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Em Morley

Are young renters being forced to choose between rent debt and health?

Published On: November 13, 2020 at 9:06 am

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Categories: Tenant News

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With rules limiting what young people can claim for housing benefit, the NRLA says they are being forced to choose between racking up debts and risking their health.

The National Residential Landlords Association (NRLA) points out that those under the age of 35 relying on benefit to pay their rent for the first time will find that support will only be available to cover the cost of a room in a shared house.

The NRLA is warning that this will force many young renters to choose between building unsustainable debts or moving into cheaper, shared housing. People might be forced to either move home in the middle of lockdown restrictions or potentially end up living with strangers with all the health risks that this poses during the COVID-19 pandemic.

In a letter to Welfare Minister Will Quince, the NRLA has called on the Government to urgently adopt the recommendations of the Social Security Advisory Committee and suspend the Shared Accommodation Rate rule. The NRLA argues that this should be for a period of at least a year.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: “It is unacceptable that younger renters are being forced to choose between building debts or compromising their health during a pandemic.

“Whilst the vast majority of landlords have done everything they can to support renters whose finances have been hit due to the virus, it cannot be right that landlords and tenants are left to muddle through without greater support.  

“If money can be found to subsidise meals out, the Government must find the finances needed to support tenants, and in turn landlords, to pay off rent arrears, sustain tenancies and protect people’s health.” 

The call comes as government statistics show a significant increase in the proportion of Universal Credit claimants in the younger age brackets. In the four weeks to the 8th October, the proportion of claimants aged between 16 and 24 was just over 27%, up from 21% in the four weeks to the 12th March.

10 lockdown home improvements that take 34 hours to complete

Published On: November 11, 2020 at 9:52 am

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Estate agent Barrows and Forrester has put together a list of home improvements for property owners that won’t require major renovations. 

They say these tasks will generally take less than 34 hours to do, but point out it’s up to you whether to tackle them all at once or space it out over the month ahead. At any rate, this gives us plenty to get on with while England is in lockdown!

Here are the ten tips they’ve researched to get you started:

1. Silencing creaky floorboards – 30 minutes

Squeaky floorboards can be a real pain and it’s a job we often fail to tackle, accepting them as part of our property’s personality. They occur when floorboards either rub against each other or the sub-floor but can be easily rectified. Just take some talcum powder, soapstone powder or powdered graphite and sprinkle it between the cracks of the offending board or boards and this should do the trick. 

2. Modernising your furniture – 40 minutes per item

Furniture can make or break the look of your house but a lick of paint really can work wonders. Particularly if it’s cheaper imitation wood finish. All you need to do is rub-down the surface and prepare it for painting, pick your preferred colour and get painting. It will take you roughly 40 minutes for an average piece of furniture but will save you a considerable amount against the cost of having it done professionally or picking out new pieces. 

3. Fix squeaky hinges – 50 minutes

Like floorboards, a squeaky hinge can really get on your nerves. Grabbing some WD-40 and taking on every hinge in the house will take no more than 50 minutes and will prevent you from going mad. If you don’t have any to hand, olive oil or Vaseline also works perfectly.  

4. Deep cleaning the bathroom – 60 minutes

No one wants to really do it and that’s the reason our bathrooms often fall into domestic disrepute. But with heavier footfall during lockdown, it’s the perfect time to tackle the job and should take no longer than an hour. Giving it a real deep clean with a good amount of elbow grease costs very little but it can also make a dramatic difference. With the extra time on your hands, go the extra mile and use a grout pen to give any tiled areas a showroom finish. 

5. Perform a full safety check – 60 minutes

You should be staying on top of your property’s safety at numerous times throughout the year but when better than during lockdown. Create a list of all the devices in your home from electrical to other safety measures. These can include testing smoke, carbon monoxide, and burglar alarms and also checking that the locks on all doors and windows are all working correctly. Make a list of anything that isn’t working, 

prioritise the task based on the level of danger it presents, and make sure you sort these jobs as soon as you can. 

6. Paint a room – 1 hour 35 minutes

It’s one of the most cliché home improvements but like your furniture, a fresh coat of paint can transform any room. We often say we’re going to repaint a room and then neglect the task due to it being labour intensive, but if you plan to tackle it one room at a time it should take no longer than 20 minutes of prep time, 45 minutes for that first coat and a further half an hour to slap on a second. 

7. Clean out your junk – 2 hours

We’re all guilty of hoarding some form of junk and you probably won’t realise until you have to live with it during lockdown for a month. Whether it’s old clothes, bricà– brac, old furniture or anything in between, use this time to get rid. Not only will you have more space in your home and attic, in these tough times someone else might benefit from the things you want to get rid of. Double win.

8. Tackle your garden – 2 hours 30 minutes

Yep, the weather’s turning cold and the days are getting shorter and these aren’t the ideal conditions for garden work. But while you’re stuck at home make the most of the light and clean the patio, mow the lawn, clean, paint and repair your fence panels, trim the bushes, tackle the flower beds, tidy the shed and bring some life to your garden with some winter suitable plants. Not only will it be in a more manageable state come spring, but you’ll probably look forward to getting out of the cold and back on the sofa come the end of it.  

9. Learn a new skill – 8 to 16 hours

Why not put your time to good use and learn something new that will also bring benefit to your home? 

If your bathroom deep clean hasn’t cut the mustard you could try re-tiling it yourself. Start by attempting a small area that won’t require the full job to be done if you do give up and with the help of a tile cutter, spacers, grout, adhesive and a spreader, you could transform your bathroom for very little money. It will take around eight minutes to take on a small area so try it now and see how you get one. 

10. Redecorate a room with wallpaper

Wallpaper is another challenge that many struggle with but once mastered it can be a great way to transform a room without opening a single pot of paint. The average room will take you a while though so it’s worth trying now while time is on your side.  

James Forrester, Managing Director of Barrows and Forrester, comments: “A second stint of lockdown is the perfect opportunity to tackle some of the household jobs that you’ve probably been putting off. Yes, your property will benefit but you might be surprised how good it makes you feel and how much it helps you cope with a month of not very much else.

“By setting yourself daily or weekly goals, forming a plan and tackling them one job at a time, you can use your time for more than lounging around waiting for the world to reopen.“What’s more, if you’re currently selling then now is the ideal time to get your house in order.

“The current stamp duty holiday has caused a huge spike in buyer demand and as a result, homes are going under offer very quickly. So it’s better to get these improvements done and dusted now as they could well make the difference when it comes to securing a sale.” 

Increasing house prices trend of 2020 continues in the UK

Published On: November 10, 2020 at 9:20 am

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The November Halifax House Price Index report has now been released, showing the 2020 trend for increasing house prices continues.

The report highlights:

  • House prices in October were 0.3% than in September on a monthly basis
  • House prices were 4.0% higher in the months August to October than in the preceding three months of May to July
  • House prices were 7.5% higher in October 2020 than in the same month the previous year – the strongest growth since June 2016

Russell Galley, Managing Director of Halifax, said: “The average UK house price now tops a quarter of a million pounds (£250,457) for the first time in history, as annual house price inflation rose to 7.5% in October, its highest rate since mid-2016. Underlying the pace of recent price growth in the market is the 5.3% gain over the past four months, the strongest since 2006. However, month-on-month price growth slowed considerably, down to just 0.3% compared to 1.5% in September. 

“Overall we saw a broad continuation of recent trends with the market still predominantly being driven by home-mover demand for larger houses. Since March flat prices are up by 2.0% compared to a 6.0% increase for a typical detached property. In cash terms that equates to a £2,883 increase for flats compared to a £27,371 rise for detached houses. 

“This level of price inflation is underpinned by unusually high levels of demand, with latest industry figures showing home-buyer mortgage approvals at their highest level since 2007, as transaction levels continue to be supercharged by pent-up demand as a result of the spring/summer lockdown, as well as the Chancellor’s waiver on stamp duty for properties up to £500,000. 

“While Government support measures have undoubtedly helped to delay the expected downturn in the housing market, they will not continue indefinitely and, as we move through autumn and into winter, the macroeconomic landscape in the UK remains highly uncertain. Though the renewed lockdown is set to be less restrictive than earlier this year, it bears out that the country’s struggle with COVID-19 is far from over. With a number of clear headwinds facing the housing market, we expect to see greater downward pressure on house prices as we move into 2021.”

Lucy Pendleton, property expert at independent estate agents James Pendleton, comments: “Average house prices may have crashed through a quarter of a million pounds for the first time but the growth rate that got them there is frankly ridiculous. 

“There seems little prospect that house prices are really rising this fast nationally, and it’s a dangerous thing to be saying, unless true, because it can scare off first-time buyers, who are the lifeblood of the market. 

“The huge demand that has driven the market higher has been fuelled by armies of buyers pumped up by impatience, adrenalin, frustration and relatively cheap borrowing. 

“That’s what will take the credit for this continuing surge in prices but we won’t see figures like this for long if we’re lucky. Growth like this is only ever in the interests of a tiny proportion of the population — it’s not good for agents in the long run or consumers. A boom followed by a bust in the spring should be avoided at all costs but the higher prices travel, the more likely that is. However, a slowdown in monthly price growth indicates that the market has already started to level off.”

Marc von Grundherr, Director of Benham and Reeves, comments: “We find ourselves in a dramatically different place to this time last year and while shorter term growth rates are starting to show signs of a seasonal slowdown, house prices continue to hit record highs. 

“A second national lockdown is unlikely to have any impact on current house price trends with the market remaining open for business and buyer demand remaining strong. 

“While the hopper continues to overflow with a huge number of pending transactions waiting to complete, there should remain a consistent level of house price growth to carry the market through Christmas and well into 2021.”

James Forrester, Managing Director of Barrows and Forrester, comments: “While the nation continues to wobble over the economic turmoil posed by the current pandemic and a second lockdown, the UK housing market is using these headwinds of uncertainty to fill her sails as house prices continue to climb ever higher.

“Homebuyers continue to overrun the market and for many, the task of buying or selling may well have provided a welcome distraction to the daily doom and gloom of COVID and so we haven’t seen the decline that many market naysayers so keenly awaited. 

“With the Bank of England announcing further economic support, we should see a degree of smooth sailing as the year ends.”

Read the full Halifax House Price Index report here.

Government provides information about lockdown possession cases

Published On: November 9, 2020 at 9:11 am

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The Government has provided clarification about the enforcement of possession cases during the second national lockdown.

In a letter to the High Court Enforcement Officers Association, Justice Secretary Robert Buckland has confirmed that during the lockdown there will be no enforcement of Possession Orders except for the most serious cases.

This includes cases related to illegal trespassing and squatting, as well as tenants engaged in anti-social behaviour, fraud or deception. The Government has also confirmed that it will bring forward an exemption from the enforcement ban for cases related to extreme pre-COVID rent arrears.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), comments: “The vast majority of landlords who have had tenants affected due to the pandemic have been working constructively to support them. We continue to encourage and support such action.

“However, in a minority of cases renters have abused the protections afforded by the recent ban on repossessions, causing significant hardship. It is therefore important that the Government recognises that in the most serious cases enforcement action must continue.” 

The Government has now announced that the furlough scheme and equivalent support for the self-employed is to be extended until March next year. According to research for the Resolution Foundation, as of September 9% of private renters in the UK were reliant on the furlough scheme. 

Ben Beadle continues: “The extension of the furlough scheme and support for those who are self-employed will be a life line to many renters reliant on it. However, this still does not address the considerable rent arrears that tenants and landlords continue to face due to the pandemic through no fault of their own.

“Ministers need urgently to develop a bespoke financial package for renters to pay off such arrears. This should include a mix of interest-free government-guaranteed hardship loans and increased benefit support for those who rely on it.”

Furloughed tenants in London spending 82% of income on rent

Published On: November 6, 2020 at 9:01 am

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The continued level of unaffordability for tenants in London has been revealed by lettings and estate agent Benham Reeves, as the furlough scheme is extended.

Research from the agent shows the average London tenant was paying £1,644 a month in rent prior to the pandemic. They also earned an average net salary of £2,639, meaning 62% of their monthly salary was required to cover rent costs.

Under the latest version of the furlough scheme, which is a return to previous lockdown furlough scheme, employees will receive 80% of their current salary, up to a maximum of £2,500. As a result, London tenants who have been furloughed are seeing their net monthly income reduce to £2,003. This results in the average cost of rent requiring 82% of their monthly pay – a 20% jump compared to before the pandemic.

On top of this, Benham and Reeves also points out that in some boroughs the level of income required to cover rent costs for those on furlough has already exceeded 100%. 

The London agent uses Westminster as an example. Here, the research shows that the average tenant surviving on furlough will see their monthly net income reduce from £4,038 to £2,003. Prior to the pandemic, 75% of monthly earnings were required to cover the average rent of £3,046 in the borough but tenants on furlough have seen this climb to 152%.

Tenants in Kensington and Chelsea, Camden, Hammersmith and Fulham and Islington have also seen the average cost of renting exceed 100% of the average income for an employee on furlough. 

Marc von Grundherr, Director of Benham and Reeves, comments: “The outlook for London’s tenants is a tough one at present with a second national lockdown preventing many returning to work fully, if at all, while still having the struggle of paying rent and other monthly outgoings. 

“While the Government has introduced a number of schemes to help lighten this financial burden it’s unlikely to be enough with many seeing the cost of rent alone swallowing the majority, if not all, of their monthly income. 

“Of course, there will be those in a better position than the average tenant but it’s important to note that there will be many more that are worse off and facing an even tougher task.” 

The average net monthly income in each borough, how this has changed for those on furlough, and the percentage of both required to cover the average monthly rent. 

LocationAverage Rent pmPre-PandemicWith Furlough Scheme in Place
Average NET Salary pmRent as % of NET salaryFurlough net salary – including cap due to gov max contributionRent as % of NET furlough salary
Westminster£3,046£4,03875%£2,003152%
Kensington and Chelsea£3,023£5,21858%£2,003151%
Camden£2,302£3,38768%£2,003115%
Hammersmith and Fulham£2,117£3,20966%£2,003106%
Islington£2,003£3,19563%£2,003100%
Wandsworth£1,958£3,39958%£2,00398%
Lambeth£1,908£2,56574%£2,00395%
Hackney£1,842£2,36078%£1,94995%
Tower Hamlets£1,835£3,16258%£2,00392%
Richmond upon Thames£1,835£3,76949%£2,00392%
Newham£1,453£2,00772%£1,66787%
Haringey£1,669£2,35071%£1,94186%
Southwark£1,718£2,71763%£2,00386%
Brent£1,502£2,21768%£1,83482%
Merton£1,640£2,79959%£2,00382%
Barking and Dagenham£1,208£1,81667%£1,51480%
Ealing£1,569£2,43165%£2,00378%
Barnet£1,499£2,49860%£2,00375%
Enfield£1,292£2,11561%£1,75374%
Greenwich£1,476£2,65056%£2,00374%
Hounslow£1,352£2,26160%£1,86972%
Waltham Forest£1,352£2,27759%£1,88272%
Harrow£1,387£2,37059%£1,95671%
Lewisham£1,316£2,31957%£1,91669%
Hillingdon£1,200£2,11157%£1,75069%
Redbridge£1,311£2,37855%£1,96367%
Bromley£1,307£2,78747%£2,00365%
Kingston upon Thames£1,306£2,78247%£2,00365%
Havering£1,169£2,31151%£1,91061%
Croydon£1,140£2,26850%£1,87561%
Sutton£1,151£2,33649%£1,92960%
Bexley£1,092£2,35846%£1,94756%
LONDON£1,644£2,63962%£2,00382%
United Kingdom£987£2,03948%£1,69258%
SourcesONSONS gov.uk 

56% of landlords considering allowing pet-friendly rental properties

Published On: November 5, 2020 at 10:28 am

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With households across the UK looking to adopt a pet to keep them company during lockdown, proptech start-up Home Made has researched the cities with the most pet-friendly rental properties.

Home Made analysed the rental properties advertised on Zoopla in the UK’s 25 largest cities during October 2020. The data shows that Plymouth has the highest number, followed by Edinburgh, then Stoke. However, the percentages were not very high.

Home Made’s top UK cities for pet-friendly rental properties:

Ranking city % of pet-friendly rental properties

1. Plymouth 8%

2. Edinburgh 6%

3. Stoke 4%

4. Northampton 4%

5. Glasgow 4%

6. Manchester 3%

7. Bristol 3%

8. London 3%

9. Nottingham 3%

10. Liverpool 2%

11. Brighton 2%

12. Southampton 2%

13. Birmingham 2%

=13. Bradford 2%

14. Reading 2%

15. Derby 1%

16. Coventry 1%

17. Cardiff 1%

18. Sheffield 1%

19. Hull 1%

20. Leeds 1%

21. Portsmouth 1%

22. Newcastle 1%

23. Leicester 0%

24. Belfast 0%

Home Made’s research also reveals that almost one in 10 renters are currently looking for pet-friendly properties (London and the South West). The survey of UK renters with pets revealed that dogs were the most popular pet (60%), followed by cats (50%), fish (15%) and small pets, such as hamsters (12%).

However, 39% of UK renters haven’t been able to rent a property because they are a pet owner.

Home Made also surveyed landlords to seek their views, with those who don’t offer pet friendly properties stating that the potential damage to their investment was their main concern (67%).

52% of the renters polled responded they would be happy to pay at least 5% more rent as a ‘pet premium’ to mitigate any possible wear and tear. 7% stated they are prepared to pay 10% more each month.

23% of landlords said that their letting agent actively advised them against advertising as ‘pet-friendly’. This could lead to landlords missing out on quality renters, longer tenancies, potentially higher rents and shorter void periods.

To help alleviate landlords’ concerns, 53% of pet owning renters would also be happy to set up a meeting so the landlord can get to know them and their pet. 38% would also be happy to provide references from ex-landlords to demonstrate their pet is well behaved. 

A quarter of renters said that they would be forced to rehome their pet if they couldn’t find a property. Whilst many would aim to rehome the pet with a friend or family member, 6% said that they would be forced to take their pet to a shelter. 24% of renters said that they would rather go homeless than give up their pet.

Despite some landlords being reluctant to allow pets in their properties, they do recognise the benefits it offers for both themselves and renters. 56% of landlords are currently considering changing their policies to allow pets in their rental properties, following the rise in pet ownership during lockdown. 55% are considering changing their stance because they believe that letting renters have a pet means they will get more enjoyment from their home. 49% recognise that tenants would be inclined to stay longer in the property, and 34% believe it would lead to fewer void periods.

CEO and founder of Home Made, Asaf Navot, comments: “We’re a nation of pet lovers – even more so following lockdown. But finding a rental property to suit you and your pet or pets can be tough. It is understandable many landlords are concerned about potential damage to their properties as we know that pets can be hard on a home. But there are real upsides to renting to pet owners – they’re often more conscientious tenants and they stay longer.

“If you’re a renter with a pet, try getting pet references from previous properties or organise a play date with the landlord so they can get to know your friend.

“If you’re a landlord concerned about your property, chat to prospective tenants about the additional wear and tear and factor this into tenancy negotiations. You can also spend some time pet proofing the property by removing items like rugs that could be easily damaged.

“No one should have to rehome a pet because of a lack of housing options – and searching for pet-friendly properties needs to be made easier. As a team of animal lovers, we’ve created a ‘pet-friendly property’ search tool on our site so prospective renters can find the perfect place to live.”