Posts with tag: tenants

4,000 agents could lose jobs following ban on fees

Published On: March 28, 2017 at 10:08 am

Tags: ARLA,fees,letting agents,tenancy agreements,tenants

New research released by ARLA Propertymark suggests that there are 4,000 jobs at risk, should the proposed ban on agent fees come into force.

In a report presented to the organisation’s annual conference, ARLA said that the ban could cost tenants thousands of pounds.

Funds

The research reveals letting agent fees make up around one fifth of letting agent revenues and provide vital funding for imperative checks required to set up tenancy agreements.

Should fees be banned outright when the Government publishes its consultation, agents will be left with little choice but to pass the cost onto landlords in the form of higher agent fees.

ARLA’s research suggests that 41% of landlords expect that they will have to pass on some of this inflated cost to their tenants. On average, these rises will amount to £103 per year.

If landlords were to pass on the entire uplift in letting agent fees, tenants would be hit more, with typical rises of £275 per year.

In addition, there would be a huge impact on the lettings sector overall, which employs roughly 58,000 across the country.

4,000 agents could lose jobs following ban on fees

Risks

The report states: ‘If letting agents take the full hit of the letting agent fee ban, 16,000 jobs will be at risk. It’s more likely however agents will pass on 75 per cent of the costs to landlords, which would result in job losses of around 4,000.’[1]

More side effects from the proposed ban include 27% of landlords choosing not to purchase any more rental properties. 20% meanwhile said that they would sell some of their portfolio.

ARLA’s report shows that in Scotland, letting agent fees were banned in 1984 and clarified in the Private Rented Housing Act of 2011.

The report goes on to say: ‘This meant that tenants were only accountable for the rent and deposit, and everything else would be charged to the landlord. However, this has resulted in many agents carrying out less of the tasks they were doing previously. Worryingly, one in four said they no longer do credit checks as standard.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/4-000-letting-agency-jobs-at-risk-if-fees-ban-happens-warns-arla

More young people giving up on homeownership

Published On: March 23, 2017 at 2:01 pm

Author: Em Morley

Categories: Property News

Tags: homeownership,house prices,property,renters,tenants

The ever-growing gap between incomes and house prices continues to rocket, leaving a rising number of young people giving up on the idea that they will ever own their own property.

According to research from the Halifax, 48% of 18-34 year olds feel it is harder than ever to get a foot on the housing ladder. In fact, 25% of people in this age bracket feel the only way they will make it onto the ladder is if they inherit the money.

Challenges

One in five questioned said that homeownership is a thing of the past. This adds weight to the theory that many people are giving up on owning property and instead renting for more long-term periods.

80% said that the lack of affordability was their main barrier to homeownership, with 14% saying they will rent forever.

Deposits remain unrealistic for 52% of tenants asked and the average age of those buying their own home has risen to 30.

More young people giving up on homeownership

Deposits

Overall, the average deposit put down for an average first-time buyer is £32,321. This figure rises to £100,445 in London!

By region, average house prices as shown in the Halifax research are:

London-£402,692

South East-£272,777

South West-£200,465

East Anglia-£196,367

West Midlands-£159,732

East Midlands-£153,779

North West-£144,367

Scotland-£137,188

Yorkshire-£135,719

Wales-£133,730

North-£124,117

Northern Ireland-£115,269

Martin Ellis, Housing Economist at the Halifax, said: ‘Even with the highest number of first-time buyers in the last decade in 2016, many young people still feel they are running financial gauntlet-saving for a deposit, finding an affordable property in the right area and managing to fund living in the meantime.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/forever-renters-young-people-increasingly-giving-up-on-home-ownership

Housing Minister confirms ban on agent fees

Published On: March 23, 2017 at 10:33 am

Author: Em Morley

Categories: Property News

Tags: Buy-to-Let,Gavin Barwell,letting agent fees,tenants

The Housing Minister Gavin Barwell has confirmed that the consultation on the proposed ban on letting agent fees levied on tenants in England will launch, ‘in the Spring.’

In a letter to Labour MP Julie Elliott, Barwell said that the Government: ‘Is committed to building a strong and safe private rented sector, which provides security and stability for both tenants and landlords.’[1]

Competition

Continuing, Mr Barwell said that the Government: ‘Announced at the 2016 Autumn Statement a ban on letting agent fees paid by tenants, to improve competition in the private rental market and give renters greater clarity and control over what they will pay. The Government will consult in the Spring on the detail of implementation.’[1]

In addition, Mr Barwell went on to say that the long-awaited Housing White Paper, announced at the end of February, presents the Government’s intention to promote fairness and transparency for leaseholders.

Housing Minister confirms ban on agent fees

‘We will consult on a range of measures to tackle all unfair and unreasonable abuses of leasehold and consider further reforms through the consultation to improve consumer choice and fairness for leaseholders,’ Barwell added.[1]

Concluding, he stated: ‘An increasing number of private tenants are happy with their tenure and standards are improving. We are determined to ensure all sectors of the housing market provide decent homes.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/3/minister-confirms-fee-ban-on-its-way-but-rental-sector-improving

Landlords told to allow tenants to make improvements

Published On: March 23, 2017 at 9:50 am

Author: Em Morley

Categories: Landlord News

Tags: inventories,landlords,rental accommodation,tenants

The Association of Independent Inventory Clerks (AIIC) has said that landlords should offer a more open-minded approach to tenants’ requests to making improvements to their rental properties.

It suggests that a growing number of number of private tenants are keen to personalise their rental accommodation.

Improvements

A recent study from Plentific found that 73% of tenants have carried out DIY improvements out of their own pocket.

The research questioned more than 2,000 tenants a found that 23% had spent more than £500 on home improvements in their property.

Patricia Barber, chair of the AIIC, observed: ‘It’s clear that tenants are increasingly willing to spend their own money on improving their rental property and this is certainly something landlords should think about.’[1]

Barber suggests that landlords who permit tenants to make reasonable alterations could see long-term rewards.

Landlords told to allow to allow tenants to make improvements

Standards

Continuing, Barber said: ‘We’re seeing more long-term tenants and they’re clearly committed to living in a higher standard of property. Landlords who cautiously allow tenants to put their own stamp on a property could benefit from a lower turnover of tenants and an improved and well-maintained property at the end of the contract.’[1]

She also advises all landlords to make sure that they have an accurate inventory in place, whereby they can long the condition of the property before, during and after the tenancy.

This will not only be imperative in terms of a dispute, but can help eradicate the risk in the first place.

Concluding, Barber said: ‘If rental properties are noticeably changing over the course of a tenancy, it’s vitally important that there is an inventory which comprehensively details the condition and contents of the property at the start of the tenancy. This way any fair deposit deductions can be made by the landlord and the chances of a [tenancy] deposit dispute are minimised.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/landlords-urged-to-allow-tenants-to-personalise-their-rental-properties

Tenants are spending half of their pay on rent

Published On: March 22, 2017 at 9:49 am

Author: Em Morley

Categories: Property News

Tags: mortgage interest tax relief,rent,rental payments,tenants

New research on the so-called Generation Rent has revealed that UK rents amount to almost half of tenants’ average take-home pay.

The investigation was undertaken by the University of Bristol, on behalf of financial services innovator Momentum UK. Data from the report shows that the typical renter is financially worse off than someone who owns their own property.

Tenant Traits

Further analysis of the report shows that private renters take fewer holidays and are able to save less money. In addition, they are more likely to make cutbacks due to larger affordability restrictions.

Momentum UK’s Index shows than 31% of private renters have less than £100 in savings. This is in comparison to 15% of people with a mortgage on their home. 37% of mortgage borrowers view their income as sufficient, in comparison to 16% of private renters.

Researchers revealed that renters send around half of their salary to their landlord every month. This is only likely to rise, given the fact that many landlords will be left with little alternative to increase rents to recoup losses caused by recent tax alterations.

These include alterations to stamp duty, scrapping the wear and tear allowance and upcoming changes to mortgage interest tax relief, scheduled for next month.

Tenants are spending half of their pay on rent

Growing Sector

Over four million households in the UK now rent from a private landlord, with this figure almost doubling in the last ten years.

Dominic Baliszewski, director of Consumer Strategy for Momentum UK, commented: ‘The average private renter loses around half of their pay cheque on rent at the beginning of each month, and for those living in London, it can be even higher. This not only limits their ability to save, but also means they have to cut back on expenses such as gym memberships, holidays and socialising just to get by.’[1]

‘With home ownership in decline, the number of people facing these financial challenges and seeing their living standards fall is only going to grow. That’s why it’s so important that the government delivers on the pledges made in its housing white paper,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/tenants-spend-half-their-pay-on-rent

The Front Door Colour that Could Help you Let your Property

Published On: March 22, 2017 at 9:20 am

Author: Em Morley

Categories: Landlord News

Tags: decor,interiors,lettings,property maintenance,property viewings,tenants

Competition in the lettings market becomes particularly fierce at this time of year, as tenants often look to move home during the spring. If you’re thinking of ways to better your chances of letting your property, it could be as simple as your front door colour.

The Front Door Colour that Could Help you Let your Property

It turns out that property viewers can sometimes be just as picky about the exterior of the home as they are about the interior, so making a good first impression with the front door colour is essential.

If you’re struggling to let your property or need to make some updates, simply giving the front door a fresh lick of paint could do the trick.

With the front door often being the natural route into a property, it is one of the most important external features to a prospective tenant, and one that they are likely to notice.

So which front door colour is the most popular choice?

According to a study by Westbury Windows & Joinery, painting your front door white could boost your chances of letting your property quickly.

As expected, stained and varnished finishes came in as the second most popular choice, with classy black in third.

Other popular front door colours include Oxford blue, post-box red and racing green – all very tasteful and timeless.

However, if you want to go for something more fashionable and on trend, paler tones such as grey, duck-egg blue and celadon green were also highly rated.

So which colours should you avoid? Painting your front door yellow, pink or lilac may well put potential tenants off!

When deciding on a front door colour for your rental property, remember to stick to classic colours or neutral shades – if in doubt, go white.

The research arrives following news that many first time buyers believe that it’s only possible to buy a home with a partner, meaning that around half of young people are living in rental homes.

Spruce up your front door colour in time for new tenants now!