Posts with tag: renters

More young people giving up on homeownership

Published On: March 23, 2017 at 2:01 pm

Tags: homeownership,house prices,property,renters,tenants

The ever-growing gap between incomes and house prices continues to rocket, leaving a rising number of young people giving up on the idea that they will ever own their own property.

According to research from the Halifax, 48% of 18-34 year olds feel it is harder than ever to get a foot on the housing ladder. In fact, 25% of people in this age bracket feel the only way they will make it onto the ladder is if they inherit the money.

Challenges

One in five questioned said that homeownership is a thing of the past. This adds weight to the theory that many people are giving up on owning property and instead renting for more long-term periods.

80% said that the lack of affordability was their main barrier to homeownership, with 14% saying they will rent forever.

Deposits remain unrealistic for 52% of tenants asked and the average age of those buying their own home has risen to 30.

More young people giving up on homeownership

Deposits

Overall, the average deposit put down for an average first-time buyer is £32,321. This figure rises to £100,445 in London!

By region, average house prices as shown in the Halifax research are:

London-£402,692

South East-£272,777

South West-£200,465

East Anglia-£196,367

West Midlands-£159,732

East Midlands-£153,779

North West-£144,367

Scotland-£137,188

Yorkshire-£135,719

Wales-£133,730

North-£124,117

Northern Ireland-£115,269

Martin Ellis, Housing Economist at the Halifax, said: ‘Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet-saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/forever-renters-young-people-increasingly-giving-up-on-home-ownership

Report reveals tenants’ lack of knowledge of rental market

Published On: March 1, 2017 at 10:50 am

Author: Em Morley

Categories: Property News

Tags: landlords,private rental sector,renters,tenants

A new survey of 1,000 tenants and landlords has provided a bleak account of the state of the private rental sector.

The report suggests that the growing complexity of the sector is providing many tenants and landlords with real challenges.

Legislation Changes

Just under half of tenants said they had never heard of fake landlord scams before, despite them receiving extensive media coverage in the last year.

During 2015, cases of rental fraud reported to Government body Action Fraud increased by 44% year-on-year. The Local Government Association suggests however that this represents just 5% of the true number of victims, as the majority of cases go unreported.

Worryingly, the Government says that fake landlord scams lead to £63m being lost by tenants in the last year.

Report reveals tenants’ lack of knowledge of rental market

Awareness

In addition, the survey revealed a lack of awareness concerning Government-backed initiatives such as mandatory membership of agents in one of the redress schemes, alongside those for landlord licensing and accreditation.

Andrew Goodacre, Chief Executive of the RLA, observed: ‘While the vast majority of private rental sector landlords are providing safe and secure homes for renters across the country we are aware the criminal minority are out there. The Residential Landlords’ Association has always promoted tenant and landlord education to encourage a greater awareness of responsibilities among both landlords and tenants, which in turn improves standards in the sector.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/survey-reveals-tenants-shocking-lack-of-knowledge-about-renting

Average rents falling in London

Published On: February 27, 2017 at 10:32 am

Author: Em Morley

Categories: Property News

Tags: Brexit,London rents,private rental sector,renters

The latest report from London based estate agent Foxtons suggests that uncertainty surrounding Brexit and increased supply putting pressure on rents dominated the capital’s lettings market at the end of 2016.

Looking at the performance of the London lettings market in Q4 of 2016, the agent said there was an upward spiral in the number of renters from Western Europe. This indicates that there is recovering confidence in the market despite external influences.

Trends

More findings from the report show that average rents in London continued to fall during the final quarter of the year. The report shows that this impact was more prominently seen between Zones 3-6.

However, gross yields remained largely consistent.

Additionally, the publication of the Housing White Paper earlier in February bought with it encouragement for the private rental sector. It appears to offer greater security for renters with the promise of more longer-term tenancy agreements.

Average rents falling in London

Sarah Tonkinson, PRS Director at Foxtons, observed: ‘We see the policies set out in the White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters.’[1]

‘The developing Private Rented Sector will make a substantial net addition to London’s rental stock and provide much-needed long-term tenancies with emphasis on providing high-quality service and accommodation, in line with the new White Paper guidlelines,’ she added.[1]

[1] http://www.propertyreporter.co.uk/landlords/white-paper-policies-to-boost-london-lettings-market.html

White Paper reforms will fail unless support is offered-RLA

Published On: February 7, 2017 at 9:47 am

Author: Em Morley

Categories: Landlord News

Tags: buy-to-let landlords,housing market,renters,tenancy agreements,White Paper

Today promises to bring a boost for renters as the long-awaited housing White Paper is finally revealed.

Ministers are expected to unveil plans for minimum tenancies and a number of new homes, built specifically for the rental market.

White Paper

In addition, the Paper is set to include measures to prevent developers from hoarding vital building land and encouragement for new homes to buy, as well as rent.

Greater institutional investment in the sector is also set to receive a new push.

However, the Residential Landlords Association warn that these efforts to boost the supply of privately rented homes will fail unless UK landlords are offered more support. This, the Association says, includes encouraging smaller investors and helping them to add to their portfolios.

While ministers wish to extend the length of tenancy agreements, the RLA state that official Government figures indicate that most tenants stay put for a considerable period. Indeed, data shows that the average length of time tenants spend in their property is four years.

What’s more, research reveals that around one-quarter of small landlords are often prohibited from offering tenancies longer than one year by their lender or insurer. Now, the RLA has called on the Government to take action to encourage mortgage lenders to offer longer tenancies.

Failures

Chairman of the RLA, Alan Ward, noted: ‘Whilst we welcome efforts to boost the supply of homes to rent, this will not be achieved through a single minded focus on corporate investment. The very fact that a renewed push is being made for such investment is a sign that previous efforts have failed.’[1]

‘Any plan for the rental sector that does not provide equal support and encouragement for the vast majority of individuals making up the country’s landlord population is doomed to failure. Instead, the Government should look again at the tax rises imposed by the previous chancellor on landlords which will only act as a disincentive for the hundreds of thousands of smaller landlords to get more properties on the rental market,’ he added.[1]

White Paper reforms will fail unless support is offered-RLA

Aspirations

John Goodall, CEO and co-founder of Landbay, the buy-to-let lender, also offered his response, stating: ‘Despite the aspirations of millions, home ownership levels continue to dwindle regardless of resolute ambitions made by Governments past and present, meaning more people now than ever lean heavily on the private rented sector. A sensible policy discussion is long overdue, so it’s encouraging news that we may finally see some support for what is an increasingly important part of the housing mix,’[1]

‘There are currently 4.3million tenants in the rented sector and the fact remains that those hoping to one day purchase a home of their own are relying on a well-served buy-to-let market to ensure that excessive rental growth doesn’t dampen their purchasing power,’ he continued.[1]

Concluding, Mr Goodall said: ‘However, recent tax and stamp duty changes for landlords mean that rents continue to feel upward pressure. Simply building more homes is not enough, but building more homes specifically designed to rent rather than buy should go some way to increasing the number of people able to get a foot on the housing ladder down the line.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/2/rented-housing-reforms-doomed-to-failure-without-support-for-private-landlords

73% of tenants have self-funded rental improvements

Published On: January 31, 2017 at 11:00 am

Author: Em Morley

Categories: Landlord News

Tags: Buy-to-Let,improvements,landlords,rental improvements,renters

The latest consumer research released by Home services marketplace Plentific.com has found that 73% of UK tenants have spent their own cash in order to fund rental improvements.

Homely

Of course, tenants living in rented accommodation for a considerable period will want to make their property feel like a home. As a result, many make improvements such as putting up pictures or shelves. Should these changes not be considered necessary, a landlord can choose not to foot the bill, leaving tenants out of pocket.

In terms of how much the average tenant spends on these improvements, the breakdown is fairly even by price:

26% spent less than £100
24% spent between £100 and £500
23% have spent more than £500

Looking at improvements by age, the research shows that older renters tend to spend more. 27% of those over 55 spent over £500 on improving their rental property, as opposed to only 15% between 18-34.

73% of tenants have self-funded rental improvements

Regional Improvements

By region, Sheffield led the way, with the highest rate of tenants making improvements while renting found in the Steel City. 85% were found to have spent their own money to improve their rental property. In London, 74% said they had footed the bill for upgrades.

On the other hands, only 40% of tenants in Leeds paid for their own improvements.

Liverpool and Glasgow topped the list of regions paying the most for improvements, with 33% of renters here paying more than £500.

Plentific spokesperson Stephen Jury: ‘Whilst tenants can consult and charge their landlord for any necessary changes, our findings show that most renters will pay for and conduct some home improvements themselves. Our research illustrates the importance of personalising the living area to generation rent and making it more than just rental space.’[1]

[1] Plentific Press Release, Over 70% of renters have footed the Bill for home improvements, 31.01.17

Renters being pushed out of London due to record rents

Published On: January 27, 2017 at 10:37 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,London,rental values in London,renters

Despite the growth in rental values in London slowing recently, the capital remains by far the most expensive region to rent in the country.

As such, a large number of Londoners renting property in the South of England has risen sharply, as more tenants are leaving London to try and get more value for money elsewhere.

Record Highs

With rents in the capital reaching record highs, many renters have been convinced to seek more space and value in other regions of the South. More specifically, these renters are looking to rent in areas offering a commute back to London and proximity to amenities such as good schools.

Michelle Niziol, Managing Director of IMS Property Solutions observed: ‘Growth in rent in the South of England is being fuelled partly by an increase in the number of people who are leaving London, seeking more affordable areas within the commuter belt. This is particularly so for young professionals and families and is likely to continue in 2017 and the foreseeable future.’[1]

Renters being pushed out of London due to record rents

‘More than four million households rent privately in the UK and this figure is set to grow as people continue to struggle to get on the housing ladder. However, there is also the growing trend of people choosing to rent rather than buy because of the flexibility it offers them. This means that despite the Government having announced a series of policy changes aimed at landlords, investing in bricks and mortar will still remain a worthy asset class for investors,’ Niziol added.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/high-prices-push-renters-out-of-the-capital