Posts with tag: tenants

Surge in Rent Price Rises Comes to an End

Published On: October 26, 2017 at 9:03 am

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The surge in rent price rises seen over the last few months has come to an end, according to the Private Rented Sector Report for September from ARLA Propertymark (the Association of Residential Letting Agents).

Surge in Rent Price Rises Comes to an End

Surge in Rent Price Rises Comes to an End

Rent price rises

After several months of rent price rises, the number of letting agents who saw landlords increasing costs for tenants dropped to 27% in September, from 35% in August.

Showing signs that the rental market is heading in the right direction, this is the first month-on-month decrease since May, when the figure also stood at 27%.

However, on an annual basis, the amount of tenants experiencing rent price rises is up – in September last year, just 24% of letting agents saw costs increase.

Demand for rental properties

Last month, there was an average of 79 prospective tenants registered per letting agent member branch – up by 10% on August, when there were 72 per branch.

Supply of rental stock

The number of rental properties managed per member branch remained the same on a monthly basis in September, at an average of 189.

This is down by 2% on September 2016, however, when agents managed an average of 193 properties.

David Cox, the Chief Executive of ARLA Propertymark, comments on the report: “Last week’s consumer price index (CPI) showed that inflation rose to 2.8% in September, up from 2.7% in August. As the cost of living increases, the last thing tenants need is for their rents to rise, so, while it’s great that month-on-month we’re finally seeing a decrease in the number of landlords hiking costs, we need to look at the bigger picture.

“There are still more than a quarter of tenants experiencing rent hikes every month – and that’s too high. As summer drew to a close in September, demand increased in line with our expectations, and, while it’s too soon to see the effect of this on rent costs, we know that when supply and demand are conflicting, rent prices will just continue to rise.”

Although the decline in the number of letting agents seeing rent price rises is good news, another recent report suggests that around a quarter of tenants are still paying over half of their earnings on rent every month.

Rent Payments Should be Used as Part of a Tenant’s Credit Score, MPs Say

Published On: October 24, 2017 at 11:17 am

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Rent payments should automatically be used as part of a tenant’s credit score to help them secure a mortgage to buy a home of their own, MPs have said.

Rent Payments Should be Used as Part of a Tenant's Credit Score, MPs Say

Rent Payments Should be Used as Part of a Tenant’s Credit Score, MPs Say

MPs took part in a debate yesterday over whether rent payments should be taken into account when private tenants apply for a mortgage to buy their own homes.

The debate took place at Westminster Hall after a petition on the issue, raised by Plymouth construction worker Jamie Pogson, attracted 147,307 signatures, which is significantly more than the 100,000 needed to force a debate in Parliament.

Credit rating agencies do not currently routinely include rent payment history when calculating credit scores. This means that a tenant can find it difficult to access a mortgage, even if they have a long history of rent being paid in full and on time.

However, a recent survey of almost 3,000 buy-to-let landlords carried out by the Residential Landlords Association (RLA) found that 61% of landlords would support rent payments being added to tenants’ credit histories, in the same way that mortgage payments are.

The RLA believes that including rent payments in this way would also make it easier for landlords to make a more accurate assessment of a prospective renter’s credit and rent payment history.

Steve Burrows, the Managing Director of LateRent and Landlord Secure, a company that already offers a free service allowing landlords to report payment history to credit reference agencies, so that tenants who pay on time can build up a good credit history, also believes that rent payments should be included when calculating credit scores, to support renters wanting to buy their own homes.

He says: “It is no secret that owning a property has become a distant prospect for many, and the private rental sector continues to grow as a result. It’s therefore oddly out of step that tenants are unable to utilise rental payments as part of their credit profile – particularly as the Government increasingly seeks to promote homeownership across the UK.

“We know this has been a rising frustration amongst renters for many years, which is why we launched LateRent – a free service which allows landlords to report payment history to credit reference agencies, so tenants who pay on time can build up a good credit history. It has been hugely welcomed by tenants and landlords alike, showing the importance of yesterday’s debate.”

He adds: “Clearly, it’s time for the Government to sit up and listen to this often overlooked market, and stop simply paying lip service to their own housing policies.”

Do you support the outcome of the debate?

30% Believe that Using High Street Letting Agent to Rent Property is Outdated

Published On: October 23, 2017 at 8:13 am

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Over 30% (31%) of UK adults believe that using high street letting agents to rent a property is outdated and burdened by reams of paperwork, according to a study of 2,000 adults by virtual letting agency LetBritain.

30% Believe that Using High Street Letting Agent to Rent Property is Outdated

30% Believe that Using High Street Letting Agent to Rent Property is Outdated

The research revealed that 25% of adults prefer to use online-only services, such as Gumtree or Spareroom.com, to source and secure a rental property, with 32% of landlords and tenants not having the time to use services that require them to visit a physical premise within working hours.

And its not only the lettings sector that is frustrated by the archaic processes still being used by high street businesses.

Half of consumers (51%) say that they rely on online solutions for the vast majority of their products and services, while 45% favour online services over ones that require them to go to physical premises.

A high proportion of adults (29%) refuse to use a business if they have no online service altogether.

The research shows that Londoners are the most technologically demanding, with 62% opting for online solutions and a majority (51%) consciously avoiding businesses that do not offer online services.

Looking to the future, 57% of UK adults – that’s 29.3m people – believe that online or app-based competitors will replace businesses with no online presence in ten years’ time, by 2027.

The CEO of LetBritain, Fareed Nabir, comments: “Over the past decade, online solutions have drastically transformed the way we conduct business. Today’s research clearly shows that consumers not only expect but now demand that companies provide their services online. And, on that point, the rental market is clearly falling short, with too many high street real estate agents failing to embrace digital solutions, relying on cumbersome offline processes. For businesses in the rental market, the choice is simple – integrate and embrace online solutions, or run the risk of being outpaced by changing consumer demand.”

Are you putting digital processes in place to cater to online demand from tenants?

Calls to Protect Welsh Tenants from Unjust Fees and Rogue Landlords

Published On: October 20, 2017 at 9:36 am

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The Secretary of State for Wales, Alun Cairns, has called for greater protections for Welsh tenants against unjust fees and rogue landlords.

Cairns wants to see Wales follow England’s lead and ban letting agents charging Welsh tenants fees, while he also wants to see the introduction of a range of measures designed to protect renters from unfair practices.

He explains: “Getting set up in a private tenancy can be eye-wateringly expensive. Not only must new tenants find thousands of pounds upfront for deposits and rent in advance, they also have to pay fees to letting agents for a range of administrative costs, which can often run into the hundreds of pounds.

“This has been going on for far too long and, today, the UK Government is taking a stand by giving tenants in England more power to challenge extortionate fees and poor treatment. Wales must not get left behind.”

He insists: “It is time that the Welsh government followed the example being set in England, and move quickly to protect tenants in Wales from unjust fees and rogue landlords.”

Calls to Protect Welsh Tenants from Unjust Fees and Rogue Landlords

Calls to Protect Welsh Tenants from Unjust Fees and Rogue Landlords

In August, the Welsh government released a report claiming that there is “no compelling evidence” for Welsh tenants to pay upfront letting agent fees or renewal costs for existing tenancies, as “the large majority of the work undertaken by agents is work that the landlord would otherwise be doing themselves”.

Isobel Thomson, the Chief Executive of the National Approved Letting Scheme (NALS), has released a short statement in response to the calls: “NALS notes the Secretary of State for Wales’ call for the Welsh government to take measures to protect tenants in Wales from unjust fees and rogue landlords and agents.

“In relation to fees, we believe that the majority of agents in Wales charge a fair fee for a fair service, and we await the outcome of the consultation by the Welsh government on this issue.

“Wales already has full regulation of landlords and agents, and therefore the regulatory organisation, Rent Smart Wales, should by now be delivering the effective action necessary to ensure that tenants are offered the degree of protection they deserve and rogue landlords are exposed.”

At the same time, the Welsh Cabinet Secretary responsible for housing policy, Carl Sargeant, will be the headline speaker at a new conference on the future of the private rental sector in Wales.

With over 16% of households in Wales expected to be living in the private rental sector by 2025 – up from 8.4% in 2000 – the Future Renting Wales conference will provide landlords will everything they need to know about the future of the market.

Organised by the Residential Landlords Association (RLA), it will help landlords understand increasingly complex new laws and regulations, including Rent Smart Wales, the introduction of new standard tenancy agreements, and the new safety and minimum property standards that are on the horizon.

In addition to Sargeant, David Smith, the Policy Director of the RLA and legal adviser to the Welsh Assembly’s Renting Homes Bill committee, will address the conference on the implementation of the new laws, and what they will mean for landlords, Welsh tenants and their lettings businesses.

Anne Rowland, of Rent Smart Wales, will discuss the scheme and future direction of the operation, while other industry experts will update delegates about reforms to tax, energy efficiency standards and welfare reform, looking at how legislation from Westminster is being implemented in Wales. Exhibitors will also be on hand to offer advice and support to delegates.

The conference, on 30th November 2017, will be held at the Jury’s Inn, Cardiff and is open to anyone with an interest in private rental housing.

Douglas Haig, the Director of the RLA in Wales, who will also be speaking at the event, says: “This is a fantastic opportunity for delegates to hear from expert speakers, coming together to update them on best practice and the many forthcoming changes to the sector.”

Early-bird tickets start from just £20 for RLA members and £25 for non-members. They are available here.

Landlords and letting agents in Scotland must be aware of new tenancy rules being introduced in the coming weeks.

Rent Price Growth Unchanged from Last Month, Reports ONS

Published On: October 18, 2017 at 9:06 am

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Annual rent price growth across Great Britain was unchanged from the previous month in September, according to the latest index from the Office for National Statistics (ONS).

Rent Price Growth Unchanged from Last Month, Reports ONS

Rent Price Growth Unchanged from Last Month, Reports ONS

In Great Britain as a whole, the average rent price rose by 1.6% in the year to September. In England, prices were also up by an average of 1.6% over the same period, while Wales saw growth of 1.4%. In Scotland, the average rent price increased by 0.3% in the 12 months to September.

London rent prices grew by an average of 0.9% in the 12 months to September, which is 0.7 percentage points below the average rate recorded across Great Britain and down from 1.2% in August. The Royal Institution of Chartered Surveyors (RICS) reports that near-term expectations are still negative for the capital – an ongoing trend stretching back to August 2016.

Growth in private rent prices paid by tenants in Great Britain has seen signs of a slowdown since the end of 2015, the ONS reports. For example, a property that was let for £500 per month in September last year, which saw its rent increase by the average rate in Great Britain, would be let for £508 in September 2017. This slowdown has been driven mainly by a slowdown in London over the same period.

The annual rate of change for Wales in September (1.4%) is now similar to the annual increase for England and Great Britain (both 1.6%). Wales has seen a broad rise in its annual growth rate since July 2016.

Rent price growth in Scotland (0.3%) has now hit its joint highest rate since May 2016. This weaker increase may be due to stronger supply and weaker demand in the country, as reported by the Association of Residential Letting Agents (ARLA).

Focusing on the English regions, the largest annual rent price increases were recorded in the East Midlands (2.9%), up from 2.8% in August, the South East (2.5%), down from 2.6% in the previous month, the East of England (2.4%), up from 2.1% in August, and the South West (2.1%), unchanged on a monthly basis.

The lowest annual rent price rises were in the North East (0.4%), unchanged from August, London (0.9%), down from 1.2% in the previous month, the North West (1.3%), down from 1.4% in August, and Yorkshire and the Humber (1.6%), down from 1.7% in the past month.

Recent research claims that London tenants are now spending almost £1,900 per month on rent, despite the slowdown being seen in the capital.

European Demand for London Rental Properties Continues Despite Brexit

Published On: October 18, 2017 at 8:09 am

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European Demand for London Rental Properties Continues Despite Brexit

European Demand for London Rental Properties Continues Despite Brexit

High levels of European demand for rental properties in London continue to be recorded, despite concerns around the UK’s departure from the EU and the status of European citizens in the country when Brexit finally happens.

The latest figures from rental website Spotahome show that the majority of bookings made for rental properties in London stem from the UK’s European neighbours. The largest number of bookings comes from France, which accounts for 22.2%, followed by Spain, Germany and Italy.

With an estimated 300,000 French citizens currently residing in the UK and the majority of these believed to be based in London, the English capital was recently referred to as France’s “sixth biggest city” by the French president, Emmanuel Macron.

Despite Brexit, the French love affair with London continues. This is demonstrated by the large number of searches and bookings for rental properties in London from the European nation.

Despite strong European demand for British rental properties, the second largest number of bookings made on the site came from the UK – accounting for 11.9% of bookings.

The CEO of Spotahome, Alejandro Artacho, comments: “It is no surprise that the majority of the bookings on the site are from the UK’s European neighbours. London is and always will be a hub that appeals to people from all over the world. It’s great to see that alongside Spotahome being popular with people from overseas, the platform is gaining popularity within the UK, due to it being a far more effective method for finding accommodation.”

Landlords, are you seeing high levels of European demand for your properties? While it is uncertain what will happen to the rights of European citizens when the UK leaves the EU, you can still accept tenants with EU citizenship.

However, please remember that you must check the immigration status of all prospective tenants before letting to them under the Right to Rent scheme. The Home Office has worked with us to create a guide to help you understand the requirements: /home-office-reinforces-landlord-responsibilities-right-rent/