Posts with tag: rental market

Buy-to-let investors looking for lower value homes

Published On: November 26, 2015 at 3:53 pm

Tags: buy to let investors,buy-to-let landlords,landlords,rental market

New research indicates that buy-to-let investors are looking for lower-value properties, in an attempt to gain higher yields.

The latest Mortgage Search Tracker from the Mortgage Advice Bureau shows seven in ten landlords are actively searching for a mortgage on properties valued at less than £250,000. This indicated a sharp rise from the five out of ten recorded one year earlier.

Falling rates

A growing number of landlords are choosing higher loan-to-value (LTV) mortgages, with interest rates continuing to tumble. One in three landlords are looking for mortgages on properties with a value of less than £150,000.

This trend comes as house prices continue to rise, up by 5.2% over the last year. In London, the South East, South West and East of England, average property prices are more than £250,000.

Buy-to-let investors looking for lower value homes

‘As rental demand remains strong nationwide, opting for a cheaper property can result in more attractive yields,’ noted Brian Murphy, head of lending at the Mortgage Advice Bureau.[1]

‘It appears many landlords are looking to invest in areas outside the South of England, where property prices won’t hold them back from making a profit,’ he added.[1]

Murphy went on to say that buy-to-let investors are reaping the rewards of more competitive pricing. ‘Although higher LTVs generally mean more costly monthly repayments, falling rates mean landlords may find they can now afford higher-LTV products,’ he concluded. [1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/11/landlords-targeting-cheaper-properties

Rent collector jailed for running over tenant

Published On: November 25, 2015 at 2:30 pm

Author: Em Morley

Categories: Landlord News

Tags: rental market,rents,rogue landlords

A son of two landlords has been put behind bars for 10 years, after he deliberately ran over a tenant following a heated dispute over rent.

Mr Shahid Hussain drove his vehicle at Muhammed Pervez outside the rented accommodation in Bradford in July 2014. As a result, the victim was left with injuries to his jaw, cheekbone, eye socket, teeth and nose. In addition, he was left with severe bruising to his hands, back, legs and torso.

Guilty

As a result of his attack, Mr Hussain was found guilty of causing grievous bodily harm with intent. In addition, Hussain and brother-in-law, Mohammed Khurshid were found guilty of two charges of committing an act intending to pervert the course of public justice after the pair threatened and abused witnesses at the scene of the crime.

The court heard that Mr Pervez was involved in a confrontation with Hussain, after he had gone to collect rent on behalf of his parents, the landlords of the property. The Bradford Telegraph & Argus reports that Mr Hussain drove his car at Mr Pervez before reversing the vehicle back over him.

Rent collector jailed for running over tenant

Sickening

Even more sickening was the fact that Mr Hussain had two young children inside the vehicle at the time of the attack. After Mr Pervez had been hit, Mr Khurshid is then alleged to have arrived at the scene driving a different car.

Witnesses reported that Khurshid shouted, ‘are you happy now? This is what happens when you don’t pay your rent,’ at the stricken victim. Not content with these actions, the two men then turned on witnesses, saying, ‘you had better not make this look bad for us. We will track you down.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/10-years-in-jail-for-rent-collector-who-deliberately-drove-over-tenant

Rents in UK just 3.5% up on 2008

Published On: November 25, 2015 at 10:16 am

Author: Em Morley

Categories: Property News

Tags: landlords,rental market,rents,UK rents

New figures from 211-office agency Belvoir indicates that average rents in the UK are better than before the pre-economic downturn in 2008, but only by a small amount.

The rental index from Belvoir is recorded and produced by property expert Kate Faulkner.

Trends

Belvoir’s index, ‘looks at national and regional trends,’ explains Dorian Gonsalves, director of commercial and franchising at the company. ‘The Q3 2015 index shows that almost six years post-recession, average rents in England, Scotland and Wales exceeded the Q3 2008-but only by 3.5%.[1]

‘A total of 14 Belvoir offices in counties that include Lancashire, Norfolk and Devon have yet to recover to levels reached in 2008. Clearly, the market is far from spiralling out of control in terms of rental increases, although this has repeatedly been suggested in media reports throughout the year. It is very clear that a shortage of good quality accommodation is strongly impacting on the market and the ability of agents to meet tenant demand,’ she continued.[1]

Rents in UK just 3.5% up on 2008

Shortage

A major factor determining the performance is the shortage of good quality rental accommodation to satisfy demand. Belvoir said that 14 of its offices in counties such as Lancashire, Norfolk and Devon have yet to reach levels seen in 2008.

These figures are backed up by another report from the Association of Residential Letting Agents (ARLA), which shows that just 25% of agents reported rent increases for tenants in October.

‘Fewer agents reporting rent increases should bring some relief to tenants before Christmas,’ noted David Cox, managing director of ARLA. ‘Although it’s trypical that demand dropped at this time of year, as there’s a seasonal lull in the run up to Christmas, we expect to pick up again in January.’[2]

‘Looking ahead to next year, we’d hope to see the number of tenants experiencing rent hikes remain low with supply and demand leveling out,’ he added.[2]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/average-rents-in-britain-only-3-5-higher-than-in-late-2008

[2] http://www.home.co.uk/guides/news/story.htm?low_rental_supply_pushes_up_prices

‘Harry Potter’ room to rent in Manchester

Published On: November 24, 2015 at 2:00 pm

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,rental market,tenants

Tenants are being invited to live like Harry Potter by applying to live in a tiny room in Gorton, Manchester.

The room, advertised on house share website SpareRoom.com, is tucked away underneath the stairs and is available to rent for £380 per calendar month.

Home ‘comforts’

Would-be tenants will find a bed in the cramped space, with a shelf area to store personal belongings. Hardly magic by any standards!

Alongside a wardrobe (of sorts), the potential lodger gets access to a shared living room, bathroom and broadband, as well as a kitchen and garden.

Should anyone be interested in renting the ‘room,’ they will be sharing with two women, aged 40 and 41, with interests in music and gaming.

On the plus side, the £380 does include bills…

‘Harry Potter’ room to rent in Manchester.http://www.manchestereveningnews.co.uk/news/greater-manchester-news/gorton-harry-potter-spare-room-10490905

Descriptions

A description of the property on the SpareRoom website reads, ‘we have a spare room in our home in Gorton. Very close to Ryder Brown train station and a five minute walk, through Sunny Brow Park, to Hyde Road, buses into Manchester and Tescos. Ten minute walk to Debdale Park and a short drive to M60.’[1]

To put the room into perspective, a room with a double bed to rent in the same area would cost tenants just £320 per month. In addition, homehunters could rent out a studio flat overlooking Debdale Park for £385 a month.

A spokesman for SpareRoom said,’ we have taken down ads in the past from people trying to advertise Harry Potter style spaces under the stairs, but it looks like this one’s a whole room, just that the bed is built into an alcove to make best use of the space. We are contacting the advertiser though to check and will remove the ad if necessary.’[1]

Tenants might want to use their magic wand to create a bit more room!

[1] http://www.manchestereveningnews.co.uk/news/greater-manchester-news/gorton-harry-potter-spare-room-10490905

National register of BTL properties requested

Published On: November 23, 2015 at 10:19 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,landlords,rental market

A leading property investment search portal has put forwards an online petition with the help of the UK Parliament, requesting a national register of buy to let private rental properties.

Founder of Buy2Let.com Martin Wilkinson, is campaigning for a register of transactions completed by buy to let investors, in order to assist in removing rogue landlords from the market.

Slack

Mr Wilkinson believes that despite recent attempts by the Bank of England to stifle the buy-to-let sector, a chronic shortage of properties available, coupled with increasing house prices, means that the private rental sector picks up the slack.

‘We frequently see reports and statistics on the owner-occupier market but the lack of reliable, comprehensive data on the private rental and buy to let sector means no one-including politicians, mortgage lenders and estate agents-has a clear picture of what is happening in the market,’ observed Wilkinson. ‘In much the same way as a mortgage charge is registered on traditional house sales, we think there should be a similar requirement for buy to let purchases.’[1]

National register of BTL properties requested

Wilkinson claims that the Buy to Let sector makes over £100bn in transaction each year. With this in mind, he said, ‘it’s vital that we capture the true scale of this important market and at the same time, use the data gathered to identify and stamp out malpractice and rogue landlords.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/buy-to-let-chief-wants-register-to-deter-rogue-agents-and-landlords

Half of subletting occurs with landlord consent

Published On: November 18, 2015 at 11:53 am

Author: Em Morley

Categories: Landlord News

Tags: landlords,rental market,subletting,subletting property,tenants

Alarming new research suggests that nearly half of tenants that sublet their property do so without the knowledge or consent of their landlord.

Findings from the report by the National Landlords Association come as the Government recently proposed the introduction of minimum room sizes in order to clamp down on problems with rented accommodation, such as unauthorised subletting.

Permissions

11% of tenants admitted that they have sublet all or part of their property in the past. Of these, just 5% did so with the permission of their landlord.

26% said that they have approached their landlord over the possibility of subletting, but had their request turned down. 22% of requests were permitted. 63% said they hadn’t or wouldn’t approach their property owner about this.

‘These findings indicate that subletting is not common in private rented homes, but worryingly that where it does happen, much of it takes place behind landlords’ backs, without their knowledge or permission,’ said Carolyn Uphill, Chairman of the NLA. ‘This isn’t something apparently harmless, like putting your flat on AirBnb while you are on holiday.’[1]

‘We are talking about individuals looking to deceive their landlord and maximise their personal gains at the expense of proper property management standards and the risk of others. It not only increases the cost of renting for the unwitting sub-tenants, it affects their rights and can reduce security of tenure,’ she added.[1]

Half of subletting occurs with landlord consent

Problems

Uphill went on to say that, ‘subletting can also breach a landlord’s mortgage terms, the conditions attached to licenses granted for letting out shared homes and invalidate existing insurance products-so they must be aware of the problems it presents.’[1]

‘The NLA advises all landlords to insert a clause into new tenancy agreements that makes clear sub-letting is only allowed with the landlords’ permission, which should not be unreasonably withheld. This would reduce their exposure to a whole host of unnecessary risks, including hefty fines and even a prison sentence,’ she concluded.[1]

[1] http://www.landlords.org.uk/news-campaigns/news/half-tenant-subletting-occurs-behind-landlords%E2%80%99-backs