Posts with tag: private rental sector

The Top Ten Houseshare Hotspots in London

Published On: November 8, 2015 at 2:00 pm

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East London has come out as the capital’s houseshare hotspot, according to a new report.

The Top Ten Houseshare Hotspots in London

The Top Ten Houseshare Hotspots in London

Landlords seeking further investment and tenants searching for a room should look to the east, where around 45% of London’s rental supply is found.

Research from SpareRoom.co.uk found that E1 is the London postcode with the highest amount of rooms available to rent. This postcode stretches from Mile End to Aldgate, encompassing Shoreditch and Whitechapel, two zone 1 hotspots on the north-eastern edge of the City of London.

Between July and September, there were more than 10,000 advertisements for rooms in these areas listed on SpareRoom, with prices ranging from £455-£1,049 per month.

Rents are as varied in E14, which has the second highest supply of rental rooms. Including Canary Wharf and the Docklands, almost 9,000 rooms were listed in this postcode during the same period, costing from £425-£1,144 a month. Canary Wharf’s surrounding district is being regenerated into a residential hub, with thousands of new homes, shops and schools and a new high-speed Crossrail station, to open in 2018.

As less than five people are seeking each room available in these postcodes, the supply-demand ratio is also the lowest in these two parts of London.

Director of the flat and house share website, Matt Hutchinson, comments on the data: “Those struggling to find rooms to rent in flat and house shares would be mad not to consider east London. The east has been the most regenerated area in recent years, so there are lots of new build flats, rather than the low-rise Victorian housing you’ll find in other areas.

“Demand outstrips supply across London, so haggling on your rent is risky. But it’s certainly more of an option where supply is higher and demand is lower than elsewhere, such as E1. Good references from previous landlords will help, too.”1

The N1 postcode in north London, including Angel, Islington and Canonbury, has the most rooms available. Between July and September, 2,900 rooms were advertised, while the level of demand is also high, with up to nine people searching for each room. The average monthly rent is therefore comparatively high, at £845 per month.

In west London, Acton and Shepherd’s Bush have the highest supply of flatshare rooms available. At an average of £732 a month, Acton also has the least expensive rents of all the areas listed. It is a great place to invest, as redevelopment projects are improving the town centre.

The following areas have the least number of houseshares available. Could these be potential investment locations?

London postcodes with the lowest number of rooms to rent

Position

 Postcode Area Number of rooms

Average rent price per month
1 EC4 St Paul’s 26 £1,192
2 SW13 Barnes 33 £719
3 SW14 Mortlake 39 £693
4 E20 Olympic Park 43 £806
5 SE21 Dulwich 46 £663
6 WC2 Strand/Holborn 50 £1,053
7 N18 Upper Edmonton 52 £576
8 EC2 Bishopsgate/Cheapside 60 £940
9 SE19 Crystal Palace 64 £585
10 SE27 West Norwood 72 £607

For tenants, the following places are the cheapest to rent in the capital.

The cheapest areas to rent in London

Position

 Postcode Area

Average rent price per month
1 SE18 Plumstead/Woolwich £537
2 E12 Manor Park £537
3 E6 East Ham £542
4 SE7 Charlton £542
5 SE9 Eltham £550
6 SE2 Abbey Wood £550
7 E4 Chingford £559
8 SE12 Lewisham £559
9 SE20 Penge £559
10 E7 Forest Gate £563

And the most expensive spots in the capital are as follows:

The most expensive areas to rent in London

Position

 Postcode Area

Average rent price per month
1 EC4 St Paul’s £1,192
2 SW7 South Kensington/Knightsbridge £1,153
3 WC2 Strand/Holborn £1,053
4 SW3 Chelsea £1,049
5 SW10 West Brompton/Chelsea £1,001
6 SW1 Westminster/Belgravia/Pimlico £1,001
7 W1 West End/Soho £997
8 W8 Holland Park £984
9 W2 Bayswater/Paddington £984
10 SW5 Earl’s Court/West Brompton £953

1 http://www.homesandproperty.co.uk/property-news/rentals/renting-room-london-top-10-areas-find-house-share-and-wheres-best-haggle-price

Rents to increase 16%-22% in 5 years

Published On: November 6, 2015 at 3:09 pm

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Savills has forecasted that UK rents will rise by an average of 16.5% by the end of 2020. What’s more, rents in London are expected to rise by 22.8% over the same period.

In its annual five-year forecast, the agent says that rental availability is already so stretched for many households, rental growth will in effect be held back by affordability.

Private-rented costs

The agency says that households in the private rented market already pay more of their income than those living in other sectors. Many are reliant on housing benefit to make the tenure more affordable, thus reducing the growth of rents if they are to remain affordable for tenants.

‘Rental markets that are heavily dependent on housing benefit tenants such as some of the seaside towns along the south cost and parts of the northern urban belt will come under renewed pressure due to government policy (our rental forecasts are for non-housing benefit dependent tenancies,’ said a Savills spokesperson.[1]

Savills predicts that the traditional rental demographic of sharers and young professionals looks set to continue to grow, as the cost of buying restricts the total number able to make the move into homeownership. However, these groups are likely to benefit from the predicted wage recovery, which will drive the majority of rental growth in the coming years.

Rents to increase 16%-22% in 5 years

Rents to increase 16%-22% in 5 years

Warning

This said, Savills warns that in some high demand/low supply markets, more people may live in larger household groups. As a result, larger properties could be in higher demand and produce more rental growth.

Like many other industry members, Savills is warning that a cap on mortgage interest payments will greatly reduce the profitability of buy-to-let investment a considerable number of landlords.

‘Over five years we expect the cash surplus [profit] on the average buy to let investment to fall from over £2,500 to under £950. This will cause some highly geared buy to let investors to rationalise their portfolios and limit the ability of a larger number of others to expand,’ says the agency.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/rents-to-rise-16-to-22-over-next-five-years–forecast

 

 

 

House of Lords Launches Investigation into Housing Market

Published On: November 4, 2015 at 1:05 pm

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House of Lords Launches Investigation into Housing Market

House of Lords Launches Investigation into Housing Market

The House of Lords has launched an “urgent” investigation into the housing market. It has requested opinions to aid its study.

The Economic Affairs Committee is running the inquiry. It will investigate the supply and affordability of housing both for rent and to buy.

It will also analyse the Stamp Duty changes and consider whether rent controls would be a good idea.

The Committee Chairman, Lord Hollick, launched the inquiry, stating: “There are clearly serious issues with the UK housing market. Across the country, young people in particular are struggling with the cost of housing, whether they are looking to buy or rent. There is an affordability crisis in housing.

“We would like to get to the bottom of the affordability crisis. Is the primary cause a lack of supply? What effects have recent Government initiatives to encourage first time buyers had? Or is there too much emphasis on owning your own home and should we be focusing efforts on ensuring adequate affordable housing is available for rent?”1

The Committee is also seeking evidence on:

  • Whether Stamp Duty reforms have had an impact and if there should be further changes.
  • Is there a case for rent controls?
  • Are there any tax measures that could improve housing supply and affordability?

If you would like to give your opinion on these matters, send your written reviews by 17th December 2015 here: http://www.parliament.uk/business/committees/committees-a-z/lords-select/economic-affairs-committee/inquiries/parliament-2015/economics-of-the-uk-housing-market/

1 http://www.propertyindustryeye.com/house-of-lords-investigation-into-housing-market-will-look-at-rent-controls/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Concern over smoke alarm awareness

Published On: November 3, 2015 at 11:59 am

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Concerning new research has revealed that there is still a lack of awareness in the private rental sector in regards to the recent changes in regulation about smoke and carbon monoxide alarms.

A survey conducted by flat and house share site SpareRoom.co.uk on tenants living in shared accommodation found that just 57% are convinced that they have a working smoke alarm in their property.

The investigation was carried out after the 1st October, when the Smoke and Carbon Monoxide (England) Regulations came into force.

Safety

However, 15% of tenants questioned said that they do not have a smoke alarm in their home. A further 16% said they had alarms, but are not sure they are working. 5% said they do not know if there is an alarm in their property or not.

Landlords are not solely to blame, with 7% of tenants admitting to actually removing the batteries from the alarms themselves!

The table below shows the results from the survey:

Flat and house sharers were asked: Do you have a smoke alarm in your house or flatshare? (1,060 responses)
Yes 57%
Yes but I don’t know if it’s working 16%
Yes but we’ve taken the batteries out 7%
No 15%
Don’t know 5%

 

Concern over smoke alarm awareness

Concern over smoke alarm awareness

Awareness

‘Fitting working smoke and carbon monoxide detectors is now a legal requirement for landlords, yet half remain none the wiser,’ noted Matt Hutchinson, director of SpareRooms.co.uk. ‘Professional landlords are the most likely to be clued up on this regulatory change, but the Government will have its work cut out to educate those who don’t already have working alarms in their properties to make them aware of the new rules.’[1]

Hutchinson also noted that, ‘fire safety isn’t just the landlord’s responsibility. The fact that 7% of tenants have taken the batteries out of their smoke alarm is a real worry. Tenants have to do their bit to keep themselves, their housemates and the property safe.’[1]

[1] http://www.propertyreporter.co.uk/landlords/smoke-alarms-over-40-of-houseshare-tenants-could-still-be-at-risk.html

 

One in Five Tenants Struggle to Pay the Rent

Published On: October 21, 2015 at 1:07 pm

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New research has revealed that millions of workers are struggling to cope with living costs due to spiralling rent prices.

According to the study by the New Policy Institute, one in five Britons live below the poverty line once housing costs are taken into account.

The issue is affecting Londoners the most, with one in four tenants in the capital hit by sky-high rents.

One in Five Tenants Struggle to Pay the Rent

One in Five Tenants Struggle to Pay the Rent

This includes 1.2m who live in working households, a huge rise over the last ten years.

One renter finding life in the capital too difficult is primary school teacher Anna Evans. The 25-year-old pays £720 per month for a house in Balham, south London, which she shares with five other tenants.

A graduate of law from the University of Birmingham, Anna says she may have to move out of London, as living costs are so high.

“I pay more than half my salary in rent,” she explains. “I just don’t have a chance to save any money.”1

Her flatmate, Joanne Wheildon is also 25 and a trainee trader. She adds: “I won’t be able to buy a house until someone I’m related to dies.”1

Rents around the UK have risen by 11% in the last five years, reaching an average of £770 a month, found the study funded by anti-poverty charity Trust For London.

Over the same period, wages have only increased by 4%. In the last decade, this has caused a 30% rise in the amount of working-age people in poverty.

In London, the average rent price has grown by 19% in the last five years, hitting £1,600 a month.

Around 860,000 private tenants in the capital are believed to be living in poverty, including 260,000 children – twice the number recorded ten years ago.

The amount of low-paid jobs has increased for the fifth consecutive year, with one in five members of staff earning less than the London living wage of £9.15 an hour.

Another worker hit by high rents is Marianna Long, an executive assistant earning £21,000 per year.

The 23-year-old pays £500 a month for a room she shares with her boyfriend in Brixton, south London.

She comments: “The rent means I absolutely cannot save. Everything goes on living expenses and paying off an overdraft from being at university in London.”1 

Chelsea Wood, a forensic scientist, also earns £21,000. She pays £700 in rent for a flatshare in Clapham, southwest London.

The 24-year-old says: “I spend so much on rent that I feel as if I am living in poverty. A lot of my friends feel the same.”1

The researchers define poverty as having a household income that is under 60% of the national median.

1 Radnedge, A. (2015) ‘Workers caught in poverty trap by soaring rent’, Metro, 21 October, p.1-6

 

Negligence towards rogue landlords-reports

Published On: October 19, 2015 at 12:01 pm

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Categories: Landlord News

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The image of the private rental sector has been tarnished in this weekend’s press, with a number of reports on the alleged poor condition of homes to let.

Both The Guardian and The Independent published articles on a Citizens’ Advice Bureau survey which suggested that private landlords are raking in a cumulative total of £5.6bn per year in rent on homes that do not come up to required legal standards. Around one quarter of this sum is said to come from housing benefit payments.

At risk

Alarmingly, the Citizens’ Advice Bureau report suggests that as many as 740,000 families in the English private rental sector are currently living in homes that present a threat to occupants’ overall health and wellbeing.

In addition, The Times has reported on an investigation by charity group Shelter that suggests that number of people living in accommodation unfit for human habitation is larger than 250,000.

What’s more, the newspaper also reports than in excess of 25% of English councils have not prosecuted any landlords for providing inadequate accommodation during the last five years. A further half reportedly prosecuted less than two per year.

Negligence towards rogue landlords-reports

Negligence towards rogue landlords-reports

Failures

Figures in The Times report, sourced from the Residential Landlords’ Association and a Freedom of Information request, indicates that councils have prosecuted just 2,006 landlords during the last eight years. The average penalty was a fine of £1,5000.

David Smith of the RLA noted that, ‘tenants and good landlords are being let down. Councils have plenty of powers to enforce standards in private rented housing and tackle criminal landlords. It is sad that at best the record on enforcement is patchy and at worst, non-existent.’[1]

Housing Minister Brandon Lewis also added that, ‘the Government is determined to crack down on rogue landlords and the housing bill strengthens councils’ powers to tackle poor-quality privately rented homes in their area.’ He concluded by saying that, ‘our measures include blacklisting landlords who have been convicted of serious offences and seeking banning orders for the most prolific offenders.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/10/surveys-highlight-councils-negligence-on-tackling-rogue-landlords