Posts with tag: rent prices

New prospective tenants and rental supply highest on record for June 2020

Published On: July 31, 2020 at 8:16 am

Tags: ARLA Propertymark,rent prices,rental supply,tenants,void periods

According to ARLA Propertymark’s latest private rental sector (PRS) report, the number of new prospective tenants continued to rise in June.

This report, carried out by Opinium Research, involved an online survey of 210 ARLA Propertymark members that took place from 3^rd to 20^th July 2020. The results revealed an average of 79 new tenants registered per branch, compared to May’s average of 70.

Comparing year-on-year results since records began in 2015, this figure is the highest recorded for the month of June. The previous record was 71 in June 2019.

However, ARLA Propertymark does highlight that this is still down on pre-lockdown figures, with an average of 82 new tenants registered per branch in February 2020.

This report also shows that the number of rental properties on the market during June increased. Reaching another record high, there was an average of 200 properties managed per letting agent branch.

ARLA Propertymark comments that “this is down slightly from 208 in May, but still sets the market up for an active summer compared to the usual seasonal lull.”

Regionally, the highest number of properties being managed was in Yorkshire & Humberside, at an average of 264 per branch. Wales had the lowest average, at 104 per branch.

The number of rent price increases also grew in June. 29% of agents witnessed landlords increasing rents, compared to 14% in May. However, this remains the lowest number of rent price increases for the month since June 2016 (see Figure 1, below).

Average void period lengths decreased from five weeks in May to four weeks in June. Despite this decrease, this figure remains the longest average on record for void periods between tenancies in the month of June.

Phil Keddie, President of ARLA Propertymark, comments: “Our latest figures show that the rental market is continuing to pick up following the COVID-19 lockdown.

“The record-breaking supply of rental stock and demand from tenants for this time of year paints an optimistic picture for the summer months, indicating that the market will be more active than the usual seasonal lull.

“As the market continues to recover from the pandemic, it’s essential that everyone continues to keep up with their rent in order to sustain the market and help boost the economy during these uncertain times.”

London renters can reduce rental outgoings by 137%

Published On: July 27, 2020 at 8:20 am

Author: Em Morley

Categories: Lettings News

Tags: London,rent prices,Spotahome

London tenants can reduce rental outgoings by as much as 137% without leaving their current borough, says international rental marketplace Spotahome.

Its research involved the analysis of current rental prices across the capital. It highlights that the overall average monthly rent price is £1,516, but the most expensive postcode sits at £2,888 and the least expensive at £900. This is a 221% difference between the most and least expensive.

Moving to a cheaper borough might not be an option for most, due to location requirements, so Spotahome has taken a closer look at specific postcodes. By simply moving elsewhere within the same borough, tenants could save a significant amount of money.

The best example of this is the borough of Havering. The RM4 postcode has an average monthly rent price of £2,600. By moving to RM1, with an average rent price of £1,098 per month, rental outgoings could be cut by 137%.

Even in Haringey, the borough with the smallest rental price difference between postcodes, renters can save up to 20% by moving postcodes.

UK and Ireland Country Manager of Spotahome, Nadia Butt, commented: “Location is key for many London renters, but it’s often the first thing we compromise on to keep costs down.

“While this is inevitable in a market such as London, compromising on location doesn’t necessarily mean moving miles away from where we want to be.

“Our research shows you can cut your rental outgoings considerably in every borough of London, simply by moving from one part to the other.

“While you might not be exactly where you want to be, it means you can remain a short distance away and still have more money in your pocket after your rent is due.

“Particularly in the current circumstances, many tenants may be struggling financially and by being able to reduce what is likely to be their largest financial outgoing, this could make a real difference.

“With such a diverse rental market, finding your perfect London rental is all about research. The more time you spend on it, the more likely you are to find a suitable more affordable property.”

Would you consider higher rent prices to live near a famous UK landmark?

Published On: July 21, 2020 at 8:51 am

Author: Em Morley

Categories: Lettings News

Tags: Ome,rent prices

New research shows that renting near a famous UK landmark can cost as much as 207% more than renting in the wider area of its location.

Rental deposit replacement scheme Ome has looked at 32 famous UK landmarks and the current cost of renting in the surrounding area. It then compared these renting costs to the broader area in which they are located.

The results show that the average cost of renting close to a famous landmark is currently £1,613 per month. This is 55% more than the average of £1,043 across the wider areas.

When looking at the cost of renting near a famous landmark, compared to its surrounding area, Hampton Court Palace is the least affordable. It costs a monthly average of £4,965 to rent a home within the KT8 postcode. This is 207% more than Elmbridge as a whole, at £1,617 per month.

However, in some areas, it appears to be cheaper to live closer to a famous landmark. For example, It costs an average monthly rent of £447 to live near Blackpool Tower, which is 17% lower than Blackpool’s average rent price of £538.

Co-founder of Ome, Matthew Hooker, has commented: “It seems that it’s not just commuter links and nearby amenities that will drive up rental prices, as the close proximity of a famous landmark also appears to push rental costs above and beyond the wider average in a given area.

“However, while the diversity of the UK rental market does mean there are some landmark rental bargains to be had, those struggling with the affordability of renting probably won’t consider it a necessity when house hunting.

“In this instance, the best option is to find a more affordable pocket of the local market and bridge the distance with some good old-fashioned exercise to reduce your monthly rental outgoings.”

Below is the full table of famous UK landmarks and their locations analysed for this research:

Rents stay static but will soon reflect impact of coronavirus, says The DPS

Published On: April 29, 2020 at 8:18 am

Author: Em Morley

Categories: Landlord News

Tags: Coronavirus,rent prices,The DPS

According to the recent Rent Index from The Deposit Protection Service (The DPS), London remains the most expensive place in the UK to rent.

Average monthly rents in London were recorded as £1,345 (representing 42% of tenants’ average wages) during Q1 2020, showing no change since Q4 2019.

Region	Average Rent Q1 2020	Change since Q4 (£)	% Change since Q4 2019
London	£1,345	£0	0.00%
South East	£895	£18	2.05%
South West	£753	£7	0.94%
East	£812	-£11	-1.34%
East Midlands	£586	£4	0.69%
West Midlands	£620	£9	1.47%
Yorkshire	£542	£18	3.44%
North West	£594	– £2	-0.34%
North East	£517	– £1	-0.19%
Scotland	£642	£30	4.90%
Wales	£583	– £6	-1.02%
NI	£521	-£27	-4.93%

The figures cover the period immediately before the Covid-19 pandemic began to seriously disrupt life in England and Wales, and The DPS said that the next set of figures were likely to be affected by the UK’s Government’s advice that people should not move house and other policies, such as the prevention of evictions.

Matt Trevett, Managing Director at The DPS, said: “Despite the stability of the rental market over the past 12-18 months, it is likely we will see a very different pattern in Q2 2020 owing to the impact of coronavirus on landlords, letting agents and tenants although it is difficult to predict the long-term effect this will have on the industry.

“For example, some landlords are asking for advice on how to make a claim against a deposit if a tenant leaves without giving notice or how to perform check-in and check-out reports during the lockdown.

“Whether you are a tenant with sudden financial difficulties or a landlord facing changes to your income, we encourage you to communicate with one another as often as possible during this challenging time.”

Paul Fryers, Managing Director, Zephyr Homeloans, which like The DPS forms part of the Computershare Group, said: “Under the mortgage payment holiday scheme announced by the Chancellor on 17 March, eligible buy-to-let landlords may apply to defer their loan payments if they cannot make their mortgage obligations because their tenant is unable to pay rent as a result of coronavirus, causing financial hardship.

“Ongoing communication between landlord and lender is key to understanding each other’s situations, and it is crucial that landlords, especially those with large portfolios, contact us so we can talk through the most appropriate solutions.”

RLA & NLA: Increased Demand is Hurting Tenants

Published On: March 16, 2020 at 12:25 pm

Author: Em Morley

Categories: Landlord News

Tags: rent prices,supply and demand

RLA & NLA: Increased Demand is Hurting Tenants

The Residential Landlords Association (RLA) and the National Landlords Association (NLA) have warned that the government is ignoring warning signs of a looming rental crisis.

Tenant demand is increasing, but the number of new landlords entering the market is falling according to new figures released by the Royal Institution of Chartered Surveyors. What’s more, they say this has been happening every quarter since mid-2016.

This increased demand and squeeze on supply is likely to lead to rental increases across the vast majority of regions in 2020. This is already the case if you ask HomeLet, who say that rents are rising across the country, making it harder for tenants to save to buy their own home.

Landlords had hoped that Rishi Sunak’s budget last week would have shown support for them, but were sadly disappointed.

They had called for Rishi Sunak’s big-spending budget to include the abolishment of stamp duty on the acquisition of additional homes where landlords invest in property adding to the net supply of housing such as new build properties or bringing long term empty homes back into use.

In a joint statement, the RLA and NLA said:

“The government is undermining its own efforts to boost homeownership through its attacks on the private rented sector.

“By choking-off supply and making renting more expensive it is tenants who are hardest hit.

“Ministers need to wake up to the reality of the damage their tax measures are doing to the private rented sector and support landlords to provide the new homes for private rent we desperately need.”

Rental stock dwindles, despite more tenants than ever seeking housing

Published On: February 26, 2020 at 9:33 am

Author: Em Morley

Categories: Lettings News

Tags: ARLA Propertymark,rent prices,rental stock

ARLA Propertymark’s latest report reveals that demand for rental accommodation reached a record high in January. An average of 88 prospective tenants registered per member branch.

The January Private Rented Sector (PRS) report, released yesterday, also shows that despite this record high, the supply of rental stock has also fallen to the lowest level in seven months.

Demand from tenants

Agents have witnessed a 57% increase in the number of prospective tenants registered since December.
Year-on-year, demand for rental accommodation has increased by 21%, rising from 73 in January 2019 to 88 in January 2020.

Supply of rental stock

The number of properties managed has fallen from 206 in December 2019 to 191 in January 2020.
Supply has not been this low since July last year, at which point it stood at 184.
Year-on-year supply is down from 197 in January 2019, but up from 184 in January 2018.

Rent prices

The number of tenants experiencing rent increases rose in January. 42% of letting agents witnessed landlords increasing prices, compared to 32% in December last year.

Year-on-year, this figure is up from 26% in January 2019 and 19% in January 2018.

Rental stock — Average number of tenants experiencing rent hikes in January year-on-year

David Cox, ARLA Propertymark Chief Executive, said: “This month’s results are a huge blow for tenants. With demand increasing by more than half, but rental supply falling, rent costs are unsurprisingly being pushed up.

“Our recent research found that tenants could miss out on nearly half a million properties as more landlords exit the traditional private rented sector and turn towards short-term lets which will only serve to worsen the problem for those seeking longer-term rental accommodation.

“With the Spring Budget around the corner, it’s important that the Government works to make the private rented sector attractive to landlords again, rather than introducing complex legislation which ultimately squeezes the sector and leaves tenants worse off.”