Posts with tag: rental market

Number of retiree renters rising

Published On: June 20, 2016 at 11:14 am

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A new poll of tenants has revealed that the number of people residing in privately rented accommodation in their retirement years has swelled by over 200,000 in the past four years.

In all, the survey suggests that the total proportion of private renters in retirement age has risen by 13% since 2012.

Retiree renting rise

17% of retired renters reside in the South East of England. However, just 3% live in London, representing the smallest proportion in the UK.

The North West has 15% of the retired renting total, in comparison to just 4% in the North East. The West Midlands is home to 8% with the East Midlands making up 4%.

This said, the proportion of landlords who have let to retired renters has fallen by almost half in the same period. 9% of buy-to-let landlords asked said that they presently rent to retirees, in comparison to 19% in 2012.

Number of retiree renters rising

Number of retiree renters rising

Assurances

Carolyn Uphill, chairman of the NLA, said, ‘more and more people are turning to private rented housing at every stage of their lives, including in retirement. Landlords appreciate the stability and assurances often provided by older households, but are finding it increasingly difficult to build businesses around the needs of potentially vulnerable tenants.’[1]

‘Successive cuts to the welfare budget, uncertainty about pension provisions and the devastating impact of the Government’s tax changes are likely to mean that private landlords will soon be unable provide homes in high cost areas like Central London for anyone without a well-paying job. As the proportion of retired renters continues to grow there’s a real worry that homes won’t be available in the private sector, forcing people to look further afield-leaving communities they have known and contributed to for decades,’ Uphill added.[1]

[1] http://www.propertyreporter.co.uk/landlords/retired-renter-numbers-rockets-by-200k-in-4-years.html

Rise in retirees renting in seaside locations

Published On: June 10, 2016 at 1:17 pm

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An increasing number of British retirees are choosing to rent a property by the sea, due to the soaring cost of purchasing property

Latest research from the Halifax indicates that the average price of a property in a British seaside town has risen by 32% in the last decade. This is the equivalent to £440 per month.

Retirees rental rise

The annual Halifax Seaside Town Review showed that average property prices have risen from £166,565 in 2006 to £219,386. Scottish seaside towns have led the way in terms of price growth. Fraserburgh in Aberdeenshire showed the largest increase, with property prices increasing by 139%, from £63,540 in 2006 to £151,719 in 2016.

In Macduff, typical property values doubled from £66,226 to £133,567, or 102%, over the same period. This was followed by Peterhead (95%), Cove Bay (94%) and Newtonhill (91%).

Peter Girling, chairman of Girlings Retirement Rentals, observed, ‘we have seen continual demand from people wanting to retire to the coast. House prices in popular resorts can be prohibitive and renting may prove a better financial option, which is why we are seeing more people downsizing, selling the family home and choosing to rent in a purpose built retirement complex.’[1]

‘The benefits are threefold-releasing equity in a home to invest for the future, affordable rents on assured tenancies that include property maintenance, access to services and a ready-made community and a slower and healthier pace of life. People are also free from the worry of unexpected bills and the upkeep of a home, so they have more time to make the most of their golden years,’ Girling continued.[1]

Popular South

Outside of Scotland, the greatest levels of property price growth in seaside locations has been seen in southern resorts. Mr Gilding said that the most popular areas for Halifax clients were Bournemouth, Hastings and Clacton-on-Sea.

Brighton saw the largest rise outside of Scotland, with values rising by 59% from £214, 863 to £341,235 over the decade. Other English seaside resorts to record growth in excess of 50% were:

  • Whitstable, Kent
  • Shoreham on Sea, West Sussex
  • Leigh on Sea, Essex
  • Truro, Cornwall
Rise in retirees renting in seaside locations

Rise in retirees renting in seaside locations

The most expensive seaside town was found to be Sandbanks in Poole, where the average property price is £664,655. Other expensive towns in the South West include Padstow, Dartmouth and Fowey. Outside of the South West, the most expensive towns are Aldeburgh in Suffolk and Lymington in Hampshire.

Staycation

Peter Sherrard, managing director of PropertyPriceAdice.co.uk, noted, ‘since the last recession, the so-called staycation trend has grown increasingly popular in Britain, with many people now more willing to take take a short trip on these shores instead of venturing overseas, which has increased demand for property in coastal areas.’

‘Seaside towns typically provide a high quality of life and remain popular places for people to live, while also attracting those seeking second homes or holiday properties which can place added upward pressure on property prices,’ Sherrard added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/6/pensioners-choose-to-rent-by-the-sea-as-property-prices-soar

UK rents rising quicker than in London

Published On: June 2, 2016 at 1:22 pm

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Typical rents for single rooms in Britain are increasing at a faster rate than those in London, according to a new report by spareroom.co.uk.

The rental platform says that UK rents outside of the English capital were 5% greater in the first quarter of this year, in comparison to the same period in 2015.

Rents rising

In London, rental growth for single bedrooms was just 1.63%, according to spareroom.co.uk’s 2016 Rental Index.

The largest rental increases in the first quarter of 2016 were recorded in Luton, Swindon, Reading and Bristol.

At the other end of the scale, the cheapest average rents for single rooms were in Belfast, Bradford, Dundee and Sunderland.

Increase in supply

Spareroom.co.uk indicates that when comparing the results from Q1 of 2016 against the same period last year, supply of rental rooms has increased by 25%.

This is down to a number of additional properties coming onto the market, as investors surged to beat the stamp duty surcharge deadline.

Further analysis of the Index shows that Belfast and Harlow have the largest competition for rooms, with an average of nine people searching per listing in each of these regions.

Matt Hutchinson, director of SpareRoom, noted, ‘the first quarter of 2016 saw some respite for renters, thanks to an upturn in supply as buy-to-let investors rushed to complete ahead of the stamp duty increase.’[1]

UK rents rising quicker than in London

UK rents rising quicker than in London

Weight of demand

Hutchinson went on to say however that the rental market is still struggling under the weight of demand, particularly in London.

‘Even cities like Manchester and Birmingham, which offers some of the highest levels of supply for renters in the UK, are massively oversubscribed with six tenants competing for every room, he noted.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/6/rents-across-the-country-rising-faster-than-in-london

Council wins landmark illegal sub-letting and eviction case

Published On: May 26, 2016 at 11:37 am

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In a landmark case, a buy-to-let landlord has been prosecuted for both illegal sub-letting and illegally evicting at the same time!

Mr Rami Nazzal, 35 and from Sheffield, pleaded guilty at his hearing at Sheffield Magistrates Court last week.

Illegal sub-letting

After illegally sub-letting his council home, Mr Nazzal then evicted his tenant using excessive force. As such, the Court delivered a guilty verdict upon prosecution.

Nazzal allowed the tenant to rent his property for six months before forcing his tenant to leave after an argument.

Mr Nazzal was fined a total of £1,923, including £250 compensation and a victim surcharge of £15.

The victim, student Ata Allah Alalawi, who had moved to the Steel City in order to complete his studies, said, ‘he (Nazzal) told me it was his own property. He lied to me. I didn’t know he was a council tenant.’[1]

Threatening

After informing Mr Nazzal of his intentions to leave, Alalawi claims the landlord began to demand extra rent and became threatening.

Alalawi also claims that Nazzal grabbed him, forced him to leave the property and threatened to withhold his personal belongings should he call the police.

Sheffield City Council’s housing team is now undertaking legal proceedings in order to evict Nazzal from his council house.

Council wins landmark illegal sub-letting and eviction case

Council wins landmark illegal sub-letting and eviction case

Criminal Offences

Councillor Jayne Dunn, a cabinet member for housing at Sheffield City Council, observed: ‘this person was breaking the law on two accounts-by illegally sub-letting his rented home and by forcing an eviction. This has been recognised by the courts and I hope it sends a strong message that rogue landlords will not be tolerated.’[1]

‘We want people to be able to live in good, safe housing, where their rights are respected. Thankfully most letting agents and landlords in Sheffield are very good. But we will take firm action on the minority that are not,’ Dunn pledged.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/sub-letting-council-wins-landmark-case-against-landlord

 

Landlords seeing more dirty properties at checkout

Published On: May 25, 2016 at 10:45 am

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A concerning new report has revealed that buy-to-let landlords are facing increasing problems with dirty properties at the conclusion of tenancy agreements.

The investigation, conducted by online letting agent PropertyLetByUs, has uncovered the items most frequently left in a poor condition by outgoing tenants.

Dirty properties

Mucky ovens were discovered to be extremely common, with 56% of agents reporting that they had faced this issue. Next came dirty carpets and flooring (25%), grimy showers (21%), smelly sinks (19%), full fridges and freezers (18%) and grubby baths (14%).

Shockingly, 70% of landlords said that their rental properties were returned to them in a poor condition after their tenants had moved out.

Over half of cases dealt with by the Tenancy Deposit Scheme are associated with cleaning. In fact, disputes over cleaning are now at their greatest level since the beginning of the scheme. This in turn means many investors are claiming more on their landlord insurance.

Lack of respect

PropertyLetByUs.com suggests that tenants have little or no respect for their rental home.

Jane Morris, the firm’s managing director, said: ‘unfortunately tenants fail to treat a rented property like they would if it was their own home. Many tenants fail to leave their property in the same condition as when they moved into the property and we have seen many properties left in a filthy state.’[1]

‘The main problems are dirty ovens and fridges; stains and marks on carpeting and flooring; bathrooms which have not been cleaned for months; and pet hair and excrement on floors, furniture and soft furnishings. At a recent check out, the property was left in a very poor condition. No cleaning had taken place during the tenancy and the ovens, carpets and the bathrooms were filthy. Unwanted furniture was the left in the house and strewn across the garden,’ she continued.[1]

Landlords seeing more dirty properties at checkout

Landlords seeing more dirty properties at checkout

Costly

Morris went on to claim that, ‘some tenants claim that cleaning issues are just normal wear and tear and are shocked when they find out that it will cost around £50-£70 to have the oven professionally cleaned and anything between £100-£150 to clean carpets and floorcoverings. The simple answer is that if an area or item was clean at check-in it should be left clean at check-out. If any dust or crumbs are present then this is clearly not clean.’[1]

‘It’s vital that landlords carry out mid-term inspections so they can flag up any cleaning issues, as well as a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement. At the check-out, the tenants should be made aware of the areas requiring cleaning and the potential costs involved,’ Morris concluded.[1]

Importance of inventories

The rise in landlords being left with dirty properties come check-out time underlines the importance of inventories. Landlords must produce a detailed inventory at the beginning of all new tenancy agreements, with photographs of all rooms in the house.

This will not only let landlords cross-examine during regular inspections, but will also be imperative should any dispute occur. Buy-to-let landlords should ensure that their tenants are given a copy of an inventory, which they have signed, before entering into an agreement.

[1] http://www.propertyreporter.co.uk/landlords/landlords-face-big-clean-up-at-check-out.html

64% of would-be homeowners rent first

Published On: May 24, 2016 at 10:58 am

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Nearly two-thirds (64%) of would-be homeowners in Britain rent a property before picking up the keys to their own place, according to new research.

Data from the report by Clydesdale and Yorkshire Banks underlines the difficulty that many potential buyers are facing in the current market.

Renters’ struggles

Saving up for a deposit is one of the greatest hurdles facing first-time buyers. The survey found that renters are not likely to get assistance from their family, with only 41% saying that this was the case. This was in comparison to 62% living with their parents.

Building up a sufficient deposit is also a challenge to tenants currently living in the rental market, with an average months rent standing at £681.70.

Of those living with their parents before purchasing their own home, 21% said they don’t pay rent. One-third of would-be homeowners said that they put this money towards their deposit instead.

52% said that they pay a fixed amount each month to their family, with 22% contributing towards food and bills.

Stress

In addition, the research found that those currently residing in rental properties find getting a foot on the property ladder more stressful. 28% admitted they were finding the process difficult, in comparison to 16% of those still living with their parents.

Steve Fletcher, head of customer banking networks at Clydesdale and Yorkshire Banks, said, ‘buying a first home is one of life’s most significant financial milestones and the banks can work with the individual needs and circumstances of potential first time buyers to help make their dreams of becoming a homeowner a reality.’[1]

64% of would-be homeowners rent first

64% of would-be homeowners rent first

Cover

Additional research conducted by Royal London indicates that nearly five million renters in Britain have no plan in place to cover their rental payments, should they become too ill to work.

This alarming figure comes despite 27% of renters in work saying they were aware of someone who had struggled in a similar situation. 34% admitted they didn’t know how long they could pay their rent for should they be unable to continue in their employment

60% said that they could only continue paying their rent for three months or less.

Solutions

In terms of solutions, 53% said their first move would be to apply for state benefits, while 47% would cut their expenses and 39% would use their savings.

Just 7% of renters in employment said that they had consulted a financial advisor.

Debbie Kennedy, head of protection for Royal London Intermediary, noted, ‘renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly.’[1]

‘It would be bad enough to be taken ill without the added anxiety of getting behind with the rent and facing possible eviction. Income protection may be more affordable than people realise and can provide a financial safety net and enable people to focus on getting better,’ Kennedy added.[1]

[1] http://www.propertywire.com/news/europe/uk-property-market-buyers-2016052411948.html