Posts with tag: renters

One-third of UK renters feel they won’t ever own a property

Published On: September 6, 2017 at 8:40 am


Categories: Property News

Tags: ,,,

Almost one third of current UK renters believe that they will never be in a position to afford their own property, according to a new survey.

The research, carried out by Bilendi on behalf of GoCompare Mortgages, discovered that 31% of tenants in rented accommodation cannot imagine ever purchasing their own property.

Owning Property

With property prices continuing to rise in many parts of the UK, raising a deposit is often seen as the largest barrier to getting on the housing ladder.

Questioning 2,000 renters, the survey found that 21% of tenants feel that the removal of mortgage interest tax relief on buy-to-let properties will cut the supply of rental property in their region.

One-third of UK renters feel they won't ever own a property

One-third of UK renters feel they won’t ever own a property

In addition, other tenants expressed concerns over possible rent increases, as buy-to-let landlords pass on higher costs. 6% noted that their landlord had already or is planning to increase rents as a direct consequence of tax changes.

Matt Sanders of GoCompare Mortgages, observed: ‘Our research reveals that half of all tenants are in rental accommodation because they can’t afford to buy their own home. It now looks like many have given up all hope of ever owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive. In turn, that makes saving for a mortgage even harder.’

‘April saw profound changes to the taxation of buy-to-let properties which will reduce landlords’ profits and our survey suggests that there is a real concern among tenants that to protect their profits, over time some landlords will increase rents while others may sell-up – reducing the stock of available private rented homes,’ he added.[1]





£2.3bn of rental payments to be funded by Bank of Mum and Dad

Published On: August 29, 2017 at 9:00 am


Categories: Property News

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An interesting new report has revealed that ‘the Bank of Mum and Dad’ is to fund 2.3bn of rental payments during 2017.

Research from Legal & General and Cebr suggests that the Bank of Mum and Dad will pay out £415 each time a rental payment is made.


Data from the report shows show 9% of renters have financial assistance from their parents.

Previous research from Legal & General and Cebr suggested that the Bank of Mum and Dad will support £6.5bn of lending to first-time buyers, in order to help them get onto the ladder.

This means that the Bank of Mum and Dad will fund some £8.8bn during 2017, to help children either rent or buy a property.


Dan Batterton, Fund Manager, Build to Rent at LGIM Real Assets, noted: ‘Legal & General has been tracking the role of The Bank of Mum and Dad for some years now – but this is the first time we’ve looked at its role in the rental market and the results are concerning. It is a real challenge for young people who are reliant on parental handouts just to make the rent. The intergenerational inequality that creates the demand for BoMaD funding continues to widen and now it’s affecting renters too. The lack of affordable housing, low wage growth relative to inflation and burdens of student debt mean that many kids can’t even rent somewhere without significant contributions from their family. Parents want to help their kids get on in life, and the Bank of Mum and Dad is a testament to their generosity, but it is also a symptom of our broken housing market.’

Coins and bank notes built into a house.

£2.3bn of rental payments to be funded by bank of Mum and Dad

‘The UK is experiencing a supply-side crisis in the rental sector. We need more professional, affordable tenures and more choice for renters. We need to build more homes for the young, old and families alike – more quickly and cost effectively. Renters are currently facing not only expensive rental payments but moving costs, agent fees and deposits which are reducing flexibility – something that should be a benefit of renting.

Concluding, Mr Batterton said: ‘The Build to Rent sector is only going to become more important in the UK’s housing mix. We need to be able to offer young people a good selection of affordable options for rental properties – either for the long term or as a step to buying their own home. Institutions like Legal & General can regenerate not just residential housing, but the towns and cities in which the homes are built. Infrastructure, jobs and local economic growth are all key to creating thriving communities where people want to live.’[1]




More people coming to rely on private rental sector

Published On: August 10, 2017 at 8:52 am


Categories: Property News

Tags: ,,,,

A new investigation has revealed that a generation could be priced out of the housing market, with homeownership levels set to slide further out of reach for younger people.

The survey of 2,000 UK adults from LetBritain indicates that 39% of UK adults lack the sufficient finances required in order to obtain the type of property that they currently want. As a result, they are forced into the rental market.

For those in London, this figure rises to 49%.

Generation Rent

The majority of renters questioned said that they blame the Government for not showing enough support to their efforts to get onto the property ladder. 61% said they felt the Government wasn’t doing enough to support Generation Rent, with 64% saying that they feel life will get worse for renters during the next five years.

In order to combat this, 27% of tenants said that they have plans to invest in the buy-to-let sector, by investing in a cheaper property in an alternative location from where they wish to live.

This was particularly common amongst Londoners, with 42% of people in the capital stating they would buy a property in another part of the UK, in order to benefit from another rental income.

More people coming to rely on private rental sector

More people coming to rely on private rental sector


Fareed Nabir, CEO of LetBritain, observed: ‘With more and more people across the UK coming to rely on the private rental sector, the results of the research are concerning. Whilst many renters are working hard to enter the property market, they clearly do not feel the government understands the issues faced by tenants.’

‘Interestingly, the findings show that Generation Rent is now increasingly looking to buy properties outside of their chosen place of residence so they can still get onto the property ladder without having to sacrifice the location or quality of the property they wish to live in,’ Nabir added.[1]




Will Britain become a nation of renters?

Published On: August 3, 2017 at 8:53 am


Categories: Property News

Tags: ,,,

A rising number of young UK adults are giving up on ever purchasing their own property, according to new research from The Urban Collective.

The concerning survey reveals that while the majority of ‘Generation Rent’ wish to become homeowners, many feel that they will be unable to raise the funds required to gain a rung on the housing ladder.

Out of Reach

Data from the research shows that 51% of Brits feel that the property ladder will only be obtainable by high net worth individuals in 15 years’ time.

29.5% of tenants said that they do not plan on ever owning a home.

Findings from the report back up those from the recent English Housing Survey that reveal the number of privately rented households has doubled during the past 16 years. These numbers have risen from 2 million in the year 2000 to 4.5m in 2015/16.

In London, more than a quarter (28.1%) of all households are now privately rented, a rise from the 13.6% recorded in 2003/4.

Buy or rent on black Blackboard with hand

Will Britain become a nation of renters?


What’s more, the research revealed that 71% of tenants would be unhappy at the thought of renting forever. This figure rises to 84% for Londoners, making them the least likely to be content to rent for the rest of their lives.

Mayank Mathur, co-founder of The Urban Collective, noted: ‘Fifteen years ago, renting was a stop gap until people could save enough to buy. Today, owning a home is a long-term goal and in 15 years’ time it might just be an impossible dream.’

‘If we’re going to become a nation of ‘forever renters’ then clearly the experience has to improve. No wonder the thought of renting forever makes Brits so unhappy; to date the rental market has been lagging behind the customer service found in other industries and geared towards serving landlords, not the tenants,’ Mathur added. [1]




Case of letting agent fraud described as ‘shocking and alarming’

Published On: July 19, 2017 at 1:22 pm


Categories: Property News

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A case of a rogue letting agent convicted of £200,000 worth of fraud involving deposits has been described as ‘stunning and alarming.’

Mr Timothy Shinners of Bolton failed to put any of the deposits he received from tenants into a tenancy deposit scheme over a six-year period. Instead, he spent the money himself.

Shockingly, the case went to private prosecution after the police failed to investigate.


A director at Platinum Properties in Bolton, Mr Shinner took at least £76,352 of company money. He was last week sentenced to three years behind bars and banned as acting as a director for the company for at least eight years.

The jury at Bolton Crown Court found Mr Shinner guilty of:

  • Failing to comply with statutory requirements surrounding the registering of tenancy deposits in a Government approved scheme
  • Fraudulently adapting tenancy protection documents to cover-up irregularities

The court heard that Shinners knowingly received deposits and did not transfer them into one the three Government approved schemes.

These deposits totalled at least £200,000 and were only registered and protected following a cash injection from another company director. This was described as an ‘act of decency’ by the Judge.


This matter was reported to the police, only for them to decline to investigate.

A police statement said: ‘There are fewer police officers investigating reports of fraud at a time when the volume of fraud is increasing significantly,’ citing difficult decision that, ‘may not be satisfactory to the victim.’[1]

It added: ‘Due to the changing face of crime, we are not in a position to investigate each report of fraud.’

Case of letting agent fraud described as 'shocking and alarming'

Case of letting agent fraud described as ‘shocking and alarming’


Deposit reform campaigner Ajay Jagota, founder of deposit-free renting platform Dlighted, offered his response to the case:

‘This case is stunning and alarming. £200,000 of fraud involving deposits taking place over six years – and not even the police could stop it. Some people are trying to convince us that nothing needs to change in the tenancy deposit system. Cases like this are proof things do. How many more times does this need to happen before something is done?

My real concern is that it appears there are countless agents who under current schemes are allowed to keep these deposits and appear to use this money for their person or day-to-day business use because they think it’s a handy pot of cash lying around. This money legally belongs to the tenants and should not be left unregulated – not least when we are talking about overall deposits which will soon be close to £6 Billion. No wonder the police don’t have the resources to police it all.

What happens when the money supposedly held in a segregated account runs out? They evidence suggests that these companies close shop and go under. And where does that leave their landlords and tenants?

We keep a running total of the deposits crooked letting agents are convicted of stealing each year, and will be publishing figures for the second quarter of 2017 next week. But all the indications are that this year’s figure will exceed the £1m recorded last year. In a sector which many are desperate to raise standards these incidents which are far too frequent do little to demonstrate it is changing for the better.’[1]



Almost half of tenants fall out with their landlord

Published On: July 12, 2017 at 11:23 am


Categories: Landlord News

Tags: ,,,

Nearly half of all private rented sector tenants in Britain have admitted to either falling or arguing with their landlord, according to new research.

In addition, the majority said that they would move if their relationship broke down, the investigation from Lightbulbs Direct indicates.


49% of those asked said that they have argued with their landlord, while 89% said that they would consider moving. 18% said that they felt their landlord was unapproachable.

What’s more, the investigation revealed the most frequent reasons for tenants calling their landlord:

  • Damaged window – 66%
  • Asking permission to decorate – 49%
  • Broken appliances – 46%
  • Blocked toilets – 44%
  • Dirty properties -33%

More unusual reasons included asking to hang photographs on the wall (16%), wanting screws on doors tightening (8%) and moving furniture (7%).

Almost half of tenants fall out with their landlord

Almost half of tenants fall out with their landlord


With regard to disagreement, it appears that the younger generation is more likely to fall out with their landlord.

The research discovered that 65% of 18-24 year olds and 66% of 25-34 year olds have argued with their landlord. This is in comparison to 36% of 55-64 year olds and 34% of people aged 65% or over.

Furthermore, the survey shows that 24% of UK renters have missed a rental payment at some period. Those aged between 25-34 were most likely to do so, at 44%, in comparison to 5% of those over 65.


David Tetlow, ecommerce manager at Lightbulbs Direct, feels that it is important for tenants to find out about their landlord before signing an agreement.

Tetlow said that this will, ‘Help to understand how approachable they’re going to be in a crisis. You should always take the time to research and understand your rights as a tenant and your landlord’s rights to avoid any difficult situations in the future too.’[1]