Posts with tag: rent prices

RLA: Shelter is stoking needless fears for tenants

Published On: January 15, 2020 at 10:32 am

The Residential Landlords’ Association (RLA) has today urged caution on groups such as Shelter, who they say claim to represent tenants, but may be fuelling stress by giving them a bad impression of landlords.

Responding to new research published by Shelter today, The RLA says that no one should feel ill or stressed as a result of their housing situation, whether that it is in the private or social rented sectors or in the home ownership market.

Shelter’s research shows that renting is making people ill, with nearly half of those surveyed saying that renting has caused them to suffer from stress and anxiety, and a quarter to get physically sick.

The RLA, however, says that rather than relying on what they believe to be a poll based on a limited sample group, with potentially loaded questions, people should refer to the official 2017-18 English Housing Survey published by the Ministry of Housing, Communities and Local Government (MHCLG) which shows that:

84% of private sector tenants are very or fairly satisfied with their current accommodation, a higher proportion than tenants in the social rented sector.
Private sector tenants live in the same rental properties for an average of 4.1 years.
The proportion of private rented housing with at least one of the most dangerous ‘Category 1’ hazards has halved over the last ten years to 14 per cent.
The amount that tenants in private rented housing are paying in rent as a proportion of their income is falling, whilst in the social rented sector it is increasing.
Almost 90% of tenancies brought to an end are done so by the tenant, not the landlord.

David Smith, Policy Director for the RLA, said:

“We accept that, unfortunately, some private sector tenants will feel unhappy and stressed as a result of their housing but the same will apply to many social housing tenants and owner occupiers. We accept also that not all landlords are perfect but the objective assessment is that the overwhelming majority of private sector tenants are satisfied with their accommodation and enjoy a good relationship with their landlord.

“It is vital that tenant groups properly reflect this, rather than stoking fears that tenants are about to be evicted for no apparent reason, live in substandard accommodation and are charged exorbitant rents. This is simply not true and it is irresponsible to suggest so.

“We do all we can to support landlords to provide high standard, secure and affordable tenancies and we call on tenant organisations to work with us to help achieve this and root out the bad landlords that none of us wishes to see in the market.”

Average void periods and rent prices drop in the final month of 2019

Published On: January 9, 2020 at 9:26 am

Author: Em Morley

Categories: Lettings News

Tags: Goodlord,rent prices,void periods

According to Goodlord’s latest Rental Index, both average rents and average void periods saw a drop in December 2019.

Rent prices

The index shows that most rents remained the same as they were in November, with some showing a dip. The largest decrease was recorded in the North East. Average rent prices fell by 3%, from £607 to £588.

However, Greater London did see an increase of 2%. The North West and Wales also experienced a 3% increase.

The average cost to rent a property in the UK during December was £902. This is compared to the 2019 annual average of £927 per month.

Void periods

During December the average number of void periods dropped from 24 to 19 days across England and Wales. This is below the year’s average of 20 days.

Tom Mundy, Chief Operating Officer at Goodlord, said: “Mid-November leading into December is traditionally quiet for the rental market, so these numbers are actually quite encouraging.

“Rent decreases were slight across most regions, alongside some modest increases, with other regions holding steady.

“Void periods were down in the majority of regions as tenants looked to finalise leases ahead of the Christmas break.

“We ended the year sitting slightly higher than 2019 averages on some key metrics – an encouraging note to round off what has been a seismic year for the industry.”

The Rental Index also revealed that the average age of those renting their homes in the UK has remained at 34 years for the third month in a row.

£23,615 has been recorded as the average income of tenants in December, increasing slightly from £22,726 in November.

Unsurprisingly, London remains to be the most expensive area in the UK to rent. Meanwhile, the North East, Wales, and the Midlands have been noted as the most affordable regions.

Best areas in UK for renters saving property deposits revealed by MoneySuperMarket

Published On: October 21, 2019 at 8:58 am

Author: Em Morley

Categories: Tenant News

Tags: deposits,house prices,MoneySuperMarket,rent prices,tenants

MoneySuperMarket, the UK price comparison website, has revealed data that shows which locations provide the best financial opportunities for renters looking to save up and become a property owner in the UK.

This research took into account take-home salary and deducts the cost of living in order to identify just how long it would take renters saving property deposits, based on a variable deposit. It also looked at different locations around the UK.

MoneySuperMarket has highlighted that 57% of Brits feel like getting on the property ladder is out of their reach according to a survey from OnePoll. As such, it has created an interactive tool that shows you where you can simultaneously rent and save for a deposit, without feeling like you need to save for the next ten years.

MoneySuperMarket has provided the following table of top locations looking to get onto the property ladder:

Location	Average House Price	Average Annual Salary	Median Monthly Rent	Monthly Saving (per two adults)
1. Paisley	£120,754	£24,996	£351	£1,855.93
2. East Kilbride	£129,340	£24,592	£385	£1,776.14
3. Stoke-on-Trent	£113,191	£22,082	£418	£1,462.05
4. Hartlepool	£115,696	£22,297	£377.00	£1,470.28
5. Armagh	£120,699	£22,083	£475.00	£1,522.07

Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “While Paisley has proven to be the fastest place to raise a deposit, there are options across the country that won’t take a lifetime to save up for – even in London, where Croydon couples can buy a house within seven years of saving.

“Saving money for a home can be daunting, even where mortgages are more affordable. But you can take control of your finances more easily than you might think, by planning out how to save and looking at ways to cut back – as well as considering whether you could save up faster by moving somewhere with a higher salary or a lower cost of living.”

Residential Market Survey predicts rent increases over next five years

Published On: October 11, 2019 at 9:09 am

Author: Em Morley

Categories: Landlord News

Tags: rent prices,RICS

The latest report from the Royal Institution for Chartered Surveyors (RICS) indicates that tenants face an “acceleration” in rent increases over the next five years. This is thought to be a result of the demand for private rented housing outstripping supply.

This is according to new figures published in the September 2019: UK Residential Market Survey.

The report states that the latest results for the lettings market indicate:

Demand from prospective tenants will rise firmly for the eighth month in a row.
Landlord instructions remain in decline
With demand still outstripping supply, rent expectations remain positive for the next three months
Rental growth of approximately 2% has been predicted over the coming twelve months
Rental growth is expected to average around 3% per annum through to 2024

David Smith, Policy Director for the Residential Landlords Association, has responded: “Today’s figures demonstrate what we have long predicted, namely that because of recent tax hikes on the sector and threats to remove Section 21 repossessions without putting proper alternatives into place, landlords are not investing in new homes to rent, leading to demand outstripping supply. This only serves to hurt tenants as they face less choice and higher rents.

“Given how clear the evidence is the Government urgently needs to change course, and end those tax measures which are choking off investment in new homes to rent.”

The latest edition of The DPS Rent Index shows that average monthly rents in the UK have increased by 0.91% between July and September, which supports this prediction from the RICS.

The RICS’ September 2019: UK Residential Market Survey can be viewed here: www.rics.org/globalassets/rics-website/media/knowledge/research/market-surveys/uk-residential-market-survey-september-2019-rics.pdf

UK rents rise but fail to keep pace with inflation between July and September

Published On: October 11, 2019 at 8:24 am

Author: Em Morley

Categories: Landlord News

Tags: inflation,rent prices,The DPS

Average UK rents rose between July and September but failed to keep pace with inflation, according to new data from The Deposit Protection Service (DPS).

The latest edition of The DPS Rent Index has now been released, showing average monthly rents in the UK have increased by £7 (0.91%) to £778. It claims that this is less than half the rise in inflation (1.90%) during the period.

The report also shows:

Terraced and semi-detached properties in Q3 2019 experienced above-inflation (over 4%) average rent rises when compared with Q3 2018.
Rent increased for flats and detached properties were below inflation (1.36% and 0.80% respectively) during the same 12 months.
Yorkshire and The Humber saw the largest increase of £19 (3.60%) to £552 since the previous quarter.
The East Midlands and West Midlands experienced the only falls in England during Q3 2019. Average rents were down £13 (-2.17%) to £578 and £1 (-0.19%) to £620 respectively.
The North East was the cheapest place in the UK to rent (£526) during Q3 2019 with a modest £3 (0.65%) increase during the period.
London remains the most expensive rental region in the UK, with the largest year-on-year growth of £43 (3.34%) and an average rent of £1,333.
Scotland and Wales are the only regions to experience year-on-year as well as quarter-on-quarter rent decreased. Scotland’s rents fell by £6 (-1.02%) to £619 and Wales’ fell by £8 (-1.43%) to £578.
On average, people in the UK spend 32% of their wages on rent.

Matt Trevett, Managing Director of The DPS, said: “Two consecutive quarterly increases have seen rents reach the highest value since the Rent Index launched in 2017 following a period of decline during 2018.

“However, average rents in the third quarter of 2019 did not keep up with inflation, as they did in Q2 2019. This suggests rental values in the UK are regulating themselves against inflation.”

Region	Average rent in Q3 2019	Change since Q2 2019	% change since Q2 2019
London	£1,333	£14	1.03%
South East	£880	£2	0.23%
South West	£743	£12	1.58%
East	£820	£12	1.53%
East Midlands	£578	-£13	-2.17%
West Midlands	£620	-£1	-0.19%
Yorkshire	£552	£19	3.60%
North West	£596	£1	0.18%
North East	£526	£3	0.65%
Scotland	£619	-£6	-1.02%
Wales	£578	-£8	-1.43%
N.Ireland	£533	£11	2.18%
UK	£778	£7	0.91%

‘Sensible’ Rent Controls are the Way Forward Says Think Tank

Published On: September 25, 2019 at 8:55 am

Author: Em Morley

Categories: Landlord News

Tags: landlord law,rent prices,tax

‘Sensible’ Rent Controls are the Way Forward Says Think Tank

A Labour think tank considered to be more centrist than the rest of the party has said that it agrees with the idea of rent controls, but that they must be fair to both tenants and landlords. The report states that ‘sensible’ rent controls will allow tenants to feel more secure whilst not penalising good landlords.

The Fabian Society, in partnership with housing charity Shelter claims that there is strong support for rent controls among tenants, but notes that they do not want to see a situation in which landlords are forced to sell up due to lack of profitability.

On tenants views, the report states:
“They prioritise having fair and transparent rules for the level of rent; a chance for greater security in their home; and a system that is fair for both tenants and landlords” and they ”want a rent control policy that goes far enough to make a noticeable difference, but are concerned by unintended consequences such as any proposals causing landlords to sell up.”

The Fabian society has urged a more pragmatic than ideological stance on rent controls, with Deputy General Secretary Olivia Bailey saying:

“Well designed rent controls can tackle rising costs and falling standards in the private rented sector. But politicians must base their plans on the views of renters themselves.

“Tenants want rent controls to enhance their security and make the system fairer. They want help with soaring costs but are worried about slashing rents which could risk landlords selling up.

“A policy that offers fairness, security and stable rents will command support at the ballot box and give millions of people the comfort and security of an affordable, decent home.”

Whilst there are concerns that any form of rent control would price some landlords out of the market, it could be argued that this is the point of such schemes. Combined with the tenant fees ban and tax changes, it would appear that the private rental sector is being streamlined.

Those landlords that feel the pinch the most would leave the market, in line with free market economic principles, leaving only the most financially stable and responsible landlords, along with social housing schemes to fill the gap.

Greg Beales, a spokesperson from Shelter adds that “Any scheme must sit alongside a clear government commitment to build the three million social homes this country needs, to solve the housing emergency once and for all.”