Posts with tag: tenants

Private Sector Rents Not Rising Faster than Wages

Published On: January 20, 2017 at 9:28 am

Author:

Categories: Property News

Tags: ,,,,

Private Sector Rents Not Rising Faster than Wages

Private Sector Rents Not Rising Faster than Wages

Private sector rents in England are not rising faster than wages, in stark contrast to the social rental sector, where rents have increased faster than earnings, according to a new report from the National Audit Office.

Although private sector rents in England aren’t rising as fast as wages, the report does note that London is the exception to this. In the capital, rents are rising much faster than earnings, warns the National Audit Office.

The Residential Landlords Association (RLA) warns that this is a result of a chronic shortage of housing across all tenures in London. Indeed, it has been suggested that London’s housing bubble may finally burst this year, which would cause property owners to lose thousands off pounds off their assets and private sector rents to plummet.

The Royal Institution of Chartered Surveyors has also warned, “rents are being squeezed higher due to demand consistently running ahead of supply”, in its latest analysis of the sales and lettings markets.

The RLA cautions that there will be further pressure on private sector rents as a result of the forthcoming changes to mortgage interest tax relief.

The Policy Director of the RLA, David Smith, says: “Today’s findings from the National Audit Office will surprise those who have falsely sought to argue that landlords are profiteering. The question must surely now be why the heavily subsidised social rented sector is seeing its rents increasing so much more than earnings.

“We cannot afford to be complacent. Forthcoming changes to mortgage interest relief, due to be rolled out from April, will serve only to place upwards pressure on market rents, stifling the supply of homes to rent and reducing choice for tenants.”

He warns: “In the end, those who will suffer will be tenants unable to save for a house of their own, and the many vulnerable people, such as the homeless, who rely so much on the sector to provide a home for them.”

Property prices rise by 3.3% year-on-year

Published On: January 18, 2017 at 10:12 am

Author:

Categories: Property News

Tags: ,,,

A new report released by haart estate agents has shown that property prices throughout England and Wales fell by 1.6% during December. This resulted in an overall drop of 3.3% year-on-year, with the average property price at £224,991.

Demand

The investigation indicates that new buyer demand for homes slipped by 15.1% in December and is well down year-on-year, by 38.8%. What’s more, the number of homes coming onto the market declined by 16.7% in the month and by 7.5% in the year. Despite the decrease in stock, there has also been a decrease in the number of buyers. This meant there were nine buyers per instruction during December.

In addition, the market was more efficient in December, as transactions increased despite the number of viewings dropping. This means that buyers are looking at fewer properties before buying.

Purchase prices

Average purchase prices for first-time buyers rose during December, by 7.6%, but remain stable year-on-year. The rate of first-time buyers entering the market slipped by 17.3% month-on-month and by 44.7% in the year.

In London, the average price of a property slipped by 2.5% in the last month, leading annual growth to slip to 5.9%. The fall seen in December in the capital was greater than across the rest of England and Wales.

Property prices down by 3.3% year-on-year

Property prices down by 3.3% year-on-year

Seasonal Slowdown

The number of tenants coming onto the market fell by 12% in December, but increased by 1.7% year-on-year. In London, the fall was more prominent, with falls of 20.2% in the month and by 65.1% annually.

Buy-to-let sales also fell in the month and in the year.

Paul Smith, CEO of haart, observed: ‘A slight jump in transactions in December is definitely very promising, pointing to a cohort who have stopped sitting on their hands, brushed off their Brexit uncertainty and started to move on with their lives. Our applicant activity in the period after Christmas to date is up 5% on the year, which when considering the pre-stamp duty rush in early 2016, is very impressive. If the economy remains sound, renewed interest should translate into higher transaction rates in 2017.’[1]

‘It is certainly time we all moved on. The idea of Article 50 holding up someone’s decision to buy or sell a home is ridiculous nearly a year on from the referendum, especially as the economy has remained so robust. Prices cooling down is a good thing for buyers – now is a great time for them to get a good deal,’ he added.[1]

[1] http://www.propertyreporter.co.uk/property/positivity-surrounding-brexit-boots-housing-market-sentiment.html

 

 

[1]

Prime rental values fall in Home Counties during 2016

Published On: January 17, 2017 at 2:29 pm

Author:

Categories: Property News

Tags: ,,,,

Rents in prime locations of the Home Counties fell by an average of 0.8% last year, according to the latest Knight Frank rental index.

This fall has been attributed to a higher number of homes available at the top-end of the market pushing down prices.

Higher Volume

The rise in the volume of properties available in higher price brackets was primarily driven by larger uncertainty in the sales market after a number of tax alterations during 2016.

In the final quarter of 2016, prime rents in the Home Counties fell at twice the annual rate at 1.6%. Additionally, Knight Frank was instructed to let 39% more properties during the same quarter. Market appraisals also increased by 45% in the same period.

As such, Knight Frank feel that the market remains favourable to tenants, particularly those living in regions with high price brackets. Landlords in these areas have to be flexible in regards to asking rents, to try and stay competitive and keep void periods down.

Prime rental values fall in Home Counties during 2016

Prime rental values fall in Home Counties during 2016

Decline

Jemma Scott, partner at Knight Frank, said: ‘The latest figures show that the rental market in the Home Counties is equally affected by the global markets as prime central London, which is reflected in the marginal decline in rents.’[1]

‘However, the surge in activity in the last quarter of 2016 and the significant increase in new tenant registrations suggest that the gap between available stock and tenant demand is closing, so our outlook for 2017 is very positive,’ she continued.[1]

The number of viewings actually rose by 17% in the same period compared to 2015, with the volume of would-be tenants also rising by 28%. Knight Frank agents attribute this demand mostly under the £4,000pcm price bracket. These properties usually sell quicker than those in higher brackets, driven by an increase in corporate enquiries from executives moving to the Home Counties for work.

‘Already in the first week of trading for 2017, the sub £4,000 per month market remains busy and we have seen an encouraging number of international corporate enquiries as families and businesses plan for relocation to the UK,’ Scott concluded.[1]

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/prime-rental-values-fell-in-the-home-counties-last-year

The DPS’ Top Tips for Managing Deposit Disputes

Published On: January 17, 2017 at 9:17 am

Author:

Categories: Landlord News

Tags: ,,,

Most tenancies end without any dispute. In fact, only around 2% of those registered with The Deposit Protection Service (The DPS) need the involvement of the free, impartial Alternative Dispute Resolution (ADR) that it provides. Sadly, though, it is sometimes necessary, and the service focuses on coming to a decision that is fair to both parties. As a result, landlords need to understand how the system works and how best to make sure their view is fully heard. We asked Alexandra Coghlan-Forbes, The DPS’ Head of Adjudication, for their ten top tips for approaching disputes with tenants.

  1. Prepare in advance

Preparing for disputes starts with the inventory. We also recommend keeping records of repairs and communications with your tenants, as this can all contribute to your supporting evidence. You can find our guidance on how to create strong check-in and check-out reports on www.depositprotection.com. 

  1. Only claim for what you’re owed

Many landlords claim for the full amount of the deposit, instead of asking for a deduction that is fair to both themselves and the tenant. Our adjudicators will only award what they think is a reasonable amount to landlords.

  1. Read the guidance we send you
The DPS' Top Tips for Managing Deposit Disputes

The DPS’ Top Tips for Managing Deposit Disputes

We’ll send you information as part of the dispute process that’s crucial to understanding the procedure and what’s expected of you and your tenant. Make sure you read it so you know what you need to do. 

  1. Consider your evidence

Think carefully about the types of evidence you provide. We’ll need to see the tenancy agreement, but good quality photographic or video evidence, combined with invoices and witness statements, help adjudicators build a picture of the condition of the property at the start and end of the tenancy.

  1. Don’t miss deadlines

Dispute resolution operates to set timescales, so make sure you respond in the time required. Check your spam folder regularly, and if you’re going away, don’t forget to check your inbox, as not seeing an email isn’t a valid reason for missed deadlines.

6 .Don’t put off completing your paperwork!

Your paperwork is a key part of your evidence, so don’t leave it to the last minute to complete it, as this increases the chances you’ll make a mistake or omit something important.

  1. Make sure your documents are delivered on time

If you’re sending important documents, be sure to use a service that confirms they’ve reached us, such as recorded or special delivery. Don’t forget, dispute deadlines are for arrival of documents, not sending, so allow enough time for delivery. If you’re unsure if something has reached us, you can always call us to find out.

  1. Consider using a third party

We all lead busy lives, and if you’re not available while a dispute is taking place, you can authorise a third party to communicate with us on your behalf, nominating them in writing. All payments, decisions and automated notifications will still be sent to you, but you’ll benefit from the convenience of your third party being able to respond in your place.

  1. Got a problem? Let us know

If you’ve a problem with any aspect of the dispute resolution process, get in touch. We can advise you on any part of our processes you’re having an issue with. Our goal is to reach an outcome that’s fair to everyone, so we want you to get things right.

  1. You can still come to an agreement with your tenant

It doesn’t matter what stage you’re at in the dispute resolution process, you and your tenant can still negotiate an agreement between you. We’ll still need both of you to confirm the repayment amount to us, but it’s possible to save time and effort by keeping communication going.

How does Gumtree assist both landlords and renters?

Published On: January 11, 2017 at 9:54 am

Author:

Categories: Landlord News

Tags: ,,,,

In this guest post, John Daniell, Commercial Strategy Lead at Gumtree Property, explains how the platform works to help both landlords and tenants alike:

In Celebration of Choice

Finding tenants has come a long way from placing ads in agent windows or putting your listing in the local paper. Time and simplicity have become precious commodities for landlords and would-be tenants. The advent of the internet has brought with it an ‘always on culture’, with people now expecting to do what they want, exactly when they want. With this also comes the desire for much greater choice – from types of coffee to mobile phones – consumers not only expect it, but demand it. Finding a home is no different, with would be tenants expecting to be able to search a huge range of property whenever they want.

Changing Tastes

Gumtree was launched on this premise, offering choice and giving people a free and easy way to buy and sell. As a business, we are committed to giving renters and landlords a platform that opens up the best opportunities the market has to offer. What people want from a home has changed over time, for example our own research earlier this year revealed that 86% of renters now would not pay for a living room in a rented property, and 37% would rather have an en-suite than a communal space. Using data allows us to identify what is important to renters, in turn giving landlords a unique insight into the best way to market their property, helping them work with prospective tenants and get the best deal for both parties.

An Industry Issue

With choice and opportunity, the internet has also brought higher instances of fraud and cybercrime, making trust and safety an issue for all e-commerce and digital companies. Property websites of all shapes and sizes have a responsibility to ensure their users stay safe. Our property section is used by millions of people every year to list both properties for rent and for sale, and if a user has a bad experience we encourage them to report the incident to us or the police.

How does Gumtree assist both landlords and renters?

How does Gumtree assist both landlords and renters?

Still Sharing

There is much discussion currently about the ‘sharing economy’, which refers to ‘a socio-economic ecosystem built around the sharing of human, physical and intellectual resources’. This is the model on which Gumtree established itself sixteen years ago. As a platform it has retained its founding principles such as no fees, little paperwork and minimal hassle which have ensured its continuing popularity. With tenants and landlords continuing to demand real choice and flexibility, finding and renting property on their own terms, Gumtree has proved its staying power, and strives to be there for our trusted users in the future.

How to get the best out of Gumtree as a Landlord:

  • Upload images of the main rooms inside the property, including the kitchen, reception room, bathroom and bedroom, as well as the property’s exterior to give renters a flavour of what they’re buying in to. Give as much written detail as you can on the property, to avoid wasting time with renters and yourself.
  • Check out the local competition and how other landlords are marketing their property. Search for similar properties and what the going rates are as a guideline.
  • Market your property in the correct region, as Gumtree is spilt up by location (major cities and counties). Make sure you create an advert for the correct region by selecting the area in which the property is located and providing the postcode.
  • Refresh your advert as frequently as possible in order to get the most exposure, as Gumtree’s search results are displayed in order of freshness.

 

Could home staging be a simple way of improving yields?

Published On: January 10, 2017 at 10:34 am

Author:

Categories: Landlord News

Tags: ,,,,

Could home staging be this year’s simple way to make a property more desirable and deliver a higher rental yield?

Home staging goes past interior design to become a marketing tool to ensure that their rental property appeals to a bigger audience as possible.

There are a lot of measures that can be taken in order to improve the internal makeup of a property: Think furniture, lighting and bedding for example. Making your rental property appear more homely and effectively utilising space will attract more would-be tenants.

Furnishings

However, the furnishing of rental properties has been an afterthought for buy-to-let investors for a number of years. That is the view of Robert Walker, founder and managing director of Alexander James Interiors.

Mr Walker notes: ‘Often let unfurnished or at best, let with the bare minimum of items collected on a quick dash to Ikea, soulless properties have been presented to prospective tenants with the expectation of securing a tenancy.’[1]

Could home staging be a simple way of improving yields?

Could home staging be a simple way of improving yields?

‘With more people than ever living within the private rented sector, the expectations of tenants have never been higher-and that includes not only a safe and functioning home but an appealing interior also,’ he continued.[1]

Walker said that 2017 has been predicted to be an ‘annus horribilis’ for buy-to-let investors, given changes to mortgage interest tax relief and tougher mortgage lending criteria. He feels that savvy landlords should be taking whatever simple steps they can in order to maximise their yields.

Lucrative

‘From a landlords perspective, dressing a rental property can also prove lucrative,’ Walker added. ‘Alexander James Interiors has seen a significant rise in demand from landlords, both individual or accidental landlords and professional, multi-unit landlords, for the furnishing of rental properties over the last 18 months as property owners seek to increase their yields.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/1/dress-to-impress-to-achieve-a-higher-rental-yield