Posts with tag: renters

Rents in Scotland reach record highs

Published On: July 12, 2017 at 8:59 am

Author:

Categories: Property News

Tags: ,,,,

Recent figures show that rents in Scotland have reached a record high, with demand from renters continuing to exceed supply.

The report for the second quarter of 2017 indicates that rents rose by 1.5% year-on-year to hit an all-time high of £789 per calendar month. This was led by growth in Edinburgh and Glasgow.

Build to Rent

A key driver of the Scottish rental market is the rapidly growing Build to Rent. As Stuart Montgomery, Director of Lettings at Rettie & Co, observes: ‘Build to Rent is now emerging in Scotland as a key new residential use class, with over 2,500 units now in the pipeline in Edinburgh and Glasgow.’[1]

By region, the Citylets report offered these insights into rental markets in Aberdeen, Edinburgh, and Glasgow:

Aberdeen

The rate of decline eased in the quarter from -11.2% to -5.2%. In addition, there was positive growth for four-bedroom properties, representing the first rise for any property type in the city for nine quarters.

Average rents in Aberdeen are currently £788pcm – just £1 below the national average.

Lisa Breber of Stonehouse letting noted: ‘There is also evidence to suggest that the decrease in rental levels is now beginning to stabilise. Stock levels in Aberdeen remain high, however, generally a well presented and fairly priced property will let quickly.’[1]

Rents in Scotland reach record highs

Rents in Scotland reach record highs

Edinburgh

In Scotland’s capital, there has been positive annual growth every quarter for the last 8 years. Now, the average property to rent here stands at £1,037pcm, representing a new all-time high.

The Citylets Index for the city indicates that there has been around a 4% growth annually since the start of 2008. However, this figure has risen to around 6% since 2012.

Glasgow  

Glasgow has seen year-on-year gains regularly hit between 4-5%. Rents here are now £755pcm, a rise of 5% from the same period in 2016. All property types here experienced positive gains, with rents for four-bedroom dwellings rising by 10.1% over the year.

Strong Growth

Thomas Ashdown, MD of Citylets, observed: ‘Our latest report underlines the metronomic strong growth in Scotland’s largest cities.’[1]

‘Edinburgh has recorded positive annual growth every quarter for a full eight years and averages 6% over the last five years. Glasgow is up 5% on average over the same period,’ he continued.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/rents-hit-record-high-in-scotland-as-demand-far-exceeds-supply

 

Rise in the number of retiree tenants recorded

Published On: July 4, 2017 at 8:47 am

Author:

Categories: Property News

Tags: ,,,

A new report from letting agency Countrywide has revealed that there has been a substantial rise in the number of retiree renters.

Data from the analysis shows that retirees have paid a total of £3.7bn in rent during the last year – a rise of 200% in comparison to the £1.2bn paid in 2007.

In addition, the research highlights that retired people now make up 8% of all private tenants, a rise of 5.2% in comparison to ten years ago.

Older Tenants

Households aged over 65 presently account for nearly 12% of all those living in the private rental sector, with this figure set to increase.

Girlings Retirement Rentals believe that this increase can be attributed to changing attitudes and perceptions to renting by the older generation. The firm has seen a steady growth in the number of enquiries received since 2002, with figures seen in 2015 and 2016 the highest on record.

The survey from Countrywide suggests that there are several reasons that the over 65s wish to downsize in their retirement. 34% of respondents said that they would move should they come to need more support, while 33% wanted lower property maintenance.

26% cited wanting fewer stairs for their reasons. Others highlighted wanting to live in a smaller house, reducing their outgoings and having a smaller garden to keep on top of.

Rise in the number of retiree tenants recorded

Rise in the number of retiree tenants recorded

Pipe Dream

However, moving is but a pipe dream for many, with 42% believing there is a lack of suitable properties in the UK in which to move into.

Peter Girling, Chairman of Girlings Retirement Rentals, noted: ‘As people get older they want different things from a home and the option to downsize is something many would consider. Renting in a specialist retirement development is becoming a popular lifestyle choice. We offer properties on assured tenancies, so people have security of tenure which is very important for older people.’[1]

‘Renting enables people to step off the property ladder, sell their homes and release capital to help fund retirement. They can downsize to a more manageable sized property, with added support services included in the rent – and be free from the burden of property maintenance or upkeep,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/sharp-rise-in-number-of-older-tenants

More younger tenants likely to vote in future Elections

Published On: June 26, 2017 at 1:22 pm

Author:

Categories: Property News

Tags: ,,,

Following criticism of young voters supposedly not turning out to pledge a vote during the 2016 EU Referendum, new analysis suggests that more youngsters voted during the recent General Election.

Analysis from tenant referencing firm Rent4sure suggests that the size of the 18-24 age group currently not on the electoral roll has dropped by half during the last four years. In percentage terms, this was a drop from 4.9% to 2.5% -with this figure still falling.

Electorate

The analysis from Rent4sure looks at UK national referenced to rent property and shows that 98% of those in this category are now on the electoral roll. This was a rise of 2% from 2013.

Of this 98%, nearly one quarter are aged between 18-24, with over half aged between 25-39. Almost one fifth are aged between 40-64, with just 1.4% aged 65% or over.

More younger tenants likely to vote in future Elections

More younger tenants likely to vote in future Elections

Luke Burton, director at Rent4sure, observed: ‘New housing minister Alok Sharma would be wise to sit up and take note of the growing influence of the ‘renting youth.’[1]

‘Generation Rent is growing with an anticipated 24 per cent of households predicted to be living in private rental accommodation by 2021, according to recent research by Knight Frank. What’s more the under 40’s make up the largest proportion of private renters,’ he continued.[1]

Concluding, Mr Burton said: ‘The rental generation is looking for appropriate housing and this demand is growing. Mr Sharma has a challenge ahead to ensure appropriate housing is available to meet demand, with investment in Build To Rent being a large factor.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/6/younger-private-tenants-increasingly-likely-to-register-to-vote

 

Fewer EU nationals looking to rent in UK following Brexit vote

Published On: June 21, 2017 at 8:51 am

Author:

Categories: Property News

Tags: ,,,,

New figures have revealed that there has been a sharp fall in the number of EU nationals looking to move to Britain following the result of last year’s referendum.

This in turn is putting downward pressure on rental demand in many parts of the UK, according to data released by SpareRoom.co.uk.

Referendum Changes

In the lead up to the EU referendum, the number of EU nationals looking to move into the UK was up by 14.7%. However, during the 10 months following the decision to leave the European Union, that percentage fell to just 4.35%.

Further data from the flatshare website shows that the UK’s decision to exit the EU has led to a significant decline in people from Eastern Europe looking to rent in Britain. This was fronted by an 8% drop in those coming from Slovakia, 5.54% from Poland and 3.18% from Hungary.

Matt Hutchinson, director of SpareRoom.co.uk, observed: ‘With so much uncertainty over what Brexit really means, it’s no surprise to see interest in moving to the UK from EU countries in decline. Until people know how their freedom of movement and right to reside will be affected it’s hard for them to make long term decisions.’[1]

‘Key Eastern European countries like Poland, Slovakia and Romania, which have traditionally supplied large number of workers to the UK, are showing the biggest drops in traffic,’ he continued.[1]

Fewer EU nationals looking to rent in UK following Brexit vote

Fewer EU nationals looking to rent in UK following Brexit vote

Immigrants

What’s more, the data show that the result of last year’s referendum is putting off a number of immigrants from outside of Europe coming into the UK.

Growth in non-UK traffic in the 10 months following the Brexit vote stood at 8.73%, in comparison to 19.65% in the period before.

In addition, the UK saw a fall in interest from the USA.

Hutchinson concluded by saying: ‘We also saw a spike in interest in moving to the UK from the USA in the weeks surrounding the presidential election last year. While it’s probably too simplistic to entirely put that down to anti-Trump sentiment, the timing suggests that’s a factor.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/6/fewer-eu-nationals-renting-property-in-the-eu-flatshare-data-suggests

 

Homeowners more content than renters

Published On: June 8, 2017 at 8:50 am

Author:

Categories: Property News

Tags: ,,,,

The majority of property owners in the UK are pleased with their property – with those aged over 55 most content.

However, tenants are not as pleased generally with where they live, according to new research from TheHouseShop.

Happiness

In all, 83% of home owners said that they were content with their property, in comparison to 54% of tenants renting a property from a private landlord.

What’s more, tenants were more likely to be more unhappy with their property. 21% of tenants asked said that they were either fairly or very unhappy with their current dwelling, as opposed to 8% of owners.

Nick Marr, co-founder of TheHouseShop, believes that the findings are not overly surprising, given groups such as Shelter and Generation Rent have long called for better standards and protection for tenants.

Homeowners more content than renters

Homeowners more content than renters

Marr observed: ‘For home owners, the commitment to a property is much more permanent than it is for renters, and buyers will spend a lot of time and effort choosing their ideal property and carrying out improvement works over the years to perfect it.’[1]

‘Tenants, on the other hand, are rarely allowed to make even superficial changes or improvements to their homes, so it is highly unlikely that they will ever achieve the same level of happiness as home owners,’ he added.[1]

Divide

The research uncovered a clear divide between the young and old age groups. The over 55’s were by far the happiest, with 85% happy with their property.

On the other hand, 25 to 34 year olds were least likely to be very happy with their properties, with only 16% stating that this was the case. Only one in twenty over 55’s said that they were unhappy with their home.

[1] http://www.propertywire.com/news/uk/owners-uk-happy-home-private-rented-sector-tenants/

UK landlord to scrap rental deposits

Published On: May 25, 2017 at 8:51 am

Author:

Categories: Landlord News

Tags: ,,,,,

A UK landlord has moved to scrap rental deposits from 14th June 2017 for new residents. Get Living is also returning security deposits to existing residents, which will see roughly £3million released back to the UK economy.

Launched in May 2013, Get Living is the force behind the country’s biggest single-site PRS scheme at the old London 2012 Athlete’s Village – now known as East Village, E20. This site is home to over 3,000 tenants in 1,439 homes.

No Deposits

From 14th June, new residents who pass referencing checks or have a guarantor in place will not be required to pay a security deposit. In addition, as a reward for residents that have taken good care of their home and paid rent on time, Get Living will waive any cleaning costs should these amount to less than a week’s rent.

Present Get Living residents will have their deposits returned to them from early July 2017. Firstly, deposits will be returned to residents who have lived in the same East Village residence for longest, with this process expected to be complete by the end of the year.

UK landlord to scrap rental deposits

UK landlord to scrap rental deposits

Neil Young, CEO of Get Living, observed: ‘Get Living was the first to revolutionise the rental experience in the UK by removing agency fees and introducing longer term tenancies as standard. We know that the cost of living can be high so, as a responsible landlord with a long-term perspective, it is important for us to be able to identify and address areas where we can alleviate the burden on our residents. Scrapping security deposits as a pre-requirement and returning deposits to current residents is yet another step we are taking to show we are firmly on the side of renters.’[1]

‘We launched Get Living four years ago this month and in that time our average deduction from deposits has been just a few days’ rent, with the majority of our residents getting their deposits returned in full. We have great relationships with our residents and, given they are taking such good care of our homes, why should we hold six weeks’ rent? We can do this at Get Living because we have the scale and track-record to know it will work.

“Where we have led – with no fees and longer tenancies – others have followed. We hope deposit-free renting becomes the norm,’ he added.[2]

[1] http://www.propertyreporter.co.uk/landlords/uk-landlord-scraps-rental-deposits.html