Posts with tag: landlords

Tenants tending to rent for longer

Published On: October 14, 2016 at 1:30 pm

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The latest investigation from Cover4LetProperty Over half of tenants in the private rental sector stay in their rented accommodation for a period of five years or more.

These surveys are conducted bi-annually from March 2013 to September 2016 and this is the eighth edition.

Longer tenancies

59% of renters said they have been in the same property for more than five years, which was unchanged from one year ago.

In October 2013, 15% of males had lived in four or more properties in the last five years, in comparison to 8% of females.

October this year has revealed that only 8% of males and 5% of females have lived in more than three rental properties, which suggests in tenants are staying put for longer.

Tenants tending to rent for longer

Tenants tending to rent for longer

79% of respondents said that opted to rent long-term, representing a rise of 15% over the last 12 months.

15% of existing renters intend to buy their own property within the next six months, down by 18% in the same period. 29% said that hope to buy in the next few years.

 

Over £1m in tenancy deposits stolen so far this year

Published On: October 14, 2016 at 11:42 am

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Shocking new figures have revealed that rogue letting agents have been convicted of stealing over £1m in tenancy deposits so far in 2016.

If that is not bad enough, one campaigner feels that this could just be the start, with more bad news to come.

Deposits

Anti-deposit campaigner Ajay Jagota of Dlighted has conducted analysis that indicates courts have found14 letting agents guilty of illegally taking renters deposits this year. The amount of money taken has ranged from £500 to £400,000.

Mr Jagota, who wishes to see more landlords and agents using Dlighted’s deposit-free renting service. He claims that more than 1,000 renters have been ripped off of £1,100, with at least one landlord or agent convicted every month.

‘If a piece of jewellery or a painting worth £1m was stolen or 1,000 consumers were simultaneously ripped off it would be a major news story. So why should another theft of that scale be tolerated?’ Mr Jagota asked. ‘It’s plain and simple: If landlords and letting agents didn’t take cash deposits these thefts would be avoided.’[1]

Continuing, Jagota said: ‘The most horrifying part is that this is in all probability just the tip if the iceberg. Two thirds of the industry opt for a insurance-based tenancy deposit scheme meaning they are custodians of £2.bn of the £3.5bn held in tenancy deposits.’[1]

Over £1m in tenancy deposits stolen so far this year

Over £1m in tenancy deposits stolen so far this year

Deposit schemes

All three tenancy deposit schemes-MyDeposits, Deposit Protection Service and the Tenancy Deposit Scheme-all require deposit money to be placed into an account which is not touched by the agent or landlord.

However, Mr Jagota feels that there is a misconception in the industry that to do so is legitimate. He notes: ‘There are no check and balances stopping them.’[1]

Concluding, Jagota said: ‘Countless agencies could be unwittingly breaking the law, and if some agencies are habitually using deposit money in their day-to-day activities, what happens if they no longer could? They would become insolvent overnight.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/10/more-than-1m-in-tenancy-deposits-stolen-by-letting-agents-this-year-alone

 

Rental growth slows during September

Published On: October 14, 2016 at 9:00 am

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Categories: Landlord News

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Rents in the UK increased by just 3% in the year to September, this slowest annual growth rate recorded so far in 2016.

Latest analysis from HomeLet also indicates that tenants signing a new agreement in September agreed an average rent of £910 per month.

Ups and downs

Whilst rents are up by 3% from last year, it represents a monthly drop of 0.8% in comparison to August. Rental price inflation has fallen from a high point of 4.5% in March 2016, with the rate of increase falling in each of the last three calendar months.

This slower rate of growth suggests small decreases in average rents across the UK, which could indicate that affordability thresholds are being reached.

Martin Totty, HomeLet’s Chief Executive Officer, said: ‘Landlords are being very careful to ensure rents remain affordable for tenants. Despite factors such as higher Stamp Duty on purchases for buy-to-let investors and the tax changes coming in from April 2017, it would appear so far landlords have absorbed any actual or expected decreases in their yields, rather than pass this on through higher rents.’[1]

Rental growth slows during September

Rental growth slows during September

Inflation

Private rental sector inflation is now less than house price inflation, with relative affordability of rented owner ownership improving.

The future of the rental market is still uncertain, with factors such as mortgage interest tax relief and Brexit looming.

Despite the rate of annual rental growth slowing, the September 2016 HomeLet Rental Index shows that rents are up year-on-year in 10 of the 12 regions.

Of the regions that have not seen yearly rental growth, Scotland recorded a 1.7% annual decrease, while rents in the North-East were unchanged.

Mr Totty concluded by saying: ‘Landlords and tenants alike will need to monitor the market carefully as we get closer to the April 2017 reduction in tax relief on buy-to-let mortgage interest. The recent trends in rental values appear to be changing, which may yet prove beneficial for both tenants and landlords if it reflects some rebalancing between yields and affordability. Both are important for the proper functioning of the increasingly important private rented sector.’[1]

[1] http://www.propertyreporter.co.uk/landlords/uk-rental-growth-slows-further.html

 

What are the strangest items tenants have stolen following tenancies?

Published On: October 13, 2016 at 11:31 am

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A concerning new investigation conducted by Direct Line for Business has revealed that almost one in three renters have taken items that do not belong to them at the conclusion of their tenancy agreement.

Items that tenants have removed from their rental property include fridges, freezers, light fittings, televisions and sinks!

Taking items illegally

Some of the most common reasons for tenants taking items for properties include:

  • believing the landlord wouldn’t notice
  • taking items by accident
  • forgetting the item(s) was not theirs

However, more than one fifth of respondents to the survey who owned up to stealing valuables said that they simply wanted to take them!

The overall cost to landlords of replacing these items is not cheap, with the report indicating that tenants believe the overall value of items they have stolen amounts to more than £500. This underlines the need for a good landlord insurance policy!

Nick Breton, Head of Direct Line for Business, stated: ‘The range of items that tenants feel that they can take with them when vacating a property is quite amazing. It isn’t even just small items that go missing; our research found that renters are helping themselves to beds, sofas and cupboards once their tenancy agreement comes to an end. These are expensive to replace and could have a knock-on effect for future tenants of that property. Plus a tenant could find that they lose their deposit.’[1]

What are the strangest items tenants have stolen following tenancies?

What are the strangest items tenants have stolen following tenancies?

Importance of inventories

Additionally, the research shows that 21% of respondents to the survey who had pinched items said they did not complete an inventory when moving into a property.

Nearly one quarter of tenants who had signed an inventory said the items they had stolen were on this list, but they were undeterred!

Some more unusual items taken were coconuts and a bee hive!

Concluding, Mr Breton said: ‘The research highlights the importance of having a thorough inventory before your property is vacated. Building a relationship with your tenants is a bonus and can open up communication which could minimise issues further down the line. If the property is furnished then make sure you have the right insurance in place so you’re covered should things go missing – like the kitchen sink!’[2]

[1] http://www.propertyreporter.co.uk/landlords/what-are-the-strangest-items-tenants-have-taken-when-moving-out.html

Property asking prices rise during September

Published On: October 12, 2016 at 2:08 pm

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Property prices in the UK rose by 0.7% during September, with the East of England showing the most prominent rises.

However, a report from Home.co.uk suggests that many sellers are being too optimistic on their pricing.

Rises

Month-on-month, property asking prices rose by 0.7% in England, by 0.3% in Scotland and by 0.2% in Wales. Yearly, prices are up by 4.4%, 5.3% and 1.3% than at the same period in 2015.

In addition, supply has found to have risen by 11% year-on-year across Britain. This was particularly driven by the South and East of the England. In London, supply rose by 19%, in the South East by 23% and the East by 30%.

The largest month-on-month rise in asking price was found in the East of England, with 1.1%. This took the average asking price in the region to £342,915, some 11.5% greater than one year previously.

Next came the South East and the East Midlands, with rises of 1% recorded. This pushed the average asking price of property in these regions to £394,837 and £211,328 respectively. Annually, there were increases of 4.2% and 5.5%.

Property asking prices rise during September

Property asking prices rise during September

Muted

More muted growth was evident in the West Midlands, with asking prices up by 0.5% month-on-month and 6.5% year-on-year. The North West saw rises of 0.1% and 4.2%, Yorkshire and the Humber 0.2% and 3% and the North East 0.2% and 1.1%. Asking prices in these regions are now £225,664, £181,459 and £157,577 respectively.

The report also indicates that a sign of fragility within the market is evident with a growing number of sellers cutting asking prices. This is currently at a three-year high in Britain, with Home.co.uk expecting more to follow.

Doug Shepherd, director of Home.co.uk, noted: ‘Supply is increasingly rapidly in the East, South East and London. What’s more, the pricing of these new instructions is looking rather optimistic.’[1]

[1] http://www.propertywire.com/news/europe/asking-prices-across-uk-sellers-optimistic-index-suggests/

 

 

Over a third of landlords are concerned over Brexit

Published On: October 12, 2016 at 8:49 am

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New findings from the National Landlords Association have revealed that over a third of residential landlords are concerned about the impact of Brexit.

According to a survey conducted by the NLA, 35% feel that leaving the EU will have a detrimental impact on their ability to attract renters in the future.

Uncertainty

Additional data from the report shows that 39% of investors feel Brexit will have no significant impact. 21% said they were unsure, while 5% feel it will have a positive effect.

The research was carried out following Prime Minister Teresa May’s announcement that Article 50 will be triggered by March 2017.

By region, the findings show that over half of landlords in central London (55%) feel that Brexit will have a negative impact on their business. However, just 22% of those in the North East feel that this will be the case.

Over a third of landlords are concerned over Brexit

Over a third of landlords are concerned over Brexit

Concern

Richard Blanco, representative of the NLA, noted: ‘These findings clearly show that a significant proportion of landlords are concerned about what Brexit will mean for their lettings business so we wanted to try to understand and make sense of the situation.’[1]

‘We now know that Article 50 will be triggered soon, but landlords still have lots of questions like what will happen to rental demand as a consequence of Brexit, will house prices fall, or should I rethink my investment strategy?’ he added.[1]

The full regional breakdown on how landlords feel Brexit will impact on their business is evident in the table below:

Property location Brexit will have positive impact Brexit will have negative impact
East Midlands 14 35
Yorks & Humber 12 24
Wales 9 33
North West 8 34
East England 7 34
South West 6 33
South East 6 38
North East 5 22
West Midlands 4 28
Scotland 4 39
London outer 3 46
London centre 2 55

[1]

[1] http://www.propertyreporter.co.uk/landlords/brexit-worries-for-35-of-landlords.html