Posts with tag: rental properties

Supply of rental accommodation slips further

Published On: February 25, 2016 at 11:51 am

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A worrying new investigation by the Association of Residential Letting Agents suggests that the supply of rental accommodation is at its lowest level since records began.

What’s more, demand for accommodation was up slightly in January.

Decline

Supply of rental accommodation slips further

Supply of rental accommodation slips further

After months of steady decline, January saw the number of properties registered per letting agent branch slip by 5%. The total currently stands at 172 properties, down by 10 on December 2015.

However, renters north of the border have much more choice, with 280 properties registered per member branch in Scotland. In London however, demand for property is being driven up by lack of supply, with just 116 properties available per registered branch.

Rising demand

Demand for rental property rose in January, following a lull in December. One average, 31 would-be tenants registered per member branch during the last month. This is still lower than in January 2015, when 38 tenants were registered per branch.

Growing demand was underlined by the number of agents reporting rent hikes in January. 30% reported a rise in rental values, the largest since September 2015.

‘Supply of housing continues to be a problem and tenants bear the brunt of this with more people competing for properties at higher prices,’ noted David Cox, managing director of ARLA. ‘The majority of tenants find that it is impossible to save very much at the end of the month to put towards buying their own home. Our recent Cost of Renting report found that a fifth of those renting in the UK do not expect to ever be able to afford to buy a home and unless we act soon to build more properties, this number will only get higher,’ he continued.[1]

Reforms

The upcoming stamp duty changes on buy-to-let and second residential homes is causing concern in the sector. 63% of ARLA members believe the Chancellor’s reforms will drive landlords out of the market. This in turn will lesson supply still further, with 58% of ARLA members believing that reforms will also push up rental costs.

Mr Cox went on to say, ‘a few weeks into the new-year and the April deadline for the stamp duty surcharge is looming and interest from buyers looking to invest in buy-to-let properties and beat the deadline is ramping up. The final details of the new tax will be revealed at the Budget in March but we are not expecting to see the Government back down on this policy.’[1]

‘The findings from our members echo our concerns that efforts to penalise buy-to-let will ultimately impact those entering and currently in the rental market, as by increasing rents landlords will seek to recoup their costs. Rent costs are already rising exponentially and tenants are feeling the strain of a crowded marketplace. We just need more houses; it’s a simple as that,’ he concluded. [1]

[1] http://www.propertyreporter.co.uk/landlords/where-have-all-the-rental-properties-gone.html

 

 

Renting in London – Only a Few Places are Still Affordable

Published On: January 10, 2016 at 2:50 pm

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Categories: Finance News

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Recent research has found that rent prices in London are the most expensive of any city in the world, at an average of £2,083 per month, after rising by 4% last year alone.

And while renting in the capital may seem impossible for some people, the huge gap between prices across London means that there is still hope for many prospective tenants.

Property investment firm CBRE found that Bexley is the most affordable London borough in which to rent, after examining 32 cities across the world. The average rental property in Bexley now costs around £1,007 per month.

Bexley, Havering, and Barking and Dagenham – all in the southeast of the capital – were named as the most affordable boroughs in London, with the average rent across the three areas more than £2,000 a month cheaper than in the most expensive borough.

Most affordable London boroughs for renters

Position Borough

Rent per month
1 Bexley £1,007
2 Havering £1,083
3 Barking and Dagenham £1,162
4 Sutton £1,166
5 Bromley £1,271
6 Enfield £1,285
7 Redbridge £1,293
8 Croydon £1,309
9 Waltham Forest £1,309
10 Hillingdon £1,311

The three most expensive boroughs for tenants are Kensington and Chelsea, the City of Westminster and the City of London, all with average rents of around £3,000.

Most expensive London boroughs for renters

Position Borough

Rent per month
1 Kensington and Chelsea £3,405
2 City of Westminster £3,062
3 City of London £2,945
4 Camden £2,615
5 Islington £2,282
6 Hammersmith & Fulham £2,168
7 Tower Hamlets £2,163
8 Lambeth £2,093
9 Hackney £2,088
10 Wandsworth £1,889

Although rent prices in Bexley are the cheapest in the capital, the borough has also experienced the fastest price growth over the past 12 months – rent there has risen by 10% in the last year, says CBRE.

Renting in London - Only a Few Places are Still Affordable

Renting in London – Only a Few Places are Still Affordable

There is a huge demand for rental property in Bexley due to good transport links, parks and low prices. Online letting agent Rentify found that last year, it was the second most searched for borough in London.

Head of Residential Research at CBRE, Jennet Siebrits, says Bexley – which was also the cheapest borough in 2015 – has remained affordable because of its location.

She explains: “It is a great place to live, but in outer London and therefore priced accordingly, it’s typically a family location, so hasn’t been a huge rental market. But its cheaper rents have attracted renters, hence the growth.”

Excluding London, rents around the UK sit at an average of £749 per month, after increasing by 3.5% over the year, according to the latest quarterly rental index from Homelet.

The firm reveals that the gap between rents in the capital and the rest of the UK is now the highest ever recorded.

Siebrits says the strength of the rental market reflects a sharp rise in the amount of tenants in London over the last ten years.

She says: “Renting is becoming ever more popular, with a significant increase in renters. This partly reflects affordability constraints – even before the financial crisis we were seeing an uptick, but it has magnified since the crisis – and subsequent credit constraints.”

She adds that the rise in immigration has led to more demand for rental accommodation: “London is arguably the global financial centre and attracts the top international conglomerate companies, which have workers who need temporary rental accommodation.

“At the other end, we attract Europeans who come here for employment opportunities, who also need accommodation and are not able to access the owner-occupation market.”1

1 http://www.telegraph.co.uk/finance/property/12058428/Where-in-London-can-you-afford-to-rent-Theres-only-a-few-places-left.html

 

Celebrity Landlords and Their Luxury Properties

Published On: December 20, 2015 at 4:20 pm

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Categories: Landlord News

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Being a landlord can be profitable, rewarding and exciting. So exciting that even celebrities are doing it – imagine finding out your landlord was Mick Jagger!

But not many of us will be able to rent from the rich and famous, as their lets are typically luxurious and exclusive.

Celebrity Landlords and Their Luxury Properties

Celebrity Landlords and Their Luxury Properties

So what kind of properties do celebrities rent out?

The most popular type of property is houses, with 62% of celebrity landlords letting this style. Next is apartments at 16%, followed by ranches or estates at 13%, private islands at 7% and boats at 2% – who has a private island to rent out?!

Singers/musicians are the most likely famous people to become landlords, with 31% of all celebrity investors coming from this profession. Actors follow at 27%, those in business at 10%, sports personalities and writers at 8%, TV personalities at 6%, magicians at 4%, and fashion experts and chefs at 2%.

It is unsurprising that most of these celebrity rental properties are in the USA, at 70%, but the Caribbean follows at 17%, with just 6% being in the UK, 4% in France and 2% in Brazil.

Richard Branson’s Necker Island is arguably the most exclusive celebrity let, costing up to £32,915 per night. Renting it for a whole year will set you back a whopping £12,014,623. So what do you get for all this? Well, the island sleeps up to 27 guests, so you can bring your family along. The main house has eight rooms and there are a further six villas on the island. The price does include meals, drinks and the service of 60 members of staff. Guests can also enjoy the zip line down to Turtle Beach and the many animals that roam the island, thanks to Branson’s passion for preserving endangered species.

So what kind of landlord is Mick Jagger? The rock star owns the aptly named Stargroves, a private island costing up to £16,132 per week – at least it’s cheaper than Branson’s! The island’s beachfront villa is Japanese-inspired and boasts six bedrooms, a tennis court and pool. Certain members of staff are included in the cost, such as a housekeeper, gardener and personal chef. Reportedly, Jagger personally vets his prospective guests before they arrive – at least he’s following standard practise!

For something a little more down to Earth, Hilary Swank has an apartment in Manhattan that can be rented out. But this still isn’t for everyone; living here will cost you a huge £12,910 a month. For this, you can enjoy a two-bedroom apartment in New York with views of the Empire State Building and a fully kitted out gym.

Okay, so are there any celebrity landlords that actually offer affordable properties?

Well yes, in fact, Robbie Fowler has a portfolio of around 80 rental homes, most of which are in the North West of England. The majority of the footballer’s properties are terraced houses – perfect for the average family. And as fans of Manchester City Football Club say, “We all live in a Robbie Fowler house” (to the tune of Yellow Submarine of course).

Supply of rental homes drops in May

Published On: June 25, 2015 at 4:21 pm

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The total number of rental properties available for tenants in Britain fell during May, widening the concern over the gap between supply and demand still further.

Data from a report by the Association of Residential Letting Agents indicates that supply of rental property fell by 7% in comparison to April. This represented 179 properties per branch of letting agents who are members of the organisation.[1]

Capital concerns

Highlighted in the report are concerns for the capital. Surprisingly, London had the least amount of rental properties per branch, with just 134 recorded in May. This was in comparison to 273 properties in Scotland. [1]

More concern came with the news that despite rental properties decreasing, demand remained the same. ARLA said that 36 would-be members registered per branch during May, which was the same as the last two months.

Additionally, the report shows that during last month, 34% of ARLA agents recorded rent rises for tenants. This is in comparison to the 27% recorded in January. Those residing in the South West were most affected by monthly rent hikes, with 49% of agents in the region suggesting an increase.[1]

Supply of rental homes drops in May

Supply of rental homes drops in May

Worrying

‘It is worrying to see that there is such as sharp decrease in supply, when we know there is already a struggle to meet housing needs,’ commented David Cox, managing director of ARLA. Despite agreeing that the months following the General Election were always likely to cause uncertainty, Cox believes that low supply and high demand are issues that will continue to plague the market.[1]

‘We are in desperate need of more housing stock in this country and supply and demand isn’t something that will level out overnight. It’s vital that the new government follows their promise of building more houses, so we can free up rental properties and head on the right path to turning the property market around once and for all,’ Cox added.[1]

[1] http://www.propertywire.com/news/europe/uk-rental-demand-supply-2015062510672.html

 

MP renters rise by a third

Published On: May 6, 2015 at 10:47 am

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On the eve of the closest general election in decades, an interesting study has revealed that the number of MP’s earning an income from renting out a property has increased during the last parliament.

The report from the Guardian indicates that the number of MP’s owning a rental property has increased by a third during the last five years. Prime Minister David Cameron, Chancellor George Osborne and Housing Minister Brandon Lewis are 3 of 153 members of parliament who declared an income from rental property in 2015. This was up from just 36 members in 2010.[1]

Anger

Statistics from the report indicate that one in four MP’s earn an income from at least one rental property. This data has been met with anger from housing campaigners, who argue that politicians in Britain are more bothered about maintaining equilibrium as opposed to helping improve tenants’ rights.

Alex Hilton, director of Generation Rent, believes that MP’s are not doing enough to combat rogue landlords. Hilton said that,’ there has been a quiet cross-party consensus in parliament in favour of landlords for decades. It’s time for full transparency, a full disclosure of all legislators’ land and property assets and a commitment to bar MP’s from voting on issues where they have significant financial and personal advantages from doing so.’[2]

MP renters rise by a third

MP renters rise by a third

Mr Hilton went on to state that, ‘MP’s often say that they’re also tenants in their second home so have balanced view. But setting aside the fact that the taxpayer is paying their rent, unless they are in cramped and damp bedsits, they really don’t have a clue.’[3]

Expenses

Of the increased number of parliament members renting properties, many have chosen to do so in the south-east in England, where the market gives the most substantial yields. However, many MP’s are renting out properties that have been subsidised by parliamentary expenses.

A Conservative spokesman however was bullish on the report, stating that, ‘official statistics show that rents have fallen in real terms in this parliament. They argue that the Conservatives are, ‘increasing investment in new build private rented accommodation, clamping down on bad practice by the small minority of rogue landlords and strengthening consumer protection.’ Additionally, the spokesman said that the Conservatives are, ‘supporting renters who want to step up to home ownership through our Help to Buy scheme.’[4]

[1-4] http://www.theguardian.com/politics/2015/may/06/number-of-mps-who-earn-from-renting-out-property-rises-by-a-third