Posts with tag: rent increases

City of York Council makes decision to halt rent rises

Published On: April 2, 2020 at 10:09 am

The planned annual rent increase implemented by the City of York Council has been halted for three months due to the Coronavirus emergency.

Normally, the beginning of each financial year is marked by rent increase coming into effect across the city’s socially rented homes. This year, however, those increases will be automatically refunded to York’s residents.

The Council made the decision to postpone the rent increases due to the Coronavirus outbreak causing financial difficulties for many people.

With the fast pace of changes going on during the coronavirus outbreak, it meant that the council was unable to reverse those increases as they were already locked in. They are instead asking tenants to pay the extra rent for now, and assure them that they will be refunded for the first three months at a later date.

Cllr Denise Craghill, Executive Member for Housing and Safer Neighbourhoods at City of York Council, said: “While we can’t reverse the annual increase in the billing system at this stage in the financial year, we will ensure no individual has to cover this increase for the first three months of the year.

“Anyone worried about paying their rent as a result of changes in their circumstances due to the current emergency, should contact their housing management officer (HMO) and seek advice at: www.york.gov.uk/COVIDHousing.

“For more detail on the financial help available to tenants affected by Coronavirus, please go to: www.york.gov.uk/COVIDFinancialHelp .”

Cllr Nigel Ayre, Executive Member for Finance and Performance, added: “We fully recognise that this is an incredibly difficult time for a lot of households and that is why deferring these rent increases will make a real difference to tenants on low incomes across York.

“Just like our commercial premises, it’s right that once again City of York Council sets an example to all landlords across York and does what it can to support residents.”

Rents for new lets up by 3.1% in 2015

Published On: January 18, 2016 at 12:03 pm

Author: Em Morley

Categories: Finance News

Tags: Buy-to-Let,landlords,rent increases,rents,tenants

Newly released analysis from Countrywide plc suggested that rents for freshly let homes continued to grow in 2015.

Despite growing at a slower pace than in 2014, rents climbed by an average of 3.1% over the course of the year, sending monthly typical monthly rental costs to £919 per calendar month.

Increases

The research shows that rents increased in all regions of England, with the East seeing the highest increase of 6.5%. Central London recorded growth of just 0.5%, which was the lowest of all regions.

Rental growth in 2015 was boosted by high demand for accommodation, with a low stock of homes available. This imbalance had led to increased competition for homes in the market, with the average property let within 20 days of being instructed, two days quicker than in 2014.

A slowdown in rental growth during 2015 for Greater London properties still saw rents increase by 4.7%. With rents spiralling in recent years, tenants have more often looked to less expensive areas of Outer London. This led the proportion of under 25s taking up residence in the rental sector in London to fall by 4% in 2015. What’s more, southern regions near London have seen increases in the proportion of under 25s entering their market, with Londoners looking further out for affordable agreements.

The table below shows that average rent for newly let units in 2015:

Region	Average rent in Q4 2015	Average rent in Q4 2014	Year-on-year increase in rent
Greater London	£1,292	£1,234	4.7%
Central London	£2,497	£2,485	0.5%
East of England	£945	£887	6.5%
South East	£1,139	£1,118	1.9%
South West	£816	£784	4.1%
Midlands	£663	£651	1.8%
North	£636	£627	1.4%
Scotland	£662	£637	3.9%
Wales	£666	£648	2.8%
Total	£919	£891	3.1%

[1]

Rents for new lets up by 3.1% in 2015

Affordability concerns

Johnny Morris, Research Director at Countrywide, noted, ‘a mix of steadily increasing demand and a lack of homes to rent supported rental growth in 2015, even though wage growth remained subdued. In the capital, rising costs meant renters were more likely to move to Outer London or the commuter belt in search of more affordable places to live.’[1]

‘2016 looks to be a complicated year for landlords as the government focuses its efforts on boosting homeownership,’ Morris continued. ‘The additional 3% stamp duty charge, stricter regulation and changes to tax relief from 2017 onwards will all take their toll on investor sentiment and impact behavior. With stock at a premium, the smaller landlords who decide to sell up will add upward pressure to rents, although any rises will be tempered by affordability pressures.’[1]

The table below indicates the average rent for occupied units in 2015:

Region	Average rent December 2015	Average rent November 2014	Average rent December 2014	Year-on-Year Increase in rent	Month-on-Month Increase in rent
Greater London	£1,196	£1,192	£1,132	5.7%	0.3%
Central London	£2,449	£2,445	£2,435	0.6%	0.2%
East of England	£862	£859	£829	4.0%	0.3%
South East	£997	£995	£981	1.6%	0.2%
South West	£737	£736	£724	1.8%	0.1%
Midlands	£629	£629	£620	1.5%	0.0%
North	£624	£623	£612	2.0%	0.2%
Scotland	£641	£639	£624	2.7%	0.3%
Wales	£650	£649	£636	2.2%	0.2%
Total	£857	£856	£834	2.8%	0.1%

[1]

[1] http://www.propertyreporter.co.uk/landlords/newly-let-home-rents-up-31.html

Rents to grow 3%-4.5% in 5 years

Published On: November 4, 2015 at 3:28 pm

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,landlords,rent increases,rents

An agency has moved to suggest that average rents in the UK will increase by between 3% to 4.5% during the next five years.

JLL predicts that average rents across Britain will increase by 4.5% in 2016, followed by 4% in 2017. Further predictions suggest that rents will then rise by 3.5% in 2018 and 2019, before slowing to 3% in 2020.

Growth

‘Despite believing that demand will increase and available supply will remain constrained, we anticipate only moderate positive rental growth on a national basis over the next five years,’ noted Adam Challis, head of residential research at JLL. ‘The main limiters are that tenants will move to smaller properties or to cheaper areas in order to ensure their rental costs suit their financial aspirations,’ he added.[1]

Research from the agency’s report indicates that nearly half of all 25 to 34 year olds privately rent, with this proportion likely to rise further in the next 5 years.

Rents to grow 3%-4.5% in 5 years

Tax

JLL indicates that the majority of British buy to let landlords are higher-rate tax payers and will therefore be significantly affected by the recently proposed tax changes within the sector. However, it believes that there will not be a significant exodus of landlords from the industry.

Challis warns that, ‘there may be slightly less exuberant enthusiasm from new investors, which may have a longer-term impact on rental supply.’[1]

Mr Challis also said that the big potential growth area within the sector is Build to Let. With this said, he also believes this part of the private rental sector, ‘will always be dwarfed in volume terms by private landlords.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/rents-set-to-grow-3-0-to-4-5-over-each-of-next-five-years-says-agency

Over a third of agents confirm June rent rise

Published On: July 23, 2015 at 12:02 pm

Author: Em Morley

Categories: Landlord News

Tags: cost of renting,rent increases,short-term loans

A growing number of letting agents are seeing increases in the cost of renting, according to new research.

The Association of Residential Letting Agents’ monthly Private Rental Sector Report suggests that 36% of agents indicated rents had risen between May and June. This was the highest total since tracking of figures began.

Predictions

80% of ARLA members forecast that rents will continue to rise during the next five years. This is thought to be as a result of the changes that will be introduced by the Chancellor which will reduce the amount of tax relief buy-to-let investors are entitled to.[1]

By region, the East Midlands had 48% of agents that indicated rents had climbed in June, in comparison to 17% in Wales. Supply was found to be fractionally down, with an average of 178 properties managed by each ARLA branch, in comparison to 179 in May. However, concern is growing for supply in the capital, with 118 rental properties managed per branch in June, as opposed to 134 in May, a fall of 12%.[1]

Over a third of agents confirm June rent rise

Holiday boom

With the summer holidays beginning, there has been a continued interest in short-term loans. 33% of agents reported an increase in enquiries for short-term lets in the last month. This represented a rise from the 26% reported in May. The North West has witnessed the greatest increase for short-term lets, with 43% of ARLA members in the region recording a rise in June.[1]

‘It’s worrying to see so many agents reporting an increase in the cost of rent over the last six months, especially considering so many people rent as a way to bridge the gap whilst they save to get onto the property ladder, ‘said David Cox, managing director of ARLA.[1]

Cox feels that, ‘findings like this continue to prove that the housing crisis isn’t going to disappear anytime soon and it will take a while before we see steps heading in the right direction.’ He believes, ‘the impact of the Chancellor’s reductions to the amount of tax relief buy-to-let investors can claim-announced in the Emergency Budget this month-will affect the cost of renting over the coming months and is likely to mean it will take even longer to see any improvement in affordability in the private rented sector.’[1]

[1] http://www.propertyreporter.co.uk/landlords/30-of-letting-agents-confirmed-june-rent-rise.html

Housing rents rise across whole of Britain

Published On: June 15, 2015 at 5:03 pm

Author: Em Morley

Categories: Landlord News

Tags: housing rents,rent increases,residential rents

Residential rents rose throughout Britain in the three months to May, according to the latest HomeLet rental index.

This means that the average monthly rental price is £935, or £738 if London is excluded. The rental index also showed that the speed of growth in the capital is rising after a sluggish, election-causing period. Average rents agreed in the capital for new tenancies in May exceeded £1,500 per month for the first time.[1]

Record rises

The index reveals that UK rents are now 10.7% higher than at this time last year. Additionally, it is only the third time that rents have increased across Britain since the rental index began.

By region, the South West saw the largest increase, with rent prices rising by 13.6% year-on-year. Scotland saw growth of 9.6%, the South East 9.4% and Greater London 9.2%.[1]

Within Greater London, the average rent is now £1,472 for the three months to May 2015. If just new tenancies are examined that were agreed in May alone, average rents exceed £1,500, with an exact figure of £1,506.[1]

Housing rents rise across whole of Britain

Double-digit growth

‘Rental values are now increasing year on year across the country, with no exception,’ observed Martin Totty , chief executive officer of Barbon Insurance Group, parent company of HomeLet. ‘After a short period of London rents rising more slowly, when it seemed the rest of the UK may catch up or even exceed the capital in the speed at which rent prices were increasing, we now see the rate of price rises in London returning towards double digit growth, while the rest of the UK continues to rise steadily,’ he continued.[1]

Totty went on to say, ‘with the whole of the UK experiencing increases in rent prices agreed on new tenancies, it is possible this is an early indicator of a post-election private rental market where both landlords and tenants might expect rent prices to keep rising as demand continues to grow.’[1]

[1] http://www.propertywire.com/news/europe/uk-residential-rental-prices-2015061510627.html

60% of tenants hit by rent rises

Published On: June 10, 2015 at 1:02 pm

Author: Em Morley

Categories: Landlord News

Tags: rent increases,tenancy agreements,tenants

60% of tenants in the UK have seen their rent rise on their current rental property at the conclusion of their tenancy agreement, according to new research.

Fees

A study by Ocean Finance has also revealed that many tenants are forced to pay over £100 to letting agents to secure a new contract. What’s more, the survey suggests that landlords increase rents by an average of £84 per month, or £1,008 per year, at the conclusion of an existing tenancy agreement.[1]

The survey shows that nearly half of tenants remain in the same house for a minimum of five years. This means they could be forced to pay nearly £600 in letting agents’ fees if they wish to continue to rent out their home.[1]

Figures from the Office of National Statistics show that prices on private rental homes increased by 2.1% in the year to March 2015. This was predominantly driven by the surging market in London and the South East.[1]

60% of tenants hit by rent rises

Booming

Ocean spokesman Gareth Shilton observed that, ‘the buy-to-let market is booming at the moment, driven partly by the London market, although there are strong hotspots across the country. As demand for rented properties continues to outstrip supply and many people struggle to get on to the housing ladder, landlords are in a strong position to continue to increase rents each time a tenancy agreement ends.’[1]

‘On top of rental increases, tenants are facing rip-off fees from letting agents, not just to take new tenancy agreements, but also to roll-on an existing tenancy for another six or 12 months,’ he continued. ‘As letting agency fees range enormously across the country and between agents, tenants are hit by charges for simply renewing their tenancies, credit checks, check in or check out fees. When tenants shop around for properties they should really do the same with agents. It’s very important to check all the additional fees when signing the tenancy agreement to avoid any financial difficulty in future,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/60-of-tenants-hit-hard-with-end-of-tenancy-rent-rise.html