Posts with tag: rental market

Tenants could pay more if told they can decorate

Published On: November 18, 2015 at 10:23 am

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Tenants could be willing to pay more if they are allowed to decorate their rental accommodation, according to a new report.

Research from insurance provider Endsleigh found that on average, tenants would be happy to fork out an extra £149.52 a year, if landlords gave them the green light to personalise their home.

Increased revenue

At present, two million landlords let out five million homes in Britain. Endsleigh calculates that there is potentially an extra £530m in revenue to be had for landlords who promote the fact they are happy for tenants to decorate their property.

43% of tenants were found to be willing to pay more rent, with only 29% of those surveyed saying they had the freedom to decorate their home. It also showed that 20% said they would be very reluctant to invite friends or relatives into their property due to being embarrassed about the décor.

19% expressed a desire to paint the walls the colour of their choice, while 17% wanted to hang pictures or mirrors up. 10% said they wished to put wallpaper up in their rental property. In addition, the research revealed that 9% of tenants questioned wish to use blu-tack to put things up, with another 9% wishing to mount a television onto the wall.

Tenants could pay more if told they can decorate

Tenants could pay more if told they can decorate

Reluctance

However, many tenants are reluctant to ask their landlord for permission to go ahead with interior alterations. Just 28% said that they would ask for the go ahead to decorate. Encouragingly, of those that did ask, 76% said that their landlord agreed to the request, despite it going against the terms of their tenancy agreement.

David Hadden, manager for landlords and lettings at Endsleigh, noted, ‘with it being so difficult to get on to the property ladder, people are now renting for longer, so naturally they are going to want to decorate the property they are living in long term.’[1]

‘Landlords who allow tenants to personalise their property could be favoured over those who don’t and may be able to command a higher rental price. If tenants feel at home in their property they may also have longer tenancies,’ he added.[1]

[1] http://www.propertywire.com/news/europe/uk-tenants-landlords-decor-2015111811218.html

 

 

70,000 per year can’t afford market housing

Published On: November 17, 2015 at 10:32 am

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Worrying new research conducted by estate agents Savills suggests that in every year for the next five years, 70,000 new households in England will be unable to afford to buy or rent market housing, unless they are assisted.

This indicates that 350,000 households will require some kind of sub-market housing by 2020.

Targets

According to the report, owner occupation remains the tenure of choice for the majority of people. The Government has given a target of delivering 200,000 new homes a year over the course of the current Parliament, with an ultimate goal of reversing the decline in home ownership.

Savills warns however that a consequence of this plan could be a fall in affordable housing numbers for the very lowest income households.

Data from the report analyses the cost of buying or renting a home in the current market and assumes 30% of gross household income is spent on housing. Taking this into account, at least 70,000 new low-to-middle income households per year will be unable to live in market housing.

The agency claims that the nature of households that are unable to access market housing varies hugely across the country, with the problem at its worse in London and the South East.

70,000 per year can't afford market housing

70,000 per year can’t afford market housing

London falling

In London, there are concerns that households that earn an average income of 60,00 per annum and still not be able to afford market housing.

Chris Buckle of Savills’ research team, said that, ‘there can be no question that we need to boost housebuilding volumes, but these new homes need to be built across a variety of tenures to put homes within reach of those in greatest need.’[1]

‘Our concern is that new policy will result in a greater shift from sub-market rental products towards more expensive shared ownership and Starter Homes accessible only to those on middle incomes,’ he added.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/11/70-000-new-households-a-year-cant-afford-to-buy-or-rent-says-agency

 

 

 

It’s alright to use white

Published On: November 13, 2015 at 4:08 pm

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Categories: Landlord News

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Buy-to-let landlords are constantly competing with each other to try and gain the upper hand and to ultimately secure a tenancy agreement. Some of the major selling points for would-be tenants are the décor and contemporary fittings within a property.

With this in mind, many landlords choose to brighten up their rooms by using bright colours, particularly on feature walls and for furniture. However, Yanic Simard, head designer at Toronto Interior Design Group, feels that simply using radiant white can go a long way in making homes look modern and stylish.

Simard believes that by using simple white colours landlords, ‘can add drama’ to aid the following:

Brighten up Greys and Taupes

Where a space is centered on mundane colours such as greys, even a small amount of fresh white paint can transform a room, more so than an aqua blue or soft red.

Simard notes that, ‘in a design with colorful walls, white is a powerful tool for adding a sense of contrast without clashing or overloading on too many hues. It brings drama to the center of the room here so the walls aren’t the sole source of interest. And yet it does this without creating visual conflict.’[1]

Break Patterns

 Purchasing white furniture to break up busy wall colours can make the room look more subtle and not overwhelm would-be tenants when they view the property. Additionally, this gives the landlord more scope when choosing patterned cushions and other amenities.

Of course, people may see white furniture as real challenge to keep clean and may therefore stay clear of purchasing. However, Simard believes that, ‘white furniture doesn’t have to be a maintenance nightmare.’ He says that, ‘a material like plastic, lacquered wood or coated metal will add an equally clean counterpoint to a busy dining room wall for fresh energy.’[1]

Soften Bold Decor

White trims, such as on door frames and mirrors, can help to soften high-drama looks. Additionally, using white trims can bring out the detail in grand features, which could have been lost with the use of darker colours.

Simard explains, ‘In an eclectic space with curated antiques, hits of clean white translate to a sense of modernity, so the overall effect reads more transitional than strictly traditional. It’s perfect for those who can’t settle on one time period but instead prefer a timeless cosmopolitan look.’[1]

Break up dark colours

Landlords should always try and break up darker colours with even just a hint of simple white. Features such as white lampshades, frames or ornaments can all break up a dark wall treatment. Similarly, a large focal piece, such as a picture, with a white background, can command attention effectively.

In darker spaces, bits of white can become doubly important in order to reflect the light. A little bit of fresh white colouring can improve the sophistication of a room intentionally designed to be moody.

A little white can do a lot

 It is advisable that landlords should look to add small white accessories to dark furnishings, such as bright pillows or cushions. Furthermore, landlords should look to put some white accessories in close proximity to other white items, such as window frames or lampshades.

[1] http://www.houzz.co.uk/ideabooks/43902685/list/why-white-is-the-ultimate-pop-of-color 

 

Rent gap between London and rest of UK grows

Published On: November 10, 2015 at 11:56 am

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The void between the pace of yearly rent rises in the capital and the rest of the UK has grown again, according to data from the latest HomeLet Rental Index.

After shortening during the summer months, the gap widened in the third quarter of 2015, with rents up annually by 7.5% year on year in London and 3.5% in the rest of Britain.

Capital gains

On average, tenants in London paid £1,560 per month, over £800 more than the rest of the UK. For the second consecutive month however, rents are rising most quickly in Scotland, where a 9% rise was recorded.

With the pace of rent rises slowing over the Autumn months, rent inflation has grown in nine of the twelve regions. The only exceptions were the North West of England, where rents were down by 4.9%, Northern Ireland (-2.1%) and East Anglia (-1.2%).

In addition, the October index shows new views from tenants about the rental market. Results show that a number of tenants are renting their home for the long-term and that value is placed on a good relationship with their landlord.

Rent gap between London and rest of UK grows

Rent gap between London and rest of UK grows

Trust

64% of respondents said that they wanted to continue renting for one year or more, with 90% saying that they were happy with their landlord. This said, 71% noted that they would prefer to own a home, with 66% believing that saving for a deposit is the greatest barrier preventing this.

Martin Totty, chief executive of HomeLet parent company Barbon Insurance Group, said, ‘our survey showed that many tenants ultimately aspire to own their own home, but that just over half of them aren’t actively saving for a deposit yet. 66% of those questioned said that a deposit wasn’t affordable for them.’[1]

‘However, the positive news is that almost nine out of ten tenants told us that they were happy with the standard of their current rented property and the majority of tenants told us they were happy with the service provided by their landlord or letting agent. Whilst we are seeing upward pressure on the rental market it’s important that the sector continues to drive professional standards forwards for mutual benefit of tenants, landlords and letting agents,’ Totty added.[1]

[1] http://www.propertywire.com/news/europe/uk-rental-market-index-2015111011185.html

 

 

September sees West Midlands rent rise

Published On: November 3, 2015 at 10:54 am

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A new investigation by ARLA has indicated that tenants in the West Midlands saw the largest rent increase in all UK regions during September.

Data from the report shows that rents in the region soared during the month, with 59% of tenants reporting a rise.

Rental Rises

This was in comparison to 22% in letting agents in London who noted rental increases in the same period. The UK average in September was 32%.

In addition, there was more success in the Midlands, this time in the East, as the survey found that there were 272 managed properties per member branch in the region. This was compared to the UK average of 182.

However, London recorded the lowest number of managed rental properties, with just 124 on average per branch, with supply still way behind satisfying demand.

Prominent

The North West saw the most prominent rental property demand, with agents registering 40 new prospective tenants per branch in September.

Demand continues to be prominent in the South, with ARLA agents in London, the South East and South West all registering an average of 39 new potential tenants per branch. However, agents in the East Midlands and Scotland are seeing the lowest number of new potential tenants coming through the doors.

UK rents rise in West Midlands

UK rents rise in West Midlands

Happiness

Tenants in the East of England also seem the happiest, with people in this region staying in their home for the longest period. On average, people in the area are staying for 20 months. However, those living in the North West only tend to live within a property for an average of 15 months at a time, which could be a reason why it has the greatest number of prospective tenants per branch.

Additionally, the report shows that rental properties in the capital have an average of 6 viewings before they are let, the highest in the UK. This is in comparison to properties in the East of England, which command an average of 3 viewings before a tenant moves in.

‘It’s interesting to see how tenants across the country are affected in different ways when it comes to the rental market,’ said David Cox, ARLA managing director.’ He believes that, ‘each region has its own issues, whether it’s a lack of suitable housing, no available housing at all, or over inflated rent prices.’[1]

Cox went on to say that, ‘it’s a surprise to see that those renting in the West Midlands are suffering from rent increases the most, when many of us would automatically think tenants in London would be the most prone to rent increases due to the competition in the capital.’[1]

‘The rental property market remains a significant concern, as prospective house buyers either can’t afford to get onto the housing ladder, or simply can’t find a house they are willing to buy, putting increasing pressure on the rental market. Until the issue of supply and demand is addressed, we will continue to see tenants across the country struggling to get a good deal on rental properties,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-rental-marekt-rents-2015110311159.html

 

Build to Rent to include affordable homes

Published On: October 21, 2015 at 4:10 pm

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Build to Rent development in the capital currently runs at over double that in the rest of the UK. A new manifesto is now calling for more affordable properties to be included in similar schemes.

Construction

At present, there are 14,276 units in planning, construction or completion phases across London, in comparison to 7,112 in the rest of the country, according to data taken from a report by the British Property Federation.

Results also show that there are at least 3,404 completed units in London, compared to just 240 in the rest of Britain.

As a result, the organisation has released a new manifesto for the Build to Rent Sector, in which it calls on the Government to follow the lead of the Greater London Authority, by changing national planning policy. The BPF feel that the appropriate affordable housing on new Build to Rent developments should be discounted market rent.

The British Property Federation has long supported the role Build to Rent has to play in improving housing delivery, attracting long term investment that can potentially boost housing supply.

Build to Rent to include affordable homes

Build to Rent to include affordable homes

Deliverance

Research indicates that Build to Rent can deliver homes at 2.5 times the speed of developments for sale and there is £10bn of firm commitments. In addition, there is as much as £30bn that the sector has ready to invest during the length of this Parliament. Experts suggest that the £10bn of investment identified for Build to Rent would create around £28bn of wider financial and economic benefit.[1]

Melanie Leech, chief executive of the British Property Federation, said, ‘it has felt for a long time that Build to Rent has been on the cusp of becoming a sector in its own right. Today, we are proud to show that the sector has really taken off, and it is great to see how many fantastic projects are either underway or completed and that residents have quality rented homes.’[1]

This said, she believes that, ‘there is more that can be done to encourage the sector to grow. The GLA has paved the way for Build to Rent, introducing both ambitious targets and supplementary planning guidance and the map launched today shows that this has really paid off.’[1]

‘The Government has everything to gain from encouraging this sector, which will attract significant institutional investment into UK housing supply, deliver new homes quickly and drive up standards in the private rented sector and we hope to see it continue to support it,’ Leech concluded.[1]

Reality

Andrew Stanford, residential fund manager at La Salle Investment Manager and chairman of the BPF’s Build to Rent Committee, noted that momentum behind Build to Rent continues and its moving from theory to reality.

Stanford noted, ‘with continued support from both national and local government this progress can continue. The growing number of long-term institutional investors in the sector will then find a suitable home for their capital, ensuring that housing supply and tenant choice can increase.’[1]

[1] http://www.propertywire.com/news/europe/uk-build-rent-sector-2015102111117.html