Posts with tag: rental market

One-third of tenants frustrated by home buying barriers

Published On: January 31, 2016 at 9:42 am

Author:

Categories: Property News

Tags: ,,,,

33% of private tenants in Britain have been thwarted in their attempts to purchase their own property and have stayed in rented accommodation longer than they had originally planned, according to new research.

Frustration

Experian’s latest analysis of 1,500 renters in the UK suggests that many are frustrated first-time buyers.

18% of private tenants said they believed they wouldn’t be accepted for a mortgage with 10% saying they faced struggles in raising a deposit, thus delaying their plans to purchase. A further 5% said they had been held up with a mortgage agreement, prolonging their time in the private rented sector.

In spite of making regular payments as part of their tenancy agreement, many renters do not see this reflected on their credit score in the same way as mortgage holders.

‘Many would-be first time buyers face the challenge of saving for a deposit on a home while paying rent each month,’ observed Jonathan Westley from Experian. ‘While our research also shows that a significant amount of people are happy to rent in the long-term, whether it’s because they enjoy a good relationship with their landlord or the flexibility of rented accommodation.’[1]

One-third of tenants frustrated by home buying barriers

One-third of tenants frustrated by home buying barriers

 

Plans

25% of tenants surveyed intend to purchase a place of their own in the near future. 9% said that they were currently saving for a deposit, believing that this will be achievable within 18 months. 16% said they would need between two and five years to gain the necessary deposit.

On the other hand, one-third of renters said that they were content in the sector and had no plans to own a home of their own.

Would-be first time buyers that have been thwarted in their attempts to get a foot on the housing ladder are most-likely to be single parents or couples with young children. Three-quarters of this group said they would like be see rental payments contribute to their credit report.

Those who are happy to rent or live alone or with other adults are less likely to see rent as ‘dead money.’ 26% of happy renters disagree when asked if renting is a waste of money, in comparison to 16% of private renters.

[1] http://www.propertyreporter.co.uk/property/17m-tenants-frustrated-by-home-buying-hurdles.html

 

 

Evicted tenants should be compensated-Generation Rent

Published On: January 28, 2016 at 11:47 am

Author:

Categories: Landlord News

Tags: ,,,,

Generation Rent, the campaign group, has called for another controversial legislation to be added to the sector.

The group is asking for tenants who have been served notice to leave a property to be fully compensated by their landlord or letting agent.

Faultless

A lack of stability in privately rented housing means that more than one quarter of tenants could expect to lose their homes, through no fault of their own.

An investigation by BMG research found that 27% of current and previous tenants had been evicted by a landlord who wanted to either sell, refurbish or change the usage of a property. Another reason for eviction was found to be an unaffordable rent increase.

The most common reason for tenants losing a home was the landlord deciding to sell up (14%.) This was followed by 7% who said that soaring rents had forced them out.

However, 51% of respondents said that they were not aware that private landlords can evict tenants without giving a reason. 63% of people questioned said that private tenants, who had not broken the terms of their agreement, should be allowed to stay in their property.

Evicted tenants should be compensated-Generation Rent

Evicted tenants should be compensated-Generation Rent

Compensation

66% feel that abiding tenants forced out of their home should be compensated for the cost of moving to their new property, including 80% of private renters. 75% believe private landlords should be banned from raising their rents by more than the rate of inflation.

With the Housing Bill slowly passing through Parliament, Generation Rent has called on the Government to adapt the eviction law in order to prevent honest tenants who face losing their property a right to compensation. This, the group feels, will also deter landlords from evicting tenants in the first place.

‘Every time a renter moves home they spin the roulette wheel,’ notes Betsy Dillner, director of Generation Rent. ‘They might well get a good landlord who values long-term tenants, but this poll suggests that one in four of us will end up with a bad one sooner or later.’[1]

‘With increasing numbers of us facing a lifetime of renting, we need to be able to call the place we live a home and we can’t until the Government ends unfair evictions,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/1/generation-rent-calling-for-compensation-for-evicted-tenants

 

Tenants’ dream features revealed in new survey

Published On: January 25, 2016 at 12:54 pm

Author:

Categories: Landlord News

Tags: ,,,

A good-sized garden. A garage or a driveway to park the car on. The waft of seaside air in the lungs.

These three things have been identified as some of the key features representing tenants’ dream characteristics when renting a home.

Setting

A report by Property Let By Us.com shows that one-third of tenants would like to live in rented accommodation by the sea. 25% wanted a rural setting, with 18% preferring a cul-de-sac. 7% said they wanted a nice housing estate, with 5% wanting to live in a suburban location.

When asked about domestic features, nearly two-third of respondents said that off-road parking was their main desire. However, this feature was beaten by the number of tenants wanting a property with a garage (72%). A good-sized garden (41%), shed (35%), a big kitchen (30%) and superfast broadband (28%) came next in the list of desirable amenities.

Tenants' dream features revealed in new survey

Tenants’ dream features revealed in new survey

Surprising

Jane Morris, Managing Director of PropertyLetByUS.com, noted that the survey provided some, ‘interesting findings that might surprise landlords. A property by the sea, or in a rural location, is a dream for many home owners and tenants. Landlords that own properties in these locations, or provide some of these most desired domestic appliances, will be spoilt for choice when finding new tenants.’[1]

Clearly, landlords have the opportunity to enhance their properties and boost their rental income by adding some of these dream domestic features. Superfast broadband for example is becoming widely available and many rural locations are being connected over the next two years. Storage such as sheds and garages is high on the wanted list, especially for families,’ Morris added.[1]

[1] http://www.propertyreporter.co.uk/landlords/what-would-make-a-dream-home-for-a-tenant.html

Seasonal lull in BTL ahead of expected surge

Published On: January 25, 2016 at 11:46 am

Author:

Categories: Landlord News

Tags: ,,,,

A typical, seasonal lull occurred in the rental market during the last month, with the supply of properties falling alongside demand.

These were the findings of the latest report by ARLA, whose agents registered an average of 29 prospective new tenants in December. This was down on the 34 recorded in November, a fall of 15%.

Supply also dipped in the last month, with an average of 182 properties managed per branch, as opposed to 189 in the previous month. Potential renters in the capital however were not spoilt for choice, with an average of only 108 properties managed per branch, 43 less than the overall national average.

Rent relief

In addition to falling supply and demand, rents also slid in December, with the number of tenants experiencing rental increases dropping. Just 18% of ARLA letting agents reported an increase in rents, a drop of 5% since November. Additionally, this was the lowest total recorded in the whole of 2015.

‘As we’d expect in December, the UK saw a lull in activity, with people putting off any moves until January,’ noted David Cox, ARLA managing director. ‘It’s reassuring to see the number of agents reporting rent increases is still on the decline-some encouraging news for tenants as we start 2016’.[1]

A change is coming

Unsurprisingly, the views of ARLA members on the upcoming tax hikes mirror those of the wider sector. 62% believe that the changes will push up rents, while 65% believe the alterations will lead to some landlords leaving the sector, thus lowering supply still further.

The upcoming changes in legislation seem to be having an immediate impact on investors, with ARLA agents recording a 24% increase in investors looking to purchase before the changes come into play in April.

‘With supply, demand and the number of agents reporting rent increases all declining in December, this could well be the calm before the buy-to-let storm,’ Cox continued. ‘Buy-to-let landlords determined to complete purchases before the changes come into force in April are storming the UK housing market, meaning the lull we’d usually see is less significant.’[1]

Seasonal lull in BTL ahead of expected surge

Seasonal lull in BTL ahead of expected surge

‘Subsequently, after April, we’re very likely to see the number of buy-to-let properties on the market begin to decrease and this will most certainly have a detrimental effect on renters across the country,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/is-this-the-calm-before-the-buy-to-let-storm.html

 

 

Rogue landlord hit with whopping £67,000 fine

Published On: January 23, 2016 at 10:16 am

Author:

Categories: Landlord News

Tags: ,,

A rogue landlord who continually let out an awfully maintained property has been given a huge fine.

Mr Liakath Ali of Bedford was found guilty of letting out damp and overcrowded rooms and as a result was hit with a whopping £67,000 fine.

Costly

In all, Mr Ali was ordered to pay:

  • A confiscation order of £36,936
  • £12,500 in fines
  • £17,500 in costs
  • A victim surcharge of £120

Offences related to a property in Stepney, located in London’s Tower Hamlets. The orders were based on the local council’s financial investigation report that investigated Ali’s rental income and his equity in the four properties he owned.

Such a substantial fine was decided upon after taking into account the amount of neglect that Mr Ali had shown. The property had no fire alarms, widespread mould, was overcrowded and had a rat infestation.

In addition, one room of the house was found to have inadequate light, with two other rooms having two people living in them, when there was only sufficient space for one occupant.

Rogue landlord hit with whopping £67,000 fine

Rogue landlord hit with whopping £67,000 fine

Shared

The large sum will be shared between the Courts Service, the national government and Tower Hamlets council, to help fund housing enforcement measures for the future.

A council spokesman said, ‘it is vital that landlords in the borough are committed to renting out their properties within the confines of the law. We trust them to ensure they have the necessary safety measures in place to protect their tenants. We only take enforcement action against rogue landlords as a last resort.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/1/massive-67-000-fine-for-letting-out-dirty-and-overcrowded-property

 

£5m pot to tackle rogue landlords announced

Published On: January 22, 2016 at 12:04 pm

Author:

Categories: Landlord News

Tags: ,,,,

The Housing Minister Brandon Lewis has today announced a £5m fund to crackdown on rogue landlords across England.

48 councils will split the cash, which will be used in order to root out irresponsible landlords that force their tenants to live in unsuitable and dangerous properties.

Improving the sector

Additionally, the money will assist councils to conduct inspections, surveys and demolish ‘beds in sheds’ and other prohibited buildings.

Since 2011, almost 40,000 inspections have taken place across the country, with 3,000 landlords served with enforcement actions, statutory notices or prosecutions.

Lewis has provided the funding to try and make sure that millions of hard-working, law-abiding tenants receive a better deal when renting a property.

Tough tackling

Mr Lewis said that, ‘many private rental tenants are happy with their home and the service they receive, but there are still rogue landlords that exploit vulnerable people and force their tenants to live in overcrowded and squalid accommodation.’[1]

‘We are determined to tackle these rogue which is why we are providing 48 councils with extra funding, so they can get rid of the cowboy operators in their area and bring an end to tenants living in miserable homes in the name of profit. We also want to raise the quality and choice of rental accommodation across the sector. The funding will ensure tenants know what level of service they can expect and have confidence to get help and take action if things go wrong,’ he added.[1]

£5m pot to tackle rogue landlords announced

£5m pot to tackle rogue landlords announced

A better buy-to-let sector

The announcement comes as part of the proposals in the Housing and Planning Bill, aimed at ensuring England’s 9 million private sector tenants are given better standards by their landlords.

Included in the Housing and Planning Bill proposals are:

  • a database of rogue landlords and agents convicted of previous offences
  • total banning orders for the most prolific offenders
  • introduction of civil penalties up to £30,000, instead of prosecution
  • a more hardline fit and proper persons test for landlords of licensable properties, such as HMO’s

Councils

A full-run down of the forty-eight councils and how much of the £5m they have been allocated is as follows:

  • Birmingham £110,250
  • Blackburn with Darwen £39,375
  • Blackpool £150,000
  • Boston £74,600
  • Bradford £45,000
  • Bristol £135,000
  • Burnley £18,200
  • Calderdale £100,000
  • City of Lincoln £96,071
  • Cornwall £127,500
  • Croydon £15,000
  • Derby £13,161
  • Ealing £150,000
  • Fenland £44,500
  • Hastings £122,734
  • Hyndburn £112,500
  • Ipswich £56,250
  • Islington £112,500
  • Lambeth £90,000
  • Leeds £70,000
  • Lewisham £151, 378
  • Liverpool £112, 500
  • London Borough of Barking and Dagenham £250,000
  • London Borough of Brent £295,000
  • London Borough of Enfield £360,000
  • London Borough of Hackney £36,400
  • London Borough of Hammersmith and Fulham £91,000
  • London Borough of Haringey £100,000
  • London Borough of Hounslow £67,500
  • London Borough of Newham £428,241
  • London Borough of Southwark £31,200
  • London Borough of Tower Hamlets £100,000
  • London Borough of Waltham Forest £225,000
  • Luton £94,000
  • Manchester £60,000
  • Middlesbrough £100,000
  • Newcastle £70,000
  • North East Lincolnshire 64,250
  • Nottingham £151,079
  • Pendle £22,500
  • Peterborough £112,500
  • Plymouth £60,000
  • Royal Borough of Greenwich £175,000
  • Salford £63,952
  • Slough £90,000
  • Thanet £88,737
  • Kensington and Chelsea £91,000
  • Torbay Council £90,000

[1]

[1] https://www.gov.uk/government/news/5-million-cash-for-councils-to-stop-rogue-landlords