Posts with tag: Conservative housing policies

Letting Agents Believe Rents will Rise in Next Five Years

A third of letting agents reported that rents rose in April and many think they will continue increasing over the next five years, recent research has found.

The latest monthly private rental sector report from the Association of Residential Letting Agents (ARLA) revealed that in the North West, 46% of landlords experienced rent growth.

Across the whole of the UK, nine in ten agents said they were pleased with the general election result and 79% expect rents to increase in the next five years, as Labour’s rent cap plans are no longer a threat.

The report also indicates that in April, the amount of landlords selling their buy-to-let properties has risen, especially in London.

Letting Agents Believe Rents will Rise in Next Five Years

Letting Agents Believe Rents will Rise in Next Five Years

ARLA agents in the capital witnessed the number of landlords selling their rental properties double between March and April, increasing from three to six homes on average per branch.

Agents in Scotland reported an increase from four to seven buy-to-let properties going onto the market in the same period and the national average has risen from three to four.

ARLA Managing Director, David Cox, comments: “It is interesting that we have seen an increase in the amount of landlords selling their buy-to-let properties in the last month, which is likely to have been a result of political uncertainty.

“We know that Labour’s plans were unpopular for many landlords and agents, so this increase in those selling their buy-to-let properties may have been a knee jerk reaction to the possibility of Labour’s proposals coming into practise.” 

Following the election outcome, 90% of ARLA agents were happy with a majority Conservative Government and 95% think this will benefit the private rental sector.

Of those agents, 13% said it is positive because the Conservatives will interfere less with the industry and 11% believe it will provide certainty and stability in the market.

Supply and demand was similar in April to the previous month. On average, ARLA member branches managed 193 properties compared to 192 in March. In April, ARLA agents dealt with 36 prospective tenants per branch, unchanged from March.

Cox continues: “It is going to be interesting to see what happens in the market in the next few months following the election result and whether we see an increase in supply of rented accommodation as a result of the Conservative’s promise to build 200,000 new starter homes offered at 20% discount to first time buyers.

“This policy will help first time buyers make that leap onto the housing ladder and as a result, this will hopefully free up rental property.

“Hopefully, now the country is under less political uncertainty, we will begin to see the market pick up again and with the policies on offer in both the rental sector and housing market, we should see the overall market heading into the right direction.”1


First-time buyers support Tory policies

Published On: May 19, 2015 at 5:08 pm


Categories: Landlord News

Tags: ,

The Conservative election victory has been well received by first-time buyers, according to new research.

A survey from the Halifax suggests that housing policies announced from the Tories were more in line with the demands of would-be buyers , particularly the Help to Buy scheme.


Halifax’s Generation Rent analyses an ongoing insight into the attitude of young, aspiring homeowners toward the market. The most recent survey indicated that getting empty homes back on the market was the primary concern of first-time buyers.

Despite five of the top nine housing policies that the survey found young people to be supportive of came from the Conservatives, the top policy was actually a Liberal Democrat proposition. This was the proposal of increasing housing supply by allocating powers to local authorities to make more of an effort to restore empty homes, thus returning them to the rental or homebuyer markets.

Producing a greater supply of homes was the challenge made to the incoming Tory Government by all of the participants of the Generation Rent report. As a result, the pledges made by David Cameron to address the lack of supply were welcomed by the vast majority of people questioned. Popular pledges so far have included the announcing of both a new Right to Buy and Rent to Buy scheme.

First-time buyers support Tory policies

First-time buyers support Tory policies

Big Issue

Craig McKinlay, mortgages director at the Halifax, said that, ‘housing was a major issue during the general election campaign and political parties of all hues acknowledged that more needs to be done to help first time buyers.’ He warns however that, ‘this now needs to translate into concrete plans during the next Parliament.’ [1]

McKinlay continued by saying that, ‘earlier this year the independent Commission on Housing identified that we need to deliver at least 2 million homes by 2025 to meet demand. Getting empty homes back on the market and tackling the shortfall in housebuilding needs to be a political priority and requires a long-term commitment if it’s to address the shortage of supply.’[1]

Encouragement comes with the news that during the first couple of years of the Help to Buy Equity Loan Scheme to 31 March 2015, 47,018 properties were purchased using the loan. The Halifax report reveals that over half of respondents (53%) feel that the Help to Buy schemes currently in place have had a good effect on the market. 39% were either undecided or did not have an opinion, whereas just 8% thought the scheme had a negative impact.[1]

McKinlay noted that, ‘the majority of Generation Renters participants believe Help to Buy has had a positive impact and its good news that the scheme will be carrying on for a number of years yet. However, the fact that 39% either don’t know or are undecided demonstrates that more work is needed to educate people as to the benefits and how the schemes work.’ [1]