Posts with tag: rents

Airbnb 90 day limit should be introduced in other cities-AIIC

Published On: December 22, 2016 at 3:08 pm

Tags: Airbnb,lettings,property,rents,tenants

The proposal from Airbnb to stop London hosts from short-letting their properties for any longer than 90 days per year without consent should be extended to four other cities, according to the head of the AIIC.

Patricia Barber feels that this limit, being introduced from April 2017, should also be in operation in Bristol, Liverpool, Manchester and Newcastle.

Limits

Airbnb has moved to introduce this system in London after criticism that many of its hosts last for longer than 90 days. This means that sometimes it takes hitherto long-term let property off the market, reserving it only for short-let tenants and allowing higher rental income.

The Residential Landlords Association has claimed that earlier this year, more than 60% of London properties listed on Airbnb were advertised as being available for longer than 90 per year. This is despite this contravening planning laws and Airbnb’s own policies.

The platform hit back with its own statement, claiming that the RLA’s research was misleading and had deliberately confused availability with nights booked. From April, it is to notify hosts of their statutory responsibilities as their lettings hit 90 days within the yearly period.

Airbnb 90 day limit should be introduced in other cities-AIIC

Extensions

The AIIC believe that this should be extended to other key English cities, stating that Airbnb tenants and landlords leave themselves susceptible to damage or financial implications as a result of the minimal checks and paperwork needed to let a property via short-let websites.

An absence of mandatory deposit protection and the unlikelihood of inventories are two of the biggest issues, the Association argues.

Barber states: ‘Short term lets are supposed to be short term for a reason and landlords who are not adhering to the rules could be putting the future of their investment at risk.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/12/call-for-airbnb-90-day-limit-should-exist-in-four-other-uk-cities

UK rents catching up with those in London

Published On: December 12, 2016 at 11:22 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,London,rents,UK rents

The most recent report from Countrywide has shown that the average London rent was 0.7% lower than last year in November. This was the largest fall seen since October of 2010, where rents stood at an average of £901 per month.

During the last year, London has moved from the region with the second largest rate of rental growth in the UK, to the slowest.

Closing Gap

Over the past five years, the gap between rents in London and the rest of the UK has grown substantially. By 2015, this gap had risen to a record £490 per month, an incredible rise from the £150 per month recorded in 2010.

However, rents in the capital are now growing at a slower rate than the rest of the UK, meaning that the gap between London and the rest has now closed. By November 2016, this gap had fallen, the first drop since 2010. Rents in London now stand 60% higher than in the rest of Great Britain.

This narrowing rent gap has been driven by a rise in the number of homes available to rent in the capital. During November 2016, there were 32% more homes to rent in London than at the same period in 2015. In addition, the number of would-be tenants increased by 9%. Average asking rents in London were down by 11%, more than double the proportion seen in 2015.

Across Britain, the cost of a new let increased by 2% in the last year-3.1% if London is excluded. Rental growth has been driven by the North, North East and North West of England, alongside Yorkshire and the Humber. 25% of tenants renewing their contract in the North of England saw their rent increase in November, up from 16% in the same month last year.

UK rents catching up with those in London

Boost

Johnny Morris, research director at Countrywide, noted: ‘Higher than usual numbers of homes available to rent has boosted tenants’ negotiating power. Stock growth has outstripped that of tenants. This is in part due to the hangover from the rush to beat the 3% stamp duty charge earlier in the year and a shift in stock from the sales market. With more choice and facing stretched affordability, many tenants are using their new found negotiating power to agree lower rents than in 2015.’[1]

‘Since the gap between London rents and those in the rest of the country hit a high watermark in 2015, the gap has been gradually narrowing. The pressure on affordability and number of homes coming onto the rental market in the capital means that rents are likely to lag behind the rest of the country in 2017,’ Morris added.[1]

[1] http://www.propertyreporter.co.uk/property/rest-of-uk-catching-up-with-london-rents.html

Rents set to increase by 15% by 2020?

Published On: December 12, 2016 at 10:17 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,rental accommodation,rents,Stamp Duty

UK rents are expected to rise much faster than property prices over the next three years, according to the chief operating officer of one of Britain’s leading property franchises.

Dorian Gonsalves of Belvoir, suggests there will be a 15% increase in rents by 2020. This, he feels, is due to, ‘a raft of recent anti-landlord Government policies in the past year,’ though he notes the rent rises will vary depending on region.

Buy-to-let measures

New measures introduced, including the new 3% stamp duty rise and tougher mortgage lending criteria, could well see many landlords making a loss. Gonsalves also believes that the Government’s failure to improve the availability of social housing for rent has led to a shortage of quality rental accommodation in the private rental sector.

Mr Gonsalves believes: ‘’Throughout 2017 Belvoir will continue to work with decision makers and we hope that some of the Government’s recent changes will either be reversed or incentives will be launched to help drive up the supply of rental properties. This would then bring down rents and benefit millions of tenants, making for a healthier rental sector.’[1]

The most recent rental index from the firm reveals that 88% of offices had recorded an increase in demand for properties to rent during Q3 of 2016. However, a huge 86% of tenants-around 6m households-had less than the £8,838 needed to secure a 5% deposit on the average home. This means that they are hugely unlikely to be able to buy a property.

Rents set to increase by 15% by 2020?

Struggling

Continuing, Gonsalves said: ‘People from all walks of life, including students, migrant workers and professionals with families, are struggling to meet strigent lender affordability ratios.’[1]

‘When someone is not in a position to buy, they obviously start looking for somewhere to rent, but unfortunately, Government policies seem to lack any direction and have done nothing to benefit either landlords or tenants, so tenants could find it more difficult to find good quality suitable accommodation in 2017 and beyond,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/rents-predicted-to-increase-15-by-2020

Rents for prime property in central London slow during November

Published On: December 8, 2016 at 10:13 am

Author: Em Morley

Categories: Property News

Tags: buy-to-let in London,London,prime central london,rental values,rents

Increased activity levels in the prime rental property in central London have served to put downwards pressure on rental values. In turn, this has improved affordability for tenants, according to the latest analysis from Knight Frank.

This has strengthened the negotiation position of tenants during the course of the year, with the number of tenancies agreed in the three months to November 23.2% higher than in the same period in 2015.

Increasing yields, falling rents

The prime central London rental index report indicates that the average gross rental yield achieved was 3.18% during November. What’s more, average rents fell by 5.2% in the year. This was the lowest it has been since December 2009.

Despite this, the firm predicts that this will ease to a fall of just 2% in prime central London West during 2017.

There is however strong variation in the market. In City and Fringe, annual rental growth was fairly stagnant, but in Kings Cross, it rose by 0.3%. In Tower Bridge, there was a slight increase of 0.1%. In all other regions of prime central London, rents decreased year-on-year.

Rents for prime property in central London slow during November

Decline

Riverside led the way in terms of decline, with rents down by 9.3%. This was followed by Hyde Park (-9%), Marylebone (-8.8%), Notting Hill (-8.6%), Knightsbridge (-7.3%) and Belgravia (-7.1%).

At the same time, the number of viewings rose by 18.4%, with would-be tenants also rising by 7.8% over the same period.

Tom Bill, head of London residential research at Knight Frank, feels that the figures represent the increased regulatory uncertainty in the sales market. This has led to a number of vendors opting to let their property as opposed to selling, until more security around future pricing arises.

‘While broader uncertainty persists over issues including the UK’s decision to leaves the European Union and the election of Donald Trump, the extent of the cost pressures faced by banks was underlined in November when several banks failed to meet certain Bank of England stress tests,’ Bill explained.[1]

[1] http://www.propertywire.com/news/europe/prime-property-rents-central-london-affordable-latest-report-shows/

High-end letting market in Home Counties is rising

Published On: December 6, 2016 at 11:39 am

Author: Em Morley

Categories: Property News

Tags: Home Counties,lettings market,rents,tax changes

New research has revealed that the top end of the lettings market in the Home Counties of England is picking up.

According to Knight Frank, this is due to the influx of tax changes and greater flexibility from landlords. The firm believes that supply and demand in the region have risen due to higher purchase costs at the top of the market making buyers more price sensitive.

Increases in rent

The analysis from Knight Frank assess the prime sector in the counties surrounding London, looking at where tenants spend at least £15,000 per month. Data from the report reveals that the number of properties available to rent in these regions have increased by 56% so far in 2016, in comparison to last year.

In addition, the number of viewings conducted for these properties by Knight Frank offices has more than doubled year-on-year.

Jemma Scott, partner in Home Counties Lettings, noted: ‘When you consider that the stamp duty on the purchase of a £10 million in the Home Counties is £1.1 million, rising to £1.4 million if it is a second home or additional residence, that’s equivalent to more than three years rents.’[1]

High-end letting market in Home Counties is rising

Scott observed that the increase in stock levels has led to increased negotiations for tenants and in some cases, landlords have been flexible in terms of rents.

‘This flexibility can make renting look like an increasingly attractive option, although best-in-class properties, which are in a ready to move in condition with the latest fixtures and fittings are holding their value,’ she added.[1]

Concluding, Scott observed: ‘The Home Counties are often the first destination for individuals moving out of London, while excellent transport links back to the capital and the wealth of outstanding schools mean they’re also favoured by international tenants looking to relocate to the UK, attracted by the abundance of green spaces and a vibrant social and sporting scene.’[1]

[1] http://www.propertywire.com/news/europe/top-end-lettings-market-englands-home-counties-picking/

Rents in London forecasted to increase as demand rises

Published On: December 6, 2016 at 10:40 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,London,rental rises,rents,tenants

Property agents Portico has forecasted that the cost of renting property in London is likely to increase in the coming months, as the balance between supply and demand increases in the capital.

Portico estimates that rising demand from the increasing population, coupled with unemployment levels, could put more pressure on rental values in the city. This could also push up yields for buy-to-let landlords.

Blow for tenants

This prediction will come as a blow for tenants who are already struggling to keep up with their rental payments. The monthly outlay for tenants in Greater London hit an average of £1,543 in October, according to the latest figures released from referencing firm Home Let.

Mark Lawrinson, regional sales director of Portico, noted: ‘The population is growing, the job market is buoyant and people are still coming to live in London-so while supply is decreasing, demand is continuing to grow.’[1]

‘It’s this imbalance between supply and demand that is likely to increase rental prices, while weaker transaction prices will push up rental yields’ he continued.[1]

Rents in London forecasted to increase as demand rises

Rising rents

Another report from Savills last month indicated that rents are set to increase considerably faster than house prices over the next five years. This report suggests that rents will rise by 19% by 2021, with house prices increasing by 13% over the same period.

In addition, the gap is predicted to be more pronounced in London, where rents are indicated to rise by 24.5%. House prices are forecasted to increase by 10.9%.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/rents-in-london-set-to-rise-as-demand-for-homes-outstrips-supply