Posts with tag: rental accommodation

Demand for rental homes to pass 1 million in 5 years

Published On: February 2, 2016 at 11:45 am

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More analysis of the rental market, this time from real estate advisor Savills, has found that demand for rental accommodation could rise by more than one million households over the next five years.

This will come as a blow to the Government, which has set of target of building 400,000 affordable properties over the course of the Parliament. If the predictions are true, the firm says that there will need to be a further 220,000 homes for rent per annum.

Changes

Upcoming changes in legislation for landlords will see demand for accommodation slow, but Savills still predict that the sector will grow by 1.1m households by 2021.

The steady economic recovery and record low interest rates have still not stemmed the tide of demand for rental property. In fact, house price inflation pushing ahead of wage growth has served to move homeownership even further out of reach for many. This comes at a time when social housing stock has dipped by 2.8% in the last five years, meaning more households have been forced back into privately rented accommodation.

According to the latest English Housing Survey, private renting has grown by a huge 17,500 households per month in the decade to 2014. The Government hope that their policies, including Shared Ownership schemes and Right to Buy/Help to Buy will reverse this spiral, by helping more people access the property ladder.

Demand for rental homes to pass 1 million in 5 years

Demand for rental homes to pass 1 million in 5 years

Sharp rises

‘Demand for rented homes could still rise more sharply than we have forecast,’ noted Susan Emmett, director Savills residential research. ‘We would question whether policies can accelerate housebuilding enough to see the Government’s target of 400,000 affordable homes for sale reached in the timescale set. And given the overlap between the different schemes, each focused at similar parts of the market, it is possible that one scheme could simply replace the other rather than providing additional homes.’[1]

‘This analysis demonstrates that we still need to provide a substantial number of homes for rent. Government policy should focus on supporting the development of new homes to rent as well as to buy,’ she continued.[1]

[1] http://www.propertyreporter.co.uk/landlords/demand-for-rented-homes-to-swell-by-over-a-million.html

Landlord Ordered to Pay £200,000 over Illegal Properties

Published On: November 16, 2015 at 11:23 am

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A landlord has been ordered to pay more than £200,000 for converting two properties into poor quality flats without planning permission and dismissing enforcement notices requiring him to restore the properties to their original form.

Landlord Ordered to Pay £200,000 over Illegal Properties

Landlord Ordered to Pay £200,000 over Illegal Propertiesproperties to their original form

Brent Council brought the case against Vijay Kara at Harrow Crown Court, where he pleaded guilty.

One of the properties was located within an industrial estate.

Kara was issued a confiscation order of £187,600 for both properties, fined £10,000 and ordered to pay costs of £10,000.

A confiscation order is designed to remove any profit from crime, by making the convicted defendant to pay a sum of money that represents the benefits of the crime to the Crown Prosecution Service.

Councillor Margaret McLennan, Lead Member for Housing and Development at Brent Council, comments on the case: “It’s staggering that Mr. Kara thought that he could get away with letting out illegal, substandard accommodation, despite a conviction for the same offence in 2009.

“Thanks to our hard working enforcement team, he has been caught out again and landed with a hefty bill.

“It is so important for planning rules to be upheld, not just to protect what our streets look like, but to protect tenants from poor standard accommodation.”1 

In a separate case, a landlord was told to sell property that he owns in London to settle his costs at Nottingham Magistrates’ Court.

Nadeem Hussain, 44, of Sheffield, was fined £16,237, including costs, for not ensuring his tenants’ safety or effectively managing three homes in Nottingham.

He pleaded guilty to five offences under the Housing Act 2004 and management regulations, including failing to ensure that fire detection and alarm systems were working.

1 http://www.propertyindustryeye.com/landlord-ordered-to-pay-over-200000-after-illegal-rentals/

Females Living in Shared Housing Pay More Rent

Women living in shared, rental accommodation are £2,271 worse off than men, revealed data from flat and house share website SpareRoom.

The site compared the finances of male and females living in flat shares.

The research found that although women earn 7% less than men, a pay gap of £1,995, women spend £276 more on rent a year.

In the capital, the pay gap widens to £4,236. Women earn 14% less than men but pay £48 more in rent per year, leaving them worse off.

Females Living in Shared Housing Pay More Rent

Females Living in Shared Housing Pay More Rent

Around one in seven (15%) female flat sharers spend over 50% of their income on rent, compared to just 8% of male flat sharers. In London, where affordability is more severe, 17% of female flat sharers spend 50% or more of their wages on rent.

On an age basis, women in their 20s in London pay the largest proportion of their salary on rent; almost one in five (19%) spend over half on rent compared to only one in ten men.

SpareRoom also discovered that men, who pay an average rent of £511 per month, are more likely to have rent inclusive of bills. Almost half (48%) pay rent including bills, compared to 39% of women, who pay an average of £534 a month. This means that the outgoings and earnings gap is further stretched.

Just 26% of women flat sharers say that they could afford to rent alone, compared to around half (46%) of men.

This makes it unsurprising that more women are spending longer living in shared housing than men. Over a third (34%) of female flat sharers in their 30s have lived in this type of property for more than five years, compared to only 22% of males. In the capital, this rises to 37% of women and 24% of men.

The research also reveals that male renters are more likely to live in larger properties; 30% of male flat sharers live in bigger households, of four or more people, meaning bills are typically cheaper. Only a quarter of female flat sharers live in these households.

Men are also more likely to live in rental accommodation that does not have a living room; 29% of male flat sharers in their 30s compromise on a living room, compared to 19% of females.

Director of SpareRoom, Matt Hutchinson, comments: “With such a defined salary gap between the sexes, it’s no surprise women are flat sharing for longer. In spite of it being 2015, women are still earning less than men, but they don’t get a discount on their rent for being female.”

Hutchinson advises: “One result of this affordability burden is that 12% of female renters don’t ever expect to be able to buy homes of their own. If homeownership feels like a distant dream, there are a few ways you can lower your rent to help you save. Consider living in larger house shares. As a general rule, the bigger the property the cheaper your rent and bills are likely to be.

“Living as a lodger can also save you money, as lodger rents are usually cheaper. We’re increasingly seeing young professionals who have managed to get on the property ladder choosing to rent out their spare rooms to make ends meet, so, in many cases, living with your landlord won’t feel any different from living in a flat share.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/6/female-flatsharers-“pay-more-rent

 

PRS Will Account for 20% of All Housing by 2020

Published On: June 1, 2015 at 3:18 pm

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The private rental sector (PRS) is forecast to grow by 700,000 households, to 5.5m, by 2020, accounting for 20% of all housing stock.

PRS Will Account for 20% of All Housing by 2020

PRS Will Account for 20% of All Housing by 2020

Kent Reliance has released a new report on the buy-to-let sector, stating that almost 150,000 new households were added to the PRS in the year to March 2015. The PRS now makes up 18% of the total housing stock.

The research also found that in the last 12 months, the PRS accounted for 77.4% of all new households.

In the last year, the value of PRS property increased by 11%, or £97.8 billion, to £990.7 billion. London accounted for most of this, at £406.5 billion, followed by the South East, at £147.6 billion. Wales made up the least, at just £23.9 billion.

It is expected that the whole sector will be worth over £1 trillion soon and £1.45 trillion by 2020. Read more: /value-of-buy-to-let-could-reach-1-trillion/.

Average rents have risen by 3.9% annually, to £832 per month in the first quarter (Q1) of the year. The total rental income earned by landlords has reached £4 billion a month.

Landlords now receive £111.5 billion in gross annual returns, £67.2 billion in capital gains and £44.3 billion in rents, the report revealed. This has grown by £5.8 billion in the past year.

Chief Executive of Kent Reliance, Andy Golding, says: “Buy-to-let has come of age, moving from a niche asset class to one big enough to rival the stock market. Landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening. Yes, house prices are showing signs of steadying somewhat, but growth remains brisk.

“Long-term price inflation is not in danger, given the gaping chasm between growing demand for housing and the number of houses being built each year. Combined with the dearth of high LTV [loan-to-value] lending to first time buyers, this will continue to buoy demand for rental accommodation, as well as landlords’ returns and the sector will continue to expand.”1

1 http://www.mortgagestrategy.co.uk/news-and-features/sectors/buy-to-let/buy-to-let-news/private-rented-sector-to-account-for-20-of-housing-stock-by-2020/2021578.article

Rental Evictions in the UK Study

Published On: May 18, 2015 at 12:18 pm

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Rental Evictions in the UK Study

Rental Evictions in the UK Study

The amount of tenants evicted from their rental homes is at a six-year high as rents remain expensive and benefits are cut. If you have been evicted from rental accommodation, The Guardian would like to hear from you.

By visiting the link below, you can contribute to the study, or use the form to share your experiences. You can remain anonymous or alternatively email guardian.witness@theguardian.com.

Visit http://www.theguardian.com/money/2015/may/15/have-you-been-evicted-from-rental-housing-in-the-uk to share your views.