Posts with tag: tenants

Typical tenants expect to rent for the next decade

Published On: September 14, 2016 at 8:57 am

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A new survey has suggested that the typical UK tenant expects to stay part of the Private Rented Sector for the next ten years.

Research conducted by AXA indicates that despite this, fewer tenants say they are renting as they cannot afford to buy a property.

Altering attitudes

In 2013, 67% of tenants questioned said that they rent property as they cannot afford to buy. This year, this figure has dropped to 44%, indicating that people’s attitudes towards renting are changing.

One third of those questioned said that their main reason for renting was due to the ‘freedom and lifestyle benefits’ it brings.

Additionally, AXA says that tenants in the UK are experiencing something of a surge in financial confidence. In 2013, only 13% of those surveyed said they were saving up for a deposit. This figure has nearly doubled this year to hit 25%.

Relocation, relocation, relocation

The survey also shows that tenants are beginning to favour more frequent relocation, believing they will stay in a rental property for an average of two years.

61% of the 1,000 surveyed said that they are in favour of short-term contracts of six months to a year. Just 18% said that they would benefit from five or ten year leases.

In the next five years, nearly two-thirds of those asked said that they plan to relocate to a different part of the UK. 10% said they plan to emigrate.

Topping the list of so-called stepping stone towns were London, Bristol and Edinburgh, where tenants tend to stay for the shortest period.

Typical tenants expect to rent for the next decade

Typical tenants expect to rent for the next decade

Worries

AXA’s survey also reveals that landlords’ biggest concern is a high turnover or tenants. Only a minority said that they know their tenants personally, with a huge 70% saying they see their renters once a year or less!

Darrell Sansom, managing director at AXA Business Insurance, said, ‘rental culture is not as well embedded in British society as in other European countries. Short-term tenancies prevail here and while bringing benefits to some, this means that both landlords and tenants can feel as if the ground is constantly shifting under their feet.’[1]

‘With such a mobile tenant population, landlords need to work that bit harder to encourage longer stays. Few tenants are interested in being locked in to a long lease, but little compromises on things like pets, freebies like broadband or cleaning services, offering to redecorate-can build precious loyalty,’ he concluded.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/9/average-tenant-expects-to-rent-for-ten-more-years

Rental rises continue through August

Published On: September 7, 2016 at 10:13 am

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New figures from the HomeLet Rental Index suggest that the rental market has remained steady in the face of economic, political and legislative changes.

The Index has recently been redesigned in order to include additional data on new tenancies, alongside property type and location. Results show that rents agreed on new tenancy agreements increased in most areas during the three months to August, albeit at a moderate rate.

New tenancy costs

According to the data, the average price of a new tenancy in the private rental sector rose by 3.1% in the period to hit £913pcm. This was a rise from the £885pcm recorded in August 2015.

August 2016’s HomeLetRental Index shows that rents have risen in eleven out of twelve regions of the UK year-on-year. The North East was the only region to see a fall in annual rents, with prices down by 1.6%.

While rents continue to rise, they do so at a more contained pace. The 3.1% increase seen during August is comparable to rises of between 3.5% and 3.8% seen over the previous four months. The largest slowdown was evident in London and the South East.

Results by region can be seen below:

Region Average rent in August 2016 Average rent in July 2016 Average rent in August 2015 Monthly variation Annual variation
East of England £915 £911 £864 0.4% 5.8%
Wales £654 £649 £622 0.8% 5.2%
North West £699 £693 £670 0.8% 4.3%
West Midlands £674 £658 £652 2.3% 3.3%
South East £1,034 £1,027 £1,001 0.7% 3.3%
Northern Ireland £627 £618 £610 1.4% 2.8%
Greater London £1,497 £1,492 £1,457 0.4% 2.7%
South West £799 £789 £787 1.3% 1.6%
Yorkshire & Humberside £640 £637 £632 0.5% 1.3%
Scotland £629 £643 £622 -2.1% 1.1%
East Midlands £621 £618 £615 0.5% 1.0%
North East £535 £543 £543 -1.6% -1.6%
UK £913 £907 £885 0.6% 3.1%
Notes: Based on new tenancies in August 2016 Based on new tenancies in July 2016 Based on new tenancies in August 2015 Comparison of average rent in August 2016 and July 2016 Comparison of average rent in August 2016 and August 201

[1]

Rental rises continue through August

Rental rises continue through August

Finding a balance

Martin Totty, chief executive of Barbon Insurance Group, HomeLet’s parent company, observed: ‘The latest Index reflects a market in which landlords are engaged in a delicate balancing act: they’re aware of tenants’ concerns about affordability while also conscious of the need to achieve target yields. August’s figures suggest that rents are continuing to rise at a sustainable pace-ahead of price inflation, but well below house price increases, which were running at close to 6% according to the most recent data.’[1]

‘In the medium to longer term, the fundamental driver of rents will be the balance between demand and supply for rented property. We expect demand in the private rental sector to continue to grow, in line with demographic changes such as population growth and as affordability concerns remain in the house purchase market, so it is important that we see efforts to support supply,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/rents-continue-to-rise-in-august

 

Are accidental landlords causing issues for the PRS?

Published On: September 6, 2016 at 9:09 am

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A concerning new report has suggested that so-called accidental landlords could unknowingly be making serious issues in the private rental sector worse. These problems included property disrepair and unfair evictions.

This worrying report is entitled, ‘The impact of accidental landlords on the private rented sector,’ and was written by property expert Kate Faulkner. Funding for the piece was provided by the TDS Charitable Foundation.

Issues

Faulkner has already penned a separate report, called, ‘who are the individual landlords providing rented accommodation?’ This report highlights that a substantial section of landlords providing accommodating to private tenants are not actually professional landlords. Instead, they are accidental landlords, who never thought of letting their property.

Of course, this has implications for the Private Rental Sector, as there is a risk that some tenants could end up renting from landlords with limited knowledge of the responsibilities attributed to being in this role. Accidental landlords could struggle with rules and regulations, alongside managing costs.

The report suggests that accidental landlords could unwillingly be contributing to the serious issues of property disrepair. The latest English Housing Survey reveals that 29% of properties in the private rented sector are, ‘non-decent.’

Are accidental landlords causing issues for the PRS?

Are accidental landlords causing issues for the PRS?

Focused

Commentating on her report, Faulkner said, ‘due to the impact that accidental landlords can have on the Private Rental Sector, this report considers the definition of accidental landlords and why a landlord who isn’t wholly focused on making money from property may end up being potentially more likely to let one that is substandard and accidentally treat tenants unfairly.’[1]

Data from the report indicates that in some regions, this type of landlord could make up 30% of rental stock for tenants. Faulkner has called on councils to be more aware of the problem as they could let to unsuspecting tenants and unknowingly break letting laws.

In order to educate accidental landlords, the report suggests that lenders and insurance companies give as much information as possible to help them understand their rights and responsibilities.

Understanding

Faulkner has also called on local authorities, policy makers, tenants groups and others that provide services to landlords to ensure that their own staff understand tenants’ rights. She hopes that eventually, accidental landlords will be better equipped to let their properties legally and to treat their tenants fairly.

Concluding, Faulkner said, ‘the problem with accidental landlords is that as they don’t do this as a business they may well not have any way of keeping up to date with changes in rules and regulations. As a result, continuing to simply introduce new legislation to solve the issues around disrepair or tenant security of tenure may have little impact on this sector of the market. A concentrated effort to tackle better education and briefing of accidental landlords may actually be one of the key ways to improving standards in the Private Rented Sector.’[1]

[1] http://www.propertyreporter.co.uk/landlords/are-accidental-landlords-causing-problems-for-the-private-rented-sector.html

 

Victory for Bristol Tenants in Subletting Scandal

Published On: September 5, 2016 at 10:48 am

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Two Bristol tenants have won a landmark victory in the private rental sector after suffering a subletting scandal.

The couple faced eviction from their flat after discovering that the man they were renting from did not actually own the property. The pair has now won their case in the Bristol Civil Court to avoid being evicted.

Avik Banerjee and Katarzyna Kobylka successfully challenged an eviction order issued to them by the man who did own their flat, in what tenants’ rights campaigners have called a huge victory for private tenants suffering from Bristol’s housing crisis.

Victory for Bristol Tenants in Subletting Scandal

Victory for Bristol Tenants in Subletting Scandal

Mr. Banerjee and Ms Kobylka faced homelessness if they were evicted from their flat on Stapleton Road in Easton.

However, the couple managed to persuade a judge at the court that the owner of the flat, Nazir Ahmed, had not properly served the eviction notice, as it did not have their names on it.

The pair’s nightmare began when they answered an advertisement on Gumtree for a flat to rent in Easton last August. They met the man who placed the advert, Joe Pike, viewed the property and signed a tenancy agreement with him, paying £450 a month in rent.

Ahmed served an eviction notice in June, but as it simply stated “Joe Pike and other tenants”, the couple decided to challenge it.

The judge was told that Mr. Ahmed had no idea Mr. Pike was subletting the flat to the couple, while the pair claimed that the two men were “working together” and that Mr. Ahmed was completely aware that they were living there. Mr. Ahmed denied the claim.

The case collapsed when Mr. Pike admitted that he had formally left his tenancy in May 2015, but kept a set of keys for the flat and began subletting the property to the couple later on that summer.

The judge agreed that the couple should be given the correct two months’ notice to leave the property – something they wanted to do anyway.

Mr. Banerjee explains: “We decided to stand up because if we didn’t, who will? We could have left and not made a fuss and cried about what happened to us, and maybe wanted or wished someone else would stand up for us, but no one would have.

“Everyone we went to, every solicitor, and the council’s housing person, told us just to leave and not fight it, because they said we would lose, but we had nowhere to go and we knew we were right.”

Mr. Ahmed told the Bristol Post that he was the “innocent party”, blaming Mr. Pike for “dropping him in it”.

He said: “I’ve had no rent at all. I haven’t been in the flat threatening anyone. I’m an innocent party and I’ve lost out. The judge never gave me a chance to talk in court.”

Nick Ballard, the organiser of social justice group ACORN Bristol, said the case shows the extent of the housing crisis in the city and the victory is important in solving it.

“This case shows that there are landlords who will set up illegitimate deals, whether for tax or other reasons, and that puts tenants into the firing line through no fault of their own,” he insists.

“That’s why we need proper regulations and a code of conduct. Renting out property is a business and should be treated as any other business, but there’s no proper legislation and that’s why you get predatory individuals as landlords.

“Avik and Katarzyna felt angry enough and stood up for themselves and the court found in their favour – this is why ACORN exists, to give them and other renters the support they need.”

Landlords, this guide will help you serve an eviction notice correctly: /legal-expert-offers-advice-landlords-section-21-notices/ 

Rental property supply at highest level so far in 2016

Published On: September 3, 2016 at 9:06 am

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The total number of rental properties available through letting agents is at its highest level so far during 2016, according to a report from the Association of Residential Letting Agents.

In July, the number of  properties on letting agents’ books stood at 184, a rise of 5%. This has moved to reassure a number of worried would-be tenants who were fearful off a post-Brexit drop.

Year-on-year however, supply is actually down. In July 2015, the number of properties available through letting agents stood at 189-three percent higher than this year.

Rental reaction

During July, the majority of agents recorded little change to rental prices, supply of property and demand from tenants. 71% saw no alteration in rents, with 62% seeing no movement in supply. 61% said that they hadn’t seen any substantial change in demand.

44% of agents reported that there was a slight sense of uncertainty from landlords looking to let properties.

Rental property supply at highest level so far in 2016

Rental property supply at highest level so far in 2016

David Cox, managing director at the Association of Residential Letting Agents noted, ‘despite reports that the housing market is spiralling out of control post-Brexit, our results paint a very different picture and indicate that the future is bright for the rental market. Supply is up, as we’d expect at this time of year and the number of tenants experiencing rent hikes hasn’t changed in three months. While we obviously need new houses to balance the growing gap between supply and demand, what’s positive is that the situation isn’t worsening as a direct result of June’s Brexit result.’[1]

[1] http://www.propertyreporter.co.uk/landlords/rental-property-supply-at-highest-level-this-year.html

 

Landlords, Save Up to £1,600 a Year with New Digital Management Agency

Published On: September 2, 2016 at 9:16 am

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Landlords, did you know that a new digital management agency has now launched, which will help you save up to £1,600 a year in fees?

NoAgent.co.uk uses technology to automate the marketing, administration and maintenance of its rental properties, as well as supplying 24/7 support from experienced property professionals.

So how does the new management agency work?

Free marketing

No Agent offers free advertising on the UK’s major property portals (Rightmove, Zoopla, etc.), granting access to a much wider audience without using local letting agents.

No extra fees

A simple fee structure means that landlords are charged just £39 per month for London properties and £29 a month outside of the capital. Landlords and tenants face no additional fees. Furthermore, landlords aren’t tied into a long-term contract and can cancel at any time.

Landlords, Save Up to £1,600 a Year with New Digital Management Agency

Landlords, Save Up to £1,600 a Year with New Digital Management Agency

No paperwork 

Landlords can manage their properties using a real-time dashboard. All administration is handled online or through No Agent’s 24-hour call centre, including viewings, reference and credit checks, contracts, check-in, compliance reminders, maintenance and deposit/rent collection.

Tenants can also use the online system to organise viewings and manage application documents, while also avoiding additional agency fees.

Easy payments

No Agent has introduced direct debit payments, allowing landlords to switch from using standing orders.

Expert advice

Landlords will have instant access to property managers, with an average of five years’ experience, and a legal helpline.

The firm has also announced that veteran property technologist Gillian Kent has joined as Chairman. Her previous roles include CEO of Propertyfinder.com, which was sold to Zoopla in 2009 and integrated into its platform, and Managing Director of MSN UK.

Kent says: “Despite the impact of the digital revolution, property services haven’t fundamentally changed. No Agent is the only service that completely automates a range of essential tasks, such as marketing, bookings, reference checks, maintenance and compliance.

“Strategically, what we’re doing is empowering landlords to fully manage all aspects of the letting of their property, and save money as a direct result. Agencies currently earn £115m a year in fees for doing these sorts of tasks.”

By using technology throughout the lettings process, No Agent can offer industry-leading prices and access to round-the-clock support. This process saves money, time and increases transparency.

“The average monthly rent outside of London is now £779,” Kent points out. “So when you add on standard agency charges like a month’s rent, together with monthly management fees of up to 15%, the first year cost for a landlord is close to £2,000.”

She continues: “By contrast, using No Agent would save them just shy of £1,600. Tenants will also be better off, as we don’t charge for services like drawing up tenancy agreements and credit checks. However, letting agencies now typically charge tenants £337 in fees – many in London are forced to pay over £400.”