Search Results For: buy to rent sector

Over half of UK private tenants happy to remain renting

Published On: October 1, 2019 at 8:28 am

New research shows that only 42% of private tenants in the UK are interested in buying a home in the near future.

This information comes from a study from Landbay, the buy-to-let focussed marketplace lender. Involving 2,000 private renters in the UK, it provides insight to landlords on the wants and needs of their tenants.

The study also looked at age ranges, when it comes to the prospect of purchasing a home. Unsurprisingly, older renters are the least interested. Only 13% of over 55s are considering buying a home in the near future.

46% of those aged 35 to 44 said they are considering homeownership. However, as expected, the majority of interest goes to the 25 to 34-year-olds, with 64% stating that they are keen to buy in the future.

The area containing the most renters hoping to move to homeownership is London at 48%. Northern Ireland is a close second at 47%.

The least likely area is the South West and Wales, with both receiving results of 37%.

When those happy to remain renting were asked why, 25% replied that the flexibility of renting proves too tempting to resist. 6% attribute their plan to move to a new country, and 5% plan to move to a new city or a new job.

John Goodall, CEO of Landbay comments: “This research suggests the UK’s enthusiasm for homeownership may be waning. Conversations around the private rental sector often assume the bulk of renters are simply biding their time until they can buy a house.

“However, the changing face of employment and a thirst for flexible living mean renting is more attractive than ever, and landlords should reflect this in their interactions with tenants.

“It’s crucial that investment in the private rental sector becomes a priority. What use is Labour’s ‘right to buy’ policy if renters have no interest in doing so? Instead, the government must focus on encouraging purpose-built rental properties and cease its penalisation of landlords.”

Labour Party Conference should consider ‘Right to Buy’ plans carefully

Published On: September 20, 2019 at 9:46 am

Author: Em Morley

Categories: Landlord News

Tags: labour,right to buy

Labour Party plans to give tenants the right to buy their privately rented home should be debated extensively, says lettings payment automation provider PayProp.

This issue is due to be discussed at the Labour Party’s annual conference, which begins on 21^st September.

Controversial plans unveiled by Shadow Chancellor

It was earlier this month that Shadow Chancellor John McDonnell announced plans for a private rental sector ‘Right to Buy’ scheme that will allow renters to purchase their homes from private landlords.

He informed the Financial Times that tenants would be able to purchase homes below market value at criteria set by the government.

McDonnell said the plans would aim to prevent landlords who neglect to maintain their properties from making a ‘fast buck’.

However, this is a worry that this scheme could lead to a mass buy-to-let selloff, causing property values to plummet.

Neil Cobbold, Chief Operating Officer of PayProp UK, says: “These proposals are not yet party policy and they need to be considered very carefully before being put forward as the official party line.

“The effort to help tenants buy their own homes is understandable, but it shouldn’t be at the expense of landlords. Politicians must also remember that many people now choose to rent due to the flexibility and lifestyle benefits it offers.”

A fair system needed for all parties

The Centre for Policy Studies has suggested that landlords should be given incentives to sell their properties to tenants, including Capital Gains Tax rebates.

Meanwhile, the Residential Landlords Association says any ‘Right to Buy’ measure should be voluntary for landlords, or else it would amount to a ‘form of compulsory purchase’.

Cobbold says: “There is nothing wrong with giving private tenants the option to purchase properties from landlords, but any such system must provide benefits for both parties.

“Private landlords have been hit with a range of tax changes in recent years, including additional stamp duty and the removal of buy-to-let mortgage interest tax relief.”

“If landlords were offered some sort of exemption from these measures in exchange for selling their properties to tenants, this could create a scenario that is fair for both sides of the transaction and benefits the overall health of the UK property market.”

Party conference season reinforces housing priority

The Liberal Democrats debated scrapping Section 21 at their conference last week. The Conservatives are also expected to discuss the eviction issue – as well as agents’ referral fees – at their annual gathering in Manchester from September 29.

Cobbold concludes: “This year, with a potential General Election in the offing, the stakes at party conference season are higher than usual. We expect to see lots of talk on housing at the Labour and Conservative conferences as they look to form key policies ahead of a potential campaigning period.

“New housing policies – and those covering the private rented sector in particular – could be pivotal in securing key votes in the coming months.”

How can letting agents and landlords help older tenants and family renters?

Published On: September 12, 2019 at 9:09 am

Author: Em Morley

Categories: Landlord News

Tags: landlord tips,letting agents,tips

Letting agents and landlords can benefit from being particularly attentive to the needs of family renters and older tenants in the private rental sector (PRS), says Tenant Shop.

The provider of products and services for letting agents and tenants is pointing out that renting has become the choice of tenure for even more people living in the UK. As well as young professionals saving for their first home, there are many other tenant types choosing to stay in the PRS.

The proportion of private renters aged 55-64 increased to 9% in 2017-18 from 5% ten years previously, according to the most recent English Housing Survey (EHS).

Meanwhile, the previous year’s EHS documented a 1.8m rise in the number of family tenants over a decade.

Various other studies and research in recent years have also revealed an increase in the number of middle-aged renters, with or without children, as well as older people renting for lifestyle reasons.

Glenn Seddington, Managing Director of Tenant Shop, comments: “More people from all demographics are choosing to live in the PRS for the long-term. This is due to a number of reasons, including the flexibility and affordability it offers.

“This development has provided agents and landlords with the chance to work with new age groups and those that cater to older tenants and family renters within their service offering can reap the benefits.”

What are older tenants looking for?

Tenant shop highlights that older tenants or middle-aged renters will be looking to work with agents and landlords who can provide them with a reliable and comprehensive customer service.

As well as being able to use efficient and easily navigable online communications processes, they’ll also be keen to meet in person or speak on the phone when necessary.

Seddington explains: “Older tenants may also be looking for insurance products to protect their most valuable belongings and their families, and an alternative way to access the utilities market.

“By working closely with our agent partners, we have been able to support them further following this shift in market activity. And those that always like to be at the cutting-edge of the trends and lead the way with customer service are understood to already be yielding results.”

How can agents and landlords help family renters?

Typical family renters are likely to live busy and hectic lifestyles, balancing school runs, work commutes, meal times, house cleaning and more. Therefore, they are likely to be interested in a low-stress and hassle-free service from property professionals.

Seddington continues: “Tenants with young children are more likely to be under financial pressure, so they will be looking to keep bills down through introductory offers and deals when it comes to utilities.

“Agents who can make key introductions, as well as providing expert advice on things like contents insurance, can start to build long-term relationships with these tenants who will become the buyers, sellers and landlords of the future.”

Government’s approach to rental market “incoherent” says expert

Published On: September 10, 2019 at 9:25 am

Author: Em Morley

Categories: Property News

Tags: government,tax

The Government’s approach to the private rental sector (PRS) is “incoherent”, according to a former member of the Bank of England’s Monetary Policy Committee.

Contrary to the Government’s stated aims, there are “few signs” that tax increases on the sector have benefited those hoping to become homeowners, David Miles, Professor of Financial Economics at Imperial College London, argues.

Meanwhile, he highlights, they are “left in a rental sector with reduced choice and where rents are likely to be higher as supply gradually shrinks.”

It was in 2015 that the Government introduced measures to restrict mortgage interest relief on the PRS to the basic rate of income tax and imposed a Stamp Duty levy on the purchase of new homes to let.

In his exclusive article for the Residential Landlords Association Professor Miles attacks the Government’s approach which has sought to cut investment in the rental market to support aspiring first-time buyers. He argues that such buyers “are hardly helped by squeezing the supply of rental property and driving rents up.”

He goes on to say that there is nothing “intrinsically wrong with people being in the rented sector for an extended phase of their life. We should want to avoid a situation where people feel pressurised into taking big mortgages relative to their income early in life because the rental option is so poor.”

Professor Miles goes on to conclude: “In a world where house prices might be consistently higher relative to incomes than in the past we might naturally expect the period in which people are in the rented sector is longer.

“And there are good economic reasons for believing that in a country with a rising population and where real incomes tend to increase over time house prices might well rise at least as fast as incomes. To have then introduced measures that reduce the supply of rented property is perverse.”

David Smith, Policy Director for the Residential Landlords Association, said: “Professor Miles hits the nail on the head. Choking off the supply of rental properties does nothing to help aspiring home first-time buyers who need somewhere to live now.

“It is time to change tack and recognise that we need more homes to rent as well as to buy in order to meet growing demand and have policies that support investment.”

Here’s what tenants look for most in a rental property

Published On: September 5, 2019 at 8:42 am

Author: Em Morley

Categories: Tenant News

Tags: lets with pets,tenants

Pet-friendly homes are what tenants look for most in a let, according to research from Landbay, the buy-to-let focussed marketplace lender.

2,000 private renters in the UK were involved in this study, which offers insight to landlords on what tenants look for.

The research found that 14% of renters rated ‘pets being allowed in the property’ as their most important requirement. Specifically in the North East, this figure rises to 27%. However, only 3% of renters in London selected this response.

Second on this list is an unfurnished home. 12% of renters said that this was the most desirable attribute. Landbay highlights that 22% renters aged 55 and above are five times more likely to consider an unfurnished property as crucially important than those aged between 18 and 34 (4%).

A home with a garden came third, with 11% of renters rating outdoor space as their most important attribute. Parents (15%) are more than twice as likely to prioritise a garden compared to non-parents (7%) Off-street parking and the quality of a property’s décor came fourth and fifth respectively.

Having a dryer came bottom of the list of most desirable attributes with just 1% of renters considering it key to their home. A king-sized bed, a balcony, and a dishwasher also polled just 1%. Just 2% of private renters consider a new build property as a priority.

Top Five Attributes		Bottom Five Attributes
Pets allowed	14%	Dryer	1%
Unfurnished	12%	King sized bed	1%
Garden	11%	Balcony	1%
Off-Street parking	9%	Dishwasher	1%
Quality of décor	7%	New build	2%

Deborah Mudway, Director, Landbay comments: “This will make interesting reading for landlords, who could be forgiven for believing little luxuries like a dishwasher, dryer and even a king-sized bed make all the difference for tenants. In fact, nothing could be further from the truth.

“Landbay is investing in a research series to help landlords understand tenants and opportunities within the private rental sector. This edition shows renters value two key attributes above all others that are fundamentally free to bring in. In short, they want to make their property feel like home by bringing both pets and their own furniture with them. The reality is, aside from a deeper clean at the end of a tenancy, this really isn’t hard for landlords to implement.

“Essentially, landlords knowing what renters want can make for a happier, more prosperous relationship which benefits both parties in the long run.”

New ‘Right to Buy’ proposal will provide tenants with opportunity to purchase their homes

Published On: September 3, 2019 at 8:02 am

Author: Em Morley

Categories: Tenant News

Tags: right to buy

A proposal has been made for a new ‘Right to Buy’ scheme by Shadow Chancellor John McDonnell.

His plan is to help millions of private renters in the UK to eventually buy their homes. In an interview with the Financial Times, he highlighted that he plans to tackle the “burgeoning buy-to-let market” and the issue of problem landlords uninterested in improving housing for tenants.

McDonnell told the Financial Times that the Government should establish the criteria for a reasonable price for a property and then this would become the right to buy.

David Smith, Policy Director for the Residential Landlords Association (RLA) has commented on this news: “Labour’s proposal would effectively kill off a large part of the private rented sector denying a home to many thousands of people. If there was to be any chance of this becoming law, there would be a mass sell-off of properties in advance.

“The RLA is all in favour of landlords selling to sitting tenants but it must be entirely voluntary. Anything else amounts to a form of compulsory purchase.”

Chris Norris, Director of Policy and Practice at the NLA, said: “To suggest that private landlords should be selling their properties to their tenants at a below market rate arbitrarily set by politicians is ludicrous. Landlords had to pay market rates themselves. It’s only right that, if and when they decide to sell it, they can do so at market rates.

“If Labour does indeed wish to fix the housing crisis, they should focus on encouraging the government to build more social housing, which is what the housing sector is lacking.”

“John McDonnell’s assertions that landlords are looking for a quick buck and don’t maintain their properties shows a serious lack of knowledge about how the vast majority of landlords run their businesses. These good landlords should not be punished for the sins of the few who fail in their obligations to provide tenants with a decent home.”