK, excluding London, increased by just 1.18% in the 12 months to July 2018. However, despite the rental growth across the UK being in positive territory, there is a synchronised slowdown.

In England, excluding London, the level of growth remained at 1.18%, its lowest point since April 2013. With the capital included the pace of growth slows to 0.81%.

John Goodall, CEO and co-founder of Landbay commented: “Rental growth across the UK is stuttering. However, there are signs of a recovering market in London and stronger demand for rental properties.

“On the face of it, landlords have had a tough time in the past two years from increased regulatory pressure to a significant increase in stamp duty costs, yet they have managed to shoulder many of these costs without passing them onto tenants.”

Stuck with the Stigma: Private Landlords Close to Quitting

Published On: August 8, 2018 at 8:59 am

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Does media really have the power to turn landlords away from the private rental sector?

Adjustments to the buy-to-let tax regime are pressing private landlords’ margins, but many are contemplating an exodus from the PRS. This is not due to lower profits, but because of the negative portrayals of landlords on TV.

Despite landlords being instrumental in providing homes to millions of people and families in the country, it is reported that two thirds of landlord claim that they are being demonised, forcing them to consider whether they still want to remain in the sector, renting out their properties.

According to research provided by MakeUrMove, 65% of landlords felt that TV shows, such as ‘Landlords from Hell’ in addition to ‘The Week the Landlord Moved In’, are providing the British public with a disingenuous portrayal of private landlords as whole.

Moreover, the study discovered that while the majority of landlords agreed that it was justified to expose rogue operators in the sector, they believe that more balance is required to show the bigger picture and represent landlords in a fairer manner, instead of ‘sensationalist’ reporting that the media is often guilty of portraying.

Most research by the online letting agent revealed that most landlords and their tenants have a pleasant relationship, suggesting that it may only be a minority of landlords who are being penalised.

Alexandra Morris, Managing Director of MakeUrMove, the online letting agents for private landlords and tenants, commented: “These figures demonstrate that ‘rogue landlords’ are really in the minority, yet the portrayal in the media is leaving good, honest landlords feeling hugely undervalued.

“We’ve found that a majority of landlords are happy for their tenants to make changes to the property, with 71% allowing them to make alterations, and many also try to do the best for their tenants even if it impacts their margins, with 46% saying they will keep their tenants rents the same despite rising costs, which is the complete opposite of the TV image of landlords.

“With more than half of landlords also feeling the government afford them little to no value, it’s having a real impact on a vital part of the UK’s housing sector, risking crucial landlords leaving the market.

“Given the heavily saturated nature of ‘rogue’ landlord TV programming, these findings may come as a surprise to many and hopefully provide a sense of perspective.

“TV paints a picture of nightmare landlords running amok in Britain, when in reality, the majority of landlords are genuine, hard-working people who want to maintain good relationships with their tenants.”