Posts with tag: tenants

Majority of Students Believe Accommodation is Good Value for Money

Published On: November 26, 2018 at 10:48 am

The majority of students in the UK believe that their accommodation provides good value for money, according to the first ever Student Accommodation Survey, which was compiled by Knight Frank between May-August 2018, in collaboration with UCAS.

This is the largest survey of its kind in the UK, highlighting the opinions of more than 70,000 British and international students.

Across the country, around 30% of full-time first year undergraduates live in purpose-built student accommodation (PBSA), which is owned or operated by private providers. This is up from 22% five years ago. A further 40% live in university halls of residence, while the remaining 30% live in the private rental sector or at home with their families.

The majority of students said that they were happy with their accommodation choice for the year, however, levels of happiness were slightly higher for those living in private PBSA (76%) and university halls (76%) than those living in the private rental sector (73%).

Majority of Students Believe Accommodation is Good Value for Money

The key drivers of happiness in private PBSA were: location, the option to live with friends, and the quality of accommodation.

When it came to finding somewhere to live, the single most important factor was value for money. Some 97% of respondents rated this as being important to them, with around half rating it as extremely important.

The majority (67%) of students rated their accommodation as good value for money, with a further 12% saying that it was neither good or bad value. Good value for money was cited regardless of whether students were living in private PBSA, university accommodation or the private rental sector.

Parental involvement also had a role to play when it came to finding somewhere to live, especially for first year students, with 76% saying that their parents helped in making the decision.

This was much lower for second and third year students, with almost half (45%) saying that their parents had no involvement at all.

The survey also points to affordability being an issue affecting student wellbeing. Some 63% identified living costs as being very important when it came to their overall wellbeing.

41% of final year students intended to remain in the city in which they studied when they graduate. Graduate retention was highest in London (67%), followed by Edinburgh (47%), Manchester (46%) and Birmingham (41%).

Thinking about where they intend to live following graduation, more than half of students would move directly into a property in the private rental sector, while 31% would move back into the family home.

The Global Head of Student Property at Knight Frank, James Pullan, says: “The focus on student accommodation has never been so acute and, with several universities facing financial challenges, as well as the potential impacts of the Augar Review on tuition fees, universities must ensure that they get their accommodation offering right.

“Our survey comes at a time when the private PBSA sector in the UK faces its own set of challenges; not least from policy and from competition in what has become an increasingly global market for higher education.”

He continues: “The private sector now accounts for the majority of new PBSA development, and, as universities become more reliant on outside investment to provide new PBSA, greater focus is likely to be placed on the strength of the relationship between the private sector and universities. The ability for both to work together and bring new product and innovation to market will be key to future success.”

Deposit Disputes Remain Low, Despite Higher Number of Rentals

Published On: November 23, 2018 at 9:04 am

Author: Em Morley

Categories: Lettings News

Tags: deposits,letting agents,tenants

Fewer than 1% of tenancies in England and Wales ended with deposit disputes in the 12 months to March 2018, according to data from the Tenancy Deposit Scheme (TDS).

The scheme, which is one of the three Government-approved protection services, used its own data, plus freedom of information requests regarding the other two schemes.

The research found that, of the 3.74m deposits that were protected during the year to March, just 0.85% (31,865) resulted in disputes. This is up slightly from 0.83% last year.

However, this is the eighth consecutive year that fewer than 1% of all tenancies ended in deposit disputes, despite the rising number of rentals on the market.

By comparison to this year’s figure, 924,181 deposits were protected in England and Wales in March 2008.

The TDS’s data found that its insured scheme had a dispute rate of 1.14%, compared to 0.49% for its custodial service.

A total of £4.2 billion was held in deposit protection schemes as of March 2017, across the TDS, The Deposit Protection Service (The DPS) and mydeposits. The average deposit value was £1,100.

The TDS’s adjudications process on custodial deposits took just 3.55 days to resolve, compared to 21 at The DPS and 27 at mydeposits.

It took the TDS 14.79 days to resolve disputes in its insured scheme, compared with 26 at the two other organisations.

The most common reason for deposit disputes among TDS users was cleaning, at 54% of cases, followed by damage (49%), decoration (31%), rent arrears (20%) and gardening (16%).

Steve Harriott, the Chief Executive of the TDS, says: “As the private rented sector and the need for robust deposit protection continues to grow, as it has done over the last decade and more, it’s important to take stock of where we are and look for trends.

“Despite the number of tenancy deposits protected increasing by over 300% in the last ten years, the rates of disputes have remained regularly below 1%. That means the overwhelming majority of tenancies end in agreement between the tenant and the landlord or letting agent about how the deposit is awarded.”

He adds: “It’s unsurprising to see cleaning remain as the number one reason for disputes, due to its subjectivity; what might seem clean to one party could be viewed differently by another.”

We remind all landlords, letting agents and tenants to understand their rights and responsibilities surrounding tenancy deposits. Read our helpful guide for free here: https://www.landlordnews.co.uk/guides/a-landlords-guide-to-tenancy-deposits-2/

Could Deposit-Free Tenancies Help with Rent Arrears Caused by Universal Credit?

Published On: November 21, 2018 at 9:56 am

Author: Em Morley

Categories: Tenant News

Tags: housing crisis,landlord responsibilities,tenants

Ajay Jagota, anti-deposit campaigner and managing director and founder of zero deposit rent provider Dlighted, is urging buy-to-let landlords and letting agents to consider the benefits of deposit-free renting.

With recent issues of increasing rent arrears, thought largely to be caused by the new Universal Credit system, this could be a change that will help many looking for rented accommodation.

Recently, we reported on the BBC Panorama research into the problems that tenants claiming Universal Credit are facing. The figures show that such tenants have more than double the rent arrears of those who are still receiving benefits through the old system.

A survey looking at Universal Credit claimants shows that in every local authority area in which the switch has been made, these claimants owe their landlords an average of £662.56. This is in comparison to the £262.50 owed by those still receiving support through Housing Benefit.

On top of that, the results suggest that there has been a 55% increase in evictions, within the single year of Universal Credit being rolled out.

A report from the Citizen’s Advice Bureau has also revealed an increase in the number of tenants seeking advice about rent arrears. This has risen by 47% since Universal Credit was first introduced.

The Government is aiming to have almost seven million people on the new system by the end of 2023. However, many have seen delays to the payments, leading to the new Work and Pensions Secretary Amber Rudd admitting that it “can be better”.

Despite Rudd expressing an acknowledgment that the new system needs to be adjusted, Ajay Jagota is still concerned.

Jagota has said: “There’s a lot to be said for Universal Credit’s intention of making our benefits system simple and fairer, but there’s no getting away from the fact that its implementation is yet another thing that landlords and letting agents alike have to come to terms with.

“The deposit protection industry tells us that old-fashioned tenancy deposits are the only way to keep yourself safe from rent arrears – but in reality they only cover you for a month of rent arrears. What happens if you’re owed two months rent? Or three months?

“All the evidence suggests that there is a strong link between Universal Credit and rent arrears, and if deposits won’t protect you if your income is hit when Universal Credit arrives in your area.

“Deposit free renting is something which could be a real benefit to landlords and letting agents who find themselves faced with rocketing arrears following the rollout of Universal Credit in their area, offering them hundreds of thousands of pounds of protection against unpaid rent, property damage and legal fees, while also making it easier and quicker to find new tenants if eviction becomes unavoidable.”

High Cost of Housing Causes Boom in Self-Storage Units

Published On: November 20, 2018 at 10:59 am

Author: Em Morley

Categories: Property News

Tags: housing crisis,London,tenants

The high cost of housing across the UK has caused a boom in self-storage units, with many households now renting self-storage units long-term because their homes are too small.

The BBC spoke to Angela Andrew, who rents a self-storage unit in east London for £120 a month.

“It’s a bit of a rip-off really,” she laughed.

In the unit, she keeps her collection of records, costumes from her work as a performing artist and other keepsakes. The items may not have monetary worth, but have “nostalgic value”.

When she took out the space, Angela expected to keep it for just a year, but has now had her unit for two years, using it to supplement her small living space.

High Cost of Housing Causes Boom in Self-Storage Units

“The amount of money I pay to sub-let plus this works out at a normal monthly rent,” she explains.

For Angela, self-storage units are about more than not being able to part with items; hers has also given her some security. When she started using the unit, she had no permanent living space, so it was a way for her to keep all of her things in one place.

“This little box is also my home,” she says.

But she’s not the only person willing to shell out for extra space to store their things.

There are now around 1,500 self-storage sites in the UK, with use of them up by around 9% last year on 2016, according to the Self-Storage Association UK (SSA).

The contents of these giant warehouses, which can often be found on busy road junctions or industrial parks, are typically the mundane realities of day-to-day life, such as cooking equipment, books or mattresses.

Most people turn to them at a significant crossroads in their lives – they’ve had a baby, got married, or divorced – or because they’re moving home or redecorating and need somewhere to store their things temporarily.

But, for an increasing number of people, like Angela, self-storage units have become a longer-term option. Almost a third of customers have had their unit for more than three years, while over a quarter (27%) say that they use their storage because there is no room for the items where they live.

The average household in the UK is 2.4 persons, which is larger than both Germany and France, yet we have the smallest average property size, making the UK population “one of the most squeezed in Europe”, according to the SSA.

So, it’s not surprising that people are turning to self-storage units, with it cheaper to rent extra space than it is to buy or rent a larger home, explains the SSA’s Chief Executive, Rennie Schafer.

He describes it as a “room away from home”.

“People know their stuff is safe and, with most self-storage units offering 24-hour access, they can get to their goods whenever they want to,” he adds.

However, it’s not cheaper. Schafer estimates “as a very general guide” that a 90-square foot unit, which would accommodate the contents of a three-bedroom house, would be around £150-£200 per month in London, and £100-£150 a month in the north of England.

Nevertheless, as with Angela, it may be cheaper to rent a smaller property and add the cost of a self-storage unit on, than it is to rent a larger home.

Would a self-storage unit be an option for you?

Tenants Call for Change, 30 Years after Housing Act

Published On: November 19, 2018 at 9:01 am

Author: Em Morley

Categories: Tenant News

Tags: evictions,landlord law,tenants

Britain’s private tenants are calling for change to UK housing law, 30 years after the Housing Act 1988 was introduced.

Renters are taking to Twitter to demand changes to the law, to make their lives more stable, peaceful and safe.

The Housing Act 1988 introduced the Section 21 notice, which allows landlords to evict tenants after four months of a tenancy, without needing a reason.

30 years after it received Royal Assent, the End Unfair Evictions campaign is encouraging tenants to imagine a better housing system, by tweeting message about what they want to change, using the hashtag #ReinventYourRent.

The social media campaign is a follow-up to #VentYourRent, the movement that went viral in August, as hundreds of frustrated renters complained about holes in roofs, landlords letting themselves in without permission, revenge evictions and a host of other issues.

The End Unfair Evictions campaign, led by Generation Rent, the London Renters Union, the New Economics Foundation and ACORN, is calling for Section 21 of the Housing Act 1988 to be scrapped.

It found that Section 21 is the leading cause of homelessness in England, which can leave tenants who complain about disrepair in their homes at risk of revenge eviction, and may fuel runaway rents and house prices.

The campaign is backed by dozens of groups, including public sector trade union UNISON, human rights organisation Just Fair, and older people’s advocacy group Independent Age.

In October, Croydon and Cambridge councils passed motions urging the Government to end Section 21, on the grounds that no fault evictions burden local authorities with temporary accommodation costs of £845m per year.

On Monday 12^th November, health equality campaign group Medact delivered a letter signed by 200 health professionals to the Housing Secretary, James Brokenshire, warning that short-term tenancies and no fault evictions harm tenants’ mental and physical health.

Katya Nasim, of the London Renters Union, says: “Section 21 is indefensible and needs to go now, and, in its place, we need better protections that make renting a viable long-term tenure. Along with a massive investment into public housing, we need indefinite tenancies, rent increases limited to the rate of wage inflation, and a requirement for landlords to make a relocation payment to any tenant forced to leave through no fault of their own.

“It’s a shame the Government has limited its ambition to increasing tenancy lengths to three years, and hasn’t even made clear whether longer terms will be mandatory or voluntary. We need much more far-reaching reform, and #ReinventYourRent allows Britain’s army of 11m private renters to make the case for change.”

Rent for Life: Which Direction is the UK Heading?

Published On: November 15, 2018 at 10:59 am

Author: Em Morley

Categories: Lettings News

Tags: homeowners,housing crisis,tenants

To rent or not to rent? That is the question. In years gone by, many young people only wanted to rent until they could buy their first home, and few thought of renting long-term. In other countries, such as Germany and France, there are a comparatively high number of rented accommodations, and long-term renters are not the exception – in Germany, in particular, people favour renting – over 40% of the country does!

In recent years, there has been a considerable increase in the number of rented accommodations in England, and people are now staying in the rental market for many years…

The changing English property market

57% of house owners in England are aged 65+ and only 22% are aged 16-34 years. Most property buyers fall into the 35-50 age group (48%), with a further 31% aged 50-65 years. For a variety of reasons, there has been a huge growth in the private rental sector in recent years – particularly in the younger age group. One of the key reasons for this is that young people find it incredibly difficult to save enough money for a deposit to get on the first rung of the property ladder.

Private renters are getting younger

There has been a large growth in the number of younger people wanting to rent privately. In 2011, this figure was 1.8m people aged 34 or under, which, in reality, meant an increase of 728,000 in rental households within a decade, and analysts are tracking a continued upward swing as we head towards 2019. Whilst the difficulty of affording to buy a property is one of the main reasons, many younger people choose to rent, as it gives them greater flexibility especially for job mobility and they can choose exactly where they live for convenience.

Rent for Life: Which Direction is the UK Heading?

In 2008, 37% of people in their 20s bought their first property, but, in 2017, this number had fallen to 27%. There are 5.6m people in this age group, and the fall in house purchase was sharpest in the middle-income group, where wages failed to match the required deposit and mortgage repayments.

The increase in private renters is nationwide

Although London has recorded the sharpest increase in the demand for private rentals, this increase has also been mirrored in towns where there is a good commuter network to the capital. Such towns as Slough, which has recorded a growth of 13%, Enfield, where the property market grew by 11.9% in 2017, Watford, 9.9%, and Milton Keynes, by just over 9%. Interestingly, in Tonbridge, Kent, rental prices are high and property is often rented as soon as it goes on the market. The main reason is that the railway station is within walking distance of much of the town, and the train to London Bridge takes just 44 minutes – and some, just 31 minutes.

There has been a 23% growth in the private rental sector across England, with the 2017 figures for the South East being second only to London, with Yorkshire and the Humber third, and the West Country in fourth place. Interestingly, in Wales, there was a growth of only 0.4% and Scotland, 0.1%.

Who is renting privately?

The types of households in the private rental sector have shifted in recent years. A decade ago, only 15% of families with dependent children were private renters, but this figure has risen to 27%. Couples with children account for another 21%, and the largest proportion are single occupant households, at 27%. Interestingly, ten years ago, only 16% of people in the 35-45 age group rented, but, today, that figure stands at 24%.

The bottom line is that, in the past ten years, the number of people in rented accommodation in England has risen from 10% of the population in 1996/7 to 20% last year. For the first time, families are looking to stay in rented accommodation long-term, as they find property prices are out of their reach and job uncertainties make rented accommodation more appealing.

Private renters are now coming from all socio-economic groups, too. 50% of foreign people migrating to England rent in the private sector for at least the first five years. Many private renters are favouring city centre locations, as they want to dispel with commuting costs, and current trends favour eco-friendly properties and ones that are unfurnished.

What about the horror stories about rented accommodation?

Many private renters make the positive choice to rent rather than try to buy, and a key reason for this is that the standard of rental properties has significantly improved and, also, most landlords maintain their properties well and care about their tenants. The Decent Homes Standard has done a good job of improving the quality of rental accommodation. In 2006, 47% of rented accommodation was deemed below standard, but, two years ago, in 2016, this figure had dropped to 26%.

Buy-to-rent possibilities

Property buying experts housebuyers4u.co.uk say that the buy-to-rent sector should have been flourishing, with a number of exciting new projects under development in the key cities, but many small landlords are selling up, as recent tax changes on second properties have meant that buy-to-let is not as lucrative as it once was. In reality, this means that, although England is becoming a nation of renters, demand is greater than supply, and market experts are predicting that rent prices are set to climb by 17% in the next five years.

The bottom line

If the trend of younger people opting to rent continues (whether that is because they choose too or not), then it’s clear the UK is heading towards a more rental-based property market.

Is this good or bad for the country? A case could be made for both, but as the old saying goes, only time will tell.