Posts with tag: landlords

Families top renting group in the UK

Published On: June 23, 2016 at 11:43 am

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Families have risen to become the most common household type in the private rented sector in Britain for the first time.

Research from the National Landlords Association shows that more landlords now let to families with children, accounting for 48% of the sector. This is closely followed by young couples, who make up 47%.

Shifting household trends

The latest data indicates a shift in comparison to four years ago, when young singles accounted for 53% of the market, followed by young couples and families with children.

Now, the private rented sector makes up nearly five million households in the UK. According to the English Housing Survey, the proportion of families in the sector has risen from 30% in 2004/05 to 37% in 2014/15

Of those families surveyed, privately renting a property is a steady option. 76% reported that they were happy with the length of their tenancy. 79% said that their tenancy was either renewed or stayed constant at the end of their initial fixed term.

As a result, the perception of renting a property as a barrier to family life is being snuffed out. 77% of renting families said they considered their rental property to be their home. 65% said they had received the green light to personalise their property however they wish.

Families top renting group in the UK

Families top renting group in the UK

Contrast

Richard Lambert, chief executive officer at the National Landlords Association, said, ‘there is a genuine contrast between the experience of renting in the 21st century shown in this research and the prevailing housing culture in Britain that only views it as stopgap, something to be tolerated while waiting for the opportunity to buy your own house.’[1]

‘There is a rogue element to private housing that ruins the experience for far too many people but for the majority of the 11 million private renters, renting offers an inclusive and flexible option which works for them in their current circumstances,’ he added.[1]

Concluding, Lambert said, ‘contrary to popular perception, there’s growing evidence that renting is no obstacle to putting down roots and calling somewhere home. The majority of landlords want good, stable, long term tenancies and these findings show that more and more are becoming receptive to helping families make a home in the private rented sector.’[1]

[1] http://www.propertywire.com/news/europe/uk-rental-homes-research-2016062112055.html

UK landlords not concerned about Brexit

Published On: June 22, 2016 at 4:04 pm

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A report from the Association of Residential Letting Agents has revealed that UK landlords believe the market will not be affected by the EU referendum result.

The investigation suggests that whatever the outcome of tomorrow’s vote, UK buy-to-let investors feel that supply, demand and rental fees will not be substantially affected.

Referendum realisation

65% of ARLA agents think that supply will stay the same, should Britain vote to leave the EU. This is in comparison to just 22% who believe that it will fall, with international landlords removing themselves from the market.

31% believe that demand will decrease, with relocating to Britain becoming a less attractive proposition. Over 55% feel that demand will be unchanged.

In London, 43% of agents feel that number of potential tenants per property will fall should Britain choose to leave. Only 19% said a Brexit will cause rents to rise even further.

UK landlords not concerned about Brexit

UK landlords not concerned about Brexit

Impact

David Cox, managing director of ARLA, noted that, ‘there is no avoiding the EU Referendum at the moment; and whatever the outcome, we are likely to feel the impact of the fallout of this debate in different ways. However, it’s important to put this into perspective and not get carried away in a zeitgeist.’

‘As outlined in our recent Brexit Report, the lettings market hosts a large number of non-UK born citizens and any change in migration policy is likely to have an impact down the line, especially in London. However, our monthly report clearly shows the sentiment amongst members is that the immediacy of this effect is likely to be minimal.’[1]

Concluding, Mr Cox said, ‘the EU Referendum debate in many ways has stalled policy making and following the vote we need to move from political debate to action. We need supply to increase dramatically and quickly to really deal with the housing crisis as this is one of the most pressing problems facing UK society today.’[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-unphased-by-possible-brexit.html

60% of Property Professionals Believe We Should Stay In the EU

Published On: June 22, 2016 at 3:20 pm

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Categories: Landlord News

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The majority of property professionals believe that Britain should remain in the EU, just one day ahead of the crucial vote on Thursday (23rd June).

Landlords, letting agents, mortgage brokers, property experts and landlord insurance specialists all took part in the Landlord News poll at this week’s Landlord Investment Show in London.

60% of Property Professionals Believe We Should Stay In the EU

60% of Property Professionals Believe We Should Stay In the EU

A clear winner emerged by the end of the event; over 61% of property professionals claimed that a vote to stay in the EU would be better for the country and the private rental sector, while almost 39% believe that leaving the EU will be the best option for their businesses.

This week, the country will come out to vote in the UK’s first vote on Europe since 1975. Voters will be asked whether we should remain in the EU or leave.

Many recent reports have made suggestions on the potential outcome of the vote. The latest, from property portal Zoopla, claims that house prices will drop by 20% if we vote to leave.

Despite political uncertainty previously having an adverse effect on the property market, house prices appear unaffected by the forthcoming Brexit vote.

However, mortgage lending has fallen to a 12-month low ahead of the referendum, as buyers await the outcome.

Tenant eviction specialist Paul Shamplina, of Landlord Action, has witnessed a slowdown in the number of buy-to-let landlords purchasing properties.

“The property market doesn’t like uncertainty,” he explains. “If a landlord is looking to purchase, then watching and waiting makes sense.”

However, he understands that many landlords may not be in a position to buy after the referendum is decided, as a large number rushed to invest in the sector ahead of the introduction of the 3% Stamp Duty surcharge on 1st April.

Shamplina adds that the influx of landlords investing further into the private rental sector could bring “a lot more property onto the market, which may bring rents down”.

Whether house prices or rents will come down if we leave, “only time will tell”, concludes Paul. But one thing’s for sure, property professionals believe we should stay in!

Rental prices fall as market floods

Published On: June 20, 2016 at 9:53 am

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Latest figures have indicated that rents in the UK have started to dip, with landlords who had rushed to buy property before the Stamp Duty changes beginning to rent them out.

In turn, this has provided tenants with a larger selection of properties to choose from, according to the buy-to-let index from Your Move and Reeds Rains.

Rental falls

Rents for residential properties available to be let across England and Wales have fallen by an average of 0.2% during May, in comparison to April. Typical rents now stand at £792 per month.

Annually, rents are 1.8% greater than in May 2015, half of the 3.6% annual rate of rental growth recorded four months ago.

Adrian Gill, director of letting agents Your Move and Reeds Rains, notes that the number of properties coming onto the market has narrowed the supply-demand imbalance.

Gill said, ‘this is the equivalent of a flash food for the market. Just a month ago rents were heating up and spring was in the air-but this has been put on hold as a tide of new properties to let has disrupted the normal dynamics of supply and demand.’[1]

Slows

Further analysis of the data shows that rental increases in the capital fell to just 1% in the year to May 2016. This was substantially lower than the peak of September 2015, when London rents were up by 11.6% year-on-year.

In contrast, the East Midlands saw rents rise by 7.3% in the year, followed by the West Midlands, where a 5.5% rental increase was recorded in the year.

All 10 regions of England and Wales experienced a rental rise during May, in comparison to the same month of last year.

Despite monthly rents falling as a whole, rental yields are seemingly resilient, due to a similar dip in property prices on a month-on-month basis. Gross yields on typical rental property, pre account factors such as void periods, stand at 4.9%, the same as in April.

Rental prices fall as market floods

Rental prices fall as market floods

Rising returns

When rental income and capital growth are taken into account, before property-specific costs such as maintenance, the average landlord in England and Wales saw returns of 10.2% in the year to May.

This was slightly lower than the 10.7% recorded on month previously, which reflects the slowdown in house price growth.

However, in comparison to the year ending May 2015, this stood at 9.4%, showing that landlords have seen stronger returns over the last 12 months.

In absolute terms, this means that the typical landlord in England and Wales has seen gross returns of £8,712 in the last year.

Mr Gill concluded by saying, ‘Landlords are vital in matching an escalating demand for homes from tenants. Such a scale of demand doesn’t look set to change dramatically just because of a few tax tweaks – so professional and accidental landlords will always be an essential part of the solution. Financial rewards for investing in property, taking on risk and maintaining homes will have to reflect the importance of landlords for our economy and our society.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/6/rents-fall-as-landlords-flood-rental-market

Is Your Dad a Landlord? Here’s a Father’s Day Gift Guide

Published On: June 17, 2016 at 10:48 am

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If your dad is a landlord, you may be wondering what to buy him for Father’s Day on Sunday. Don’t worry – we have a gift guide to help you find the perfect present.

If your dad is either a part or full-time landlord, he may often be busy and stressed with business. Treat him this Father’s Day with one of these handy (but special) gifts:

Gadgets

Some of the tech available today can be really helpful for landlords, who have a lot of organising and managing to do. Small items that are easy to transport and keep your dad on top of his responsibilities are great options. If he doesn’t already have the following, why not treat him to a new gadget?

  • Digital camera – Perfect for snapping pictures of his rental property for either listings or inventories, a new, top-of-the-range digital camera will be appreciated by all landlords.
  • Voucher for apps – If your dad has a smartphone or tablet, a voucher for the relevant app store will allow him to download many of the handy tools available today. From property portal apps to spirit level apps, there’s plenty to make a landlord’s life easier.
  • Phone case – It’s vital that all landlords stay organised while on the go. This means that most will carry a smartphone with them to make notes and communicate with tenants. Smarten up your dad’s essentials with a new phone case.
Is Your Dad a Landlord? Here's a Father's Day Gift Guide

Is Your Dad a Landlord? Here’s a Father’s Day Gift Guide

Tools 

A landlord that loves property will appreciate anything that improves his investments. New tools will help him maintain his properties to a high standard and even increase the value of his investment.

  • Multi-tool – A standard pocketknife doesn’t cut it anymore; there are many small, compact multi-tools on offer that will get your dad through simple maintenance tasks.
  • Electric/laser tape measure – If your dad is looking to invest further in the private rental sector, it’s likely that he will be going to many property viewings and sizing up his investment options. An easy to use, electric or laser tape measure will help him assess his new investments much more quickly and easily.

Stationary

From conducting inventories to signing tenancy agreements, all landlords have a lot of admin work to complete. Make everything easier and more organised for your dad with some of these ideas…

  • A nice pen – It’s likely that your dad will have many important documents to sign, so having a special pen to keep with him at all times will ensure he’s always prepared. It’ll also look nice when he offers it to a tenant.
  • Notebooks and folders – We all know how difficult it can be to keep mounds of paperwork in order; make life easier for your landlord father by treating him to some new stationary that he can use for each rental property.

Something for him

While many landlords will appreciate any of the gift options above, it is always nice to receive something especially for you – particularly when you have tonnes of laws and regulations to comply with! Treat your dad to something for him this Father’s Day.

  • New mug – Make sure he always has a smile on his face when he makes a well-earned brew with a new mug that reminds him of you.
  • Bottle of wine – Renting out properties can be stressful and time consuming; ensure your dad has time for himself this Father’s Day with a bottle of his favourite wine (or beer if he prefers).
  • A Just Landlords Rent Guarantee Insurance policy – Protecting a landlord’s rental income is one of the best gifts you can give!

Landlords to sell up following tax changes

Published On: June 16, 2016 at 11:15 am

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Concerning new research suggests that thousands of landlords will be forced to sell their properties in the coming years, following George Osborne’s tax changes on the buy-to-let sector.

The study was conducted by estate agent Maskells and concludes that changes to stamp duty, mortgage tax relief and lending criteria will make it harder to make substantial profits from buy-to-let. In turn, this could see landlords driving up rents and deterring potential renters.

Buy-to-let sales

Apart from the extra 3% stamp duty surcharge being imposed from April 1st, the amount that landlords can claim in mortgage interest tax relief is to be limited from 2017. This, it is feared, will cut landlords’ returns, especially higher rate taxpayers.

Maskells suggest that the tax measures imposed by Mr Osborne will see an additional 163,000 homes come onto the market by 2017/18. These, the estate agent believes, will be as a direct result of the changes.

In some areas, this could result in an oversupply of homes for sales, which in turn will put downward pressure on property prices.

Landlords to sell up following tax changes

Landlords to sell up following tax changes

Charles Curran, principal at Maskells, commented that, ‘the buy-to-let market has provided so much of the rental stock the country depends on, but the government’s tinkering could lead to a sell-off.’[1]

‘This situation does seem akin to a slow motion train crash: buy-to-let landlords with mortgages are standing on the track in a game of chicken with regulatory locomotive, hoping to time their exit as best as possible. This high-risk game will almost undoubtedly leave casualties,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/6/landlords-set-to-offload-property