Posts with tag: rents

Private Rental Sector growth continues, says TDS

Published On: September 14, 2016 at 9:53 am

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New figures released from the Tenancy Deposit Scheme indicate that there has been a substantial rise in the number of deposits taken on assured shorthold tenancies in England and Wales.

This underlines the increasing popularity of buy-to-let as an investment opportunity, the firm claims.

Increasing investment

Data from the TDS report shows that at the end of March 2016, there were around 3.42 million deposits protected in England and Wales. This is a rise of over 360,000 over the course of the year.

The total value of deposits protected now stands at £3.56bn, which is an increase of £379 since last year.

Steve Harriott, chief executive of the Tenancy Deposit Scheme, noted: ‘these figures demonstrate the continuing growth of the private rented sector, which is now larger than the social housing sector in England and Wales.’[1]

However, the average value of deposits protected stayed fairly consistent. On the 31st March 2016, the average deposit was £1,041. Four years, this figure stood at £979.

Mr Harriot went on to say, ‘the huge number of deposits being paid by tenants at a value of some £3.5bn demonstrates the need for tenancy deposit schemes to ensure that deposits are protected for tenants.’[1]

Private Rental Sector growth continues, says TDS

Private Rental Sector growth continues, says TDS

Cooling

These figures from the Tenancy Deposit Scheme come just days after a report from Countrywide which suggests rents on new tenancies cooled in August.

The most prominent rental declines were noticeable in central London, the South East, South West, Midlands and Wales.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/private-rental-sector-continues-to-grow-says-tds

Increased supply sees rents cool across Britain

Published On: September 13, 2016 at 1:54 pm

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New data suggests that the level of rents achieved across Britain fell over the last month in more than half of all regions.

The latest monthly letting index from Countrywide shows that rents fell year-on-year in five of the nine regions assessed during August. However, for Great Britain as a whole, average rents on new lets actually increased by 1.5% to £960 per month.

Rises in new rents were driven by growth in Greater London, the East and North of England and Scotland.

Ups and downs

While overall rents rose, the estate agency group also reports that rents dropped in central London, the South East, South West, Midlands and in Wales. This reflects a substantial rise in the supply of housing coming onto the private rental market.

Johnny Morris, research director at Countrywide, noted: ‘in London and the South East, recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth.’[1]

‘Overall slightly more tenants are offering above asking price than last year. The majority continue to pay asking prices. Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.’[1]

Above asking prices

The information shown below indicates the proportion of homes let above their asking price in different regions of the UK during August:

Region Aug-15 Aug-16 change
Greater London 17% 13% -3.7%
Central London 17% 8% -8.9%
East of England 13% 15% 2.3%
South East 14% 14% 0.1%
South West 12% 15% 3.1%
Midlands 10% 11% 0.9%
North 10% 10% -0.3%
Wales 11% 8% -2.7%

GB             12%     12%     0.2%

[1]

Increased supply sees rents cool across Britain

Increased supply sees rents cool across Britain

Rental prices (per month) for New Lets

Region Ave Rent Aug-16 Ave Rent Jul-16 Ave Rent Aug-15 August Rent YOY
Greater London £1,299 £1,280 £1,288 0.9%
Central London £2,434 £2,638 £2,484 -2.0%
East of England £977 £963 £912 7.1%
South East £1,188 £1,173 £1,205 -1.4%
South West £862 £856 £853 -1.1%
Midlands £705 £703 £708 -0.4%
North £697 £694 £676 3.1%
Scotland £726 £689 £696 4.3%
Wales £669 £671 £672 -0.4%
GB £960 £951 £946 1.5%

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/rents-cool-across-half-of-britain-as-supply-increases

 

Rents set to rise for 2016/17 students

Published On: September 5, 2016 at 12:01 pm

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With students busy readying themselves to return back to their university campuses, a new survey might just make them think twice about expensive amenities.

Specialist student utilities and service provider Glide Utilities has conducted an investigation that reveals student rents are on the rise for 2016/17.

Rising rents

According to data from the ‘What Students Seek’ report, rents have risen by £10 per week year-on-year since 2013. This means the average student now pays more than £100 per week in private rental fees.

More than two million students are heading to university this September and this will not come as good news, with many already in severe debt due to rising tuition fees and living costs.

With rents spiralling, students are now quite rightly expecting more in return for their money. The report shows that 67% of landlords are now including bills as standard, the highest percentage ever recorded. This will hopefully make squabbles about gas and electric bills less common!

64% of students feel that double beds are important when considering a room to rent, while 40% said they are only interested in a room with an en-suite. 85% of modern students said that they would not even consider a property without a solid broadband connection.

Rents set to rise for 2016/17 students

Rents set to rise for 2016/17 students

Value

Despite persistently rising rents and worries around debts, 47% of students feel the rents they pay represent good value for money. More than three-quarters (76%) said that they were generally satisfied with their accommodation.

More interesting findings from the report suggest that more students are now using Google to locate suitable accommodation. 59% said that this was the case, as opposed to 25% who use traditional letting agents. 58% use a dedicated accommodation website to find suitable student property, while 44% go directly to the university accommodation office to find their residence.

James Villareal, CEO at Glide Utilities, noted, ‘in line with national rent increases, the cost for private student accommodation is also on the rise, which must be a consideration for students budgeting their time at university. Avoiding additional costs created by bills is one way students can help to manage their expenditure , which is why we’re seeing a greater demand for bills-inclusive rates from students and more landlords offering this a standard. Our report highlights what students are looking for in their accommodation and how they go about finding the right place to meet their needs.’[1]

[1] http://www.propertyreporter.co.uk/property/private-rental-prices-on-the-rise-for-2016-students.html

UK rents rise by 2.4% in year to July 2016

Published On: August 25, 2016 at 11:24 am

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Rents in Britain’s private rental sector rose by 2.4% in the year to July 2016, according the latest figures released by the Office of National Statistics.

This was the same rate of growth recorded in the twelve months to June.

Regional rental rises

Data from the report shows that over the year to July, rents in England rose by 2.6%, in Scotland by 0.2% and were unchanged in Wales.

In fact, rental prices increased in all regions of England during the period. The most prominent increase was in the South East, where rents rose by 3.5%. Next came the East, with increases of 3.1% and London with rises of 3%.

The smallest annual rises were reported in the North East, up by 0.9%. The North West recorded rises of 1.2%, with Yorkshire and the Humber showing increases of 1.3%.

Since the beginning of 2012, rental prices in England have increased by 1.4% and 3% year-on-year. However, the lack of forward movement in Wales means that rents here are well behind. Scottish rental increases have slipped from a high of 2.1% in the year to June 2015.

Figures from the UK House Price Index shows that over a longer period, residential house price growth has been greater than rental growth. Between January 2013 and June 2016, the average 12-month rate of house price inflation was 6%. This is in comparison to 2.1% for rental fees.

UK rents rise by 2.4% in year to July 2016

UK rents rise by 2.4% in year to July 2016

Deposit struggles 

An annual rise in rental prices has underlined the struggles that many people living in the private rental sector are facing in raising a deposit. Richard Connolly, chief executive officer of RentPlus has described this as the biggest barrier to homeownership.

He noted, ‘The issue of increasing rents is not confined to London with the largest rental price increases in the South East, followed by the East of England, which highlights the fact that housing affordability is firmly a national issue.  The struggles are numerous with aspirant home owners in the current climate also facing rising fuel bills, low salary growth and low interest rates from savings accounts.’[1]

‘This all points to the urgent need for a rethink in this country on the housing models that are used to migrate people into home ownership. New innovations such as rent to buy models, which allow people to benefit from affordable intermediate rents and make real savings toward a home of their own, ought to be part of an inclusive UK property market which provides secure affordable housing options for all,’ Connolly added.[1]

[1] http://www.propertywire.com/news/europe/uk-private-sector-rents-2016082512309.html

Flatsharers raise budgets to combat higher rents

Published On: August 17, 2016 at 9:51 am

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The typical flatsharing tenant has moved to increase their budget, in order to combat rental rises, according to a new report.

EasyRoommate’s latest Index reveals that in the second quarter of the year, tenants’ average budget was £531pcm, up 5% on the same period twelve months ago.

Since 2012, tenants’ average budgets have risen by 25%.

Increases

The flatsharing website reports that budgets have increased in an attempt to keep pace with average rents. According to data from the Index, rents rose by 13% between Q2 of 2015 and 2016.

In addition, the rental platform said that demand for shared rental properties has also risen over the same period. During the second quarter of this year, there were an average of five tenants looking at each room available. This was compared to four last year.

What’s more, the number of rooms being posted on the EasyRoommate website has risen substantially, by over 40% since 2015.

The average age of a flatmate is 28, with 37% of sharers aged between 21 and 25.

Flatsharers raise budgets to combat higher rents

Flatsharers raise budgets to combat higher rents

Finances

Student tenants utilising the platform has increased by 4% in the same period.

EasyRoommate has also moved to attack the number of letting agent fees which are being charged to tenants.

It has called for the Renters’ Rights Bill, currently being passed through Parliament, to be implemented to improve tenants’ finances.

Albin Servant, chief executive of EasyRoommate, said, ‘every time you use an estate agency to find accommodation, you might incur extra fees. Meanwhile Scotland decided to ban those hidden fees in 2012.’[1]

‘Rent fees need to be regulated,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/flatsharers-increase-their-budgets-to-cope-with-rising-rents

Where in the North East can you expect a quick let?

Published On: August 9, 2016 at 9:56 am

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An average North East rental property houses a tenant within 97 days of going onto the market, according to new research.

Analysis of 15 North East regions by sales and lettings firm KIS reveals that there are a few unlikely rental hotspots in the region.

Tenant turnover

Landlords in Consett can expect to have the shortest wait to find tenants.

The report indicates that buy-to-let investors in the region see properties rented out within an average of 58 days. Other fast-renting areas include Chester-le-Street (75 days), Whitley Bay (81 days), Cramlington (83 days) and Durham City, (86 days).

At the other end of the scale, the second slowest region in the North East to rent out a property was Newcastle, where homes take an average of 125 days to let.

Houses in the North East take an average of 17 days less to rent out than flats.

Where in the North East can you expect a quick let?

Where in the North East can you expect a quick let?

Quick lets

Ajay Jagota, managing director of KIS, said, ‘Consett may not be the first place you think of when it comes to Northern property hotspots, but there are some obvious reasons for why properties there seem to rent out faster than the rest of the region. The most obvious one is that as a smaller area than most of those we’ve surveyed there are likely to be less houses to rent and more competition for properties as a result-something always worth considering for landlords and prospective property entrepreneurs.’[1]

‘The time it takes to rent out a property is, of course, not the only factor you need to consider when it comes to deciding where to invest in property. Although these figures suggest Gatesehead is somewhere to consider avoiding it has offered investors the region’s highest rental yields in almost every survey we’ve ever undertaken. If you are looking to rent out a property quickly, the quickest way to do it is to remove the biggest and bizarrest obstacle to finding and keeping good tenants-rental deposits,’ he continued.[1]

‘Our research shows that tenants on average need to find £798 in deposits to move into a rented home. By insisting on deposits when you could instead use an insurance-backed deposit free solution is intentionally limiting potential tenants to people who have that sort of money lying around,’ Jagota added.[1]

[1] http://www.propertyreporter.co.uk/landlords/where-do-north-east-properties-rent-the-quickest.html